mykeystrokes.com

"Do or Do not. There is no try."

“Barking Up The Wrong Tree”: Ted Cruz Keeps Talking About ‘Wages’ — But He Won’t Support Raising Them

“Washington” is keeping wages down and impoverishing the American middle class, at least according to Ted Cruz, who has adopted economic populism as a line of attack against the political establishment as a routine part of his stump speech in recent months.

The Texas senator has tried to link rival Donald Trump to Democratic frontrunner and perennial enemy of the American right, Hillary Clinton. But the argument that the federal government, and by extension the Obama administration, was responsible for the decline in wages of American workers, was yet another baseless charged levied against a rhetorically-convenient “Washington establishment.”

Where to start. It’s unclear whether or not Cruz believes in a minimum wage. He has argued against a minimum wage, saying it leads to job losses among American minority groups. “Every time we raise the minimum wage, predictably what happens is a significant number of people lose their jobs, and they’re almost always low-income, they’re often teenagers, African Americans and Hispanics,” he said, voicing concern for demographic groups that are unlikely to vote for him anyhow, and for whom his policies don’t reflect the concern of his talking points.

In Cruz’s mind, the minimum wage is best left to the states. While he assails the loss of American jobs, sounding much like a vague, rehearsed mashup of Donald Trump and Bernie Sanders in their criticism of outsourcing, his policies have a different end in mind: employment above all else.

“I think it’s bad policy,” said Cruz on CNBC, criticizing the existence of a minimum wage. “And you know, one observation I make to folks is next time you go to a fast food restaurant and you start ordering on an iPad, you’re seeing the minimum wage.”

During a Senate hearing in 2014, Cruz spoke out against President Barack Obama’s proposed federal wage increase to $10.10. He said:

The undeniable reality, the undeniable truth, is if the President succeeded in raising the minimum wage it would cost jobs for the most vulnerable. The people who have been hurt by this Obama economy would be hurt worse with the minimum wage proposal before this body. In 2013 the President in his State of the Union address proposed raising the minimum wage to $9.00. Now a year later the request has magically changed to $10.10. The only reason (there’s no economic justification) the only reason is politics. And I suppose if the approval ratings of democratic members of this body continue to fall in another month we’ll see a proposal for $15.00 an hour and then maybe $20.00 or $25.00 an hour. But I think the American people are tired of empty political show votes. The nonpartisan congressional budget office says that raising the minimum wage could cost a loss of 500,000 to 1 million jobs.

Cruz is barking up the wrong tree. It is not the $7.25 an hour minimum wage that made companies like Carrier, whose managers were infamously recorded laying off 1,400 at its Indianapolis plant earlier this year, outsource those jobs to Mexico. As the Economic Policy Institute pointed out in a 2003 report, NAFTA resulted in a period of job growth in the U.S. between 1994 and 2000. But starting in 2001, jobs started disappearing. “Job losses have been primarily concentrated in the manufacturing sector, which has experienced a total decline of 2.4 million jobs since March 2001,” read the institute’s report. “As job growth has dried up in the economy, the underlying problems caused by U.S. trade deficits have become much more apparent, especially in manufacturing.” It pointed to systemic turmoil in internationalized labor markets, the result of free trade agreements, which allow companies to move to where living costs (and thus labor) are cheapest.

But for Cruz, the problem has always been the minimum wage, despite evidence to the contrary: Another EPI report released in 2013 outlining the benefits of increasing the minimum wage to $10.10 concluded, “Raising the federal minimum wage to $10.10 by 2016 would lift incomes for millions of American workers and provide a modest boost to U.S. GDP.”

Despite the doomsday predictions from Cruz and the rest of the 2016 Republican field, the report also predicted large increases in employment. By increasing the federal minimum wage to at least $10.10, low wage earners would experience a recovery of real income the likes of which we haven’t seen in decades.

However, the federal minimum wage has not budged by even a penny, leaving wage increases largely to states or large American cities, exactly the sort of decentralized political process Cruz would be expected to support: Los Angeles, San Francisco, Seattle have all instituted $15 per hour minimum wages following concerted efforts by local organizations that stemmed partly from frustration over partisan gridlock in Washington. Both California and New York’s governors signed bills this year approving wage increases to the $15 an hour benchmark over a period of time. A total of 29 states, and Washington, D.C., have instituted their own minimum wages exceeding the federal minimum wage, as a result of slow progress on the federal level.

Since the minimum was last raised to $7.25 in 2009, it has lost 8.1 percent of its purchasing power as a result of inflation, according to Pew Research. The OECD has described the American minimum wage as an outlier amongst wealthy, industrialized nations — it should really be around $12, if we were to use GDP per capita as a guide. American workers are in desperate need of a minimum wage increase, not just poorly paid employment.

 

By: Saif Alnuweiri, The  National Memo, April 29, 2016

April 30, 2016 Posted by | Jobs, Minimum Wage, Ted Cruz | , , , , , , , , | Leave a comment

“Outsourcing Of Jobs”: Scott Walker’s Secret Love For Red China

Just before the 2012 presidential election, a prominent Republican governor appeared on Chinese state television wearing a lapel pin on his dark blazer that depicted that country’s hammer-and-sickle flag.

In an interview, he brushed off his party’s concerns about trade with China, downplayed citizens’ worries about outsourcing, and called the country’s trade practices “good and fair.”

That governor was Scott Walker—the same governor who, on Tuesday, confused just about everyone by saying Obama should make the Chinese president cancel his upcoming state visit. Same guy.

Walker has a record as being extraordinarily comfortable with China and its leaders, even going so far as to praise the country’s trade practices on government TV.

China and international trade issues have become central to the 2016 presidential campaign, especially given that the country’s economic struggles precipitated Monday’s stock market dive. As he’s done with immigration, Walker fast moved to be the furthest right on China, releasing a statement calling for Obama to cancel Chinese president Xi Jinping’s upcoming state visit.

“Given China’s massive cyberattacks against America, its militarization of the South China Sea, continued state interference with its economy, and persistent persecution of Christians and human rights activists, President Obama needs to cancel the state visit,” Walker said in the statement.

But up until yesterday, concerns about Chinese currency manipulation and human rights violations seemed far from Walker’s mind. (Of note: human rights leaders also called for Obama to cancel Xi’s visit.)  Throughout his governorship, Walker adopted rhetoric and policies that sought to build bridges and deepen relationships between China and Wisconsin—even though, according to one analysis, the Badger State lost more than 600,000 jobs during his tenure because of the growing Chinese trade deficit and the country’s currency manipulation. Let’s take a look, shall we?

Walker has criticized Xi Jinping’s upcoming state visit for being mere “pomp and circumstance.” But pomp and circumstance didn’t bother him in 2011, when he attended an official dinner in Chicago for then-Chinese president Hu Jintao. The city’s mayor at the time, Richard Daley, hosted the dinner on Jan. 21, 2011—a little more than a week before Walker’s inauguration. Valerie Jarrett, Sen. Mark Kirk, and Sen. Dick Durbin also attended, according to a press release from the city. Walker and the other guests savored “a traditional Midwestern menu with Asian accents,” and listened to Daley discuss his efforts to promote the study of Chinese language and culture in city public schools.

Over the course of his governorship, Walker didn’t exactly try to put daylight between the Badger State and China. Shortly before the 2012 presidential election, Walker made an appearance on CCTV—a Chinese state television broadcaster—sporting a lapel pin that depicted the American and Chinese flags side by side, waving over Wisconsin (Wisconsin blogger Jud Lounsbury flagged the video on YouTube in 2013).

The conversation was pegged to the criticism that the Republican presidential ticket had leveled at China’s trade practices.

“Despite all the criticism on China from the Romney/Ryan campaign, Gov. Walker has been an advocate of bringing more Chinese investment to his state and increasing trade with China,” said the host, introducing the segment by contrasting him with fellow Wisconsinite Paul Ryan.

Walker said state leaders needed to communicate with Chinese investors about the benefits of trade with Wisconsin.

“[I]t’s our responsibility to show them good investments that will ultimately help put people to work in our state, that will provide a return on investment to those Chinese investors,” Walker said. “It’s not only good for our state, good for our employees, good for the investors, but also good for the people of China.”

He also called the trade status quo “good and fair.”

“The best way for us to show that there’s a good and fair trading system is to do what we’re doing right here. We’re living!” Walker said. “We’re not just talking about — we’re living it this week, we’re putting in place something that’s a mutually beneficial scenario, and I think that’s what most people and most voters ultimately want out of their leaders.”

And he said Wisconsin’s trade with China didn’t result in outsourcing.

“You look at that almost $1.4 billion worth of exports from Wisconsin to China—that’s not exporting jobs, that’s exporting products,” he said. “That’s a win-win.”

Walker backed up that rhetoric with action. A few months after appearing on Chinese state TV, he led a trade mission to China that included representatives from a variety of companies, as well as from the now-troubled Wisconsin Economic Development Corporation and the state government. They visited Beijing, Shanghai, and Harbin, according to a press release.

While he was there, Walker attended the U.S.-China Governors Forum. Terry Branstad, the Republican governor of Iowa, led the American governors’ delegation there.Branstad took those two to visit Xi during the trip, according to the Des Moines Register. The paper noted that Xi rarely meets visiting foreign dignitaries, and that Walker benefited from Branstad’s ability to make the introduction.

Walker also opened a Wisconsin/China trade center in Shanghai on the trip.

“This trade center strengthens our relationship with China and provides Wisconsin businesses the resources and assistance to pursue export opportunities in this growing market,” he said, according to a press release. “Through the years, Wisconsin has built a strong trade relationship with China, and the opening of the Wisconsin Center China will help Wisconsin businesses continue to strengthen our trade relationships and grow export opportunities.”

(Note: Nothing on persecution of Christians or human rights abuses.)

Back home in Wisconsin, concerns about China got him in a bit of trouble. Walker’s 2013-2015 biennial budget proposal included a provision that would have foreign individuals and corporations own unlimited amounts of land in the state, even if they didn’t live there.

“[T]here’s no question that this would allow the Chinese government to buy a big chunk of land in northwest Wisconsin if it wanted to,” said then Republican state Sen. Dale Schultz at the time, according to the Wisconsin State Journal.

Republicans yanked that provision from the budget after it drew outrage.

But that didn’t constrain the governor’s energy for improving relations with China. On his trade trip, he oversaw the finalization of a handful of trade deals, including one in which one of the country’s biggest medicine companies promised it would only sell ginseng in its stores if it was from Wisconsin. According to WBNS-10TV, the Chinese prize Wisconsin ginseng, but the market is riddled with counterfeit products that claiming to be from Wisconsin but aren’t. Walker estimated the deal could be worth up to $200 million to businesses in the state.

Since then, Wisconsin’s Lieutenant Governor Rebecca Kleefisch has lavishly praised the state’s relationship with China. On Dec. 8, 2014, her office put out a press release touting the ginseng deal and saying she and Walker were committed to “diplomatic relationships that will position Wisconsin to benefit from Asia’s rise.”

The New York Times reported in July that Walker “met or [spoke] with” Xi Jinpeng at some point in the last few months, as well as other world leaders.

All this is to say that Walker helmed energetic efforts to improve Wisconsin’s trade relationship with China. But he doesn’t appear to have done much to check the nation’s currency manipulation and unfair trade practices.

Robert Scott, the director of trade and manufacturing policy research at the Economic Policy Institute—a labor-affiliated think tank—said Walker could have gone much further in pushing back against China. Scott said Walker could have filed an unfair trade practices complaint with the World Trade Organization or pressured the Treasury to do more about China’s currency manipulation.

“I’ve heard no efforts from the governor or anyone else on that front, until last week,” Scott said.

A spokesperson for the Wisconsin governor’s office didn’t respond to a request for comment on if Walker had (or could have) pursued any of those remedies.

Scott added that canceling Xi’s state visit “could cause China to overreact.”

“The Chinese are very sensitive to saving face,” he said, “and I think if you were just to insult the Chinese president, just for the sake of insulting him, I don’t think it would be useful in improving the relationship.”

“I think it could cause China to dig in his heels,” he added.

And, Scott noted, that could be particularly tough on Wisconsin. Scott’s research indicates that Wisconsin would stand to benefit more than any other state if China and other countries stopped manipulating their currencies because of the state’s sizable durable goods industry.

Scott’s research also tracks how many jobs individual states lose each year because of outsourcing. He estimates that, thus far in Walker’s governorship, Wisconsin has netted 600,000 lost jobs because of outsourcing to China.

 

By: Betsy Woodruff, The Daily Beast, August 26, 2015

August 26, 2015 Posted by | China, Scott Walker | , , , , , , , , | 2 Comments

   

%d bloggers like this: