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Obama's Midwest Blunder
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Haraz N. Ghanbari / AP Photo
The president doesn't understand how manufacturing or agriculture works. No amount of weatherproofing or education will help bring U.S. industry back, says Michael Lind.
President Barack Obama’s poll numbers are slipping, and nowhere have they slipped more dramatically than in the Midwest, where his favorable ratings are now below 50 percent.
It’s hard to blame people in the Midwest, the heartland of American manufacturing, for having their doubts. It is increasingly apparent that the president and the Ivy League professors and Wall Street financiers who advise him, confronted with the greatest crisis to confront global industrial capitalism since the Great Depression, don’t understand how manufacturing works or how important it is to long-term American wealth and power.
Evidence for this depressing conclusion can be found in Obama’s July 14 speech in Warren, Mich., where he unveiled his administration’s “Graduation Initiative.” Along with earlier speeches before and after the election and the administration’s own actions, the president’s speech makes clear that the productive economy—manufacturing, agriculture, and resource extraction, along with the vast service-sector infrastructure they support—is something that this administration neither understands nor particularly cares about, unless it can be dressed up in feel-good “green” camouflage.
Let China and Japan and India and Germany lead the world in advanced manufacturing. We'll equip American workers with caulking guns.
“Obamanomics” to date has been a synthesis of the “new economy” theory of the 1990s—the U.S. should shed manufacturing for “knowledge jobs”—and the “green economy” fad of the 2000s. A green economy is not one in which every industry is clean and efficient, but rather one that makes a few iconic inputs like windmills for the renewable wind and solar power industries, which would not exist but for massive government subsidies and regulations. Combine the new economy and the green economy, and you have the perfect recipe for a post-industrial America that can feel good about not getting its hands dirty by making things anymore.
In his speech in Michigan, Obama hit both the new economy and green economy themes. First, the green economy:
“I want Michigan to build windmills and wind turbines and solar panels and biofuel plants and energy-efficient light bulbs and weatherize all our—because, Michigan, you know bad weather. [Laughter.] So you can be all on top of weatherizing. You need to weatherize. [Laughter.] I know about that in Chicago, too. [Laughter.]”
There you have it—the future of American manufacturing, according to the president, is not making machine tools, automobiles, aerospace, and consumer electronics, but rather making “windmills and wind turbines and solar panels and biofuel plants and energy-efficient light bulbs.” Never mind that the market for these is minor and mostly created by government mandates on utilities and government subsidies. Wind and solar combined amount to a mere 1 percent of U.S. electricity usage, and the Obama administration doesn’t think they can provide more than 20 percent by 2020, even with massive subsidies. Never mind, moreover, that we can import cheap wind turbines and solar panels from Europe and China. (The Obama administration, which opposed “Buy American” provisions in the stimulus bill, also opposes “green tariffs” on imports.)
Never mind. The green-collar jobs of the future, it seems, are in the government-subsidized boutique industry of windmills and solar panels, and also in low-productivity make-work jobs weatherizing existing and new buildings, no doubt with ample federal subsidies, as well. Let China and Japan and India and Germany lead the world in advanced manufacturing. We’ll equip American workers with caulking guns.
So much for the green economy. Obama then moves on to the other part of Obamanomics—the new economy, familiar from the 1990s: “But we also have to ensure that we’re educating and preparing our people for the new jobs of the 21st century. We’ve got to prepare our people with the skills they need to compete in this global economy. [Applause.]” The president continues: “So we've already taken some steps that are building the foundation for a 21st century education system here in America, one that will allow us to compete with China and India and everybody else all around the world.” (Emphasis mine.)
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Michael Lind is the editor of New American Contract at the New America Foundation in Washington, D.C., and the author of The American Way of Strategy. He has been a staff writer or senior editor at the New Yorker, Harper’s magazine, the New Republic, and the National Interest.
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Michael Lind is the editor of New American Contract at the New America Foundation in Washington, D.C., and the author of The American Way of Strategy. He has been a staff writer or senior editor at the New Yorker, Harper’s magazine, the New Republic, and the National Interest.
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Peter0000
Your insight is astounding?
MaliciousDisorder
You git that right Just ask JDK or charles 116
Trilby16
I guess we won't get back to building stuff, objects, any time soon because we cannot compete with manufacturing overseas, where employers do not have to foot the bill and pass along the costs for health care. We need a single payer system, and yes, rationing, in order to become competitive again.
galeso
Trilby16, let's see how wrong one person can be. First, you say "I guess we won't get back to building stuff". This assumes that we are not now building stuff. After inflation is taken into account manufacturing increased 0.44% in the Bush years taking it to an all time high. OK, automation has reduced the number of workers. The automobile industry was known to be overbuilt for years. Ford has mostly US & Canadian Plants and is in good shape. GM has plants all over the world and is unable to compete. Can't blame the unions, health care or Obama for that, just GM management.
Second, health care is not killing employers. If it was they would drop coverage, as many have done. A single payer system will just make it so the poor and middle-class who can not afford to travel overseas will get poor health care while the rich will fly overseas and get all the health care they want. Look at the unemployment rates in counties where they have single payer. Who has lower unemployment?
At least you did not say all Americans are entitled to health care. If so, wouldn't all of earth citizens be entitled? And would that not cost 100% of the worlds GDP, leaving nothing for food, clothing, & shelter?
maddymappo
galeso - If it were up to your philosophy Americans would not have money for food clothing and sheltere either because of the competition with 3rd world nations that give no protections to their people. We are a supposed to be the greatest country on earth, industrialized, civilized, compassionate and affluent. We are speaking about the lives and well being of our fellow countrymen.
felixsama
Rationing? WTF?
How about we repeal NAFTA and replace it with an agreement wherein employment standards and environmental standards around the world need be comparable to those we want at home? Take the profit OUT of outsourcing! Tariffs- sure. Rationing? What are you even talking about?
We haven't just sent jobs overseas (where we might as well admit we're benefiting from slavery) we are facilitating the pollution of the whole planet and don't think we'll go down with rest. Stupid and deserve what we get, if we continue on this imperialist path.
Trilby16
Rationing of expensive unproven medical treatments and tests.
Yes, we most certainly have sent jobs overseas, or US companies have.
The rest of what you say makes no sense so I have no response.
maddymappo
Are you for real? The job drain has been going on for years, and all those years thes has not been universal healthcare. The treatment of workers in these third world countries is inhuman and a disgrace and the conditions they work in and the hours they work horrible. Is that what you want for America? In fact, if everyone had access to healthcare it would be easier for people to be entreprenurial and open businesses since they do not have to cling to a job so that their familes are covered in case of a medical emergency by their employers.
Trilby16
Yes, I am for real. True, the job drain has been going on for years but the economy was still able to limp along. But now we are at a crisis and too many jobs are gone. Yes, the treatment of workers in 3rd world countries is disgraceful. I am talking about the need for universal healthcare in the US, like in other NON-3rd world countries, so we can become competitive again. Employers cannot be expected to foot the whole bill, health insurance companies are a ridiculous layer of expense, and and too many people are not employed by big stable companies that offer decent health benefits. That model is breaking down.
Banjo1
Why would anyone expect Obama to know much about the real world? His whole life has been spent in a bubble of academic theory. The last president with this background, Woodrow Wilson, lied us into WWI, which of course was merely the undercard for WWII. Can Obama do this much damage? We'll see.
AlanD2
At least we are better off without Bush, whose whole life was spent in a bubble of stupidity.
By the way, Bush lied us into Vietnam II. With a little luck, he would have gotten into Iran as well.
BainsAR
Like many articles, this commentary has a notion of truth. The current emphasis on 'green' and 'worker learning' is interesting but the real economy requires actual machines and production skills.
My opinion is that we actually need a way for domestic companies to recover and prosper. Tariffs are probably the correct answer.
Regarding R&D, the writer is correct as well. Most folks do not understand the risk involved with true R&D. A positive yield (positive results) is in the 10% to 20% range. What private Wall Street initiative will fund effort with an 80% to 90% failure rate? Government programs have been able to absorb these setbacks in the past with amazing results -- man on the moon, Internet that works, etc.
Good commentary.
kscr14
Fantastic article. Exactly what I have thought for sometime now.We as Americans need to rise up and make our voices heard on this.It isn't easy to buy American,but we need to do our best at trying. Education is of course very important,but....if we manufacture everything in China and Mexico what good will it do.I'm starting to meet large amounts of fresh college grads that are jobless. They cannot pay the loans they owe.
Some of our most basic staples come from China.It makes me nuts. Now,even something like a pineapple cannot be found coming from Hawaii.I try to buy American and it is crazy to me that it is near impossible.Washington...wake up!
This is not one of the problems,it is the problem.
AlanD2
It is going to be increasingly hard to buy American as our businesses (read rich Republican CEOs) are shipping more and more of our manufacturing overseas.
TommyJ
If Obama doesn't understand how manufacturing or agriculture works then Michael Lind doesn't understand how globalization works.
Whether you want to believe it or not, globalization is here and the world is only getting more "flat" and NOTHING can stop it - not American workers producing more cars or the government imposing more tariffs. The simple fact is that our workers ARE competing against Indian and Chinese workers. It is a sad fact, but it is a fact nonetheless. Obama, and most economists mind you, see this and are trying to help the American people maintain their standard of living by encouraging and bringing about incentives for education.
I do agree that we should be importing more Green technology rather than producing windmills, but doesn't that go against your first point? And on top of that, "Green" is more than just "feel good." It's the way of the future, read a book. The first country to efficiently mass produce the first electric cars will pretty much own the global economy. Again, Obama and most economists know this and they also know that projections show that this is not the United States so they're trying to help.
Most of the solutions you offer are solutions of the past. The world is new and it is still changing and Obama seems to be on track with these changes. The gamble is just in how well he keeps the country in line with globalization.
renovate
Well said. Globilization simply cannot be ignored. The old 'Buy American' chant is as irrelevant today as it was 40 years ago and will solve nothing.
One wonders why so many people are lamenting our inability to make widgets as cheaply as China. Obama is trying to get us to create and invent the next development age.
The industrial revolution is over.
GrasshopperSam
I think that one thing all Americans need to agree on is that this is not a Democrat or Republican issue since both parties are responsible for selling America down the river. When I came home from being stationed overseas, I learned about the North American Free Trade Agreement in the early 90's, and even I as a "nobody" could see the writing on the wall. Our politicians are selling out to big business and succombing to the preassures of other countries labeling us as "protectionist" when ever we start demanding "buy American" clauses in our legislation (which is never going to happen).
And I am completely amazed even with all of our manufacturing leaving the country and our workers being displaced even further with the massive influx of illegal immigrants that Americans continue to allow this to continue to the point that our American way of life that our parents and grandparents enjoyed are being stolen from us and our children.
What is it going to take for us to stand up and fight against this ideology that Americans can survive on "Service Work Type Jobs"...
And another thing, while this country is spending every dime we have left going green, the countries that are profiting the most by our misfortune "Mexico, and China" have no motivation to purchase these so called "Green Products" from us. Whats it going to take? A Revolution?
Martyz42
There is always a small amount of truth in every lie... Yes the Obama plan could be better if it had the following;
A. Provision that said that every dime of Federal money must be spent on American made products only. (Just like the law China passed)
B. If Obama said we were going to rebuild the whole railroad system in the country. Laying track from city to city all across the Nation for passenger & freight. (Thousands of jobs in steel & the making of new trains & equipment)
C. Rebuilding every bridge, tunnel, sewer & road in the Nation again with American items only as well as American workers.
D. Rebuild the whole electrical grid in the country but this time bury it so the weather does not disrupt it.
E. Open ship yards to build non war ships to ship American made products, open factories that would build "everything" the military needs from bombs to underwear, all made with American products. (Not starting a trade war, just rebuilding America)
(All employee's working on anything that uses Federal money must be part of a union)
If just those 5 things were done (Less money than the phony wars Bush started) the country would put several million people to work directly & millions more indirectly. These 5 things would reset the economy & bring this nation back to where it was prior to the B actors reign in Washington.
Will Obama's plan do the above NO, but it will do some & some is better than Bush or McCain or Palin or any Confederate republican plan.....
Johnnorth
Lind is bang on target about an administration that has so little connection with the REAL creation of wealth by innovators and busines s enterprise rather than the continual production of hot air. Protectionism isn't the answer either in a global economy, but we are sure as hell heading in the wrong direction with tax increases on job-creating small businesses and the development of a new entitlement society.
AlanD2
By development of a new entitlement society, I'm sure you must be referring to our banking, financial, and insurance industries. But I'm sure Goldman Sachs' employees do deserve the billions in bonuses that they are getting this year after we bailed them out with TARP funds.
highrpm
"But we also have to ensure that we're educating and preparing our people for the new jobs of the 21st century. We've got to prepare our people with the skills they need to compete in this global economy. [Applause.]"
Who are the "we"? that need to prepare "our people"? The logic for this view holds that citizens need help to manage and survive. Help from who? Our government, of course. What ever happened to "individual responsiblity"?
I do not want my "entitlements". I will take care of myself, thank you. And when I can no longer manage, I will not prolong the agony by feeding at various government troughs.
TheWildestofThings
Write a letter to ol' barry himself explaining how you don't want your entitlements; pesky things like: roads, national defense, garbage men, policemen, firemen, prisons and the like. Take your annoying libertarian thinking elsewhere, shit bugs me to no end. Honestly, just stop paying taxes, who needs em??
AlanD2
highrpm: So when you get cancer, loose your job, exhaust your savings, go bankrupt, have to sell your house, and wind up living on the streets, you are just quietly going to die? Good for you!
larryfromkansas
What Obama needs to do is, sometime Monday afternoon, emulate Kennedy and say, "We choose to go to the Moon and do the other things. Not because they are easy, but because they are hard."
That's right. Let's reach for the stars--again.
By accelerating the Constellation mission, we'll get kids excited about math and science. We'll work to gain new engineering concepts. We'll develop new infrastructure to handle these new components. We'll inspire people again.
Instead of giving people Paris Hilton, let's give them mythic figures like John Glenn and Neil Armstrong. Yeah, that's the ticket, the ticket to America's greatness lies not within ourselves but in the stars.
GPatton
Hey, why don't the unemployed manufacturing workers just go to school and study finance and then get jobs on Wall Street, for firms like Goldman Sachs? George Patton
robjh1
I guess the media is slowly falling out of love with the President and realizes he is a man afterall.
"and we are not saved..."
watching
'no excuses'
quotidian
What's amazing is that Obama was allowed to run an entire campaign with an economic and environmental plan straight out of a sixth-grade science class: we'll replace all the disappearing high paying jobs by building windmills and solar panels. Not only is this a preposterous energy pipe dream, but can you have an industry when the government is the only customer?
rtfxgaol
Ever hear of the Defense industry??
Uncommonsense
Aww quit confusing these fools with reality!
AlanD2
Did you read that the same Republicans who are screaming about the deficit want to continue funding the very expensive F-22 stealth fighter program, even though Gates and the Defense Department don't want these fighters?
Thank you.
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