Mr. President, I ask unanimous consent to yield myself such time as I may consume from the time under the control of the Democratic side. Let me say to those who may be listening in the offices of Members who want to come over and wish to…
Mr. President, I ask unanimous consent to yield myself such time as I may consume from the time under the control of the Democratic side.
Let me say to those who may be listening in the offices of Members who want to come over and wish to be heard on this matter, I will be prepared to yield some time. I am here to discuss an amendment that will come up after 3:30. I thought I would move things along while we have this dead time, while we are waiting for this vote to occur, to discuss upcoming amendments and encourage those who may want to participate in some of those debates to come to the floor and share some of their thoughts.
I will be offering at the appropriate time, sometime after 3:30, an amendment that deals with the outsourcing of jobs. I note the presence of the Presiding Officer who comes from the same region of the country I do. We have all been feeling it in our States, not just in the Northeast, but across the country, the tremendous pinch that is occurring as a result of job loss and the growing number of jobs that are being outsourced. I am told by those who cover these issues that the coalition opposed to any legislative efforts to stop outsourcing is coming up with some new language. They don't like the word, ``outsourcing,'' so they are calling it worldwide sourcing, to take some of the sting out of the language. They may succeed in taking the sting out of the language by changing the vocabulary, but you cannot take the sting out of finding out that your job has been lost and that others offshore are taking those jobs because it enhances the bottom line in a quarterly report someplace. We need to address that.
I fully understand that outsourcing to some degree is going to go on. I expect that to be the case. But I don't think the Federal Government ought to be subsidizing that effort. I am one who has believed in and supported free and fair trade agreements over the years. I take great pride in that. In a global economy, you have to do that. But I also understand if we don't have the services or provide the manufactured goods with which to trade globally because we have given up a significant part of our manufacturing base or given up a critical area of technology in the service areas, for instance, we are necessarily going to be great competitors in a global marketplace in the 21st century.
You may say we are nowhere near that yet. The rest of the world doesn't even come close to producing the quality and high value goods we do in the United States. They can't come close to providing the high technology we do.
I think we have all learned over the last number of years that technology and productivity is highly portable, and it is moving at warp speed. What was true a year ago, 5 years ago, certainly 10 years ago, is no longer the case. I suspect this rate of speed of change is going to continue to grow.
At this particular juncture, I think it is important that we speak to this issue and that we try to find some balance on how we maintain our global leadership role, continue to provide opportunities for American workers, while simultaneously not allowing the exportation of jobs overseas.
I was terribly disheartened to read a report, the Economic Report of the President, February 2004, just last month, this publication that comes out. It is designed to give an overall economic report of the Nation, with various suggestions and ideas. I am not making up these quotes from some news article or some demagogue or pundit out there when talking about these issues. These are actual conclusions reached by the top economic advisers to the President of the United States when it comes to the issue of manufacturing and outsourcing.
First on outsourcing, chapter 12, on page 229 of this economic report of President Bush and his economic team, it says:
When a good or a service is produced more cheaply abroad,
it makes more sense to import it than to make or provide it
domestically.
I would suggest that is a conclusion with which some economists may agree. Some have drawn the conclusion that that is inherently a far better idea, just thinking in terms of quarters or yearly reports, I suppose, and the bottom line. That may be OK. But if you are worried about generational change, if you are worried about trying to establish a bedrock of job opportunities, stability, and security in the 21st century, then it absolutely makes no sense to export that job rather than to provide it domestically.
I note in this morning's Wall Street Journal--so you don't think these ideas are merely being spouted by a Democrat in disagreement with the President's economic report--a March 3, 2004, article, ``Lesson in India.'' I ask unanimous consent to print the full article in the Record.
This is a story written by Scott Thurm. It is about a company, ValiCert, that learned key roles must remain in the U.S. for outsourcing to work. And the thrust of the article is this company rushed, like everybody else. Forty percent of the top 1,000 companies in America are now outsourcing their jobs, sort of like chasing into Mexico back in the 1980s when the financial service sector thought that was the place to be, without much thought. Once these trends begin, they are sort of like sheep following one after another without much thought involved.
This company ValiCert went racing off to outsource its jobs, reduced its employment, saved a lot of money, according to the article, expected to save millions annually while cranking out new software for banks.
I am quoting from the article now:
When sales of their securities software slowed in 2001,
executives at ValiCert began laying off engineers in Silicon
Valley to hire replacements in India for $7,000 a year.
ValiCert expected to save millions while cranking out new
software for banks and insurers and government agencies.
Senior Vice President David Jevans recalls optimistic
predictions that the company would ``cut the budget by half
here and hire twice as many people there [in India].''
Colleagues would swap work across the globe every 12 hours,
helping ValiCert ``put more people on it and get it done
sooner,'' he says.
The reality was different. The Indian engineers, who knew
little about ValiCert's software or how it was used, omitted
features Americans considered intuitive. U.S. programmers,
accustomed to quick chats over cubicle walls, spent months
writing detailed instructions for overseas assignments,
delaying new products. Fear and distrust thrived, and
ValiCert's finances deteriorated and co-workers, 14 time
zones apart, traded curt e-mails. In the fall of 2002,
executives brought back to the U.S. a key project that had
been assigned to India, irritating some Indian employees.
``At times we were thinking, what have we done here?'' . .
.
The article goes on; I won't read all of it; the point being sort of buyer beware. This notion that you might be hiring people for a fraction of what it would cost to hire someone in the Silicon Valley and it is going to allow you to make millions because of laid-off American workers and you hire someone 8 or 10 time zones away, has been, certainly in the case of this particular company, proven to be untrue.
So to the point that when a good or service is produced more cheaply abroad, it makes more sense to import it than to provide it domestically, I would suggest that the people who wrote the economic report for the President may want to talk to the people at ValiCert. I don't suspect that is one company. I suspect that is true of many companies. So it is not Biblical.
I agree that in certain cases you will make a lot more money by firing people in the United States and getting rid of them. Why should you worry about that? Your job is to provide a bottom line. That is your job.
My job is a little different than your job. My job, as a Senator, is to not only watch out for you and your company, to make sure you live in an environment where you can make a profit, I have an obligation to those people who work for you as well. I didn't get elected to the Senate just to guarantee you a bottom line. My job is setting public policy, not quarter by quarter, not just bottom line and yearly report to yearly report, but longer than that. That is what we are supposed to do in a Chamber such as this, to think a little longer, to worry about this country, those who are the children of the 21st century and what kind of a Nation are they going to inherit after you and I have left. They are going to ask us about what we did at the beginning of the 21st century when we saw the trend lines reaching out to cause literally millions of people to lose their jobs.
One report indicates that in the next 10 years or so we may lose as many as 4 million jobs, a loss of $140 billion in wages, just by outsourcing alone.
That number may be low, according to those who have done this. I will get to the charts in a minute and identify the source of that. I will get to the amendment at an appropriate time and talk about the specifics of it. I know I am going to hear that your amendment goes too far, it is too heavyhanded, because I am going to suggest that maybe the use of Federal tax dollars--we ought to have second thoughts about subsidizing this rushing to go overseas to outsource. I cannot stop a private company with its own dollars deciding to do that. You can make it less of an attractive thing through the Tax Code or more attractive for people to stay here, but I certainly cannot stop you from doing it.
But I ought to be able to say something about how American taxpayer money is being used. If their money is being used to cause somebody to lose their job and to hire someone for the attraction of the salary someplace else, maybe taxpayers have a right to be heard on this issue. This amendment says Federal tax, for the purpose of outsourcing--with the exceptions of national security and other provisional
waivers, which I will explain--ought not to be something we are supporting. If you want to do it as a private company, that is your business. I don't think you ought to necessarily have a right to Uncle Sam's taxpayer money to do that at the expense of critical jobs that are important for this Nation's future.
I will go on in this economic report because I may not have time, when we get to the amendment, to talk about it. I cited chapter 12, page 229, where you have this emphatic statement that it automatically, in every case, as I read this, makes more sense to import. They don't talk about outsourcing. They act as if it were a good or a service. I know economists like to suggest that is all it is. But I think people in Ohio, Connecticut, or Pennsylvania are more than a good or a service. They may have a family, a home mortgage they are trying to pay, and they may have other obligations; and they worry about their future retirement and health care. So to have the cold eye of an economist saying a person out there who has a job in America may find it gone because the quarterly report would look a lot better if we can hire that person for $7,000 a year rather than paying you $40,000, $50,000, $60,000, or $70,000 a year, and you are really nothing more than a good or a service--I think many of us here believe otherwise.
These are not just goods or services; these are human beings who help to strengthen this country, provide us the kinds of liberties and opportunities we enjoy as Americans. I think it is about time we stood up for them and what their interests may be--not at the expense of others, but to merely strike a balance. This is not about being against trade, being an isolationist at all. It is merely saying strike some balance before this sort of giddy trend, where company after company is sort of playing follow the leader and runs amuck as they send these jobs willy-nilly offshore; we ought to say let's look at what we are doing and at what ultimate price we may pay.
The second point I want to make out of this economic report is a reference with regard to what is manufacturing. I don't have the page number, unfortunately, on this, but I will get it before I finish my remarks. It is a highlighted box, and the title of the box that is framed out here is ``What Is Manufacturing?'' This economic report says the definition of a manufactured product, however, is not straightforward. When a fast food restaurant sells a hamburger, for example, is it providing a service or manufacturing a product? You may say that is only a question. You know, if this is your question and the example you would cite in your question, what are you thinking of? Do you think it is a debatable item as to whether or not producing a hamburger or a hot dog involves manufacturing? This is not some op-ed piece; this is the official economic report of this administration's economic policy. In bold print in this economic report they suggest there is a legitimate question over whether or not working at McDonald's or Burger King flipping hamburgers ought to be classified as a manufacturing job. If you don't think we are in trouble on these issues, just read that.
That is an example of the kind of terribly naive at best, at worst rather callous, thinking when it comes to talking about the importance of manufacturing. I don't belittle a job somebody holds down working in a fast food restaurant. For many people out there, that is the only job they can get to provide for themselves and their families. They would be the first to tell you that they hardly think of themselves as being in the manufacturing business. Yet, in the administration's official report, it raises the question of whether or not it is a manufacturing job. At least this Member gets a sense they are lost on this issue, when they raise questions as foolish as that.
Let me go to some of these charts, if I may. Let me just give you a suggestion of what is happening on the issue of manufacturing. The first chart I raise here points to the fact that in the last 36 months, we have now lost in the United States of America 2.8 million manufacturing jobs--since January 2001, up until now, the winter of 2004. That is 2.8 million manufacturing jobs that have gone in this country. I believe that is the single largest loss of manufacturing jobs that has occurred since the Great Depression. I understand transitions in the economy. Things happen and move in different directions. But I don't think you can wash your hands of this and say I am sorry, but that is the trend line and that is the way life is--sort of a laissez-faire approach.
We ought to analyze why things are happening, where are the jobs going, and what are the implications for our country. I understand where the CEO of a company is coming from, and the board of directors or the administration of a company. Their concern is the bottom line and whether you have a profit to show the next quarter. I think Members of Congress ought to have a different set of questions from whether the quarterly report is all right--whether this trend line is going to continue, and what it means to our country. If this trend line continues and we end up losing a manufacturing sector, we will deeply regret it.
I come from a State where I have 5,400 small manufacturers--or I did--in Connecticut. Most of them are small operators, with 5, 10, 15 people, third and fourth generation, producing not just flowers or some other item but, rather, significant products, many of which are used in the aircraft engine industry of my State, the manufacture of the sophisticated submarines we produce in Connecticut, or other high value products. These manufacturers employ highly skilled people, producing very valuable pieces of equipment used in some of our most sophisticated defense and nondefense products. So when I see these jobs and these businesses going, I have to be reminded that we are not going to create this overnight. You don't reconstitute the manufacturing base overnight. Again, I accept we have to make changes and you cannot say we are going to stop this altogether. But I think we have an obligation to express our concerns and worries about where we are headed, if we don't speak up and begin to address what this may mean for our country.
I am very worried about where these trend lines are going and what it may mean. If we end up continuing to lose jobs and manufacturers, I am concerned about what it may mean for our country if we end up having to import not only the jobs but the products themselves. That is another subject matter we can discuss later. We ought to worry about it as a country. If we don't do something soon in this area, that is going to be a continuing problem.
Let me point out further, to give some idea of where this is all happening, because it is not, as I mentioned, just my State of Connecticut. I mentioned my friend and colleague, the Presiding Officer, comes from New Hampshire up in our area. Just to highlight, his small New England State as well had some 22,300 jobs in the manufacturing sector lost in New Hampshire. In my State of Connecticut, it is about 32,800, about 10,000 more. That is in the last 36 months.
The trend lines are: Pennsylvania, 132,000; Ohio, 153,000 jobs have been lost; California, 272,000 manufacturing jobs lost; the State of Washington, 59,000; Oregon, 21,000; Texas, 149,000; Florida, 52,000; Georgia, 67,000; 142,000 jobs lost in the small State of North Carolina. This is all in the last 36 months.
I won't go through State after State, but you get some sense of this. It is not isolated to our corner in Connecticut, our small State, or the area of New England: New York State, 115,000 jobs; Michigan, 121,000; Wisconsin, 168,000; Illinois, 115,000 jobs. It is a worrisome trend. It is going on all across the country.
Again, we cannot say this is transitional, I am sorry, America, you are going to have to live with this. We ought to respond in a way that acknowledges this trend and tries to offer some ideas on how we might turn this trend around.
I will be glad to share with my colleagues, if they are curious about their States--I will not go through all 50 States, but there is not a State in the country that has not lost manufacturing jobs. Some have lost very few. The State of Wyoming lost 700 jobs; North Dakota, 500. That may be the lowest. Arizona, 34,000; New Mexico, 5,000; Colorado, 37,000; Kansas, 19,000; Arkansas, 29,000; Missouri, 38,000. These job losses have been very painful.
We talk about these jobs, and I think the tendency is to talk about them in
and of themselves, the job loss in any manufacturing sector in any given State. Each manufacturing job supports three other U.S. jobs. When we end up losing these jobs in the manufacturing sector, there is a ripple effect.
I won't dwell on this, but I think most of my colleagues are aware of this already. When someone loses their source of income in the area of manufacturing, the effects are felt in retail trade, personal/business services, and other manufacturing sectors with the inability of people to purchase goods. It is not as if these jobs exist or, when they are lost, the only people paying that price are the people who lost the job. In effect, it is being felt across the economy as well.
Mr. President, 14 million additional jobs are in danger.
Now we get into the question of jobs going offshore. I want to give some indication of what is happening. Let's get back to the outsourcing question. I mentioned manufacturing because a lot of these jobs are moving in that area.
We are told--and this is from Time magazine in their February 22 issue--that by the year 2015, more than 3 million American jobs are projected to be shipped overseas. We begin to see these trend lines. In 2005, it moves up to 588,000 which will be outsourced overseas. A few years later that number of jobs goes to 1.6 million, and projections are, with no effort being made to change this direction, the number gets up to 3 million. We are worried that if we do not speak up now and do something about this trend, we are going to find a continued erosion and continued loss of these jobs overseas.
Let me point out where they are coming from because this may be helpful as well to those interested in this subject matter. There are 14 million additional jobs in danger of being shipped overseas, as I mentioned. Where are they coming from? Office support areas, some 8 million jobs; business and financial support, 2 million; in the area of computer and math professionals, close to 3 million; in the area of paralegal, legal assistance, diagnostic support, medical transcriptions and the like, the numbers are in the thousands, to give some idea where we are going with all of this.
It isn't just these low-wage jobs that are going. They are also going in the more sophisticated areas as well. I mentioned earlier the story in the Wall Street Journal talking about ValiCert. They were talking about jobs in Silicon Valley. I guarantee you we are not talking about low-wage jobs at all. Those are jobs that are fairly well paid, and they are being lost. The trend lines are not good in just raw numbers, but also in sectors of the economy where these jobs are being lost.
At the appropriate time, I will offer a very specific amendment to address the issue. Very briefly, the amendment would do the following: It will restrict anyone from using Federal tax dollars to ship jobs offshore in three different ways. First, the Federal Government may not use Federal taxpayer dollars to procure goods or services to fulfill contracts that use overseas workers at the expense of American jobs.
Second, we tell State and local governments that any Federal dollars they receive in the form of a grant or in the form of an appropriation by formula or in any other way are not to be used to promote the loss of American jobs.
I point out that today 40 States outsource jobs. I am told that in the State of Minnesota, if you lose your job and you call up the unemployment office, you are going to talk to someone in India about what your rights and benefits are. I do not need to tell you the reaction of those people in that State who lost their job and they are talking to someone offshore to tell them what their benefits are.
The third way is, any agency seeking to privatize a government contract being paid with U.S. taxpayer dollars may not enter that contract if it again displaces American workers in favor of offshore workers.
In all these cases, we have exceptions on the grounds of national security and we allow the Governor or a Federal agency head to, in effect, waive these provisions if there is bona fide lack of goods and services in the United States. There is an escape clause here.
The obvious question arises, one, on national security, or, two, if no one is producing these goods and services here, what are we supposed to do? Rather than have the President have to waive the provision, we allow a Governor or head of an agency who would be in charge of this particular area to do so.
Let me take a few minutes to explain why this is a timely amendment and why it is deserving of our support. A gentleman by the name of John Bowman dedicated 25 years of his life to becoming an information technology professional, and he was very good at it, I might add. He, like hundreds of thousands of Americans, lost his job because of outsourcing. John looked around and realized what happened to him was not an isolated incident. It was part of a massive trend, and he decided to do something about it.
John will tell you he would be the last person in the world leading a grassroots organization that has practically become a grassroots movement in this country, not just in my State but all across the Nation. These are white-collar professional people, highly trained, who are watching their jobs lost day after day, flying offshore, being outsourced.
Fortunately, John is now being joined in this fight from people of all walks of life--labor unions, small business owners, Republicans and Democrats alike. I had a meeting in my State a few days ago on this issue. I had people in the same room that I could not put in the same town in Connecticut a year ago--people from the manufacturing sector, from labor unions, and the private sector coming together. They differ on a lot of issues, but on this one they are joined in common cause. They recognize what we are experiencing is different from what we experienced before.
Today, advances in technology and fewer trade restrictions have made it far easier to move goods, information, and jobs around the globe. Foreign countries are aggressively enticing American businesses with promises of lower wages, lax worker protections, and weak environmental laws. Countries such as India and China have figured out if you want to compete in the global marketplace in the best jobs, you need to invest in the best education and training of your workers. Rather than trying to find a meaningful way to address these new circumstances, this administration would rather pretend the world is still functioning as it always did and actually that our economy is on a path to recovery. As a matter of fact, our country is hemorrhaging jobs at an alarming rate. As I mentioned already, according to one estimate, by the year 2015, 3.3 million, close to 4 million jobs and $136 billion in annual wages will have moved offshore if we do not do something about it. Four hundred of the largest 1,000 companies are already sending jobs offshore, with more planning to do so every single day.
In a short time I will get a chance to go into this in more detail as to why I think this is an important amendment and why I hope my colleagues will support it.
I realize it is a loud shout at this moment, and I know others will argue that maybe it is louder than it need be, but I do not know any other way to express my deep concern about what is happening in my State and all across this country if we do not begin to say that at least with taxpayer money you are going to have to act differently. You may decide to do it on your own dime, but you are not going to do it on the dimes of my taxpayers, to send jobs overseas when they are not necessary. You do not need to do that in order to survive.
I see my colleague from Montana in the Chamber. I yield the floor and at an appropriate time I will come back to this discussion.
Mr. President, may I inquire what is the business before the Senate?
I send an amendment to the desk and ask for its immediate consideration.
Mr. President, I ask unanimous consent that the reading of the amendment be dispensed with.
Mr. President, I offer this amendment on behalf of myself, Senator Coleman of Minnesota, Senator Kennedy, Senator Corzine, Senator Mikulski, and others.
Let me say to the floor managers, if I may, I know they are interested in the time. I am prepared to agree to a 1-hour time agreement. I do not necessarily expect to take the hour. I know there are others who may want to be heard. I know you want to move things along, so I am prepared to have a time agreement and move on my amendment, give my remarks, and then others can speak, and then vote on it, if you would like.
Mr. President, I will move forward. If, at any moment you would like to have a time agreement, let me know and I will try to accommodate you so you can move on to other matters.
I have already spoken about the amendment during the time between 2:30 and around 3:30, describing, in a sense, what the amendment would do and the rationale for the amendment. I will be glad to go back over this amendment again for my colleagues and then engage in any debate or discussion about it.
In a sense, I am preaching to the choir when I talk about this issue to my colleagues on both sides of the aisle because we all painfully know what has happened in the last 36 months in our country. We have lost around 2.8 million manufacturing jobs in the United States. I have laid out on this chart I have in the Chamber how that breaks down State by State across the country.
In my home State of Connecticut, we have lost some 32,000 jobs in the manufacturing sector; California, 272,000; Ohio has lost around 153,000 jobs; in Illinois, 115,000; Texas--the Presiding Officer's State-- 150,000 jobs.
So certainly we all appreciate the fact there has been a tremendous erosion in a very critical area in our economy.
We also know there is another phenomena occurring, and at an accelerated pace; that is, the outsourcing of many jobs, including some manufacturing jobs, around the globe, and it is accelerating at warp speed.
We now know there are literally 400 of the top 1,000 companies in the United States outsourcing their jobs to India or China or other nations around the globe. Mr. President, 40 of the 50 States now outsource jobs.
My amendment simply says--and there are waivers in here and the like. I understand, although I do not like it, if a company decides on its own dime it is going to outsource a job. I disagree with that. I think they are wrong to do it, but it certainly is their right to do it. We can offer tax incentives to encourage people to stay here, tax disincentives so they do not go offshore, but ultimately a company can decide for itself.
It is another matter with taxpayer money, with the money that American taxpayers send to Washington. The idea that we would use their dollars to outsource an American job is something on which I think we ought to speak loudly and clearly. We ought to say: Look, we disagree with that. We don't think you ought to be able to do that.
So this amendment, in three different areas, very simply says: First, the Federal Government may not use Federal taxpayer money to procure goods and services to fulfill contracts that use overseas workers at the expense of American jobs. Second, we tell State and local governments that any Federal dollars they receive in the form of a grant, in the form of an appropriation, or any other way, that they are not to use those Federal dollars to promote the loss of American jobs for the creation of offshore jobs. And, third, we say any agency seeking to privatize a Government contract being paid with U.S. taxpayer dollars may not enter into that contract if it, again, displaces American workers in favor of offshore workers.
Now, very quickly, in anticipation of some of the arguments we may hear, we provide waivers and exceptions on grounds of national security, and we also allow Governors or Federal agency heads to waive these provisions if there is a bona fide lack of comparable goods or services in the United States.
In this legislation, we also, of course, make it clear that the Government procurement agreements between the United States and some 27 other nations, that are predominantly Western Europe countries, are not affected by the prohibitions contained in this bill. Those 27 nations do not include, I would point out, India or the People's Republic of China.
So the major sources of outsourcing are not affected by those provisions. Thus, we are in complete compliance with the WTO and every other formal agreement we have. We are not in violation of any of those agreements as a result of this amendment.
Now, I had a meeting in my State--and I assume my colleagues may have had similar kinds of gatherings--where people came together who you could not have put in the same county a year ago on this issue. I am talking about my chambers of commerce, my manufacturing associations, and my labor unions--all coming together saying: When is Washington going to say something about this outsourcing that is going on?
If we continue to allow these jobs to flow out of our country, then I think we run the risk, at critical junctures, of having the human talent necessary for us to provide those services and to produce those goods which will allow us to compete effectively in the 21st century. Once you lose jobs, particularly in the manufacturing sector, or some of the high-skilled areas, it is very difficult to go back and re- create those jobs, to re-create those manufacturing centers.
Let me point out an article that appeared in the Wall Street Journal this morning. In fact, I have already included it in the Record. But the ValiCert company--and I think this is a front-page story or nearly a front-page story in the Wall Street Journal--discovered that outsourcing was no great success for them. They did it and discovered that the value they were getting for the jobs and products being produced did not equal that produced here in the United States. They have reversed that decision.
So when you read in this economic report, prepared for the President of the United States, last month, in February-- and I will quote the report for my colleagues where they state, in absolute terms, on page 229 of this report:
When a good or service is produced more cheaply abroad, it
makes more sense to import it than to make or provide it
domestically.
Well, tell that to the ValiCert company. They did not discover that. Certainly, while that may be true of a bottom line of a company, if you are trying to preserve jobs in this country, which is a responsibility we bear in this body, and not just to those companies but to the people who work for them--an American job is not just a good or a service. An American job has implications that go beyond just the dollar amount lost of income in wages or salaries. It means also that a family may not pay their home mortgage and may not be able to provide the goods and services that allow our economy to grow and expand. It means families are under more strain and stress because they have lost the source of income to provide for themselves.
So this ought not be a partisan issue. This ought to be something on which we stand united. This is not being an isolationist. I am a free trader. I have been so in the years I have been here. I have supported many, many free trade agreements, and I opposed some as well, but I honestly believe if you are going to be an effective trader, a free and fair trader in the 21st century, then you ought not squander and give up the very jobs that make it possible for you to compete in this global economy.
So I am deeply concerned that if we do not say something, particularly with U.S. taxpayer money that is being used to subsidize this outsourcing of jobs, then we are failing to understand what is going on across this country. In State after State after State, the trend lines are there in manufacturing. It is also occurring in other sectors in the economy.
Let me share with my colleagues, as shown on this chart, indication of where the outsourcing of these jobs is occurring. Presently, it is occurring in areas such as office support. The estimate is 14 million additional jobs, by the way, will be lost and shipped overseas over the next several years. The estimates are about 8 million will occur in office support areas; in computer and math professionals, close to 3 million jobs lost in that area; business and financial services, over 2 million jobs; paralegals, diagnostic support services, medical transcriptions, over 94,000.
So it is not just low-wage, low-salary jobs that are going but very sophisticated, high-technology jobs that could be leaving our country as well. That makes us weaker. It is not in the national security interests of the United States to be losing these critical jobs at a time when we need them most in order to provide for the economic growth of our own Nation.
So while I understand, from a business perspective, your job is to look at quarterly reports, to try to improve the bottom line, our job in the Senate and the Congress of the United States goes beyond looking at quarterly reports.
We should look generationally. I don't want my generation to be the first generation of Americans which leaves the coming generation less well off than every other succeeding generation has left their children and their grandchildren. We are at risk of doing that if we don't step up at this juncture and say we need to stop or at least discourage this outsourcing of jobs that is occurring at a rapid pace every single day.
It is hard not to pick up a U.S. newspaper in any city and read where one corporation, one business after another, is making the decision to outsource more jobs. I think we ought to say, let's slow down. Let's have some balance. Let's not use taxpayer money to allow these jobs to be lost. That is the thrust of the amendment.
I hope we will have overwhelming support for this idea. This bill is an appropriate place to be debating it. It is something that could make a huge difference for those who are worrying whether we are paying attention at all. We have just debated over the last 5 weeks medical malpractice, providing immunization for gun manufacturers. We have had a bill on pensions. But we have not spent 5 minutes debating the issue of what is happening to America's jobs. That is the big issue.
Look at any survey right now. Ask the American people what they worry
about the most. It is the loss of jobs. They are outraged we have nothing to say when it comes to outsourcing of jobs to other nations, and we are not standing up and defending our own workforce.
In this same economic report I cited earlier, to give you some idea of why people get discouraged, I mentioned earlier the quote suggesting it was an automatic thing that outsourcing of jobs was good or, as they call it, importing of jobs. That is the way they describe it. I mentioned already a company identified in a Wall Street Journal article this morning, ``Lesson in India, Not Every Job Translates Overseas.'' I encourage my colleagues to look at that article as one example of a company that discovered outsourcing was bad for business, not good.
In this same economic report prepared by the President's top economic advisors, they raised the following question:
The definition of a manufactured product, however, is not
straightforward. When a fast food restaurant sells a
hamburger, for example, is it providing a service or inputs
for manufacturing a product?
If this was some sort of cartoon in the paper, I might have laughed at it, but it is part of an official document, an economic report prepared by the President's top economic advisers which suggests through the question that flipping a hamburger or cooking a hot dog is a manufacturing job. You get some idea and sense of where the outrage of the American public is coming on why we are unable to speak to this issue.
Again, I don't care if you are a Democrat or Republican, what your politics or ideology is. We have to stand up and defend our country in a moment like this. I worry about losing these jobs.
I mentioned earlier I had some 5,400 manufacturers in my State employing well over 240,000 people. We have lost about 35,000 jobs in the last 36 months. My manufacturers produce critical components for some of the most sophisticated defense technologies in the Nation. If you lose that manufacturing base, it is not just the loss of a manufacturing job or the loss of a good little company, it is also a critical issue when it comes to national security needs. Many of these small manufacturers produce critical components and parts for some of the most sophisticated defense technologies in our Nation.
I mentioned earlier my friend and colleague from Texas. The number of jobs there, 150,000. I know this Senator has many of these small companies that are producing those parts for defense companies, defense technologies. There is a ripple effect. We know as well, beyond the implications for our national security, for every one of these jobs that are lost in the manufacturing sector, there are jobs lost in other sectors. It is not just that job that is lost or that family that is affected. Each manufacturing job supports three other U.S. jobs. So when we lose these jobs, we also feel it in the retail trade, in the professional services, and in manufacturing as well.
I apologize if I get heated about this subject, but it is painful to read some of this cold-eyed analysis that suggests somehow you just have to stomach this or weather this, that this is just one of these cyclical or structural occurrences in the national economy, and these statistics, as troublesome as they are, are nothing more than that, statistics.
Behind every one of those statistics, behind every one of those numbers I cite, is usually a head of household or people trying to keep their families together. They are not just statistics. These are American citizens. These are human beings who are doing everything they can to live by the rules and provide for their families. They want to know whether their Congress--they don't identify themselves when they get up in the morning as a Democrat or Republican; they get up in the morning and worry about their families and their future--gets it, if we understand it, and whether we are willing to do anything about it.
This is an attempt by myself and my colleague from Minnesota and others to say at least when it comes to your tax dollar, we are going to say to the States, localities, and other businesses with waiver provisions here, you are not going to use those dollars to outsource an American job, not on our watch. You may decide to do it with your own money, but you will not do it with American taxpayer money. That is why we offer this amendment.
I yield the floor to my colleague from Minnesota for any comments he would like to make.
If my colleague will yield, I thank my colleague from New Jersey for his support, and my colleague from Minnesota as well.
My colleague from New Jersey is no stranger to these issues. I made note before of what is happening in Minnesota and other States. In Connecticut, we have lost 32,000 manufacturing jobs. New Jersey has lost over 55,000 manufacturing jobs.
I mentioned earlier there was an article in this morning's Wall Street Journal entitled ``Lesson in India: Not Every Job Translates Overseas.'' I want to ask my colleague a question. Because of his background in business, he understands those issues better than most of us. This reads:
When sales of their security software slowed in 2001,
executives at ValiCert Inc. began laying off engineers in
Silicon Valley to hire replacements in India for $7,000 a
year.
It says:
The reality was different. The Indian engineers, who knew
little about ValiCert's software or how it was used, omitted
features Americans considered intuitive. U.S. programmers,
accustomed to quick chats over cubicle walls, spent months
writing detailed instructions for overseas assignments,
delaying new products. Fear and distrust thrived as
ValiCert's finances deteriorated, and co-workers, 14 time
zones apart, traded curt e-mails. In the fall 2002,
executives brought back to the U.S. a key project that had
been assigned to India, irritating many Indian employees.
``At times, we are thinking, `What have we done here?' ''
recalls John Vigouroux, who joined ValiCert in July 2002 and
became chief executive three months later.
Tell me a bit about this. I think the assumption is made automatically, and certainly in this economic report prepared for the President by his administration, it makes a categorical statement that outsourcing of jobs is always a good thing because it improves the bottom line. Here is an example of a company which had a very different example. Aside from the obvious reduction in payroll by hiring people in another country to do the job, and firing Americans, are there also examples where this kind of activity has actually been bad for business and not necessarily automatically good for business, as suggested by this report?
I thank my colleague for those comments. They are very enlightening. It is further indication that these trend lines are moving forward.
There has been a report in Time magazine that indicates we are looking at, some indicate over the coming years as many as 14 million, 15 million jobs to be outsourced if we do not begin to do something about it. In the near term, I think the number is between 3 and 4 million with a loss, by the way, just looking at revenue loss, of wages lost--forget everything else, forget what happens when a person loses their job and the ripple effects that occur--just in lost wages it is about $140 billion.
We know what kind of budget deficit we are in already. I don't think this figure has been projected onto those numbers at all. We look at revenues coming in, and we look at what expenditures for which we have to account, and a loss of $136 billion to $140 billion in wages, lost because of outsourcing over the next decade or less, ought to be a matter of deep concern, even if you are not affected or moved by what happens to families or heads of households who are trying to provide for the needs of their families.
The fact that we lose that much salary and wages going out ought to be of great concern. I mention that as an additional implication of what is caused by outsourcing.
Again, I said earlier, we can offer incentives for people to stay, we can offer
disincentives in the Tax Code for them not to go, but I don't know, for the life of me, why we ought to be taking American taxpayers' money--we insult the taxpayer to say, I am going to use your money to fire someone in this company and hire someone someplace else to do the job at a fraction of the cost because it is going to improve your bottom line.
I don't know how the Senator feels, but the societal implications are profound. Our job is not only to make sure there is wealth creation in the country, but also we bear a responsibility beyond quarterly reports to see to it, from a generational standpoint, that we are going to leave this country at least as in good a shape as we inherited from our parents.
I will be happy to yield.
I thank my colleague. It is worthwhile to make the point that actually watching the buying power, the wealth of individuals being reduced, overall our country suffers from that--obviously the families do--but when you reduce that buying power, that wealth, implications are being felt throughout our economy.
These happen from a structural standpoint. But when you allow it to go on with Federal money being used--again, as I say, I would not be party, as much as I may object, to companies that want to do this. I think they are wrong to do it. They are making a mistake. It is harmful to our country. On their dime, I guess they have a right to do it. But on our dime, they ought not have the right to do it, and this is the American taxpayers' dime.
I don't think we ought to be saying to them, You can take your Federal taxpayer money and pay somebody offshore to do it, losing an American job that could be done here. I don't think that is right, and that is the purpose of this amendment. I thank my colleague.
I thank my colleague from Montana, as well, for his comments. I think they are poignant. While we do not specifically address those issues, he is absolutely correct. It is another piece of this puzzle on which we need to do a far better job. I have had some recent discussions with ambassadors from some of the Latin American countries and have suggested to them they ought to start talking to us about having labor standards and environmental standards from their perspective.
If free and fair trade is to work well, it ought to be raising the quality of life and the level of wealth accumulation by people in these countries with whom we are about to enter into trading agreements. That is good for us, and it is good for them. Instead of us having to fight for it here, they ought to be fighting for it and insisting upon it on behalf of their own constituents.
I say to my friend from Montana, it is as obvious as anything. These are the shelves--this is the marketplace you want to be. If you are any
other country in the world, you want to be able to access the greatest consumer market in the history of mankind, which is the United States of America. This is the most inviolable place to which you can sale your services and your goods.
Absolutely. The whole point of these trading agreements, because we are a high value country, obviously, and we do not want to dumb down our system, we want to see improving quality products, you need to sell them to somebody. If the countries with whom you are entering trading agreements do not have a population that can afford to buy your higher value goods and services, then the trading arrangement is going to be all one way and not the other. So it is very much in our own interest, from a larger perspective, to be able to have it.
Too often it is U.S. interests that are insisting that labor and environmental agreements not be included because they want to be able to enter those markets and hire people at those depressed wages and be able to operate plants that do not face environmental regulations. So they see it as advantageous for them. They then turn around and sell those goods back here.
They are not thinking about an American corporation that wants to sell its quality product there. It is very shortsighted and, of course, it only leads to further encourage the outsourcing of jobs, which is exactly what is going on.
And they should be more concerned about it.
My colleague would be interested to know, in my conversations, very informally at this point, but I am finding a great deal of receptivity to the point the Senator from Montana is making; that, in fact, they should be insisting upon these points. The politics of their own countries are changing and they are insisting if you are going to enter these agreements, that this be a part of it as well.
We may be looking at a new era where it is not going to be just people in this Chamber calling for these kinds of things, but, in fact, people in these other countries are going to be insisting upon it as well.
I appreciate the comments of my colleague from Montana. He is absolutely correct. I did not even get into the issue of what happens here. Obviously, when you fire someone, lay someone off, you hire someone offshore to do the job, there is absolutely no requirement that the fired or laid-off worker is necessarily going to be able to get any kind of health care coverage from the former employer. Even when you have retired with full benefits there is no guarantee, as we learned through the discussion of the Medicare bill that was before us only a few months ago.
So in addition to the lost jobs and wages--that is all I have been talking about today--there are benefits that are incredible, and when people lose those benefits it adds to the roles of the 44 million people in this country who have no health insurance.
They get health care. It might be showing up in an emergency room, which increases the costs of everyone else who has health care, as we all know. Fortunately, in this country if people get sick they can show up someplace and get some kind of coverage.
It is not free, and it adds tremendously to the cost of others as well. So the implications, in addition to laying someone off--as we see now the thousands of jobs that have gone--the Senator from Montana is very accurate in pointing this out when looking at this issue.
Here we are taking Federal taxpayer money. That is what my amendment addresses. It says: With Federal taxpayer money you can lay someone off and hire someone else and pay them basically with Federal dollars. So we are, in a sense, not only causing that person to lose their job in this country but also their health care benefits and other benefits they may have, not to mention what it does to a family.
Talk about keeping families together, the single largest reason why families break up is economics. Every study in the world that has been done on that institution says it is economics.
As a matter of Federal policy, in effect we are saying we are going to outsource these jobs, causing a great disruption in America and families' lives. The Senator from Montana is so right to point out that the health care implications, because we have not yet sorted this out, are huge.
Again, I come back to the point, I do not accept it, I do not like it, but if someone on their dime wants to lay someone off and hire someone else, I do not like it and I wish I could do something about it and I certainly want to support measures that I know of the Senator from Montana and the Senator from California, such as giving tax incentives to encourage people to stay here, but when someone does it with Uncle Sam's nickel, with the taxpayers' money, then I say, no. I have some control over that.
I am offering an amendment today that says when it comes to U.S. taxpayer money, you are not going to lay somebody off and hire somebody else 12 time zones away to do the job. You may do it on your dime but not on their dime.
I will mention one other subject matter that I know my colleague from Montana and my colleague from California care about, and that is privacy. That is one of the things we have not talked about at all on this issue.
I pointed out earlier--I apologize to my colleague from California because she cannot see this chart, but I was talking earlier about where these jobs are going, from what sectors of our economy they are coming from, the 14 million additional jobs in danger of being shipped overseas. One of the areas we are talking about is in the area of medical, diagnostic and medical services. This covers a little more than almost 300,000 jobs in that area.
We all know what is happening. Today, with information technology, x- rays can be transmitted at the speed of light or faster.
All sorts of medical information.
We have provisions of law in this country that say you cannot share certain private medical information with insurance companies or employers without consent. Medical information is now being processed by someone who has been hired 12 time zones away--all of a sudden that information is no longer well-protected. So as we see the increase in these diagnostic support services and medical transcriptions going offshore, then the very protections we ought to have as Americans are also being lost. I don't cover that in my amendment here, but we may offer some language on this bill at some point that would say you have to give people at least the opportunity to say I don't want my medical records being processed or handled by someone offshore. I want it kept in the United States because I don't want someone to be able to go in and find out highly sensitive information about me and my family that could be used against me.
Today the laws of the United States do not adequately protect you when this information is being processed and handled offshore. That is one of the major areas we are seeing these jobs moving.
I am happy to yield.
There were 272,000 jobs lost.
Let me say to my colleague I was not aware of it. I apologize for not being aware of it.
I know agriculture is a huge industry in the State of California, particularly in the area of rice. It is significant. So I am pleased to know we are covering this kind of activity as well.
Again, this is not being isolationist.
Every time you try to stand up for an American job you are called an isolationist. There is a new coalition. They want to change the language, by the way. There was an article this morning that says, ``Business coalition rewrites lexicon for jobs outsourcing.'' They point out, they say the coalition is now rallying around ``worldwide sourcing'' as a less provocative term.
I apologize for sounding provocative, but we didn't make this up. What ought to be provocative is the fact that people like my colleague from California have constituents who are losing their jobs because we are not doing enough to protect these jobs--not from a protectionist standpoint, but protect them when in fact there is no loss to be incurred as a result of standing up and saying we ought to be doing what we can to protect these positions in our country. I commend her for it.
I thank you for raising it. It is an important point and I am glad our amendment covers it.
My staff gave me some other information. I have mentioned others. Tax experts now say Indian-chartered accountants, the subcontinent version of certified professional accountants, will prepare somewhere between 150,000 and 200,000 tax returns this year. That is up from 20,000 last year.
I am not making up these numbers. The trend lines are moving at a very rapid pace. In this case here I am not suggesting these are necessarily being paid for with Federal tax dollars. I don't know that. If it is not, obviously we are not covering the situation and these firms that want to continue doing it unfortunately will be able to continue. But if they were doing it with Federal tax money, I say no, just as my colleague from California says no.
If someone with their own dime wants to decide they are going to ship rice or whatever products and use someone else offshore, that is one thing. But when they are using taxpayer money to do that, that is when we have an obligation to stand up and say no.
I appreciate her very much for raising that issue.
Let me say I see my colleague from Iowa on the floor, and others. This Senator is prepared to vote. I talked about this. I have had colleagues come over and share some thoughts on it. I know there are other matters. I know Senators want to move on. I am certainly not engaged in any filibuster. I am prepared to ask for the yeas and nays and vote on this amendment and move on to other questions. Is there some opportunity? I don't want to go into a quorum call if other Members want to come over and discuss other matters, but if we want to vote on it, I would like to do it. What chance do we have, I ask my friend from Iowa?
I appreciate that.
I thank my colleague and the manager of this bill for his candor
on the subject matter. He will certainly understand if I share with him--I know these were not his views, he is expressing the views of others who didn't understand the impact of this amendment. Let me say to him, my good friend--and he is a good friend. We have been in Congress together for many years--the impact of not doing something here is huge, on workers losing their jobs. I know my colleague knows that and shares my concern about it as well.
It is not terribly complicated what I am suggesting here. It is straightforward. It says when it comes to taxpayer money, it can't be used to subsidize someone offshore at the cost of an American job.
I know the coalition of the Chamber of Commerce and the National Association of Manufacturers and some other groups out there don't particularly like this amendment because 400 of the top 1,000 corporations are now outsourcing jobs, and I am sorry if they are disappointed by this amendment, but there are an awful lot of people losing their jobs.
That is the only reason I raise it. I have to wait until tomorrow. We will have to wait, obviously. I am disappointed because I thought it was pretty straight forward. Nonetheless, I appreciate my friend's candor.
I see my colleague from California.
Mr. President, I yield to my colleague from California.
I will make two points.
I appreciate my friend from Iowa telling me what the substantive concerns are about the amendment, one which I think we have addressed.
On the second question he raised, we included language which very specifically makes clear that the government procurement agreements between the United States and 27 other predominantly western European countries would not be affected by this legislation. India and China are not part of that problem. The major culprit in all of this is outsourcing of jobs. But my colleague from Montana raised the question that we could be found in violation of World Trade Organization policies, if we didn't include this language. So I think we addressed the concerns about whether or not we are going to run afoul of some international agreements to which we are a signatory.
The second part about mandating States, if you are going to use Federal money to lay off workers in your State and hire someone 12 time zones away to do the job, I don't consider that a mandate. That is Federal money. If you want to do it with State money, I can't keep you from doing that. That is your choice. If you are going to do it with Federal money that comes from grants and so forth, I think the American taxpayer would like to know that Federal dollars are being used to lay off one person in your State and hire someone 12 time zones away. You can call that a mandate, but I call it common sense at this particular juncture.
I think we have gone as far as we can go on this issue. We have covered the ground.
I thank my colleague from Wisconsin, Senator Kohl, for joining me in a bipartisan fashion on this amendment.
Today, 40 States outsource jobs. That is pretty alarming.
If you are unemployed in a State and you call up your unemployment office to find out about your rights, and you are talking to someone 14 time zones away to find out your rights, that is offensive to people in this country. They want to know what we are going to do about it. Do we understand what they are going through?
This is the first opportunity we have had since we have been back over the last 5 or 6 weeks to raise the one issue here. Night after night, Lou Dobbs on CNN, to his great credit, is talking about this issue. He is not talking about it and speaking to an audience that is not interested. The audience across this country is deeply interested in this subject matter. They want to know whether or not anybody is doing anything about it. I can't stop a private company from outsourcing with their own money. But I can stop you from using Federal taxpayer money to fire somebody here and hire somebody 14 time zones away. That I can try. I may not win, but I can try to do it. And that is what we are trying to do.
Madam President, I don't believe I yielded the floor.
My colleague from Nevada is in the Chamber. I didn't know if he wanted to speak.
For the purposes of those who don't know what a Blackberry is, we will explain that.
I do not know whether my colleague from Texas has a question of me or not. I know he would like to speak on the issue. Does he have a question for this Senator on the subject matter?
I will wrap up myself. I would like to come back, if I could.
Again, maybe I am wrong. But every survey I have seen over the last number of weeks has indicated that people--even people who have jobs-- are worried about this issue.
To give you some indication of the disconnect that occurs when it comes to this issue, I quote from the Los Angeles Times story, which appeared elsewhere, but talking about this question, it says:
``The movement of American factory jobs and other white
collar work to other countries is part of a positive
transformation that will enrich the United States economy
over time even if it causes short term pain and
dislocation,'' the Bush administration said the other day.
It goes down and says from the economic report:
``Outsourcing is just a new way of doing international
trade,'' said Gregory Mankiw, Chairman of the President's
Council of Economic Advisers.
They prepared the report.
More things are tradable than were tradable in the past,
and that is a good thing.
The article goes on.
I remember the statement being made; Mr. Mankiw apologizing. He said it was a bad choice of words, and we certainly accept his apology. The problem is, it was not the words. It is not a bad choice of words; it is a bad idea.
The idea of saying I am sorry I said only indicated to me they were sorry they said it out loud. They did not change their mind about the subject matter but merely said we got caught at something we should not have said because it was bad politics to say it. I misspoke politically but not substantively, and there is a fundamental disagreement on this point that outsourcing is a good thing.
These are not just goods and services to be tradable in the open marketplace. These are critical jobs which mean a huge difference to the families affected. We bear no greater responsibility in this Chamber than to do what we can to protect American families. When they are being threatened by unnecessarily shipping their job overseas, it is our obligation to speak out and try to do something about it that is responsible.
I made the point over and over again, and I will make it again, I have supported far more free trade agreements over my course of service here than not because I believe that is where you have to be in the 21st century. But they have to be fair agreements. We have to negotiate them far better.
The Senator from Montana and I have talked about how we might achieve those desired results. I don't subscribe to the notion that it is isolationist or protectionist to stand in the Senate and say I think it is wrong to use Federal taxpayer money to cause someone in this country to lose their job and hire someone 14 time zones away. I don't think that is a good idea. Others may say that is their right, but we will have a vote on whether you think it is right.
Examine it until you are blue in the face and try every cockamamie idea to undermine what we are doing, but it is a bad idea to federally subsidize the exportation of jobs that ought to be kept here, not for protectionist reasons but if we provide services and jobs in the global marketplace in the 21st century, you better have the people here who can do it.
If we give up that kind of human capital that is so critical to our long-term success of people, we are putting our Nation in jeopardy. It is not a great quarterly answer. For that company which wants to make more money next quarter, this is a dreadful idea. But if you are thinking more than quarters, if you are thinking down the road about what kind of a Nation we will be leaving the next generation who will inhabit these seats we hold today as Members--we have an obligation to them, as well. We owe an obligation, just as others who sat in these seats bore an obligation to us and left us a pretty decent country--not a perfect one, but a good one. We should see to it that coming generations have the equal opportunity to bear the fruits we have provided for two centuries.
We do not do it by remaining silent or giving phony reasons about why jobs are being outsourced unnecessarily around the globe. That is why I bring it up and that is why I hope we can have a vote and move on it. It is not that difficult to understand.
I yield the floor, as I know my friend from Texas wants to be heard.
I suggest the absence of a quorum.
If my colleague will yield, in chapter 2, page 73 of the Economic Report of the President--this was prepared by the President's economic advisors--they raise the issue here as if it were a legitimate question. They say: The definition of a manufactured product, however, is not straightforward. When a fast food restaurant sells a hamburger, for example, is it providing a service or is it manufacturing a product? They think that is a legitimate question, that manufacturing a hamburger might actually be a manufacturing job. My colleague from Nevada is absolutely right to raise this point.
These charts belong to Senator Kennedy. He feels very strongly about these charts. I wanted to make sure the record reflects we are borrowing Senator Kennedy's charts. They are very good charts.
Madam President, I thank my colleague from Nevada for his comments. He is absolutely right about changing the rules. I have worried about that, when all of a sudden--and I have seen it happen in the past--you don't like the numbers you have, so you come up with a whole new definition and expand the numbers. That is what it looks like when you start talking about what clearly are fast food service jobs, manufacturing jobs, and we have seen those efforts being made.
This wasn't the first administration trying games like that. We have had others in the past doing that. I appreciate his comments, and I thank him for his support as well.
I have just a couple of other points. My friend and colleague from Texas cited earlier some of the efforts in the area of job training, vocational education. I wanted to respond by saying I don't disagree. I think that is an important element. But the problem is that one of the frustrations is the outsourcing of jobs that is occurring at a rather remarkable rate now, and it seems to be accelerating and very little is being offered to try to do something about this.
In fact, even in the area of protecting manufacturing jobs and doing something about retraining, let me share with my colleagues what is going on. In the manufacturing extension partnership, which is a very important issue for the manufacturing firms of this country, this is going to mean less help to an estimated 11,000 small businesses; 28,000 workers will either lose their jobs or not be hired as a result of these cuts.
So there is cutting back in this area. Outsourcing is going to have a huge impact on the manufacturing sector.
The Small Business Administration is being cut by $79 million, hurting hundreds of thousands of small businesses struggling to create jobs for Americans. There is a cut of $316 million for vocational education. This is in addition to the more than $1.5 million in proposed cuts to job training and vocational education made over the last 3 years. We are also cutting $448 million for the Workforce Investment Act programs.
My point is, as we watch these outsourcing of jobs and the loss of 2.8 million manufacturing jobs, I would be heartened if I thought we were making an effort at least to commit additional resources to help provide training for people who find themselves under normal cyclical circumstances losing a job, but here we are in an abnormal situation where there is an extraordinary loss of manufacturing jobs occurring across the country in the last 36 months and we have an extraordinary acceleration of outsourcing of jobs occurring over the same period of time--I pointed out that now 400 of the top 1,000 businesses in America are outsourcing, 40 of the 50 States, all for a very obvious reason. You can save a lot of money right off the top by doing it. When you can hire somebody in India at $7 a day as opposed to paying someone a salary in Silicon Valley, you
do not have to have a Ph.D. in mathematics to know the outcome.
I understand the motivation behind it. The question I have is, are we going to sit back and allow this to continue at the expense of losing the kind of human investments that we ought to be making to guarantee that we have a workforce capable of doing jobs and providing the services that America ought to be providing in the coming years?
In addition to that, even if we were not doing an amendment or were not going to support language that would say that Federal taxpayer money ought not be used for this purpose, I would like to think that in the area of vocational education, small business assistance, manufacture extension partnerships, and certainly Workforce Investment Act--all of these areas--that the administration would say: Look, this is our answer to this. We don't agree with you, Senator, about not using Federal funds.
Madam President, I ask unanimous consent that an article from the Los Angeles Times be printed in the Record.
The headline in the Los Angeles Times--it is a viewpoint-- says: ``Bush Supports Shift of Jobs Overseas.'' It goes on to talk about the report that I talked about all afternoon, this economic report prepared by the Council of Economic Advisers, where they conclude that the outsourcing of jobs is a good thing. The author of that language apologized for his use of those words, but he has not apologized, and I understand why, because he believes it is good economic policy to be outsourcing.
There are some of us--I do not know if it is a majority--who disagree with that conclusion, that outsourcing is necessarily good.
I cited already from the Wall Street Journal companies that painfully discovered when they outsourced, while they thought they were going to save money, it actually cost them dearly. It is not only not good, but it fails to take into account--watching somebody's job be lost because there is a cheaper labor pool that you don't have to pay health care benefits to, despite the fact the person here is going to lose them--if it is really good for America.
I am suggesting while this rush is occurring that we ought to put on the brakes and stop, look, and listen so we will not necessarily be caught up in a situation where a year or two or five from now we will look back and say: Why didn't somebody say something or do something when we knew this was happening, when we could sit, watch, and read on a daily basis the pouring of
jobs out of this country to 14 time zones away, depriving people of benefits and income they needed for their families; what did you do on your watch? What did you do?
If the answer is we thought it was a good thing for the American economy, then I think we will be suffering an indictment historically.
I see my colleague from Kentucky who wants to move on to matters of the day. I yield the floor, with the right to be recognized at the conclusion of his remarks.