Abc 7 News

Sonia Sotomayor, Pres. Obama's pick for the SCOTUS, heads to the Hill tomorrow for meetings with members. Per the WH, here is her busy itinerary:

Maj. Leader Harry Reid (D-NV)

Min. Leader Mitch McConnell (R-KY)

Sen. Pat Leahy (D-VT)

Sen. Jeff Sessions (R-AL)

Sen. Dick Durbin (D-IL)

Sen. Jon Kyl (R-AZ)

Sen. Chuck Schumer (D-NY)

Sen. Orrin Hatch (R-UT)

Sen. Dianne Feinstein (D-CA)

Sen. Kirsten Gillibrand (D-NY)

What's the administration's specific aim in bailing out GM? I'll give you my theory later.

For now, though, some background. First and most broadly, it doesn't make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any manufactured goods from coming in from abroad -- something I don't recommend -- we'd still be losing manufacturing jobs. That's mainly because of technology.

When we think of manufacturing jobs, we tend to imagine old-time assembly lines populated by millions of blue-collar workers who had well-paying jobs with good benefits. But that picture no longer describes most manufacturing. I recently toured a U.S. factory containing two employees and 400 computerized robots. The two live people sat in front of computer screens and instructed the robots. In a few years this factory won't have a single employee on site, except for an occasional visiting technician who repairs and upgrades the robots.

Factory jobs are vanishing all over the world. Even China is losing them. The Chinese are doing more manufacturing than ever, but they're also becoming far more efficient at it. They've shuttered most of the old state-run factories. Their new factories are chock full of automated and computerized machines. As a result, they don't need as many manufacturing workers as before.

Economists at Alliance Capital Management took a look at employment trends in 20 large economies and found that between 1995 and 2002 -- before the asset bubble and subsequent bust -- 22 million manufacturing jobs disappeared. The U.S. wasn't even the biggest loser. We lost about 11 percent of our manufacturing jobs in that period, but the Japanese lost 16 percent of theirs. Even developing nations lost factory jobs: Brazil suffered a 20 percent decline, and China had a 15 percent drop.

What happened to manufacturing? In two words, higher productivity. As productivity rises, employment falls because fewer people are needed. In this, manufacturing is following the same trend as agriculture. A century ago, almost 30 percent of adult Americans worked on a farm. Nowadays, fewer than 5 percent do. That doesn't mean the U.S. failed at agriculture. Quite the opposite. American agriculture is a huge success story. America can generate far larger crops than a century ago with far fewer people. New technologies, more efficient machines, new methods of fertilizing, better systems of crop rotation, and efficiencies of large scale have all made farming much more productive.

Manufacturing is analogous. In America and elsewhere around the world, it's a success. Since 1995, even as manufacturing employment has dropped around the world, global industrial output has risen more than 30 percent.

More after the jump.

--Robert Reich

MORE...

I just received this following email from a woman that I cannot figure out if she is for real or she was trying to be funny! You decide. I guess Ms Harrison got the latest copy of the Globe while standing in line at the checkout line!

From: Carol Harrison
To: minnman0926@aol.com
Subject: your 'blog'
Date: Mon, 1 Jun 2009 5:46 pm

What President Obama 'did' when he was younger or didn't do, is irrelevant. If the White House knew what you were doing, trying to put out speculation about him being 'gay' and the spin the WH is putting out on him, you'd be hung, drawn & quartered and I'd be right there helping someone do it. 'Bloggers' like yourself, Larry Sinclair, are a dime a dozen and unlike some, I chose not to ignore your absurdities regarding President Obama's sexuality, rather....what's in this for you, except your 15 minutes of "Net"/'blogger' fame!!

Copyright 2009 by Larry Sinclair/larrysinclair.org/larrysinclair-0926.blogspot.com/LarrySinclair0926.com and Larry SinclairBarackObama.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

How Canadian can you get?

The Finance Minister understates the deficit by $16 billion. Do we get mad?

Nah. The guy's doing his best. Let's give him another chance.

Canadian Press:

OTTAWA - Canadians appear to be willing to cut Finance Minister Jim Flaherty a little slack over his deficit shocker.

A Canadian Press Harris-Decima poll shows few Canadians think the
finance minister should resign just because he made a $16-billion
mistake on his deficit projection.

The survey of 1,000 people finds only 28 per cent who want Flaherty to
step down, while 59 per cent think he should stay on the job.

Even among Liberal supporters, 54 per cent don't think he should lose
his position because the budget deficit has ballooned to more than $50
billion - not the $34 billion predicted in the budget four months ago.

A new FDU PublicMind poll in New Jersey confirms how most other polls see tomorrow's Republican gubernatorial primary: Chris Christie (R) leads Steve Lonegan (R) by a healthy 54% to 30% margin. Another 11% are still undecided.

Steve Herzfeld managed an admirably inventive end-run around high healthcare costs for his Parkinson's- and Alzheimer's-afflicted parents. After in-home care was no longer possible, he priced American nursing homes, but found that the cheapest acceptable option was still $6,000. So he sent them to India. Quality elderly care in Puducherry cost less than his father's fixed income. According to the Guardian:

[In India, Herzfeld] could give his parents a much higher standard of care than would have been possible in the US for his father's income of $2,000 (£1,200) a month. In India that paid for their rent, a team of carers—a cook, a valet for his father, nurses to be with his mother 12 hours a day, six days a week, a physiotherapist and a masseuse—and drugs (costing a fifth of US prices), and also allowed them to put some money away...."In India, they really like older people," says Herzfeld, describing how the staff seemed to regard his parents as their own family.

Of course, the care was inexpensive because a couple thousand bucks goes further in Puducherry than it might in, say, Fort Lauderdale. Herzfeld, though, apparently believes that it was cheap because elderly care in America is greedily overpriced by providers. He vents about about healthcare and the profit motive: 

[Herzfeld] believes that India could teach the US and UK a lot about care of the elderly. "In America, healthcare is done for profit, so that skews the whole thing and makes it very inhuman in its values," he says.

I try not to begrudge a man his fantasies, but the idea that the nurses, valets, and masseuses of Puducherry were doing it all out of the goodness of their hearts—rather than the goodness of their paychecks—is condescending. It was simple outsourcing, not subcontinental altruism, that saved Steve Herzfeld so much money.

In Reason's May 2009 print edition, Ronald Bailey wrote about the outsourcing of hip replacement.