Town Hall
Content
Notes: Revere Copper Products, Inc was founded in 1801 by Paul Revere. We believe we are the oldest manufacturing company in the United States.
Notes: Principal products are copper and brass sheet, strip and coil as well as copper and copper alloy extruded shapes and industrial plate.
Notes: Architectural copper is Revere’s largest market although shipments to manufacturing companies (mostly in the USA) for further fabrication into industrial and consumer products are more significant.
Schlage Lock Kwikset Locks Price Pfister Carrier Oneida Silversmith Intri-Plex Leviton Mfg
Notes: Since 2000, about 30% of the manufacturing plants that Revere shipped to have shutdown and/or moved offshore.
• ROME CABLE • CARRIER • ONEIDA LIMITED • UNION FORK & HOE • GENERAL ELECTRIC • CHICAGO PNEUMATIC
Notes: These local manufacturing companies have shutdown. No one knows how many factories have shutdown recently because of foreign competition.
• SPARGO • LARIBEE • UTICA CORP • SPECIAL METALS • LYONS FALLS PULP & PAPER • SMITH CORONA • ETHAN ALLEN
Notes: Ethan Allen announced it was consolidating operations but didn’t mention this was because it was having more of its furniture built in China. This is typical so no one really knows how many factories are moving offshore.
Manufacturing Jobs
U.S. Manufacturing Jobs vs. Trade Deficit (2000-06)
18000
Trade Deficit
900
800
U.S. Employees in Manufacturing (000’s)
Trade deficit
17000
600
500 16000 400
300
15000 200
Manufacturing Jobs
100
14000 Jun-00 Sep-00 Dec-00 Sep-01 Jun-02 Sep-02 Dec-02 Sep-03 Jun-04 Sep-04 Dec-04 Sep-05 Mar-00 Mar-01 Jun-01 Dec-01 Mar-02 Mar-03 Jun-03 Dec-03 Mar-04 Mar-05 Jun-05 Dec-05 Mar-06
0
Notes: We do know that 3 million manufacturing jobs have been lost since 2000. Previous recoveries averaged about 1 million job losses.
U.S. Trade Deficit in Billions of Dollars (Over Previous 4 Quarters)
700
Taxes/Health Care Currency Energy/Environmental Government Subsidies Legal
• • Intellectual property rights Tort reform in the USA Notes: This presentation is about three of the five major factors causing the loss of factory jobs in the USA. These factors will have the same impact on jobs in the production of goods (including agriculture) & services. Raw materials, components, manufacturing and farm products are all lumped under goods in the remaining slides.
VAT Taxes
Value Added Taxes discriminate in favor of domestic production of goods & services
Notes: Of course, the USA does not have VAT taxes which are a legal form of tariffs (or tax preferences) approved for use by the World Trade Organization.
Some Countries Using VAT Tax to Support Factory, Farm & Service Jobs
Australia Austria Belgium Brazil Belgium Canada China Czech Republic Denmark Finland France Germany Greece Hungary Iceland India Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Russia Singapore Slovak Republic Spain Sweden Switzerland Thailand Turkey United Kingdom
Notes: 139 countries have a border adjustable tax which discriminates in favor of domestic production of goods & services. One province in India boasts of a VAT tax over 50% in promoting itself as a prime location.
Countries Not
USA
Notes: The US currently has a trade deficit with almost EVERY trade competitor in almost EVERY CLASS of goods. Some Middle East oil producing nations have no VAT taxes but they have few, if any, other taxes.
Free Trade Agreements The US has been negotiating Free Trade Agreements in an effort to get other countries to lower tariffs. This led to the North American Free Trade Agreement (NAFTA) in which the US, Canada and Mexico reduced tariffs but around the time of the negotiations Canada instituted VAT taxes while Mexico increased its VAT rates. VAT taxes are a form of tariffs (tax preferences) that are exempt from WTO rules and excluded from NAFTA.
TAXES FOR JOBS
CURRENT TAX SCHEME
VAT RN
TAXES ON JOBS
Notes: VAT taxes are taxes for domestic jobs while the current US system taxes domestic jobs out of existence through payroll and other taxes on any entity that provides a job…and the way it works is the higher the job skill, the higher the tax. Our current tax system discriminates in favor of lower value added jobs such as flipping burgers rather than making semi-conductors. The multiple taxation on income through the supply chain makes this even worse.
MANUFACTURING
Notes: This slide shows a factory outside the USA competing with a factory in the USA but it could be a farm or service company or even an individual who is selling something….anything!
MANUFACTURING
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: The average VAT tax is 18% so let’s say such a tax is adopted by the USA. The value of all imports whether raw materials, finished goods or services is taxed 18%. Products or services produced in the USA are also taxed 18%. This is necessary to be compliant with the rules of the World Trade Organization.
The VAT Is Applied To
All Goods + Services
There Is No Double Taxation
Only Tax The Value Added
MANUFACTURING
+ 18%
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: The revenues of VAT flow to the national government. Note that imported goods and services now have to pay a part of the cost of running the US federal government just as goods and services produced by workers in the USA bear the burden of these costs.
VAT
must be
Revenue Neutral
for all
Notes: But to be fair to all classes of consumers the VAT tax needs to be offset.
First, offset the impact of VAT on US population.
U.S. POPULATION
Notes: The personal income tax is eliminated. The regressive nature of this is offset by providing health care for all. Also, adverse impacts on charitable and lending institutions need to be offset by matching grants and housing subsidies.
Next, eliminate all taxes and health care costs that burden the production of goods & services in the USA.
VAT TAXES FOR JOBS
- 18%
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: Notice how the reduced tax burden flows to entities providing jobs in the USA but not for imported goods, materials or services. This advantage is legal under the World Trade Organization. That’s what every other trading nation does!
Then, reverse VAT on goods + services exported.
Notes: This is also legal under the WTO rules
VAT TAXES FOR JOBS
- 18%
+ 18% IMPORTS
RAW MTLS ENERGY PARTS SERVICES
+ 18%
+ 18%
EXPORTS - 18%
Notes: See how the advantages of VAT are piling up for domestic farming, manufacturing and service providers. This will help the USA compete but it is really only what every other country is doing.
Traded Products & Services
VAT Impact at $100 Value
$85 $115
USA VAT = 0 $116 $101
$84
$99 Mexico VAT = 15% Germany VAT = 16%
Notes: When two countries have VAT taxes, the impact on trade is offset. But when one doesn’t, the difference is HUGE! (Germany raised its VAT to 19% effective 1/1/2007)
Double Jeopardy
• Currently, producers of goods & services in the USA pay numerous taxes to the USA government and health care costs for employees which are not rebated when the goods & services are exported. But the USA produced goods & services must pay a VAT tax to finance a foreign government when they arrive in that country. We even help pay for their health care costs! So exports from the USA are double taxed. The VAT taxes collected by foreign governments allow them to have reduced (fewer/none) taxes and health care costs on production of goods & services in their countries. The VAT taxes paid on goods & services by producers in foreign countries are rebated for goods & services that are exported.
•
• •
•
TAXES FOR JOBS
TAXES ON JOBS
VAT
or
Income Dividend Capital Gains Estate FICA Unemployment PBGC ALL HEALTH CARE COSTS
Notes: All income taxes are taxes on jobs because so many small businesses are sole proprietorships which employ many people. At the state level, income and property taxes are replaced by state sales taxes while sin and fuel taxes remain.
Health Care Costs
• The burden of health care costs is simply another brick on the back of domestic jobs. • These costs must be lifted off the backs of job providers so that production of goods & services in the USA can compete with foreign producers. USA exports currently pay for the health care costs of people all over the world through the VAT taxes charged on our exports by their governments. The USA must impose VAT taxes and use the proceeds to eliminate all tax & health care costs that burden its domestic production of goods & services. The USA must transform its health care system and finance national health care through private insurance and/or public assistance for all.
VAT RN
A Prescription For
Factory & Service & Farm Workers
In The USA and the Health of our Country
China Currency Manipulation
• • • • • • On July 21, 2005, Chinese Government revalued the yuan by 2.1% against the U.S. dollar. Most observers believed the yuan was undervalued by 25 to 40% before that revaluation. Since then, the Chinese Government has allowed the yuan to appreciate only about 2.4% a year. Since then, the Chinese economy has grown about 5% or more a year faster than the US economy and its trade deficit with the US has accelerated. This means the underlying true or free trade rate of appreciation of the yuan against the dollar is rising about 5% a year. Consequently, the manipulated rate of exchange for the yuan is causing the 40% undervaluation to worsen even as the Chinese Government claims that it is moving to free market exchange rates.
CURRENCY EXCHANGE RATES CHINA USA YUAN 元 DOLLAR $ to to 1 1
{
8 5
40%
Notes: The Chinese government controls the exchange rate for its currency (known as the Yuan) and the US dollar by requiring its citizens and businesses to exchange any dollars earned in foreign trade for the Yuan at a rate about eight Yuan for one dollar. Market forces would allow Chinese citizens to receive one dollar for about five Yuan. This constitutes an illegal financial contribution.
Production of Widgets in China
Assume production cost of 元 1000
@ exchange rate of 元 8 to $1 = $125 @ exchange rate of 元 5 to $1 = $200
MANUFACTURING COSTS IN CHINA
ARE UNDERVALUED 40% !
Notes: This action illegally subsidizes the production of goods and services in China since production costs in China are understated in terms of US dollars by 40%. This is an “effectively subsidy” as written by Fed Chair Bernanke.
The manipulation of its yuan by China reduces the competitiveness of every other product, good or service in the world compared to its production in China.
China is waging a mercantile war on the world and the world is sleeping.
China and the USA are members of the World Trade Organization (WTO).
According to WTO rules, governments are not allowed to subsidize manufacturing.
WTO rules allow private companies/industries to sue governments if manufacturing is subsidized.
But US trade law does not define currency manipulation as a subsidy.
RYAN-HUNTER HR 782 STABENOW-BUNNING S 796
Notes: These bills in the House and the Senate would correct this injustice by recognizing currency manipulation as a subsidy and allowing US companies to sue any country for such manipulation and use CVD’s to enforce the ruling.
VAT TAXES FOR JOBS
Notes: There is no comprehensive effort by any of our elected representatives to adopt a VAT tax in the USA and reform the current tax system killing good jobs. Together, currency manipulation and the US tax system place a burden on manufacturing, farming, and service jobs in the USA of about 60% of the basic costs. That’s why we can’t compete. Nucor makes the case that Chinese labor costs are less than the cost of shipment of steel products to the USA.
Interaction of Currency and VAT
The lack of a VAT in the USA allows European nations to gain market share from the USA partially offsetting the impact of China’s manipulation of its currency on the production of goods and services in Europe. That’s one reason why Europe is less vocal about China’s mercantilism.
U.S. ECONOMY
SKILLED JOBS WAGES BALANCE OF TRADE STANDARD OF LIVING NATIONAL SECURITY
OPPOSITION
FOREIGN PRODUCERS IMPORTERS (SOME) (SOME)
MULTINATIONALS
THEIR TRADE ASSOCIATIONS FOREIGN GOVERNMENTS U.S. POLITICIANS SUPPORTING ABOVE NAKED FREE TRADERS
Notes: There is no such thing as free trade. Trade rules are governed by the World Trade Organization. VAT taxes were grandfathered by the WTO during its founding. The world is not going to change. The USA must change.
Environmental /Energy
• The world is working to make carbon emission worse. • The Kyoto treaty and Regional/National Greenhouse Gas Initiatives drive manufacturing from countries that have higher environmental standards to those that have lower standards, thereby increasing carbon emissions.
Satellite images show environmental hot spots…notably in China. Global warming policy concerns are parochial and narrow minded when they force manufacturing to environmental pass playgrounds.
These images from China are typical of the air pollution in any major Chinese city. Even the leaves on the trees around the Great Wall are coated with a fine dust which mutes the fall foliage colors to a dull grey. The rivers of the cities are visibly polluted and the beaches of Hainan are littered with garbage from passing ships.
China’s Pollution Flow
Almost 25% of the particulate matter that falls on California originates from China and Southeast Asia.
Powering toward a cleaner environment
• China is planning 40 new nuclear power plants, Japan is building 10 more, France relies on nuclear for 80% of its electricity. • Why? Nuclear power is clean & low cost if sitting/environmental concerns are managed. • Nuclear waste is dangerous but can be contained in areas much smaller than appreciated. Thirty years of nuclear waste from a 1,000 MW plant would fit in an area the size of a high school gym. • The USA needs substantial additional low cost, clean electricity to compete and clean up the environment. The USA should use a BRAC type process to site new nuclear generation throughout the country.
Policy making
• The international trade & tax policies of the USA are destroying the best jobs in the USA. The correct policies are not protectionist but balanced and recognize the degree to which trade is managed by every country in the world but the USA. • National & international environmental policy making is contributing to global warming due to its biased impact on international trade and the relocation of production capacity. • Nuclear power is the only source of large scale, low cost, clean energy that does the least damage to the environment.
Meanwhile…The Bubble Grows The US trade deficit is growing $2 billion a day. The accumulation of US currency by China & other Asian nations is a growing bubble.
What a mess we are leaving our children…
If Paul Revere rode into this room…. What would he say?
“The Chinese Are Coming!”
Do We Try To Understand The Difference Between How The Chinese Government Nurtures Manufacturing And How The U.S. Government Burdens Manufacturing?
Or Do We Hide Behind A Wall Until They Surround Us….
When people heard Paul Revere, What did they do?
Please carry the message…
Thank You.
Notes: Principal products are copper and brass sheet, strip and coil as well as copper and copper alloy extruded shapes and industrial plate.
Notes: Architectural copper is Revere’s largest market although shipments to manufacturing companies (mostly in the USA) for further fabrication into industrial and consumer products are more significant.
Schlage Lock Kwikset Locks Price Pfister Carrier Oneida Silversmith Intri-Plex Leviton Mfg
Notes: Since 2000, about 30% of the manufacturing plants that Revere shipped to have shutdown and/or moved offshore.
• ROME CABLE • CARRIER • ONEIDA LIMITED • UNION FORK & HOE • GENERAL ELECTRIC • CHICAGO PNEUMATIC
Notes: These local manufacturing companies have shutdown. No one knows how many factories have shutdown recently because of foreign competition.
• SPARGO • LARIBEE • UTICA CORP • SPECIAL METALS • LYONS FALLS PULP & PAPER • SMITH CORONA • ETHAN ALLEN
Notes: Ethan Allen announced it was consolidating operations but didn’t mention this was because it was having more of its furniture built in China. This is typical so no one really knows how many factories are moving offshore.
Manufacturing Jobs
U.S. Manufacturing Jobs vs. Trade Deficit (2000-06)
18000
Trade Deficit
900
800
U.S. Employees in Manufacturing (000’s)
Trade deficit
17000
600
500 16000 400
300
15000 200
Manufacturing Jobs
100
14000 Jun-00 Sep-00 Dec-00 Sep-01 Jun-02 Sep-02 Dec-02 Sep-03 Jun-04 Sep-04 Dec-04 Sep-05 Mar-00 Mar-01 Jun-01 Dec-01 Mar-02 Mar-03 Jun-03 Dec-03 Mar-04 Mar-05 Jun-05 Dec-05 Mar-06
0
Notes: We do know that 3 million manufacturing jobs have been lost since 2000. Previous recoveries averaged about 1 million job losses.
U.S. Trade Deficit in Billions of Dollars (Over Previous 4 Quarters)
700
Taxes/Health Care Currency Energy/Environmental Government Subsidies Legal
• • Intellectual property rights Tort reform in the USA Notes: This presentation is about three of the five major factors causing the loss of factory jobs in the USA. These factors will have the same impact on jobs in the production of goods (including agriculture) & services. Raw materials, components, manufacturing and farm products are all lumped under goods in the remaining slides.
VAT Taxes
Value Added Taxes discriminate in favor of domestic production of goods & services
Notes: Of course, the USA does not have VAT taxes which are a legal form of tariffs (or tax preferences) approved for use by the World Trade Organization.
Some Countries Using VAT Tax to Support Factory, Farm & Service Jobs
Australia Austria Belgium Brazil Belgium Canada China Czech Republic Denmark Finland France Germany Greece Hungary Iceland India Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Russia Singapore Slovak Republic Spain Sweden Switzerland Thailand Turkey United Kingdom
Notes: 139 countries have a border adjustable tax which discriminates in favor of domestic production of goods & services. One province in India boasts of a VAT tax over 50% in promoting itself as a prime location.
Countries Not
USA
Notes: The US currently has a trade deficit with almost EVERY trade competitor in almost EVERY CLASS of goods. Some Middle East oil producing nations have no VAT taxes but they have few, if any, other taxes.
Free Trade Agreements The US has been negotiating Free Trade Agreements in an effort to get other countries to lower tariffs. This led to the North American Free Trade Agreement (NAFTA) in which the US, Canada and Mexico reduced tariffs but around the time of the negotiations Canada instituted VAT taxes while Mexico increased its VAT rates. VAT taxes are a form of tariffs (tax preferences) that are exempt from WTO rules and excluded from NAFTA.
TAXES FOR JOBS
CURRENT TAX SCHEME
VAT RN
TAXES ON JOBS
Notes: VAT taxes are taxes for domestic jobs while the current US system taxes domestic jobs out of existence through payroll and other taxes on any entity that provides a job…and the way it works is the higher the job skill, the higher the tax. Our current tax system discriminates in favor of lower value added jobs such as flipping burgers rather than making semi-conductors. The multiple taxation on income through the supply chain makes this even worse.
MANUFACTURING
Notes: This slide shows a factory outside the USA competing with a factory in the USA but it could be a farm or service company or even an individual who is selling something….anything!
MANUFACTURING
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: The average VAT tax is 18% so let’s say such a tax is adopted by the USA. The value of all imports whether raw materials, finished goods or services is taxed 18%. Products or services produced in the USA are also taxed 18%. This is necessary to be compliant with the rules of the World Trade Organization.
The VAT Is Applied To
All Goods + Services
There Is No Double Taxation
Only Tax The Value Added
MANUFACTURING
+ 18%
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: The revenues of VAT flow to the national government. Note that imported goods and services now have to pay a part of the cost of running the US federal government just as goods and services produced by workers in the USA bear the burden of these costs.
VAT
must be
Revenue Neutral
for all
Notes: But to be fair to all classes of consumers the VAT tax needs to be offset.
First, offset the impact of VAT on US population.
U.S. POPULATION
Notes: The personal income tax is eliminated. The regressive nature of this is offset by providing health care for all. Also, adverse impacts on charitable and lending institutions need to be offset by matching grants and housing subsidies.
Next, eliminate all taxes and health care costs that burden the production of goods & services in the USA.
VAT TAXES FOR JOBS
- 18%
RAW MTLS
+ 18% IMPORTS
ENERGY PARTS SERVICES
+ 18%
Notes: Notice how the reduced tax burden flows to entities providing jobs in the USA but not for imported goods, materials or services. This advantage is legal under the World Trade Organization. That’s what every other trading nation does!
Then, reverse VAT on goods + services exported.
Notes: This is also legal under the WTO rules
VAT TAXES FOR JOBS
- 18%
+ 18% IMPORTS
RAW MTLS ENERGY PARTS SERVICES
+ 18%
+ 18%
EXPORTS - 18%
Notes: See how the advantages of VAT are piling up for domestic farming, manufacturing and service providers. This will help the USA compete but it is really only what every other country is doing.
Traded Products & Services
VAT Impact at $100 Value
$85 $115
USA VAT = 0 $116 $101
$84
$99 Mexico VAT = 15% Germany VAT = 16%
Notes: When two countries have VAT taxes, the impact on trade is offset. But when one doesn’t, the difference is HUGE! (Germany raised its VAT to 19% effective 1/1/2007)
Double Jeopardy
• Currently, producers of goods & services in the USA pay numerous taxes to the USA government and health care costs for employees which are not rebated when the goods & services are exported. But the USA produced goods & services must pay a VAT tax to finance a foreign government when they arrive in that country. We even help pay for their health care costs! So exports from the USA are double taxed. The VAT taxes collected by foreign governments allow them to have reduced (fewer/none) taxes and health care costs on production of goods & services in their countries. The VAT taxes paid on goods & services by producers in foreign countries are rebated for goods & services that are exported.
•
• •
•
TAXES FOR JOBS
TAXES ON JOBS
VAT
or
Income Dividend Capital Gains Estate FICA Unemployment PBGC ALL HEALTH CARE COSTS
Notes: All income taxes are taxes on jobs because so many small businesses are sole proprietorships which employ many people. At the state level, income and property taxes are replaced by state sales taxes while sin and fuel taxes remain.
Health Care Costs
• The burden of health care costs is simply another brick on the back of domestic jobs. • These costs must be lifted off the backs of job providers so that production of goods & services in the USA can compete with foreign producers. USA exports currently pay for the health care costs of people all over the world through the VAT taxes charged on our exports by their governments. The USA must impose VAT taxes and use the proceeds to eliminate all tax & health care costs that burden its domestic production of goods & services. The USA must transform its health care system and finance national health care through private insurance and/or public assistance for all.
VAT RN
A Prescription For
Factory & Service & Farm Workers
In The USA and the Health of our Country
China Currency Manipulation
• • • • • • On July 21, 2005, Chinese Government revalued the yuan by 2.1% against the U.S. dollar. Most observers believed the yuan was undervalued by 25 to 40% before that revaluation. Since then, the Chinese Government has allowed the yuan to appreciate only about 2.4% a year. Since then, the Chinese economy has grown about 5% or more a year faster than the US economy and its trade deficit with the US has accelerated. This means the underlying true or free trade rate of appreciation of the yuan against the dollar is rising about 5% a year. Consequently, the manipulated rate of exchange for the yuan is causing the 40% undervaluation to worsen even as the Chinese Government claims that it is moving to free market exchange rates.
CURRENCY EXCHANGE RATES CHINA USA YUAN 元 DOLLAR $ to to 1 1
{
8 5
40%
Notes: The Chinese government controls the exchange rate for its currency (known as the Yuan) and the US dollar by requiring its citizens and businesses to exchange any dollars earned in foreign trade for the Yuan at a rate about eight Yuan for one dollar. Market forces would allow Chinese citizens to receive one dollar for about five Yuan. This constitutes an illegal financial contribution.
Production of Widgets in China
Assume production cost of 元 1000
@ exchange rate of 元 8 to $1 = $125 @ exchange rate of 元 5 to $1 = $200
MANUFACTURING COSTS IN CHINA
ARE UNDERVALUED 40% !
Notes: This action illegally subsidizes the production of goods and services in China since production costs in China are understated in terms of US dollars by 40%. This is an “effectively subsidy” as written by Fed Chair Bernanke.
The manipulation of its yuan by China reduces the competitiveness of every other product, good or service in the world compared to its production in China.
China is waging a mercantile war on the world and the world is sleeping.
China and the USA are members of the World Trade Organization (WTO).
According to WTO rules, governments are not allowed to subsidize manufacturing.
WTO rules allow private companies/industries to sue governments if manufacturing is subsidized.
But US trade law does not define currency manipulation as a subsidy.
RYAN-HUNTER HR 782 STABENOW-BUNNING S 796
Notes: These bills in the House and the Senate would correct this injustice by recognizing currency manipulation as a subsidy and allowing US companies to sue any country for such manipulation and use CVD’s to enforce the ruling.
VAT TAXES FOR JOBS
Notes: There is no comprehensive effort by any of our elected representatives to adopt a VAT tax in the USA and reform the current tax system killing good jobs. Together, currency manipulation and the US tax system place a burden on manufacturing, farming, and service jobs in the USA of about 60% of the basic costs. That’s why we can’t compete. Nucor makes the case that Chinese labor costs are less than the cost of shipment of steel products to the USA.
Interaction of Currency and VAT
The lack of a VAT in the USA allows European nations to gain market share from the USA partially offsetting the impact of China’s manipulation of its currency on the production of goods and services in Europe. That’s one reason why Europe is less vocal about China’s mercantilism.
U.S. ECONOMY
SKILLED JOBS WAGES BALANCE OF TRADE STANDARD OF LIVING NATIONAL SECURITY
OPPOSITION
FOREIGN PRODUCERS IMPORTERS (SOME) (SOME)
MULTINATIONALS
THEIR TRADE ASSOCIATIONS FOREIGN GOVERNMENTS U.S. POLITICIANS SUPPORTING ABOVE NAKED FREE TRADERS
Notes: There is no such thing as free trade. Trade rules are governed by the World Trade Organization. VAT taxes were grandfathered by the WTO during its founding. The world is not going to change. The USA must change.
Environmental /Energy
• The world is working to make carbon emission worse. • The Kyoto treaty and Regional/National Greenhouse Gas Initiatives drive manufacturing from countries that have higher environmental standards to those that have lower standards, thereby increasing carbon emissions.
Satellite images show environmental hot spots…notably in China. Global warming policy concerns are parochial and narrow minded when they force manufacturing to environmental pass playgrounds.
These images from China are typical of the air pollution in any major Chinese city. Even the leaves on the trees around the Great Wall are coated with a fine dust which mutes the fall foliage colors to a dull grey. The rivers of the cities are visibly polluted and the beaches of Hainan are littered with garbage from passing ships.
China’s Pollution Flow
Almost 25% of the particulate matter that falls on California originates from China and Southeast Asia.
Powering toward a cleaner environment
• China is planning 40 new nuclear power plants, Japan is building 10 more, France relies on nuclear for 80% of its electricity. • Why? Nuclear power is clean & low cost if sitting/environmental concerns are managed. • Nuclear waste is dangerous but can be contained in areas much smaller than appreciated. Thirty years of nuclear waste from a 1,000 MW plant would fit in an area the size of a high school gym. • The USA needs substantial additional low cost, clean electricity to compete and clean up the environment. The USA should use a BRAC type process to site new nuclear generation throughout the country.
Policy making
• The international trade & tax policies of the USA are destroying the best jobs in the USA. The correct policies are not protectionist but balanced and recognize the degree to which trade is managed by every country in the world but the USA. • National & international environmental policy making is contributing to global warming due to its biased impact on international trade and the relocation of production capacity. • Nuclear power is the only source of large scale, low cost, clean energy that does the least damage to the environment.
Meanwhile…The Bubble Grows The US trade deficit is growing $2 billion a day. The accumulation of US currency by China & other Asian nations is a growing bubble.
What a mess we are leaving our children…
If Paul Revere rode into this room…. What would he say?
“The Chinese Are Coming!”
Do We Try To Understand The Difference Between How The Chinese Government Nurtures Manufacturing And How The U.S. Government Burdens Manufacturing?
Or Do We Hide Behind A Wall Until They Surround Us….
When people heard Paul Revere, What did they do?
Please carry the message…
Thank You.
