Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the subject of my Special Order. Mr. Speaker, I begin this evening by…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the subject of my Special Order.
Mr. Speaker, I begin this evening by offering the comments of my colleague, the gentlewoman from Cleveland, Ohio (Mrs. Jones), who could not stay with us this evening, but to announce her support of our efforts, or opposition, if you will, to the Central American Free Trade Agreement and her good work on opposing this agreement that will expand NAFTA to Central America and ultimately lead to the quadrupling of low-income workers, the doubling of the size of NAFTA and more hemorrhaging of American jobs.
Mr. Speaker, President Bush last Friday officially notified Congress that he supports the Central American Free Trade Agreement, that he plans to send it to Congress, probably sometime in May, and this body sometime after that will make a decision on whether it wants to pass the Central American Free Trade Agreement.
It just amazes me, Mr. Speaker, that President Bush continues the same very much failed economic policies that he has promoted in this country for the last 3 years.
The Bush economic policies basically are twofold: continued tax cuts for people who need it least, for the most wealthy people in our society. Roughly half the tax cuts have gone to the wealthiest 1 percent of people in this country as we continue to run up huge budget deficits. That is one part of the President's economic recovery program which has led us to a jobless recovery, or, more precisely, Mr. Speaker, a job-loss recovery. One aspect is tax cuts for the wealthiest of Americans as part of his policy for economic recovery.
The other part is to continue to pass trade agreements which have, frankly, shipped jobs overseas. That is why he is asking Congress, because he believes these trade agreements for some reason seem to be helping; but it is pretty clear we have lost lots and lots of manufacturing jobs, to China, Mexico, south of the border, across the ocean, to countries all over the world.
Mr. Speaker, in my State of Ohio, one out of six manufacturing jobs has simply disappeared since President Bush took office. That means that tens of thousands of Ohioans are out of work; literally hundreds of thousands of Americans in manufacturing have been thrown out of work. And it means something else: 30 or 40 years ago when we were in the midst of a recession, you figured most of those jobs, seven out of 10, statistics say, would return, people would get their jobs back. They would have temporary layoffs at a Ford plant, temporary layoffs at a steel mill. Seven out of 10 of those jobs would come back. Three of them would be lost forever. Other jobs might be created during a recovery.
During the Bush recession and recovery, they are predicting now only three of the 10 manufacturing jobs lost will return, and they have not even returned yet. So we have this jobless job-loss recovery, when the President says his tax cuts are working. They may be working for upper- income people who both get the tax cuts and now are seeing the stock market doing a little better, only a little better; but they are not working for Ohioans who have lost jobs. They simply are not working. The promises the President made simply have not been fulfilled.
The front page of The Washington Post today, a newspaper that has been pretty pro-Bush on Medicare, very pro-Bush on Iraq, pretty pro- Bush on a whole host of issues, this newspaper wrote on the front page, talked about the Bush job forecast.
With President Bush, every time he issues a statement, an economic report, every time he introduces legislation on the economy to Congress, he makes predictions. He predicted there would be 3.4 million more jobs in 2003 than there were in 2000.
Now, this prediction was not made before September 11, upon which he blames much of the economic stumbling, economic recession in some places, depression in others in this country. This was a prediction made 2 years ago.
The President said by 2003 there would be 3.4 million more jobs in this country than there were when he took office. You know what? We have actually seen a loss of 1.7 million jobs; 1.7 million fewer jobs today than when President Bush took office.
That is some kind of a record. There has not been a President of the United States for 7 decades that has actually seen a net loss of jobs during his presidency. Herbert Hoover was the last one, and Herbert Hoover obviously paid a political price at the next election; and, more importantly, Herbert Hoover paid a historical price in that he became the President that perhaps managed the economy worse than any President in the last century, until this President, who is kind of competing for the same kinds of records.
The President also predicted a couple of years ago the budget deficit would be down to $14 billion. Well, it turns out that the budget deficit is $521 billion. So he predicted, way after September 11, a couple of years ago, he predicted a 3.4 million jobs increase
and a budget deficit of $14 billion. He got a 1.7 million job loss and a budget deficit of $521 billion.
Again, The Washington Post, not exactly a liberal newspaper, a paper that supported President Bush on most of his initiatives, the headline in The Post, ``Bush assertion on tax cuts is at odds with IRS data.'' President Bush runs the IRS; and still his statistics, even according to them, are inaccurate.
Now, we talked earlier about the tax cuts being the mantra. Whenever there are economic problems or whenever there are jobs lost, the President decides to cut taxes. Well, he also talks about trade agreements. Let me talk for a moment, and then my friend, the gentleman from Oregon (Mr. DeFazio), is also here and will join us and talk about some of these issues also.
The President has said that he is going to bring the Central American Free Trade Agreement to this Congress. If there is anything obvious to the American people, steelworkers in Ohio, lumber workers in Oregon where the gentleman from Oregon (Mr. DeFazio) is, paper mill workers, auto workers in my State, rubber workers in my State, tool and die makers in my State, if there is something obvious to all of them, it is they believe an awful lot of their jobs have been lost overseas, because we have seen this kind of hemorrhaging of jobs, shipping of jobs overseas.
This week I was at a plant, Ohio Screw Products, in Elyria, Ohio, in my district, with Dan Imbrogno, who runs this company. They have about 70 full-time and a handful of temporary workers who punch out bolts and make products to be components in other products of all kinds, including some defense work.
But mostly he has seen a threat of jobs going to China, a threat of jobs going to Mexico, a threat of jobs going further south across the southern border in this country; and he just shakes his head, as do the workers who I met with at this company over lunch on one other visit a few months ago, just shake their heads over American trade policy. Why do we keep passing it? Why do we want to extend NAFTA, clearly a broken trade agreement, to the rest of Latin America? It is not working in Mexico. Why should we double it in size and population and quadruple it in terms of the number of low-income workers?
When we passed NAFTA in this body, the gentleman from Oregon (Mr. DeFazio) and I both opposed it in 1993. When we passed that legislation, that agreement, we had a trade surplus with Mexico. Today our trade deficit with Mexico is $25 billion.
Now, President Bush's father, who presided over a similar kind of economic decline, although this one is significantly worse than his father's, but President Bush, Sr., said for every $1 billion in trade, because trade entails usually manufacturing of goods, for every $1 billion in trade, we lose or gain 18,000 jobs. So, in other words, if you have a $1 billion trade surplus, it means you are making a lot of things, selling them overseas, for every $1 billion in sales hiring about 18,000 American workers. If you have a trade deficit, as we have, you see it go the other way.
So we now have a trade deficit with China of over $100 billion, a trade deficit overall around the world of some $400 billion. All you have to do is do the math to see the kind of job loss that brings to our country.
So the answer from President Bush is more tax cuts for the richest people in our country and more trade agreements that hemorrhage jobs, that ship more jobs overseas? It simply does not add up.
In a moment I will yield to the gentleman from Oregon (Mr. DeFazio). In a moment I will give some more details about what the Central American Free Trade Agreement actually does to our Nation, to our economy, and especially to manufacturing in my part of the country, where we are seeing these jobs shipped overseas every day, plant closings, layoffs, threats of more plant closings, threats by management to move overseas, so that workers see their wages stagnate or even go down with give-backs, all that happens with these trade policies; yet President Bush says we have got to do more of them because, frankly, I think that helps his investor friends, his major campaign contributors, the people who seem to have the most influence in this administration on economic policy.
Not working families, union or nonunion; not small businesses that are struggling, but the people that have the influence in this administration; not Ohio Screw Products in O'Leary, Ohio, but are the large companies that gain from the trade agreements, they gain profits as they shed workers in this country. Those are the only people that benefit. It is President Bush and his campaign kitty and those companies, those executives and those investors that shift jobs overseas and pad their pockets and make bigger profits and get bigger bonuses.
I yield to my friend, the gentleman from Oregon, who is holding one of his favorite books there that can tell more than I know.
Mr. Speaker, I thank the gentleman. We think about this. He mentioned when he introduced his idea to better monitor and study and pay attention to, if you will, focus, on the trade deficit, how it has gone up since 1997. The trade deficit for the entire year of 1992 was smaller than the trade deficit, or was about equivalent in 1992 to the trade deficit for 1 month last month. We had a trade deficit of about $40 billion a dozen years ago. We have a trade deficit in excess of $40 billion a month now. I mean, that is what that means.
But more importantly, as the gentleman from Oregon pointed out, what that really means is that we are continuing to get further and further in debt as a Nation to foreign investors, to investors in other countries. That means that the Chinese, with their $100 billion a year in U.S. currency, the trade surplus they have with our country, the fact that they sell us so much more than we buy from them, the Chinese take that $100 billion and are beginning to buy up a lot of scrap steel in the United States, driving up prices of steel, of scrap for U.S. manufacturers, making it harder for them to compete.
They are also buying energy companies in the United States, again driving up the cost of natural gas for American manufacturers and putting them more and more behind the eightball.
And, as the gentleman from Oregon said, when the worm turns, as economists like to say in their ivory and their traditional economic theory, when the worm turns, and our trade deficit gets so overwhelming that eventually the value of the dollar drops, we begin to produce more to sell to them, our factories are hollowed out. Our factories are not manufacturing things, because so many of them are closed. They are not going to be able to retool just because all of a sudden prices are a bit higher.
But what is disturbing about the economic report that the gentleman mentioned, and then I want to yield to the gentleman from Ohio (Mr. Strickland), who absolutely gets it on these job issues, partly because we live in a State where we have seen our economy devastated by these Bush economic policies, but what is disturbing about the economic report that Mr. Mankiw put out, the President's chief economic adviser, and that President Bush signed, is that they really see nothing wrong with the direction we are going. So what, we have a huge trade deficit. So what, we have a huge budget deficit. Let us keep doing tax cuts that overwhelmingly go to the most privileged; let us keep doing trade agreements that ship jobs overseas, in large part because profits right now are up for major corporations. So if the companies are making money, as the Secretary of Labor Elaine Chao said, if the stock market is going up, then there is really nothing wrong.
What is wrong, as Mr. Mankiw said, outsourcing is a good thing when blue-collar jobs; white-collar jobs, phone operators, computer engineers, computer programmers, when those jobs go overseas, I think there is something wrong with that, and it is mostly because George Bush and Mr. Mankiw have never looked an Akron rubber worker in the eyes, or never looked a paper worker in Oregon in the eye, or never looked a Silicon Valley in California, a computer programmer in the eye and say, yes, outsourcing is a good thing. Sorry about your job. Maybe you can get a job at Wal-Mart, or maybe you can get a job at McDonald's.
Speaking of McDonald's, and then I will yield to my friend, the gentleman from Ohio (Mr. Strickland), in this economic report, something the media have not paid much attention to, and that is these economists, and these are not exactly people who know a lot of people who work in America's factories, but these economists are having a debate inside the Bush administration on how to classify manufacturing.
Now, we have lost one out of six jobs in manufacturing in Ohio. We have lost literally well over 2 million jobs nationally in manufacturing, and they are trying to figure out how to define manufacturing.
Well, they are debating whether or not to define the fast food restaurant industry as a service job or a manufacturing job, because, you know, if you work in McDonald's, it is not just like somebody comes up and orders, and you take it off the shelf and give it to them. I am not making this up, it sounds like it, but it is in the Bush administration's book, you have to manufacture these hamburgers. You have to take the bun, you got to unwrap it, so you take the wrapping off, you take it out of the box, unwrap it, put the bun down; then you have to take the hamburger, and you have to chemically change the hamburger, it is a chemical process called cooking, put the hamburger on the grill, and put it on the bun after it is cooked. Then you have to get the cheese, and you might have to chemically alter the cheese because you have to melt the cheese. You put the cheese on the hamburger, and then you add a couple of things. You add a slice of tomato, so that is an extra element in the manufacturing. You put the tomato on, unwrap the lettuce, peel the lettuce off the head, so that may be another manufacturing part. This is pretty complex; almost like making a Ford in Ohio or manufacturing steel or making tires in Akron, Ohio, used to be.
Mr. Speaker, reclaiming my time, that means if you live in O'Leary, Ohio, and you have worked in what we used to call in this country traditional manufacturing, not ``Mc manufacturing'' is, I guess, the fast-food restaurant category. I guess there will be two categories of manufacturing, traditional manufacturing and ``Mc'' manufacturing. It will be M-c, with the arches, manufacturing.
This is not really funny. It is kind of depressing that they would think that this is what we are going to, in the new era, the new Bush era, the new 21st century, that this is what we are going to call manufacturing; that these workers in O'Leary, Ohio, who have been in traditional manufacturing making $12, $14, $16 an hour, with decent health benefits, with a decent retirement, that they will lose their jobs in manufacturing, they will get another job in manufacturing, working at McDonald's for $7 an hour with no benefits, with no health care and no retirement.
Mr. Speaker, the point is that the Bush administration, the Bush's chief economic adviser, Gregory Mankiw, with the President's signature on this economic policy, does not see anything wrong with the direction they want to take this country's manufacturing: huge numbers of loss of jobs, reclassifying, underpaid service jobs with no benefits as manufacturing for political purposes, making excuses, justifying this all in the name of this global economy that helps wealthy investors, i.e., helps Bush contributors but hurts workers in the U.S., hurts farmers in the U.S., hurts ranchers in the U.S., hurts workers in the developing world but helps the wealthy of both countries. It simply does not make sense.
I yield to my friend, the gentleman from Ohio (Mr. Strickland), who has been a real leader in trying to do the right things to restore Ohio's and America's industrial base.
The answer to that is pretty obvious; but what is interesting, I remember standing on this floor 10 years ago with David Bonior, who was the real leader on these trade issues in Congress years ago, and they promised in those days with NAFTA that only the good- paying jobs would stay and these low-end, low-wage jobs would go overseas; and over time in Mexico they would begin to have stronger environmental laws, over time they would make higher wages, over time they would have good labor law, worker safety, all of that.
But as the gentleman from Oregon's (Mr. DeFazio) questions intimate, obviously these countries are not moving in that direction. In fact, we are seeing our country move in their direction. Our country move in their direction in terms of there are significantly fewer pension systems in this country, good pensions for workers than there were 10 years ago, and particularly fewer than
there were in 1973 when this trade debacle really started in this country. That was really a key year in terms of turning the way we did trade.
We have seen our pension system atrophy. We have seen wages stagnate in most of these 30 years. We have seen environmental laws and States played off against States, and the Federal Government played off against the Mexican Government to weaken all these standards. Food safety laws are not as enforced, and clearly our food supply is not as safe as it would be if these trade agreements would actually raise their standards.
Instead of passing a trade agreement with Latin America to raise up their living standard, to raise their wages, to raise their workplace safety conditions, to raise their food safety standards, to raise environmental standards, we are seeing pressure on our government to bring those standards down so that we can compete with these countries. We should compete with them. They should compete with us, but let us raise living standards so ultimately they can buy our products, have a safer environment, have better food safety, have better worker safety and all that.
I yield to the gentleman from Ohio (Mr. Strickland).
Mr. Speaker, reclaiming my time, think about this: we have a President who is always at the beck and call of his corporate contributors. When it comes time to pass a Medicare bill, it is written by the insurance and the drug companies. When it comes time to pass Social Security privatization, it is written by Wall Street. When it comes to pass an environmental law, the President gives us a bill written by the chemical companies or the energy companies. Issue after issue after issue.
What we have really seen happen from the gentleman from Ohio's (Mr. Strickland) suggestion, what we have seen is as we pass trade agreements like this, making it harder for us to compete with Chinese workers, with Mexico, with Costa Rica, with El Salvador, one of the things that happens is we have seen a stagnation of U.S. wages and a weakening of food safety, environmental standards, and worker safety standards.
We also see in this body many of my Republican friends, particularly Republican leadership, are trying to pass legislation with the President to cut overtime in the U.S., to cut comp time opportunity in the U.S., to weaken environmental standards in the U.S., to weaken food safety standards in the U.S. So what they are doing internationally is in a lot of ways what they are doing domestically. It really does not cause George Bush or Gregory Mankiw, as chief economic adviser, to lose a lot of sleep that U.S. wages are stagnant, does not cause them to lose a lot of sleep if there is a downward pressure, a pulling down of environmental and worker safety standards, because that is what they are doing domestically.
So when Mr. Mankiw says they can do it cheaper in other countries, that means they have got comparative advantage, so send them overseas. The only way that we are going to compete in this Bush new world is to weaken our environmental standards, which is what they are trying to do anyway; to cut overtime, which is what they are trying to do anyway; to end comp time, which is what they are trying to do anyway; to roll back food safety, environment worker safety, wages, all of that. That is exactly what they are doing domestically.
It is what these trade agreements will do internationally. And who benefits? It is not the workers in Mexico. We have no axe to grind with them. It is not the slave laborers in China or the workers in awful conditions that are not slave labor in China, but the exploited generally, I was going to say young women, but really girls because they are not old enough to be women yet. We have no quarrel with them. They are hurt by these trade agreements just like American workers are hurt; but the investors who fund the Bush campaign and the chemical companies, the drug companies, the insurance companies, they get their legislation through. They love these trade agreements because it means more profits and it means more bonuses for these executives.
I yield to the gentleman from Oregon (Mr. DeFazio).
Mr. Speaker, I would now yield to the gentleman from Ohio (Mr. Strickland).
Mr. Speaker, I thank my friend for those comments.
What is disturbing to me is that in this economic report, as the gentleman from Oregon (Mr. DeFazio) said, on page 4, signed by President Bush, this economic report put out by the President just this month says that there is nothing wrong with the way the global economy is operating. He said outsourcing is a good thing.
Mr. Mankiw actually said, as we are seeing some of the most highly- skilled American workers, radiologists, for example, seeing their jobs threatened, Mr. Mankiw says an MRI or an X-ray will be taken that will be e-mailed to perhaps Bangalore, perhaps somewhere else, and read by a physician there who makes some minute percent of whatever the physician makes here, and then it comes back, because those radiologists are not in as much demand today as they once were. He said, well, it is a question of comparative advantage. Perhaps we just need to quit training so many radiologists. They cannot compete. We need to maybe train more general surgeons or more family practice doctors.
Let me do a little tour around the world to show what the gentleman from Oregon said about how there simply are not going to be enough people to buy these goods. If a Nike worker in Oregon loses his job to a Nike worker in China, there is one less consumer to buy cars; one less consumer to buy clothes, because the Nike worker in China is not making much to buy anything.
Let me tell a quick story. About 5 years ago, when Congress was considering the fast track legislation to in those days lay the groundwork to extend NAFTA to Latin America, which President Bush is trying to foist on us, I, at my own expense, flew to McAllen, Texas, rented a car with a couple of friends, drove across the border and went to Reynoso, Mexico. I went to a worker's home who worked at General Electric Mexico, one of the largest employers in Mexico. The home of these workers were about 20 feet by 30 feet. They lived in a one-room shack: dirt floor, no running water, no electricity. When it rained hard, the dirt floor turned to mud. When you walked behind the shack, you saw a ditch of human and industrial waste. Who knows what it was. Children were playing nearby, as children will. The American Medical Association said that area along the border is perhaps the most toxic area in the Western Hemisphere.
Now, as you walked through this neighborhood of these shacks, you could tell where the workers worked because their homes were constructed out of packing material, boxes, wood platforms, crates, whatever, of the company for which they worked or the supplier for the company for which they worked.
We then visited nearby an auto plant. These workers at this GE plant in this home were making about $45 a week and working about 60 hours a week. But we went to this auto plant, and this auto plant in Reynoso, Mexico, 3 miles from the United States of America, looked just like an auto plant in the United States, just like a GM plant in Lordstown, near my colleague's district, or a Ford plant in Avon Lake or Lorain. It was modern. In fact, it was newer than the auto plants in our State mostly. It was modern, it was clean, it was the latest technology, and the workers were productive and hard-working.
There was one difference between the Mexican auto plant and an American auto plant. That difference was there was no parking lot in the Mexican auto plant because the workers do not make enough to buy the cars that they make.
You can go halfway around the world to Malaysia to a Motorola plant, and you will see the workers do not make enough to buy the cell phones they make. You can come back to this hemisphere and go to Haiti and see that the workers do not make it, to a Disney plant, and the workers do not make enough to buy the toys for their children they make. You can go back around the world to China and go to a Nike plant and see the workers do not make enough to buy the shoes which they make.
Now, the lesson is this continued downhill slide with globalization. If we pass a Central America Free Trade Agreement, if Congress passes the Free Trade Area of the Americas, if Congress continues the tax cuts for the wealthy and continues to allow the drug companies and the insurance companies to sit in the Oval Office, with a Vice President who is still on the Halliburton payroll, I might add, at $3,000 a week, allows them to continue to write this legislation, we are going to have a country like Brazil, with a very wealthy group at the top and a bunch of people at the bottom that are not making enough money to buy the shoes and to buy the toys for their kids, and to buy the cars, and to buy the cell phones.
If that is the society we want, then I guess maybe this report says let us keep doing it. But if it is not the society we want, then we need to say no to the Central American Free Trade Agreement, and we need to say no to this economic policy that has caused some of the highest unemployment rates in the country, in Oregon, and has devastated eastern Ohio and northeast Ohio where I live and damn near the rest of the State. We need to say no to that.
Mr. Speaker, my colleague put his finger right on it when we talk about these workers and the way that they are paid.
The key to our Nation's success, and the gentleman mentioned Henry Ford before, the key to our Nation's success is that workers share in the wealth they create. They are able to do that because we have a democracy. They are able to do that because we have a relatively strong labor union movement. They are able to do that because of mobility of labor, and a whole bunch of reasons in a free society here.
When workers are more productive, as they are in the United States, as they increasingly get more productive, that means their wages should go up. They have not in large part because of the downward pull of these trade agreements. In Mexico, for instance, and I remember David Bonior, the former Democratic whip, talking about this a dozen years ago, as productivity went up in Mexico, wages did not go up with them because they had a government that was authoritarian by and large, because they did not have free trade unions. They had government- controlled, business-controlled trade unions.
So do we want a country like that? Do we want a country where the workers share in the wealth they produce, or do we want a country like a bunch of Wal-Marts, where the workers barely get minimum wage in many cases, rarely have health benefits, and often have to work off the clock while the Wal-Mart family, several members of the Wal-Mart family, rank as some of the richest people in the country? Billions of dollars have accrued to many members of the family, billions and billions, tens of billions to many members of the family, but the workers do not really share in the wealth they produce.
That is a society that I do not think we want. We have seen that this country worked best, as the gentleman from Oregon mentioned, when workers at Ford got paid a wage where they could buy the cars, and workers all across the board were paid a decent livable wage that made an absolute difference in their lives.
I go back, Mr. Speaker, to some of the promises we have seen in this administration's economic policy. Understand again that the foundation of their economic policy is more tax cuts for the wealthiest people in our society and more trade agreements that end up shipping jobs overseas. That is the foundation of their society. It makes the wealthy, the Bush contributors, wealthier; it weakens and dilutes the middle class; and it is particularly hard on families barely making it.
We are going to see more promises in the next 8 months, as we have seen all along. This administration promised 3.4 million jobs. After September 11 they made a promise there would be 3.4 million more jobs in 2003 than there were when he took office. In fact, what we have seen is 1.7 million jobs lost. Again, more tax cuts for the rich and more trade agreements that ship jobs overseas. That is what the economic job loss is all about.
President Bush at the same time said we will have a budget deficit of only $14 billion. In fact, the budget deficit is $521 billion. We see these kinds of promises, and we will see them again. We see it in the new economic report. They promise 2.6 million jobs this year alone. Now they are backing off that. That is 200,000 jobs a month, and we are creating no jobs per month and we are still losing manufacturing jobs. They simply have not lived up to any of their promises. The only promise they live up to is a promise to their corporate contributors that they will continue to do them favors, they will continue to enrich them with their tax policy, and with the new laws they make on the Medicare bill and the Social Security bill and the environmental bills and the energy bills.
Mr. Speaker, I yield to the gentleman from Ohio (Mr. Strickland).
Mr. Speaker, it is clear that either the President needs to change his mind, or we need to change the President. President Bush
came to Richfield, Ohio, on Labor Day, and to his credit, he created a job that day. He said he was going to start a new office called the job of the manufacturing czar. He promised the job, but he has not filled the manufacturing czar's job yet. It is pretty clear when the President's answer to everything is the same tired, trickle-down economics, tax breaks for the wealthiest people and more trade agreements that hemorrhage jobs. If he is not going to change his mind, then this country is pretty clearly going on a different course.
Mr. Speaker, I thank the gentleman from Ohio (Mr. Strickland) and the gentleman from Oregon (Mr. DeFazio) for their 10 to 15 years of working on these issues.
Mr. Speaker, I yield back the balance of my time.