I appreciate the comments of Senator Klobuchar, who has been a leader on moving forward on this legislation on food safety. It is so important to our country. I am so sorry that pretty much one obstructionist, or a whole party of…
I appreciate the comments of Senator Klobuchar, who has been a leader on moving forward on this legislation on food safety. It is so important to our country. I am so sorry that pretty much one obstructionist, or a whole party of obstructionists, unfortunately, have blocked this bill, and one Senator in particular has kept us from moving on this bipartisan bill. It is one of the sad chapters of this Senate that a small minority, again, can block us from doing the things we ought to do in our jobs, what we ought to be doing.
I want to talk for a moment about some positive developments in my State. A couple of weeks ago I went to Lordstown, OH. It has a General Motors plant. I believe Governor Strickland was asked to drive the first red Cruze, Chevy Cruze, their highest mileage new car, off the line, followed by a white Cruze and a blue Cruze. You know the symbolism of that and the beauty of that and the inspiration of that in many ways was all about what has happened in the last 18\1/2\ months to the auto industry.
I am particularly proud. I do not come to the floor and endorse one particular company ever. I am not doing that. I am proud of this because of what it looked like a year and a half ago.
Now, 18 months ago we remember what happened: Barack Obama took the oath of office. The banks had about imploded. We knew the financial system was close to collapse. We knew the auto industry was facing bankruptcy.
President Obama took office in the midst of losing 700,000 jobs a months. President Bush was leaving office, having left us--the largest in history at that time--the largest budget deficit in the history of the United States of America. That is what we started with 18\1/2\ months ago.
When you think about what it meant in the auto industry--I know my State is considered an auto State. New Mexico may not be, but New Mexico has some number of component manufacturers and a lot of car dealerships.
The car dealerships in Taos or Albuquerque or Truth or Consequences or anywhere necessarily in the State are often so involved in the community: helping Little League, helping scholarships, all of the kinds of things the good citizens, especially auto dealers, do. But I think about what this meant.
So 18 months ago when this auto industry was about to crash, literally--pardon the pun--what it would have meant in my State, it would have meant tens of thousands of retirees would have possibly lost significant amounts of pension and health care they had as 25-, 30-, 40-year employees of General Motors or Chrysler.
We know it would have meant a huge number of lost jobs, thousands of lost jobs, just in the auto companies, let alone all of the suppliers, what are called tier 1 suppliers, tier 2 suppliers, those small companies, small- and medium-sized companies that are suppliers. They are machine shops, tool-and-die makers, stamping plants, all kinds of companies that make components that go into the auto industry, that go into the trucks and the cars. They would have gone out of business.
We knew all of this was about to happen. Because of the Recovery Act, and because this government decided, President Obama and the Democrats in the House and Senate--in spite of the naysayers, in spite of the people out there who said: Let the market work; if the auto industry collapses, it is the market speaking. Just let the market work. Let the free market work. If we had listened to them, listened to the naysayers, listened to the people who are the doom-and-gloom crowd, my State would have gone into a depression. We would have lost thousands of auto jobs. Senior citizens relying on those pensions and health care would have been, in many cases, abandoned. The dealerships, the component manufacturers, and the auto company employees themselves would have been out of work.
As I said, we did not listen to the conservative politicians and say: Let the market work. We did not listen to the naysayers. We did not listen to the doom-and-gloom crowd who said: It is not our problem. The Federal Government has no business.
Well, the fact is, the Federal Government invested in the auto industry. Instead of losing 700,000 jobs a month, as we were when President Obama took office 18, 19 months ago, we are now gaining jobs. We have gained jobs in this country in the private sector for 7 or 8 straight months. Not enough, not even close to what we want to do in New Mexico or Ohio or any other State, but clearly we have seen some good things happen.
What has happened in the auto industry is particularly interesting. At this GM plant in Lordstown, right where I was--and I have been there many times, where I was a couple of weeks ago with Governor Strickland--we have seen--there are 4,500 people working in that plant now. They just added 1,100 jobs to do the third shift of the Chevrolet Cruze. But what is particularly great about that, if you are the Senator from Ohio, is in Defiance, OH, western Ohio, near the Indiana border, is where they make the engines for the Chevy Cruze.
If you travel northeast of there to a Toledo suburb called Northwood, that is where they make the bumpers for the Chevy Cruze. If you go into the city of Toledo, that is where they make the transmission for the Chevy Cruze. Then you go east to Parma, OH, that is where they stamped most of the components for the Chevy Cruze.
Then you drive east to the Youngstown area, Mahoney Valley to Lordstown. They do some of the stamping, and that is where they do the assembly. So hundreds and hundreds and hundreds of new jobs were created--well, thousands--up and down the supply chain, from the most basic bolt, the most basic component in an engine or the most basic component in a car door or anywhere else in that car, to the ultimate assembly in Lordstown. It means thousands of jobs.
Again, if we had listened to the doom-and-gloom crowd and the naysayers, it never would have happened. We also need to learn from history. When government is in partnership with the private sector, with private businesses and communities, some pretty good things can happen. Just take this for a moment.
For 8 years, January 1993 to January 2001, President Clinton, during his time as President, we saw a 22 million private net increase, 22 million job increase.
We also saw wages go up in this country, and President Clinton left us with the largest budget surplus in American history: 22 million jobs, an increase in wages, largest budget surplus in American history.
In the next 8 years, January 20, 2001, to January 20 at noon, 2009, those 8 years of President Bush, 1 million jobs increased, 1 million, not even enough to take care of our sons and daughter who have graduated from high school and are entering the workforce, coming out of the Army, coming out of high school, coming out of college, not even enough to absorb the population growth.
Wages were actually flat or went down for the great majority of Americans during those 8 years, and President Bush left us with record budget deficits. So 22 million jobs, 1 million jobs, incomes went up, incomes flat and went down, biggest budget surplus in American history, record budget deficit under the Bush years.
So if you go back further, you hear the Republicans, my colleagues on the other side of the aisle, talk about this philosophy: Cut taxes on the rich, and you cut taxes on corporations, you are going to have job growth. Well, nice try. It is not what happened.
After the Ronald Reagan tax cuts for the rich in 1981, the next 16 months we had declining employment in this country, 16 months in a row of lost jobs after this tax cut, which was going to make the economy take off. Fast-forward 1993, President Clinton. He had some tax increases on the wealthiest taxpayers. He also had some budget cuts, and he moved toward a balanced budget.
Employment took off--22 million jobs. President Bush, 2001, big tax cuts for the rich in 2001, big tax cuts for the rich in 2003, basically no real significant increase in jobs during those 8 years. Now, the mantra of the Republicans, those who are on the ballot this year and those who sit across the aisle from me, again, is, let's do more tax cuts because that increases jobs.
It does not. What increases jobs is investment in education, investment in health care, investment in infrastructure, reducing the deficits--all the things that Republicans pay lipservice to but in the end simply do not deliver on.
We have an opportunity next Monday. This coming Monday, we are going to bring a bill to the floor that is the other part of this: How do we create jobs? That is, we are going to begin to finally move to fix some of our tax laws, and then next will be some of our trade laws so that we quit losing so many jobs to China.
Mr. President, 30 percent of our GDP in 1980 was manufacturing, almost 30 percent. Now it is down to 11 percent of our gross domestic product. A big part of that is trade policy, which the Presiding Officer opposed when he was in the House of Representatives, PNTR with China and the Central American Free Trade Agreement, and before that, when I was in the House, my first year, the North American Free Trade Agreement, which we opposed.
Those trade agreements, coupled with tax law, has encouraged companies to move overseas. Those days have to be behind us. What we are going to do on Monday night is vote on legislation that will begin to turn the corner, will begin to take away those tax incentives for companies to go overseas and replace them with tax incentives for businesses that manufacture in Shelby, OH, and in Ravenna, OH, and Zanesville, Ohio, and all over this country.
At the same time, President Obama, the first President in years in either party, is beginning to enforce trade law. We know what that meant in Findlay, OH, when he enforced trade laws with the International Trade Commission and the Department of Commerce, on Chinese tires that had been dumped, sold illegally into this country.
When President Obama enforced those trade rules against the breaking of the law that the Chinese Government did, immediately we saw several hundred jobs created--100 of them in Findlay, OH--several hundred jobs created all over the country.
When the President did the same thing on something called oil country tubular steel--it is the steel, the seamless steel pipes, these tubes that are used for oil and gas drilling--we immediately saw a commitment, an investment, which will result in 400 jobs in Mahoning Valley in northeast Ohio, and a good many jobs in Lorain, OH, a city I lived in for a decade west of Cleveland on Lake Erie.
We were able to do that because, finally, it is the Democrats, working with President Obama, who are enforcing trade law and beginning to change tax policy so we see job creation.
I do not care where you live in this country. People are just sick and tired of not being able to find American-made products. This is made in China. This is made in India. This is made in Brazil. This is made in Honduras. This is made in Bangladesh. Nothing against those countries, but oftentimes, especially the Chinese, their government is gaming the system. They are not playing fair on trade. We need a whole different trade regimen. We need a whole different tax system so American companies are no longer going to China to find cheap labor, weak environmental rules, unenforced worker safety rules, and can produce and then send it back to America.
I think this is the first time since colonial days where the business community, where a lot of large manufacturing companies--and I make the distinction between large and small because small manufacturing companies do not do this but the large manufacturing companies. Ten years ago they came to lobby Congress to pass the permanent normal trade relations with China. Ten years ago this month the Senate, for all intents and purposes, sold out American manufacturing. They passed PNTR, it was called. It used to be called most favored nation status with China. They changed the name because it did not sound very good.
Congress passed that 10 years ago. What that has meant is our trade deficit with China has almost tripled in that period of time. What the business community has done, the large companies have done, is this: They lobbied to change the rules. Then they moved production from St. Clairsville, OH, and Portsmouth, OH, and Springfield, OH, to Shanghai and Wuhan and Beijing, and Huang Jo, China, to make those products. Then they sold them back to the United States.
I don't think since colonial times that large companies in one country have adopted that kind of business plan where you move production out of your country, make it somewhere else, add all that value to those products, and then sell them back into the home country where the corporation headquarters is located. It doesn't make sense for us. It means far too many lost jobs.
I will give an example. There is an industry in which many Ohio companies are involved, the paper industry. There is a specific kind of paper called a glossy paper used in magazines. China didn't have that industry. It is called coated paper. Twelve years ago China did not have a coated paper industry. They began it similar to the last decade when they built wind and solar, clean energy industries, and somehow started to lead the world, as we have unilaterally disarmed. Now they buy most of their pulp in Brazil. So they grow the trees, cut down the trees in Brazil. They ship the wood to Chinese paper mills. They manufacture the coated paper in China. They ship it back to the United States. They underprice American paper companies
which buy the wood sometimes within a few miles or a few hundred miles of where they are, which tells me, even though wages are less in China, even though they don't have much enforcement of environmental rules or worker safety rules, they are gaming the system with currency, with subsidies, free land, all the kinds of things the Chinese Communist Government does.
Until we enforce trade laws so we play fair and compete, we will continue to lose manufacturing jobs. That is why Monday night is an important first step as this Senate moves forward on dealing with the problem of outsourcing jobs. There are few things we can do in this body more important than beginning to rebuild manufacturing. We know how to make things. My State is the third largest manufacturing State in the country, behind only California and Texas, which are two and three times the size of Ohio in population. We know how to make big and little things. We have the largest ketchup manufacturing plant in the world in Freemont. We have the largest insulation company making fiberglass anywhere in the United States in Newark. We know how to make things in our State. We just need the opportunity, a level playing field, tax law and trade law that puts the United States of America on a level playing field. We know we can compete with anybody. We just need the opportunity.
I yield the floor and suggest the absence of a quorum.