If you doubt the mortal economic wound from the proposed resurgence of unionism, just review what has happened to the original domestic automobile industry.
To picture what Senator Obama's economic policies hold in store for the United States look at the destructive impact of those policies in individual states.
The New England states and New York once were the industrial heartland of the United States. After the Civil War, industrial growth moved westward into Ohio, Michigan, Illinois, and neighboring states. Even as recently as the end of World War II, New York City was the greatest manufacturing city in the world.
No longer. What happened?
To some extent the demise of these centers, especially a crowded New York City, reflects changes in technology and transportation. Trucking on the interstate highway system surged in the 1950s and the rise of air freight shifted lots of freight traffic from railroads. More cost-effective single-story, spread-out manufacturing plants along interstate highways replaced the multi-story plants in major cities that had to be within walking or subway and bus ride distances from workers.
The real killer, however, was the accelerating acceptance of liberal-progressive theories about state-planning and welfare programs designed to implement income redistribution required by socialism's conception of social justice. Those theories brought with them much higher taxes, expanded regulation of businesses, and militant labor unions demanding higher wages and benefits.
New York City, once also the greatest ocean port in the world, saw ocean traffic increasingly transferred to Baltimore and other ports. By general consensus, New York's militant and crime-ridden International Longshoremen's union was the principal motive force.
Other businesses began to flee to friendlier economic climates in the Southeast and the Southwest.
For statistics comparing Illinois, Ohio, and Michigan with Texas, Florida, and Arizona, read "If You Like Michigan's Economy, You'll Love Obama's," by Phil Gramm and Mike Solon.
On the international stage, what has happened in state-to-state competition for jobs has made the United States vulnerable to competition from foreign suppliers, in whose countries the largest growth of jobs and living standards is occurring.
Senator Obama's proposed higher taxes on businesses, especially on small businesses organized as Subchapter S corporations, will put the brakes on job creation in the United States. His support for expanded environmental regulations based on bogus theories about man-made global warming, along with laws designed to reinvigorate labor unions, will be additional millstones weighing down business.
If you doubt the mortal economic wound from the proposed resurgence of unionism, just review what has happened to the original domestic automobile industry. Non-unionized foreign producers can ship parts halfway around the world and have them assembled here in the United States at costs significantly below those of heavily-unionized GM, Ford, and Chrysler. Toyota shortly will displace GM as the largest auto manufacturer in the world.
Senator Obama proposes to favor special those special interests, as well as tort lawyers, and to expand the welfare state for the short-term benefit of buying votes in the presidential election, heedless of the cost to future generations of workers in the United States.
viewfrom1776@thomasbrewton.com
http://www.thomasbrewton.com/
Read more articles by Thomas E. Brewton
Having worked in Detroit most of my life I can attest to the veracity of the statements in this piece. Not only the big three auto makers, but even as far back as the 70’s we can look at the “Machine Tool” industry to see that we were eating our seed crop. I recall a year, back then, where GM had earnings of $4 billion and machine tools sales in the USA were $4 billion, meaning that GM could have bought up every machine tool sold that year. Over the last 30 years the names have all changed. Gone are Excello, Giddings & Lewis, Kearney & Trecker, Leblond, Monarch, Browne & Sharp, Cinncinatti Milling Machine, Cross Co., Jones & Lamson, and others. They have been replaced by Japanese and German companies to a large extent.
Also gone is the capltalist idea of trade unions that labor is a player in commerce with the goal of promoting the best for it’s members by negociating the price of services. To drive the price up to a level that put your employer in bankrupcy was unthinkable then.
Comment by Ivan Ivanovich | September 17, 2008
It's not just the NY/NJ ports who have and are falling to the unholy Union-Liberals alliance. Have you taken a look at what is happening with the "Clean Trucks" programs at the ports of LA and LGB on the other side of this great continent? It is the death knell of freedom for owner-operators and the scrappy startup smaller drayage firms. Big liberal and union capitalized businesses will raise prices because the scrappy little guy is locked out of the party.
And as sure as water is wet- it will drive cargoes away from the USWC ports (because PDX/SEA/OAK/etc. are for sure to follow) and to the Gulf and USEC-SE.
Until Punta Colonet(with compatible rail northwords of course) comes on line that is.
http://www.bostonherald.com/business/general/view/2008_08_28_With_an_eye_on_US_shipping__Mexico_seeks_new_port/
Comment by Jean Poole | September 18, 2008