U.S. Trade and Tax Policies Conspire to Stymie U.S. Manufacturing

Hugh J. Campbell

Hugh J. Campbell Son of a steelworker, Philadelphia, Pa.

In Global economic forces conspire to stymie U.S. manufacturing, Brookings’ David Dollar contends that job loss in manufacturing derives primarily from technological change, not from trade. If this were truly the sole cause, why have virtually all our trading partner been able to better deal with these technological changes and avoid the increasing trade deficit that the U.S. political elite have inflicted on America’s working class?

The answer is our trading partners have domestic friendly trade and tax policies that enable them to better deal with the technological changes that have occurred.

Donald Trump achieved his Electoral College victory, in no small part, by vilifying the United States’ increasing trade deficit, just as progressives have for decade. The appointment of Dr. Peter Navarro to head the White House National Trade Council, which is welcomed by United Steelworkers (USW) International President Leo W. Gerard and other American labor leaders, is intended to reshape U.S. Trade Policy to promote domestic production and job creation, rather than as a foreign policy tool as it has been in the past.

Progressives should be on the lookout for and support Navarro’s initiatives to mitigate currency manipulation, border taxes on U.S. exports by our trading partners and tax benefits to corporations that incentivize the offshoring of U.S. jobs.

Expect both the mainstream media and think tanks like Brookings to be critical of Dr. Peter Navarro’s initiatives, since they can’t help being influenced by their advertisers and donors, who have been beneficiaries of the U.S. trade deficit.

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Hugh Campbell is a seasoned financial professional, currently providing subject matter expertise on a variety of regulatory topics, including the Dodd-Frank Act, the Foreign Account Tax Compliance Act (FATCA) and overall compliance monitoring. Hugh has previously held positions as Chief Risk Officer (CRO), Chief Audit Executive (CAE) and Director of Sarbanes-Oxley (SOX) Compliance.

Posted In: Union Matters

Union Matters

A Few Hundred Million Good Reasons Not to Care

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Millions of American families are still reeling from the aftershocks of the financial crash a dozen years ago. But a key architect of that debacle, Countrywide Financial CEO Angelo Mozilo, is feeling no pain — and no remorse either. In the decade before the crash, Mozilo took $650 million out of Countrywide, a hefty chunk of that just before the subprime mortgage scam Countrywide exploited started to implode. Earlier this month, Angelo described Countrywide as a “great company” at a conference appearance and declared subprimes as “not the cause at all” of the nation’s 2007-2008 financial wreckage. Added Mozilo: “Somehow — for some unknown reason — I got blamed.” The former CEO is acknowledging that all the blame did at one point bother him. And now? The famously always tanned Mozilo notes simply: “I don’t care.” 

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Every Worker's Right

Every Worker's Right