Friday, January 24, 2014

CREATION OR TRANS LOCATION OF JOBS

Some of the State of the State speeches given by Republican governors across the nation carried a similar theme. They want to claim that their policies were “creating jobs”. Scott Walker in his speech especially went overboard with his claim of “creating” jobs, jobs, jobs, jobs even though his “job creating” record is less then national average. The truth is that none are really crating jobs.

As a liberal, I see the state-by-state changes in the job markets differently. Every one of these governors is doing the same thing. They are attracting businesses to their states in the worse ways there is for workers, their families, and the communities’ from where the industries moved. They leave a small business wasteland in their path.

In addition, they are shifting the tax burden necessary to support physical and social infrastructure from industries and putting it on the backs of the workers. Since the halcyon years of Roosevelt, we have seen a steady decline in the effectiveness of labor unions—anti unionism codified into the law. In addition to union demise, we have seen a “below the radar arise in corporate power” especially since Ronald Ragan used his charisma to charm the American worker into voting against their own interest. The American Legislative Executive Council (ALEC) was formed in the 1970’s. Reagan had a hand in forming it starting with his 1968 presidential campaign. This is an organization of elected republican legislators and CEO’s formed with the express purpose to corrupt the democratic process at the state level. Much of the legislative agenda aimed at destroying the rights of workers were started at the level of the states though the work of this organization. The crowning achievement was the corruption of the Supreme Court culminating in the Citizens United Decision, that essentially so overwhelmed workers voices as to make them ineffective.  ALEC membership, Democratic or Republican is a way for businesses to know who to contribute unrestricted money, all though by far most are recipients are GOP.

In that environment, Republican states governors have turned the nation into what amounts to a “feeding frenzy for industries”. Led by states with republican majorities in their legislatures, each state is methodically reducing tax burdens and labor costs specifically to attract industries. What makes it a feeding frenzy is that states like New York, with a democratic governor, do the same thing to compete; thus, spread the blight; have you see the “zero taxes” for 10 years ad on TV; I am here to tell you they are not talking about zero taxes for workers.   

The way it works is that if a governor cannot be done by executive action ALEC writes and pass laws that allow them to add to the demise of labor unions. This happens even in states with democratic governors but with republican state legislatures. Thus, they prevent public service employees from having collective bargaining, they cut the number of state employees including teachers, they cut public school budget to destroy them thus shift the education burden onto the back so parents. They somehow see this as creating jobs when in fact they are destroying jobs. Republicans sell this idea by saying they are reducing taxes they don’t say only the rich are having their taxes reduce. Reducing taxes on the rich increases it on the poor, especially those with children. They increase tax income by increasing values of private residences while cutting property taxes on corporations. The increase sales taxes, which is the most non-progressive tax there is. In addition, state controlled public service commissions allow huge utility rate hikes of homeowners and away from industry.

All of this follows the Republican axiom that if you want it, you have to pay for it, and if you can’t pay for it you do not deserve to have it. This may sound good to the excessively greedy; it is not the principle upon which our founders established democracy. Big corporations can hire police to protect their properties and build fire departments on their properties and their executives can send their children to private schools, but we cannot do that. A few misguided parents think they can home school their children but I guarantee you that there are few among us that could do the same job a teacher with a four degree in teaching can do. The limitation to home schooling a college education should be so obvious it doesn’t merit mention.


In those instances where “cheaper states” like Texas attracts an industry, the workers that follow their jobs have lower wages and moving and other relocation expenses, often from northern cultures into a culture that do not know or understand. It is difficult for parents but nearly impossible for children to adjust. I move from blue Minnesota to Jessie Helms’ North Carolina for a better job—what a shocker. Re-segregation, voter suppression, gerrymandering, the power of the church, open prejudice of courts of law, stand your ground laws are foreign concepts in some parts of the country. Examples for all to see are there in states like Texas, North Carolina, and surprisingly Wisconsin that have destroyed America as a workers paradise and show no signs of letting up. The governors are doing nothing to create jobs; if they attract an industry, that is “new jobs” in their state, but these jobs are not created; they have to come from somewhere. 

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2 comments:

  1. Excellent point. You touched on the politicians who enable relocation of business by creating a no-tax haven. It is worth mentioning that when the no-tax option expires, the same greedy motives that "created" job relocation will motivate the same business to again jump ship to another no-tax haven at another location. But of course, by then the politicians will have "bought" their re-election at the taxpayers expense .... politics and business as usual (your excellent point). It is also noteworthy to mention how this environment undermines the negotiating position of workers who believe that the national wealth should be distributed, not hoarded. Well, that's a different discussion.

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