I thank the gentleman from California and my friend from New York (Mr. Tonko). We have a discussion going now about manufacturing in America. And our colleagues understand the relationship that exists between manufacturing and R&D,…
I thank the gentleman from California and my friend from New York (Mr. Tonko). We have a discussion going now about manufacturing in America. And our colleagues understand the relationship that exists between manufacturing and R&D, research and development. And it's critical that we look at those together, because of the discussion that we're having in this country about why, over the past several decades, we've lost so much in manufacturing, we've lost our core manufacturing businesses.
I come from western Pennsylvania. We have seen the steel industry over the past several years. Although there is a resurgence today, it's been many, many years since we lost a lot of that steel industry that we had in western Pennsylvania, and it was the core base of employment for generations in the Pittsburgh area.
Across the country, we've seen our manufacturing industry decimated by foreign competition; and the reason R&D relates to this, as the gentleman certainly knows, is it's a continuum. And at first, when America lost its manufacturing lead to other countries, we still kept the innovation; we still kept the R&D. But the continuum that exists between someone in America coming up with an idea, an invention, turning that, through R&D, into a real product, a real innovation, we have always been the leaders in that in America. Americans have led the way with innovation, with creation, with technology, and then turning that into the
manufacturing sector, turning that towards product development, manufacturing, exportation to other countries, creating a base of people who are going to use that product.
The whole continuum is something that we have seen over the last several years through foreign competition. We've lost our lead in a lot of those things. And because of our failure to invest in research and development, because of our failure to keep up with the foreign competition, we've lost even more than just the manufacturing sector. We've lost our competitive edge on the innovation side as well.
That's why it's so critical, even in the times that we face now, severe fiscal restraint, a recession that we are finally recovering from. We have to continue to make that investment in R&D because, as the gentleman from New York said, if we don't do it, other countries will--and they are. And if we expect to compete in a global economy, if we expect to get back our lead in manufacturing, which we are starting to do, it has to begin at that first stage of innovation, of research and development, creating new products, leading to new ways of manufacturing, more cost-efficient ways of manufacturing.
We're going to be able to do it, and we're starting to see the resurgence in America specifically because we understand that continuum that exists. It would be a tragedy for workers in this country to begin moving in the other direction.
I thank the gentleman for his leadership.
I wanted to transition into talking about the trade deficit that we're facing in this country. But before I did that, I wanted to close the loop with what Mr. Tonko and Mr. Garamendi have been talking about for my colleagues.
I hear a lot back home. You'll have town hall meetings, and you'll have discussions with people about federally funded research. It seems as though there's always an example somewhere of a research project that seems on the surface to be unjustifiable, and in some cases, people will argue it's ridiculous that we're funding certain things. I just wanted, for my colleagues, to give a couple of examples of federally funded research that has paid huge dividends for everyday life.
There was in the late 1970s and early 1980s a big national story about federally funded research that studied the eyesight of eagles. At the time, it was considered to be a mockery--it was of no use to society, and it was a waste of money. Well, lo and behold, what did we get out of that research? We got night vision goggles for our troops who were serving overseas on the military battlefield. We got soft contact lenses. We got so many innovations from that type of research. The touch screen on our everyday iPad was federally funded research out of the University of Delaware, of course many years after what I'm speaking of. The GPS system, which so many of us rely on, was from federally funded research. The Internet was created, as we all know, through the Pentagon and federally funded research.
So I would say to my colleagues, for those who may be skeptical that certain projects--and you know, I'm sure there are some that you can point to that haven't paid dividends, but there are some that maybe on the surface didn't sound like good ideas in the beginning that have paid huge dividends. I would go back to that example of studying the eyesight of eagles. LASIK eye surgery was the byproduct of that type of research. So investment is what we're talking about. Research and development just pays back so much more than what we're paying into it.
The R&D tax credit has to be made permanent. That is a key part of this. The manufacturing extension partnership that the gentleman was talking about is a key part of our future in this country, bringing back a resurgent manufacturing base. What happens if you don't do that? What happens if you aren't competitive in the global economy?
It's what this chart shows.
Now, this will come as no surprise to our colleagues. This is the U.S. trade deficit from 1976 through 2008. You don't even need to look at the numbers, and you can see it's heading in the wrong direction and that it has been heading in the wrong direction for a very, very long time, and there are a lot of reasons why this is.
Some of it has to do with our foreign competitors and their getting their act together and joining the world competition in a way that they hadn't before. But a lot of it has to do with our own policies and the fact that we have not invested, that we have not had a strategic manufacturing strategy in this country and that we were a little bit slow to react to what was happening overseas.
The role that we have in this House is to change that, and we have a decision to make in this country: Are we going to continue to allow this to happen and just sit back and wait while other countries continue to improve, to modernize, to become more cost-efficient, to become more competitive, and to continue to make this trend worse for the American worker? Or are we going to take action? Are we going to invest in our future? Are we going to change the way that we do our manufacturing strategy in order to incentivize making products in America?
We talked a couple of weeks ago, the gentleman from California and I, on this very floor about a provision of our Tax Code which may very well be, in my opinion, the most egregious and unjustifiable provision in the entire Federal Tax Code, which is, if you have physical assets, if you have a plant in this country, a manufacturing plant, and if you want to move that plant overseas, if you're going to close your operations, if you're going to get rid of your American workers, if you're going to move your physical assets, literally move those assets overseas, in some cases, you can get a tax deduction for the cost of your moving expenses. The American taxpayer, believe it or not, will cover the cost to move that plant overseas.
That's ludicrous. There is no reason that provision should exist, and that's one of the reasons you see the chart going in the wrong direction--because we have been slow to react. Yet we're at a turning point in this country. We have a tremendous opportunity in front of us to do the right thing, to change the policies that have led to our trade deficit and to begin turning the corner and heading in the right direction.
The gentleman has given me so much to work with here on community colleges, and then I will transition into transportation, as the gentleman would like to do.
I visited, just yesterday, the Community College of Allegheny County, outside of Pittsburgh; and they have an amazing fundraising campaign going on, because western Pennsylvanians, private industry, and the foundation community believe in the future of our country, and they believe in the future of community colleges. They have a $40 million fundraising campaign. They've already exceeded $30 million. And the discussion was about all of the wonderful things that are happening as a result of the innovations that are taking place at the community colleges, not just in western Pennsylvania but across the country.
We have energy resources in western Pennsylvania that are unique. And all the time we hear about employers saying that they have jobs available, but they can't find people who are trained to fill those spots. So being right on the cutting edge, the Community College of Allegheny County has almost two dozen new programs, new curricula
that they have established to train workers and retrain, in some cases, to fill the new spots--geologists, managers, people out there on the worksites, all types of ways, through the natural gas industry, the nuclear industry, energy, research and development, what we were talking about earlier.
Our community colleges really do play a unique role in this because of their ability to partner with local businesses, to identify the needs, to retrain workers who have lost their jobs through downsizing or changes in the workforce. It's an amazing resource for this country, and the President is right to put a focus on community colleges as part of our resurgence in this country.
Earlier, our colleague, Mr. Tonko, was talking about the Erie Canal and the foresight and the commitment that went in and just the unbelievable feat that it was to accomplish that. And I was thinking, as the gentleman was speaking, about the debate that we're having in this country about transportation and infrastructure.
We are going to debate tomorrow and vote probably Thursday in this House on a very underfunded transportation bill that does not contain the same foresight that the gentleman was discussing occurred in New York. And I think about the debate that must have occurred in New York when the Erie Canal was proposed, and the cost and the expense and the manpower and just the time commitment that was necessary, a seemingly impossible task.
You think about the intercontinental railroad in the 1800s and what the country's debate, the political debate had been at that time. What must have been the debate in the 1940s and 1950s when President Eisenhower finally got off the ground the interstate highway system and began connecting our roads in a way that we'd never done before.
That's what we're facing right now. We have a system of transportation in this country to move goods from point A to point B, manufacturing and make it in America, what we were talking about. Well, if you make it in America, you have to have a way to move goods across the country. We can do that in all kinds of ways. We can do that on our waterways, through shipping, cargo ships; and we also have barges in my neck of the woods. In Pittsburgh, I have a system of locks and dams in the district that I represent, six different locks and dams that average 85 years old. They were built to last 50. Two of them have been rated by the Army Corps of Engineers as in imminent threat of failure. That is a crisis of infrastructure, and that's happening in similar ways all across the country.
You look at our aviation system. If you want to move goods by air, we have an air traffic control system in this country that is still based in technology from the 1950s. And this NextGen technology that is possible through satellite technology, it is expensive but it's long overdue, and it's a commitment that we need to make in this country, as they've made in other countries. Our competitors don't have the same bottlenecks that we do at their airports because they have more modern air traffic technology.
And then you get to our rail system. We all understand the bottlenecks outside of Chicago and other places in this country and our lack of modern investment in our rail system. But what we're going to be talking about this week in the House is our roads and bridges and a highway system. I spoke earlier about President Eisenhower's vision with the interstate highway system and the way that this bill lacks that same vision because it underfunds that investment and it doesn't require or doesn't even incentivize products to be made in America.
There are literally trillions of dollars of need in our transportation infrastructure. Certainly we don't have the ability to afford it all; but I can't think of a better way to put American workers back to work, to put American jobs back in play in the manufacturing sector, to have a resurgence, a regeneration of our manufacturing sector than through our transportation infrastructure.
I'm very disappointed at the lost opportunity that the bill we're debating presents because there are so many ways American workers can win, American manufacturers can win, and, most importantly, America can win. And we're missing that opportunity. But through the discussion that we are having today, maybe we can move this country in a different direction.