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January 9, 2009 Opinions |
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—Guest Opinion—
Did the Four Horsemen Destroy The Auto Industry?
By Darin Gilley
The day of reckoning has arrived for the U.S. auto industry and much like the four horsemen of the apocalypse (strife, war, famine, death) our nation’s policies (tax, trade, health care, energy) have helped decimate American manufacturing. As a result, America has gone from the world’s greatest creditor nation to the world’s greatest debtor nation.
Let’s look at how these long-standing policies have virtually eliminated several industries from the productive side of the American economy – shoes, TV’s, textiles, electronics, and potentially the auto industry.
Horseman No. 1 – Tax Policy
Other nations gain an advantage through their use of a Value Added Tax (VAT) system. A VAT is a levy on the “value added” to goods and services as they pass through each stage of the production process. The advantage is gained when a foreign manufacturer exports their goods to the U.S., where at that point the exporting nation rebates the Value Added Taxes back to the manufacturer. This allows foreign goods with no tax cost component to “compete” with American goods that must include U.S. taxes as part of their price. This generally gives goods from VAT nations a 10 percent advantage. To make matters worse, VAT nations assess the tax on American goods entering their market.
U.S. Rep. Mike Michaud of Maine estimates this produces a $375 billion burden on American goods and services. Fortunately, he plans on introducing legislation in the next session of Congress to address this problem. This simple tax issue will immediately assist the auto industry and other manufacturers to be more competitive.
Horseman No. 2 – Trade Policy
America cannot continue to lead a free trade agenda while other nations strategically subsidize, support, and protect their industries at our expense. For example, the U.S. House Ways and Means Committee has found that Japan manipulates its currency to give their vehicles a $2,000 – $8,000 advantage when imported into the U.S. This also raises the cost of American vehicles that are imported into Japan by the same amount.
Currency manipulation and other non-tariff barriers allow Korea to export over 600,000 vehicles to the U.S. last year while only importing 5,000 from America.
We could learn from Europe as well. If a foreign automaker wants to open a car plant in Europe they must use 80 percent locally produced parts, far higher than the 35 percent average content American transplants currently use. This would generate almost two million American jobs. In addition, Europe puts a ceiling on the amount of state subsidies provided so that those plants actually benefit the local economy and not siphon off tax dollars to shareholders.
Horseman No. 3 – Health Care
The United States pays twice as much per person for health care as other industrialized nations. It has been estimated that if GM were a Canadian company it wouldn’t be asking for help. Economist Dean Baker estimates if GM had purchased the same health care used in Canada it would have saved over $22 billion over the last decade. In fact, if health care costs were the same here as in other industrialized nations 80 percent of the Big 3 losses would disappear.
Horseman No. 4 – Energy
In the late 1990s a barrel of oil sold for $10. The Big 3 enjoyed strong sales and consistent profits. In 2008 a barrel of oil sold for $147. If legislators had developed an energy policy then, all industry, but especially the auto industry, would have had a foundation on which to design, engineer, and build vehicles.
Instead we watched our elected officials vote to unleash the “market forces” that came with deregulating the futures commodity market (Commodities Futures Modernization Act). This resulted in gas exploding to over $4 a gallon. The consequence of this decision was the entire economy devolving into a recession while oil companies reported record profits.
Obviously, the financial crisis is the immediate cause of the worldwide auto crisis, but these four policies or lack thereof have long been a cause of American manufacturing decline. It is time for responsible legislators to take the reins and look for solutions that will put domestic manufacturing on at least a level playing field in their own market. Our economic recovery depends on it. No nation has ever consumed its way to greatness, nations must produce their way to greatness.
Gilley is president of UAW Local 1760, in the St. Louis, Missouri area.
—Letters To The Editor—
Mining Is The World’s Most Important Industry
To The Record-Courier:
Most of the people of our Country are aware, some quite painfully, that the economy of our Nation is in serious trouble. Even Washington D.C. has become aware and started throwing Billions at the wrong end of the problem. This may slow the money problem, but unless we understand and face the basic facts of life, total economic breakdown is inevitable.
The situation didn’t just happen; it is the result of more than 30 years of short sighted unwise decisions on access and use of our lands. One undeniable fact, you must know is that “No life can exist on this planet unless we harvest the produce and resources of the earth.”
Thus the basic industries, mining, oil, timber, agriculture, fishing, etc. are the foundation of any economy. Another fact you must know is that “All new wealth comes from the ground,” there is no other source. Wealth can be expanded by processing and manufacturing useful products. All other income comes from distributing the products or providing a service for one another.
A few years back the Society of Mining Engineers made a study of land available to mining and found that more than 65 percent of the land was off limits to mining. To make the matter worse, much of the closed land is in the mountains and the same forces that uplifted our mountains brought the minerals to the surface of the earth where they can be recovered. Miners like oilmen and loggers must have access to areas where resources occur, they can’t be relegated to land no one else wants.
Mining is the world’s most important industry; no other business or industry can operate without using minerals, directly or indirectly. You cannot make anything without using minerals. So what do we do? Buy raw materials from other countries that have little or no concern for the environment, and shut all our industries down. To buy the minerals we need, what do we pay for them with? Many nations, including China will no longer accept our dollars. We have been printing money so fast and furious without any backing; it has become more worthless every day.
It’s time to reevaluate the laws and regulations that are stopping or holding up production of oil, minerals, and timber and agricultural products and food. If we fail to do this soon, jobs will continue to fail until total collapse. Maybe I worry too much, Baker County Commissioners and the others in the surrounding counties, evidently, are not concerned about jobs and businesses, because they are going blithely along working with the Forest Service to take thousands of acres of mountain land out of production by road closures, which will give an additional pinch to our economy and hurry our downfall along.
Kenneth Anderson
Baker City, Ore.
Don’t Let The Government Condemn Us To Poverty
To The Record-Courier:
I have begun to wonder whether others in this community are getting as uncomfortable as I am with the governmental straight-jacket as it continues to restrict our personal and community activities. Wouldn’t it be unique to have a local government with individual freedom as it’s main objective rather than conformity? Do we really need to enact, or permit, the same restraints on how we live as others have allowed?
Wouldn’t it be refreshing, and beneficial, to have a local government that represented us, rather then “big brother?” A local government that has, for example, the courage and knowledge to effectively prevent a mere federal agency from closing access roads that lead to our natural resources?
The system that our present elected leaders appear to be in agreement with would blow an intelligent person’s mind. The Forest Service proposes a system of roads in OUR forests where some roads are open, but most are closed. The ridiculous part is that neither closed or open will be indicated! Each slave will need to get from the almighty Forest Service a map that indicates the status of each road. If you get caught on a road that the map says is closed, guess what? You get to help finance the mighty FS. What absolute dictatorial nonsense! Would any but an imbecile propose such a system and yet another agree that the public should, or can, comply?
One thing is certain, if we allow any agency to close usable roads and thus deny our access to existing forest products and minerals we will have permitted them to condemn us and our children to continued poverty! If you are concerned about the future of our community your County Commissioners need to hear from you, now! (541-523-8200)
Jasper H. Coombes
Richland, Ore.
Coordination A Powerful Tool
To The Record-Courier:
Coordination — What is it? The Merriam-Webster Online Dictionary 2008, states, “to put in the same order or rank.” Some have thought to cooperate is the same as to coordinate, but this is not the case. The dictionary states to cooperate is “to act or work with another or in compliance.” To cooperate as in compliance with the goal of the Forest Service in its Travel Management Plan is what the Memorandum of Understanding (MOU) is all about. This is the agreement that five counties signed with the Wallowa-Whitman National Forest (WWNF).
“Coordinate” is the word used by Congress in its environmental and land management Acts; the National Forest Management Act (NFMA) directs the U.S. Forest Service to “coordinate” its land and resource management plans “with the land and resource management planning processes of State and local governments…” The Latin word means to “co-ordain”, it is used in the Act to require the Federal Agencies to coordinate their plans with those of local governments as equals on land and resource management planning.
So what happened, when the five counties signed the MOU with the WWNF? It means that the counties agreed to act together in compliance with the goal of the Forest Service on travel management. The counties also agreed to recognize “that participating as a cooperating agency does not confer standing to appeal or litigate any decisions resulting from the travel management environmental analysis…” (MOU [E] Counties Shall (5)).
This is why it is necessary for the five counties to rescind their participation as “cooperating agencies.” The counties have a governmental obligation and primary responsibility to secure and promote the general welfare of the citizens in each of their counties. The goal of the Forest Service is to close about 60 percent of the roads in the Wallowa-Whitman Forest. How much effect on the custom, culture, economic stability, access and use of the forest will this have on the citizens in our counties?
Baker County has already passed Ordinance 2001-1; it requires all Federal and State agencies to coordinate with the County on land and resource “Plans, Programs and Projects,” and to coordinate as equals. However, as long as County officials remain committed to the Travel Management MOU, the County will not be able to require the Forest Service to come to the County’s table on road closures.
In the MOU “All decision making authority for management of the National Forest is held by the Forest Service…” In the Baker County Ordinance, under “Procedures,” “…all federal and state agencies shall…8. Avoid taking actions that have the effect of obstructing or making agriculture and livestock production or timber and wood products or mineral extraction economically infeasible in Baker County.” The County’s ordinance has as its “Objective” “7. To plan and manage natural resources consistent with environmental and community standards and for the public good.” The counties cannot participate as cooperating agencies and at the same time require the Forest Service to coordinate their travel Plan. The next step is in the county’s court.
Guy Michael
Durkee, Ore.
Drug Abuse In The Teens: A Parent’s Dilemma
To The Record-Courier:
Description: How should a family handle the situation when they suspect drug or alcohol use by their teenaged child? How can they combine trust with protection? Here are some guidelines.
When children hit their teenaged years and are not so dependent on parents for companionship or support, it's easy to breathe a sigh of relief and reduce one's monitoring. If this reduction is met with changes in behavior that might indicate drug or alcohol use, it's important for a parent to know what to do next.
What changes may indicate drug abuse? Mood swings from grumpy to happy without apparent reason; withdrawal from family members and activities; carelessness about personal grooming; loss of interest in sports, studies or favorite activities, changed sleeping patterns; emotional blowups or abuse; being absent from school or from home for long hours; making excuses for behavior; overreaction to criticism; needing money or having unexplained money. The appearance of these signs does not indicate drug abuse in every teen, but they should raise red flags.
Parents suspecting drug abuse may ask their children outright if they are abusing drugs, be answered with "Of course not, I would never do that," and then not know how to proceed. Parents want to love and trust their children and not accuse them unfairly. But when these signs continue, a parent must change tactics in three important ways.
1. Make it harder for the teen to engage in drug-related activities. Restrict use of cell phone or car. Require more attendance at family dinners or outings. Require more reporting on whereabouts and confirm the accuracy of the reports. Provide less cash which may mean you have to accompany the teen on purchasing trips.
2. Open the channels of communication by letting the teen know that you will accept any communication from them without blame or shame, and then make opportunities for them to talk privately with you. And if they do tell you startling news, you have to keep that promise.
3. Provide the teen with drug education they can understand, identify with and use. Narconon drug and alcohol rehabilitation and education centers have a variety of effective drug education materials available, many free for the asking. These can be obtained by calling Narconon Arrowhead in Canadian, Oklahoma at 1-800-468-6933.
As well as being dearly loved, our children are our most precious resource for the future. They deserve a present and a future free from drug abuse and need to be taught how to avoid this danger that they are all too likely to encounter at a young age.
The Narconon drug and alcohol rehabilitation program was founded in 1966 by William Benitez in Arizona State Prison, and is based on the humanitarian works of L. Ron Hubbard. In more than 120 centers around the world, Narconon programs replace the loss and pain of alcohol or drug addiction with productive, enjoyable lives. Anyone can find out more about the Narconon drug and alcohol rehabilitation program by visiting www.stopaddiction.com.
Kathryn Whiteley
Canadian, Okla.
www.stopaddiction.com
Space Vs. Technology
To The Record-Courier:
Here we go again. It seems as though it is hard to stay focused on so many changes of life in general and how every little issue is affecting us these days, and so much more to come.
Are we all going to look the same now with all the satellite dishes that look like Star Trek or close to it? Not to mention costing us taxpayers money etc. Even “My Favorite Martian” with his satellite signal, wasn’t too far off in this general direction.
Yes, how we have come a long way with all the color and glamour, and remembering our black and white television sets of history not so long ago. It sure didn’t take much even back then. Even before television sets they read mostly and were busy working the farms, etc., not much for electricity even back then with the use of kerosene lanterns. Wood stoves were used and open fire pits for cooking. At least we still have the pleasure of some history in itself these days. It seemed like there were fewer environmental issues unlike there is today. Not to mention the horse and buggy days as well, and the Pony Express for getting our mail delivered no matter how long it took — sometimes you got it and sometimes you didn’t. To bad we couldn’t go back in time.
Now with all the building that is going on in space these days, will there be all the luxuries etc., and what will our future be? I can even imagine them building escalators and making it an easy way to get there, the price tag of a ticket would be rather costly at that, our gas issue should be less of a problem, let alone all the gas that filters the air these days. It seems there would be less pollution. I’m surprised they haven’t come up with that issue yet. So time will tell of where our resources of space, communication, etc. will lead us to next, whether it be that of the past, in the here and now or in the future.
Coffee anyone?
Brenda Dickison
Baker City, Ore.
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