Jobs Wanted: Ending Rigged Trade = JobsAugust 3, 2011
Today we launched a special three-part series on bringing jobs back to America.
How this came about is that one of the chiefs here at MSNBC asked me, “Dylan, how can America create jobs? Should we shrink government? Should we cut spending? Should we increase spending?
The answer — maybe all of the the above — maybe none of the above, because at this point, it’s the wrong question!
To create real jobs, a country must have more money coming in than going out. But we have the exact opposite, with much more money going out that we have coming in! Until we reverse that trillion-dollar trend, it is mathematically impossible to create sustainable jobs.
There are three main components that the government controls that determine the flow of money: Trade, Taxes, and Banking. I’ll be covering all three.
Let’s begin with Trade. If you look at the math of the so-called free trade agreements such as NAFTA from the Clinton Administration, they put our country at a disadvantage and force american CEO’s to do business that rewards their bottom line, and hurts the rest of us.
All the deals are aimed at making it easier and more profitable to export jobs, send money overseas and keep the cash offshore rather than invest it here at home. I want to use the firm Caterpillar as an example to illustrate this.
They now make a lot of heavy equipment in China. If they made it here like they used to, it would face a 25% tax from Chinese Government to import, but if they make it in China – NO TAX.
And by the way, Chinese imports to America are taxed at 2.5%. Now Caterpillar gets a giant discount on equipement build and sold in China. Jim Owens, the Chief of Caterpillar, his job is to make money for his company and shareholders. If you or I ran Caterpillar, we’d either export jobs and money to China to make the bottom line, or be fired.
Maybe if our government had the courage to level the playing field, the Jim Owens’s of the world would say “Let’s make it in America.”
But until then, it’s bye bye jobs and bye bye cash, in favor of highly profitable, rigged trade agreements for the profit of a few. We must level that playing field if we’re going to create jobs in America.
You can watch tomorrow’s segment live on “NewsNation” with Tamron Hall at 2PM ET.