<<<<< JOB DESTRUCTION NEWSLETTER  No. 2093 -- 3/10/2010 >>>>>

web version:
http://blog.vdare.com/archives/2010/03/10/more-yellow-jobs-than-green

President Obama said that his stimulus bill would be spent for green jobs
in a green economy.

    Because we know we can’t power America’s future on energy that’s
    controlled by foreign dictators, we are taking a big step down
    the road to energy independence, and laying the groundwork for a
    new, green energy economy that can create countless well-paying
    jobs.
    Obama Signs Stimulus Plan Into Law, President Obama, Denver Colorado,
Feb. 17, 2009

Transcript
http://www.cbsnews.com/8301-503544_162-4807704-503544.html

Obama’s hope that lots of high-paying green jobs are going to be created
has one major hitch -- most of them will be yellow jobs in Communist China!
Stimulus money is being used to fund products made in China, and to utilize
Americans only when absolutely necessary.

In a recent blog I explained that 8 out of 10 stimulus dollars for wind
power goes overseas. It’s not only wind power projects that are going to
China and other countries even though our solar energy industry is
non-existent and, stimulus money isn’t going to change that reality.
Peter Morici explained the problem in stark terms:

    Longtime China critic Peter Morici, an economist at the University
    of Maryland and former chief economist of the U.S. International
    Trade Commission, pins the blame on the Obama administration,
    which he says has failed to push China to reform its trade practices.

    "It’s absolutely disgraceful that Obama is going around the world
    saying we will not resort to protectionist measures against China
    when they’re stealing the solar-panel business out from under us,"
    Morici said.

    Morici noted that China’s protectionist measures include a
    requirement that 75 percent of the content of government-purchased
    solar panels be Chinese-made. The United States has no such
    requirement.
    "China eating our lunch in solar-panel marketplace", by Dean
    Calbreath, San Diego Union-Tribune, August 30 2009

http://www.allbusiness.com/economy-economic-indicators/economic-indicators/1
2795541-1.html

Arizona’s reputation as the sunniest state in the union is attracting
stimulus money but the problem is that the bulk of the business is going to
two Chinese companies: Suntech Power Holdings and Yingli Solar Energy.
Stimulus funds are going directly into the hands of these two Chinese
companies in order to build solar panels for consumption in the U.S.

http://www.suntech-power.com/

http://www.yinglisolar.com/

My contention is that if the Obama administration continues to allow
stimulus funds to go to foreign countries, very few good jobs will be
created and we will not develop the engineering and manufacturing
infrastructure needed to make our own stuff.

I wish to thank Mary Teagarden for inadvertently proving my point in a
recent article in the Phoenix Business Journal.

    Economic developers and solar energy firms in the Valley have
    welcomed Chinese and other foreign investment as a way to help
    the region recover from the recession, create new jobs and
    finance projects when traditional and domestic funding sources
    have run dry.

    Rob Sanchez, editor of the Job Destruction Newsletter in
    Chandler, said linking Arizona’s solar growth with China could
    mean manufacturing and engineering jobs will be based in Asia,
    where costs are lower. That would leave more service- and
    distribution-oriented jobs in Arizona.

    "Arizona promoters are deluding themselves if they think
    foreign investors are going to sink money into photovoltaic
    research and production centers when they can build them
    anywhere in the world that is cheaper than Arizona," said
    Sanchez, who is critical of free-trade policies in general.
   "Sure, Arizona has lots of sunshine, but so does the Gobi
    Desert. If the Chinese invest money in Arizona, it will be
    for marketing offices and maybe a few small production
    facilities where prefab parts are put together."

    Suntech will create 75 jobs in Goodyear, but those jobs will
    involve assembling products manufactured in China, said Mary
    Teagarden, a global business professor at the Thunderbird
    School of Global Management in Glendale.
    "China’s influence creeps into Arizona solar", Phoenix
    Business Journal - by Mike Sunnucks and Patrick O’Grady,
    March 6, 2010 [link below]

Teagarden is a business professor at the Thunderbird School of Global
Management in Glendale, AZ. Not surprisingly she is a champion of
offshoring jobs to the Chinese. Thunderbird School is in the business of
training (brainwashing) future executives to become globalists that have
the skills to offshore jobs to countries where costs are cheaper than the
U.S. Teagarden is recognized for her research that has a rather descriptive
and alarming title:

http://www.thunderbird.edu/about_thunderbird/faculty/faculty_alphabetical/_1
32560.htm
Mary Teagarden

"The role of Global Mindset in developing global leaders."
http://knowledgenetwork.thunderbird.edu/research/2009/11/06/globalleaders/

So, what Teagarden seems to be saying in the Phoenix Biz article is that
after spending millions of dollars of green money in Arizona for solar
energy we will get 75 low paying jobs to assemble components, and maybe a
few temporary construction jobs. Most of the manufacturing, engineering,
and research dollars will go to China.

So how could stupidity of this magnitude happen? The best explanation I
have read was written by Maryann Scarangello, who says that she is: "a wife
and a mother first and an avid political writer second." She obviously
isn’t an economist because her writings exhibit too much common sense!

   American manufacturing has taken such a hit in the past 20 years
   (down 37% since the early 90’s) that small manufacturing firms
   were not properly prepared to handle the mass of manufacturing
   needs the stimulus created. Thus, loopholes were added to the
   legislation and this meant billions in stimulus dollars went to
   foreign countries instead of to an ill American economy which
   could have used this opportunity to restructure our manufacturing
   and bring prosperity back to the sector. Taking the short cut
   approach not only allowed for money to go overseas, but also
   resulted in little to no effect on unemployment and still left
   unaddressed, the ability of our nation to rebuild and repair
   our manufacturing industry which is vital to our nation’s
   future growth..

    Obama, like his predecessors, has not clamped down on the
   unfair playing field of international manufacturing.
   Particularly with China when it comes to manufacturing jobs and
   manufacturing products, the United States has allowed China to
   keep its exports and currency artificially cheap. The value of
   the Chinese currency has been an argument for a decade now, yet
   no real pressure has been placed on the nation to correct it.
    "Manufacturing and Our Failing Stimulus", by
   Maryann Scarangello, AllVoices


http://www.bizjournals.com/phoenix/stories/2010/03/01/daily77.html
China's influence creeps into Arizona solar


http://www.allvoices.com/contributed-news/5339668-manufacturing-and-our-fail
ing-stimulus
In the days of a "second stimulus" discussion, it’s time to re-examine
the failures of the first.


+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.bizjournals.com/phoenix/stories/2010/03/01/daily77.html

Saturday, March 6, 2010  |  Modified: Monday, March 8, 2010
China's influence creeps into Arizona solar
Phoenix Business Journal - by Mike Sunnucks and Patrick O'Grady

China’s solar footprint in Arizona might have blended silently into the
desert sand were it not for Suntech Power Holdings’ well-publicized
decision to open a new assembly plant in Goodyear.

Chinese investments are being made in Arizona’s solar sector, mostly via
private, behind-the-scenes deals that have some free-trade and solar
skeptics concerned about the kinds of jobs that will be created here as a
result.

Economic developers and solar energy firms in the Valley have welcomed
Chinese and other foreign investment as a way to help the region recover
from the recession, create new jobs and finance projects when traditional
and domestic funding sources have run dry.

Rob Sanchez, editor of the Job Destruction Newsletter in Chandler, said
linking Arizona’s solar growth with China could mean manufacturing and
engineering jobs will be based in Asia, where costs are lower. That would
leave more service- and distribution-oriented jobs in Arizona.

"Arizona promoters are deluding themselves if they think foreign investors
are going to sink money into photovoltaic research and production centers
when they can build them anywhere in the world that is cheaper than
Arizona," said Sanchez, who is critical of free-trade policies in general.
"Sure, Arizona has lots of sunshine, but so does the Gobi Desert. If the
Chinese invest money in Arizona, it will be for marketing offices and maybe
a few small production facilities where prefab parts are put together."

Suntech will create 75 jobs in Goodyear, but those jobs will involve
assembling products manufactured in China, said Mary Teagarden, a global
business professor at the Thunderbird School of Global Management in
Glendale.

Teagarden, an expert in international economics, said investors and
businesses -- some of which are linked to the Chinese government -- are
making heavy investments in solar industries in the Northeastern and
Western U.S., including Arizona.

She said U.S. financing streams are tight because of the economy, but the
Chinese are spending money on green energy and solar investments worldwide.
Unlike Suntech’s public announcement of its West Valley plant and foreign
solar investments from Spain and Germany, Teagarden said most Chinese deals
are much more low-profile.

"There is ample Chinese financing out there, but it is in the background,"
she said.

Others in the solar industry and those familiar with investment deals
agree.

Ryan Hurley, a renewable energy expert and attorney with Scottsdale-based
Rose Law Group PC, said he is seeing private investment and other deals
between Chinese solar panel manufacturers and installation companies in
Phoenix and other markets. He said Chinese manufacturers invest in U.S.
solar installation outfits so those businesses will use Chinese products.

Monique Hanis, spokeswoman for the Solar Energy Industries Association,
said solar panels used to come mostly from German and Spanish companies,
but the Chinese have been producing more of them and are beginning an
aggressive entrance into the U.S. market.

One solar deal maker in the Valley, who asked not to be identified, said
the Chinese take varying tacks to keep their investments and involvement in
U.S. solar energy companies and projects on the down-low. That includes
putting investment dollars into U.S. venture capital and private equity
funds, which then bankroll solar projects in markets such as Arizona.

The Chinese also act as junior and minority partners in some solar deals,
resulting in their involvement not being disclosed or evident in government
filings and applications, according to several real estate executives,
attorneys, consultants and others familiar with such deals.

Neither Suntech nor Yingli Green Energy would comment on their Arizona
investments. Suntech has said in the past that its decision to locate in
the Valley was as much about logistics, getting the company’s panels to
market and the state’s energy policy as it was about incentives.

Yingli officials, who are negotiating for the best deal between Phoenix and
Austin, did not want to comment on their decision process.

Numerous investors, businesses and solar industry consultants involved or
familiar with Chinese and other foreign investments in Arizona’s solar
landscape declined or refused to comment on the nature of that financing
and why many of the deals are kept private.

Doug Bruhnke, CEO of Scottsdale-based business development firm Growth
Nation, said the Chinese are taking the same low-profile approach to U.S.
investments as the Japanese and South Koreans. He said U.S. political
sensitivities about China could play a role in how that country does
business here.

Rebekah Friend, director of the Arizona AFL-CIO, said she doesn’t
necessarily care where foreign investment is coming from; she just wants to
ensure that the jobs created by those investments are high-wage and the
workers are treated well.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.allvoices.com/contributed-news/5339668-manufacturing-and-our-fail
ing-stimulus

In the days of a "second stimulus" discussion, it’s time to re-examine
the failures of the first.

The collapse of the manufacturing sector of the United States has been a
major component of the failure of the first stimulus and a reason to shelf
any plans for a second stimulus unless the White House and Congress address
the growing loss of our manufacturing industry.

The Obama administration has pushed hard for the development of "green"
energy jobs. Included in many of the stimulus pep rallies were discussions
on how green jobs would bring employment back and how this would yield a
more energy dependent United States. It sounded good -- and there is hardly
anyone that would doubt our dependence on foreign EVERYTHING has gotten a
bit out of hand.

However, as typical in the government sector -- little was properly thought
out (perhaps not even read) before signed.

Although there were stipulations placed onto stimulus dollars, the
government missed an opportunity to assist the manufacturing industry and
bring a true reduction in unemployment figures to the table.

American manufacturing has taken such a hit in the past 20 years (down 37%
since the early 90’s) that small manufacturing firms were not properly
prepared to handle the mass of manufacturing needs the stimulus created.
Thus, loopholes were added to the legislation and this meant billions in
stimulus dollars went to foreign countries instead of to an ill American
economy which could have used this opportunity to restructure our
manufacturing and bring prosperity back to the sector. Taking the short cut
approach not only allowed for money to go overseas, but also resulted in
little to no effect on unemployment and still left unaddressed, the ability
of our nation to rebuild and repair our manufacturing industry which is
vital to our nation’s future growth..

Obama, like his predecessors, has not clamped down on the unfair playing
field of international manufacturing. Particularly with China when it comes
to manufacturing jobs and manufacturing products, the United States has
allowed China to keep its exports and currency artificially cheap. The
value of the Chinese currency has been an argument for a decade now, yet no
real pressure has been placed on the nation to correct it.

President Obama during his campaigned promised to address the currency
manipulation of China but soon after taking office, he retreated, perhaps
out of fear of China’s economic threat to this nation now that it holds
the single highest amount of US debt. If China were to dump treasury bonds,
they could in one week cause this nation to lose all recovery to date and
sink far lower than where we were when Obama took office. China’s threat
of economic warfare holds a cloud over this administration and this cloud
has resulted in damage to our industries and our clout in the world’s
economy.

Of course, one cannot help but wonder what diplomatic deals were drawn up
and discussed as the United States begged for China’s bailout of our
economy. Placing faith in a nation built on every principle that clashes
with our own was a grave mistake and forces us to accept pressure from a
nation that has sent lead riddled toys to our children, poisoned our pets
and sent drywall that rots from the inside out. When China purchased
American debt, our fate in manufacturing became even darker.

The decline of manufacturing in this nation is carefully documented. It is
nothing new to the administration and it is certainly not new to Congress.
The failure of the government to take action before the first stimulus was
released is criminal. That there is a push today to stop portions of
stimulus dollars for renewable energy is laughable. The manufacturing of
renewable energy supplies (solar panels, wind turbines etc) shifted to
Europe and Asia long before the stimulus had passed and Senator Schumer,
D-NY one of the main voices behind today’s letter to set a moratorium on
spending, is certainly no rookie Senator.

Naturally, the American Wind Energy Association condemned the letter
stating: any effort to stop the funding would "torpedo one of the most
successful job creation efforts" of the stimulus bill." While AWEA may have
a point in its response citing the foreign company Gamesa employs Americans
in the production of turbines in Pennsylvania, it is negligent in its
defense of this as Gamesa employees less the 1,000 Americans and is a
foreign company that may pay a few salaries here -- but dominates its
employment base elsewhere and all profits go back to its home country --
Spain and anything developed in the US utilizing the employees expertise is
the intellectual property of Gamesa -- a company not from the US -- but
again -- from Spain.

Although Schumer and his colleagues are correct to ask that stimulus
dollars be stopped to these foreign countries, it is a bit of a wonder as
to what took so long?

It is also not an alternative energy problem only. In the first stimulus,
$8.4 billion was allotted (as was $75 Billion from 23 States) for the
upgrading and expansion of our mass-transit systems which included new
subway and light rail cars. Instead of allotting these funds to American
companies to design and build these cars, since no American companies
currently do make the cars, the loopholes were used and foreign companies
received the bulk of these stimulus dollars too.

It is beyond comprehension that we are not using taxpayer dollars wisely
after all the waste we have complained about for the last decade. When
Americans yielded power to the Democrats in the last election, it was
imagined we would see a return of some fiscal responsibility yet what
we’ve seen is the collapse of all fiscal responsibility. While the Obama
administration is talking about saving jobs, they are missing what they
have lost -- every penny they sent to Germany, Spain, China Japan…. Every
penny could have turned the manufacturing industry around. Small business
manufacturing firms should have received these awards to grow -- to expand
and to HIRE.

America is not at a loss of people who need work. It’s just at a loss of
people who see how best to use taxpayer dollars to get these people back to
work.

Before considering spending one more dime of the stimulus dollars, the
first stimulus should be re-written. It should not allow for any foreign
companies to compete against United States companies for funds. This means
GE would be cut off if the manufacturing of turbines built with stimulus
dollars are found have been built in their China manufacturing plant verses
a US plant and the that the small firm in Lake Placid, NY would receive the
billions that GE would have been awarded had they left their development in
the US. Upstate New York could use some jobs.

Small business would grow -- Americans would go back to work, manufacturing
decline would turn around and America would be rebuilt from its roots.

So in my letter to Congress, unlike the Democratic Senators did today, I
would like President Obama and Congress to put a moratorium on ALL stimulus
funds and shelf any plans for a second until this whole "NOT MADE IN THE
USA" problem that is darkening the skies of this nation is corrected.

The rest of the world may own our debt -- but as of today -- they don’t
own the right to take away our creativity, our development and our jobs.

Keep the stimulus dollars here and put AMERICANS back to work.

- - - - - - - - - - - - - - - - - - - - - - - - - - - -
Newsletter Homepage:
http://www.JobDestruction.com/shameh1b/JobDestructionNews.htm

Support this Newsletter and www.JobDestruction.com by donating:
www.zazona.com/Donations.htm

To Be removed from this mailing list, reply to this
email with UNSUbSCRIBE in the subject window
- - - - - - - - - - - - - - - - - - - - - - - - - - - -