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Posts Tagged ‘Export’

Rexnord Corporation is closing its ball bearings plant in Indiana, laying off its 350 workers, and exporting those jobs to Mexico. In addition, as part of its US workers severance package, many of those workers are training their Mexican replacements, who will $3 an hour with no benefits. John Feltner is a machinist earning $25 an hour in the Indianapolis, Indiana plant. He resents having to train his replacement, but he’ll lose his severance package of $5,000 if he refuses.

Most of the difference in pay between US and Mexican workers will go straight into the pockets of wealthy shareholders. Rexnord’s share price peaked at $30.82 in April 2014. It’s been dropping ever since. It hit a low of $14.72 on January 15 2016, rose a tad, and has stayed stagnant since, hovering around $22. No doubt CEO Todd Adams is hoping that exporting jobs to Mexico will increase its bottom line and attract investors to bid up the share price and his compensation. His CEO pay is tied to the share price thanks to legislation signed by then President Bill Clinton.

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Exporting jobs and CEO pay tied to corporate share price are two of the biggest factors in the widening gulf between the 1 percent and everybody else because they redistribute income and wealth from one group to the other. Currently, six individuals own more wealth than the bottom 50 percent of humanity, while the 1000 richest individuals own more wealth than the bottom 70 percent. Currently, in the USA, the 1 percent steal 35 percent of all income every year, compared to 8 percent in 1980, thanks to their ownership of such politicians as the Clinton’s, Wyden, Mitch McConnell and Orrin Hatch.

John Feltner and his 350 fellow workers lost their jobs thanks to Bill Clinton, who signed legislation deregulating Wall Street, as well putting his signature on the North America Free Trade Agreement (NAFTA. NAFTA was negotiated by Clinton’s representatives with an eye to getting US corporations to export US jobs to Mexico in order to boost their bottom lines. After he left the presidency, Wall Street rewarded the Clinton’s for their service to the tune of tens of millions of dollars. The Clinton’s are still faithful servants of Wall Street in their war against the middle class, such as the workers at the Rexnord plant.

We also can’t forget Democratic Wall Street Senator Ron Wyden has continuously supported redistributing the income of the middle class to billionaires. The Democratic Party is corrupted to the core by big money, though maybe a bit less than the Republican Party. But then again, maybe not.

“The big picture is that American jobs are leaving this country to exploit cheap labor,” Feltner said. “When you start taking away the middle class, what do you have left?”

This is the sentiment that President Donald Trump played to so effectively during the 2016 presidential campaign. It spoke to John Feltner somewhere down deep.”

“He’d been a loyal union man for years, been raised on the notion Democrats were the party of the working man and made calls for Democrats from union phone banks. But after the trade agreements that Bill Clinton and Barack Obama signed, and after Trump spoke to the plight of workers at places such as Carrier, John Feltner broke ranks.

With the layoff fresh on his mind, he cast his November vote for Trump. He says most of his rank-and-file union members did the same.”

And what were those workers supposed to do? Support Hillary Clinton who aspired to export millions of US jobs to China via the Trans Pacific Partnership (TPP), which was being negotiated on behalf of Wall Street by then President Barack Obama?

Feltner and his fellow employees don’t know what they’re going to do once their jobs are gone. Thank you Bill Clinton. Thank you Barack Obama.

For more on this story, click the following link, Rexnord’s Indiana Plant Exported to Mexico–USA Today

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This week, the Ford Motor Company announced that it was no longer going to export all small car production to Mexico, which meant exporting US jobs. The company will invest $700 million in Michigan, instead, and create another 700 jobs in the process.

Ford CEO Mark Fields said this move was a vote of confidence in Donald Trump. “We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.

During the election season, Trump repeatedly slammed Ford for exporting tens of thousands of US jobs to Mexico.

Now here’s what you haven’t been told. Ford’s share price dropped from a recent high of $17.72 in 2014 to $11.34 on November 2016. Then came the election on November 8, and a subsequent rise in the overall price of corporate shares. So far, Ford’s share price has risen to $13.17 since November 4. Would Ford have kept the jobs in the USA if its share price was heading in the other direction. Not likely.

The billionaires, Wall Street investment corporations and hedge funds are taking cash out of the bond markets and stuffing that cash straight into the stock markets, thereby expanding the bubble, which will soon pop.

When the bubble pops, share prices will fall, and you can bet your bottom dollar that Ford will soon be exporting as many jobs as possible to enhance its bottom line and prop up its failing share price.

The economy should hit the recession by June of this year. Expect the stock and housing market bubbles to pop shortly afterwards.

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Ford announced Wednesday that it will move its entire small car operation from America to Mexico.

“Over the next two to three years, we will have migrated all of our small car production to Mexico and out of the United States,” said Ford CEO Mark Fields, during an investor conference it was hosting in Detroit, Michigan. Notice he told investors what they should expect.

Ford’s share price continued its slow decline anyway. The share price peaked back in 1999 at $37.14. It’s been up and down since then, but never back up to the peak. The share price plummeted to a $1.43 in 2009, reached $18.65 in 2011, hit another peak in 2014 at $17.72 and has been going down ever since. The shares traded at $12.11 on September 16, two days after Fields made his foolish announcement to investors.

Ford management has exported over half of its US jobs to Mexico since NAFTA. Thank you Bill and Hillary Clinton. This has been done to reduce its labor costs and increase its profits, share price and dividends. Ford’s decision will also increase income inequality and reduce its long-term per capita sales.

So what happens when virtually all of Ford’s jobs are overseas? What happens when the next recession hits sometime within the next twelve months, most likely by or before June 2017?

Ford management can’t export many more jobs to Mexico, so that avenue to increase earnings and share prices will soon close down. The next recession will be worse than the last one, which I will explain why in a day or so. Ford’s retained earnings peaked at $27.5 billion a year ago. That’s dropped by $11 billion in a year. In other words, Ford is running out of financial room to maneuver, especially during this coming economic downturn.

The company still gives a nice dividend of nearly 5 percent. But all that means is that Ford will run out of money sooner than later during the downturn.

Expect its share price to drop back down to a dollar something, or less. The company likely will be facing a financial crisis and possible insolvency within the next five years.

Ford is an unwise investment, even for billionaires and hedge funds. Even if the company doesn’t face insolvency over the next five years, its share price is going to continue to tank in the long-run, but CEO Fields hasn’t figured that out. He should be investing in US production rather than investors, and to hell with the share price.

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“New Balance management on Tuesday accused the Obama administration of walking back its promised bribe made to them to consider the Boston-based shoe maker for a potential Pentagon contract after the company reluctantly loosened its stance on the Trans Pacific Partnership (TPP), an income and political power redistribution scam for the 1 percent.”

The president bribed the company to back down on its criticism of the jobs destroying income redistribution scam known as the TPP by offering management a pentagon contract. The pentagon, however, does not purchase US made athletic shoes. Instead, it purchases Chinese made Nike, and other foreign brands. The TPP will destroy the last US shoe factories, five of which are in Maine with 1400 employees, along with tens of millions of other US jobs. The Obama administration is intent on redistributing trillions of dollars from the 99 to the 1 percent via the TPP. See The Op-Ed about the Trans Pacific Partnership the Liberal and Conservative Press Doesn’t Want You To See.

“Speaking to the Boston Globe, New Balance’s vice president of public affairs, Matt LeBretton, said the sneaker company was told it had a chance at a lucrative deal with the Defense Department if it relented criticism directed at the Trans-Pacific Partnership, a potential trade agreement between the U.S. and 11 Pacific Rim countries.”

“We swallowed the poison pill that is TPP so we could have a chance to bid on these contracts,” said Matt LeBretton, New Balance’s vice president of public affairs. “We were assured this would be a top-down approach at the Department of Defense if we agreed to either support or remain neutral on TPP. [But] the chances of the Department of Defense buying shoes that are made in the USA are slim to none while Obama is president.”

Click here for more on the story from the Washington Post.

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In 2012, in a town hall in India, then US Secretary of State Hillary Rodham Clinton said,

“Outsourcing jobs is part of our economic relationship with India. I think there are advantages with it that have certainly benefited many parts of our country (the USA), and there are disadvantages that goes toward the need to improve the work skills of our own people (those who lose their jobs), and create a better economic environment. It’s like anything. It’s got pluses and minuses.”

What Clinton didn’t say is who benefits and who loses when she supports exporting jobs. Let’s get something straight, nearly thirty million US jobs were exported from the US from 1990 to 2010. Millions more have been exported since. Notice in the graph below how the exporting of US jobs increased with NAFTA, which Clinton supported. Hillary has also supported the Trans Pacific Partnership (TPP), until she came under intense criticism as a presidential candidate. No doubt, she still supports it because Wall Street does, and she is Wall Street’s candidate.

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The United States is in the seventh and likely final year of an economic boom. The statistics are staggering about what exporting jobs have brought about here.

  1. Income inequality perhaps never experienced in US history.
  2. The 99 percent has gone from earning 92 percent of all income produced in the USA in 1980 to 63 percent today.
  3. 48 million people on food stamps, which is nearly one out of six Americans.
  4. A middle class that has shrunk from 61 to 49 percent of US adults from 1970 to 2016.
  5. Wages that have declined in real terms for 36 years.
  6. A rising homeless population.
  7. Wealth inequality never experienced in US history.
  8. The worst economic expansion in terms of wage growth and jobs growth since the Great Depression.
  9. Slower job growth than under President Jimmy Carter, back when the population was 65 percent of today, and the Gross Domestic Product was 45 percent the size of today.
  10. A tax base that is shrinking every year as the jobs are being exported, and this has brought about higher college costs, shrinking social safety nets (such as social security), decrepit public infrastructure, and many more negative things.
  11. A massive trade deficit the United States has with US corporations manufacturing abroad and then exporting those products to the USA.

Obviously, exporting jobs is not a winning formula for the vast majority of US citizens, but Mrs. Clinton thinks so. The rich, of course, benefit from exporting jobs.

When jobs are exported (and let’s face it, jobs are the number export product of the United States), the difference between the old higher US wages and the new lower wages in China, Vietnam and elsewhere, go straight into the pockets of the super rich via higher corporate earnings, rising share prices, and surging dividends.

So the good things about exporting jobs that Hillary spoke about in the video are that exporting jobs is the fuel that causes the stock markets and corporate profits to surge at record levels. Clinton doesn’t seem to give a rat’s ass about the massive collateral damage to the 99 percent, much of which is listed above.

That’s why every geographic area of the United States outside of the old confederacy is Bernie Sanders country, and why he will win the Democratic nomination.

That why Bernie Sanders whipped Hillary Clinton badly in Kansas and Nebraska on Saturday, March 5. He won by 68 percent of the vote in Kansas, and 55 percent in Nebraska. Hillary, as expected, took 70 percent of the vote in Louisiana.

Clinton has yet to prove she can win decisively outside of the southeast. She appears to be nothing more than an over-hyped regional candidate. True, Clinton edged out Bernie in Iowa, Nevada, and Massachusetts, but outside of the South, it is Sanders who has dominated the Democratic primaries.

Not counting the super delegates, most, of which, have declared for Clinton, Hillary leads in delegates 659 to 455. However, most of the Southern states have voted in the Democratic primary (save for Florida) and the rest of the nation appears to be Sanders country.

Sure most of the super delegates temporarily support Clinton, but if she loses the popular vote in the primaries, which is highly likely, the super delegates are not bound to Clinton. They will switch to Sanders, or experience the end of the Democratic Party by sticking with Hillary.

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Vietnam is the answer to the question in the title of this article.

Vietnam’s minimum wage rate is .28 cents an hour. Environmental standards are lax, if there are any, and labor unions are non-existent. Those conditions will make it likely that more American jobs will be exported overseas because the labor, health, safety and wage standards are much less than even in China. If it wasn’t financially feasible to ship US jobs to Vietnam, a trade pact with Vietnam will make it so, and send tens of thousands upon thousands of US jobs there. Let’s face it, jobs are the number one US export.

But there’s something even more sinister than meets the eye. Millions of jobs in Mexico, Central America, Peru and Chile will also be threatened with exportation to Vietnam and China under the Trans Pacific Partnership (TPP). In which case, US exports will decline.

Maquiladora zones are located in Mexico and elsewhere in Latin America. These are free trade zones established by the United States and the host nations, such as Mexico, Honduras and El Salvador. The zones allow US manufacturers to assemble products in the zones, and then ship them duty free to the United States. Wages are bone poor in the Maquiladora zones, as low as $7.50 a day in Mexico’s northern zone, but they are higher than in Vietnam and China. China’s minimum wage is a little more than double Vietnam’s .28 cents per hour.

The parts assembled by US manufacturers in the Maquiladora zones must be made by US companies. This has been negotiated. In 2013, US corporations shipped $51 billion worth of parts manufactured in the United States to the over 3000 US factories in the northernmost Maquiladora zone in Mexico. That zone is twelve and a half miles deep and stretches from the Gulf of Mexico to the Pacific Ocean.

That 51 billion dollars of exports supports 250,000 American manufacturing jobs. The people who earn a living with those jobs spend their hard earned cash in their neighborhood grocery stores, stereo stores, clothing stores, computer stores, automobile dealerships, real estate companies, restaurants and more. That’s how those 250,000 manufacturing jobs keep another 400,000 to 800,000 people employed in other areas of the economy.

That doesn’t count the tens of thousands of Americans that mine the iron ore, or the rock, or chop the trees to make paper and houses, or manufacture cement, or who mold metal into products, and other producers of raw materials, or the people who operate the electric companies that power those 250,000 soon-to-be-lost manufacturing jobs. That’s another 100,000 US jobs in mining, smelting, excavating and other jobs dealing with raw materials that will be lost. Those jobs support another 200,000 to 300,000 service sector jobs.

But that’s not all. All of these jobs pay state, federal and local taxes that support schools, road building and maintenance, forest service jobs, fire and police, and a lot more government jobs. This is another 100,000 jobs that will be lost.

The Trans Pacific Partnership appears to be geared toward rendering obsolete the Maquiladora zones. Why else would Vietnam be a party to this agreement? The Vietnamese aren’t going to be purchasing a lot of American goods and services simply because those people can’t afford to do so.

When the Trans Pacific Partnership becomes law, kiss those jobs in the Maquiladora zones goodbye. Kiss that $51 billion dollars in US exports goodbye. And that’s just for the exports to one of these zones.

In El Salvador, 230,000 apparel workers will likely lose their jobs, which will be shipped to Vietnam if the TPP becomes law. Tens of thousands of workers in other central America nations will also lose their apparel manufacturing jobs in the zones. These people sew many of the clothes people wear in the United States and elsewhere. However, the rules of the zones state they can only assemble finished products. And that’s only in one industry.

Over 200,000 American workers supply the parts necessary to manufacture those clothes. Fabric, yarn and thread are made in US factories, and are then exported to Central America. Kiss those exports goodbye. Kiss those 200,000 plus American jobs goodbye, as well as the hundreds of thousands of US jobs supported by those manufacturing jobs.

We’re looking at the loss of billions of dollars of exports yearly, and millions of US jobs, if the TPP becomes law. And that’s only with the loss of two zones.

With the loss of jobs in the zones on such a massive scale, wages will drop like dead flies in Central America. That happened in Mexico after Nafta, which drove millions of people into the USA illegally.

Hundreds of thousands, and perhaps millions, of people will be forced to migrate to the United States illegally, and not because they want to migrate. This will depress the wages of millions of American citizens and put incredible pressure on our social service tax dollars, which will be greatly weakened by the loss of jobs.

So who benefits from the TPP? The difference between the old higher wages and the new lower wages will go straight into the pockets of rich shareholders and CEOs via higher corporate profits, rising dividends, and soaring share prices. Working people will pay the price. In other words, the TPP will redistribute massive amounts of income from the 99 to the 1 percent. That’s what it has been negotiated to do.

That’s one reason why Wall Senator Ron Wyden supports the Trans Pacific Partnership, along with President Obama, Mitch McConnell, Orrin Hatch, and Wall Street wing of the Republican Party. The TPP is an income redistribution scam.

AFL-CIO President Richard Trumka hits the mark in the video below.

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If we are going to defeat the job killing, environmentally devastating, Trans-Pacific Partnership from being railroaded through Congress using Fast Track Authority, then we need to get Senator Wyden to oppose it once again. He was against it before he was for it, so he can change his mind on this, but your voice matters, so call now. This time his vote in the senate matters most to all Americans.

Please make the call to 1-866-502-6055 FREE and tell the senator you are against Fast Track Authority and the international income redistribution scam known as the Trans-Pacific Partnership (TPP).

Wyden has a 100 percent voting record when it comes to redistributing your income, wealth and future to the 1 percent.

What is Fast Track Authority? What is the Trans-Pacific Partnership (TPP)? Why does Senator Wyden support them? I’m happy you asked.

The fast track negotiating authority for trade agreements is the authority of the President of the United States to negotiate international agreements that Congress can approve or disapprove but cannot amend or filibuster. Debate is also limited. Fast track negotiating authority is a temporary and controversial power granted to the President by Congress. The authority was in effect from 1975 to 1994, pursuant to the Trade Act of 1974, and from 2002 to 2007 by the Trade Act of 2002. Although it expired for new agreements on July 1, 2007, it continued to apply to agreements already under negotiation until they were eventually passed into law in 2011. In 2012, the Obama administration began seeking renewal of the authority.

Please make the call to 1-866-502-6055 FREE and tell the senator you are against Fast Track Authority and the international income redistribution scam known as the Trans-Pacific Partnership (TPP).

As for the Trans-Pacific Partnership (TPP), we know from leaked documents the TPP is a massive income redistribution scam falsely marketed to us as a free trade agreement. The TPP has almost nothing to do with international trade. We know that;

* TPP will give incentives for US corporations to export millions of US jobs. The Federal Reserve estimates that 28 million US jobs were exported between 1990 and 2010.

* TPP will increase US income and wealth inequality. The 1 percent have already taken 95 percent of all income growth in the United States since 2009. Currently, the 1 percent are stealing 36+ percent of all income produced in the USA, compared to only 8 percent in 1980. International trade scams and other federal legislation have brought inequality about. For example, when the above jobs were exported, the difference between the old higher US wages and the new lower wages will go straight into the pockets of the 1 percent via higher corporate profits, rising dividends and surging share prices.

* Those lost jobs will no longer be paying the taxes for our infrastructure, K-12 education, higher education (tuition and fees will go up), social safety nets, schools, fire, police, public transportation, social security taxes, but those lost jobs will push the stock markets higher.

* TPP will effectively eliminate your voting rights on local and state issues since it will unconstitutionally grant investors of the 0.01 percent special privileges to challenge labeling and health and safety local laws and regulations of the 99 percent, which most people call voter suppression, but in this case it should be called voter elimination.

* TPP will eliminate millions of jobs in Latin America, which will drive millions of more people illegally into the United States and depress wages here.

Yes, believe it or not, Wall Street Senator Ron Wyden supports this massive income and political power redistribution scam, as well as Fast Track, and corporate plutocrats such as Oregon Congresswoman Suzanne Bonamici, and Congressmen Earl Blumenauer and Kurt Schrader keep saying they haven’t made up their minds. What a corporate plutocrat shocker! Listen below to the video showing Senator Wyden using more than six minutes during a town hall to avoid the question of why he supports the Trans-Pacific Partnership. By the way, Wyden has a long history of voting to redistribute income from the 99 to the 1 percent.

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