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~ USA Headed for a 5th Revolution! Why?

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Monthly Archives: January 2016

#182 Company Relocations. Economic Development or Stealing? (Part #6)

30 Saturday Jan 2016

Posted by Jordan Abel in Causes of the Revolution, Corporate Policy, Gov't Policy, Possible Solutions, Societal Issues

≈ 2 Comments

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan and POTUS continue conversation about rebuilding US manufacturing. Starts entry #179.

POTUS: “As you were saying, GM technically went bankrupt in the 1990’s but never white-house-clip-art1declared it. How so?”

Jordan: “Remember a company called GMAC?”

POTUS: “Wasn’t GMAC the finance arm of GM?”

Jordan: “Yes.  To help beef up the cash position and avoid being forced to declare bankruptcy, GM moved money from GMAC to the operating company.”

POTUS: “Isn’t that illegal?”

GM,_logoJordan: “Probably so but the financial guys covered their tracks very well. Part of the problem was caused by a number of accounting changes in the 1980’s during  Squeaky’s reign.  The accounting changes masked some earnings shortfalls.”

POTUS: “Pardon me for interrupting but whoever gave Roger Smith the name Squeaky deserves a drink.”

Jordan: “And I’ll buy.  Anyway, with all the accounting changes, it became very difficult to determine where there were real performance problems.  I’m not sure the finance guys really knew what was happening month-to-month.  Sales and market share kept dropping and the cash was no longer coming in…and they essentially ran out of cash in 1992.”

POTUS: “Without getting into more detail about GM, what policies should we consider to encourage manufacturers to stay in the US, or return to the US if they’ve left?”

TurtleneckJordan: “One issue that has always bothered me is the ability of companies to pick up and relocate with little or no consequence.”

POTUS: “Isn’t that a fundamental of capitalism?”

Jordan: “It’s very one-sided. Why should community and the employees make a commitment when the other side, the company, does not have to make a commitment?”

POTUS: “Are you saying the current system is unfair?”

Jordan: “Grossly unfair. And there are a couple of reasons why. First, the community Unfairand employees are often forced to make a financial sacrifice if the company threatens to relocate. Then the company can still pick up and leave.”

POTUS: “But, the community and employees have benefitted. The company has paid taxes and the employees have jobs. What’s not fair?”

Jordan: “The company has no downside risk. Heads I win, tails you lose.”

POTUS: “What if the company doesn’t sell product and make any money?”

Jordan: “Decisions that affect competitiveness are made by executive staff, not the employees or the town’s taxpayers. Failure to develop and introduce new product is a management issue, not an employee issue.”

POTUS: “What else?”

Jordan: “Laws in this country allow a company to bleed a community dry, and then taxpayerrelocate. As part of the relocation plan, the company demands prospective towns provide incentives.  It’s a shakedown.”

POTUS: “Many people consider that economic development.”

Jordan: “I consider it stealing. Its only economic development in the eyes of the city where the company relocates. And most of those cities are too lazy to develop businesses on their own.”

POTUS: “Jordan, that’s pretty harsh.”

Jordan: “Pardon me, Mr. President, but to call incentivizing a company to relocate ‘economic development’ is BS. The only people who gain in the deal are the executives of the company…and probably a few elected officials. The overall economy loses.”

POTUS: “Tell me why you think the economy is worse off.”

Jordan: “Employees and the community where the plant was located now have a lower Screwed-Guytax base, and very likely a higher welfare roll. They got screwed.  People where the company relocated have to absorb the cost of the incentives. They might not know it but they’ve been screwed.  Simple question, ‘Did employees’ wages increase?'”

POTUS: “No. Wages probably decreased except for the executives. Shareholders might benefit. I see your point.”

Jordan: “When you cut through the layers, relocation is another way to redistribute wealth…but disguised as economic development.”

POTUS: “How do we fix the problem, assuming we can convince people it is a problem?”

Jordan: “Convincing people should not be difficult. Start talking to people in cities where companies have left and see if they think its a problem.  And ask them who came out ahead.”

Fisher 21POTUS: “You mean people in cities like Flint, Buffalo, Cleveland…and a bunch of other places.”

Jordan: “You got it. The solution to such relocations…at least a partial solution?  Make the relocation costly…and difficult.”

POTUS: “Can a plan like that work?”

Jordan: “Look around Europe. Go no farther than Germany if you want to see if such an approach works.”

POTUS: “Lots of things work in Europe that don’t work in the US. National health care and gun control, for example.”

american-revolution-728714Jordan: “Attitudes in the US have changed since the Revenge Revolution. Now seems to be a good time to rethink whether we allow companies to pick up and move with no consequence.”

POTUS: “What if companies just declare bankruptcy and restart somewhere else?  And what about the unions?  Don’t they have some responsibility to keep a company from moving?”

(Continued)

#181 Flint, MI – Squeaky’s Sacrificial Lamb Kills the Middle Class (Part #5)

23 Saturday Jan 2016

Posted by Jordan Abel in Corporate Policy, General Motors, Personal Stories, Societal Issues

≈ Leave a comment

Scene: Jordan’s office a few days after POTUS’ first call re manufacturing and rebuilding the middle class.

092615_2031_Characters7.gifGelly: “Jordan, POTUS is on the line again.”

Jordan: “Hello, Mr. President.”

POTUS: “Hello, Jordan. Have a few minutes? I want to continue our conversation about rebuilding US manufacturing.”

Jordan: “My calendar is clear.”

POTUS: “Good. I understand the need to rebuild manufacturing and the middle class. But these are abstract concepts. If we are going to sell the idea, we need to personalize 092615_2031_Characters10.gifthe story. Make it so people can relate to it and understand what’s happened. You have an example or two in mind?”

Jordan: “You mean like what’s happened to Flint, Michigan?”

POTUS: “Wow, what a tragedy. They first lost all the manufacturing jobs, then they get hit with lead in their drinking water. Given your background, tell me what you think really happened in Flint. It went from a thriving community to being in the dumper. Why?”

TurtleneckJordan: “The very short answer is Roger Smith. He’s not the only reason but if you’re looking for the primary cause and way to personalize the story, look no farther than Roger Smith.”

POTUS: “Not sure who you mean.”

Jordan: “Ever hear about or see the movie, ‘Roger & Me’?”

POTUS: “Wasn’t that one of Michael Moore’s movies? He’s had some interesting ones. I’ve seen snippets of ‘Roger & Me’ but never the whole movie. What’s it about?”

Jordan: “About how Roger Smith, as chairman of General Motors, destroyed Flint.”

POTUS: “You think that’s true or was that just some Hollywood make-believe?”

Jordan: “My perspective is a bit different from Michael Moore’s. However, his lambconclusion is correct. Smith destroyed Flint. Flint became a sacrificial lamb.”

POTUS: “Seems like you’re taking an extreme position. Flint was a sacrificial lamb for what?”

Jordan: “Smith was chairman of GM throughout the 1980’s. He was also feared within the company, despite being known as ‘Squeaky’ to some insiders.”

POTUS: “Was he that bad? Was Squeaky…I love that name…a real ‘my way or highway’ kind of CEO?”

Jordan: “More like ‘my way or the guillotine’ kind of CEO. He was ruthless.”

flint-city-limits-signPOTUS: “So what made Flint different from other GM towns in Michigan? There’s what Lansing, Pontiac, even Detroit. What’s so different?”

Jordan: “Because Flint is where the UAW forced GM to recognize the union.”

POTUS: “But didn’t GM start in Flint with Buick? Flint was GM’s hometown. Who was the guy that started GM.? Wasn’t Sloan. What was the guy’s name?”

Jordan: “William C. Durant, aka Billy Durant.”

POTUS: “That’s the guy. If GM started in Flint, then what’s the big deal about the union?”

Jordan: “Roger hated the UAW. He never forgave the rank-and-file or the people of sitdown strikeFlint for participating in the sit-down strike of 1936.”

POTUS: “You’re really into GM history aren’t you? The strike was 45, almost 50 years before Smith became CEO. The strike was ancient history.”

Jordan: “Not to Roger, or many other people. You know Gelly, right?”

POTUS: “I talk to her when I call. Very pleasant by the way. I’ve never met her in person. Why?”

Jordan: “Her grandfather participated in the sit-down strike at Fisher #1 in Flint. She said he talked about it until the day he died. She’s 3rd or 4th generation auto family. Or at least she was until Smith’s reign of terror.”

POTUS: “Not to sound like an attorney for the defense, but did you ever see any memos or plans to destroy Flint?”

Jordan: “You know better than that counselor. My conclusion is based on his patterns of behavior in other situations. Also, I also looked at the number of facilities in Flint that were shut down in Smith’s reign compared to other locations. Disproportionately high.”

BuickPOTUS: “Maybe true but wasn’t GM losing share during the 1980’s? As I recall, GM was losing ground and imports were gaining ground.”

Jordan: “Except Flint’s hometown car, Buick, actually held its own during the 1980’s…and set a sales record.”

POTUS: “I’m certain you had no influence on that. Look, I can’t argue with your logic. You saw the company from the inside. You also analyze situations differently than most people. That’s why I call you. One question, ‘If Smith GM,_logowas so bad, why didn’t GM go bankrupt in the 1990’s? They didn’t go BK until what 2008-2009?”

Jordan: “They did go BK in the 1990’s…but not officially. I’ll tell you why.”

(Continued)

#180 “Show Some Respect for Detroit and Flint!” (Part #4)

16 Saturday Jan 2016

Posted by Jordan Abel in Education Issues, Personal Stories, Societal Issues

≈ Leave a comment

Scene: Jordan’s office. Just finished a conversation with POTUS.

Jordan: “Gelly, could you do me a favor, please?”

092615_2031_Characters7.gifGelly: “Yes, I’ll get you some coffee.”

Jordan: “How’d you know what I wanted?”

Gelly: “You are so predictable. I mean really.”

Jordan: “You sound like JC. Why do women give me such a hard time?”

Gelly: “Because you’re such an easy target. I’ll be right back.”

Turtleneck(Short break) Jordan: “Thanks for the coffee.”

Gelly: “You’re welcome. Conversation with POTUS go OK?”

Jordan: “Fairly well. I’ll get an assignment but that’s OK. I like to help.”

Gelly: “Anything you can talk about? Or do you face double-secret probation if you tell me?”

Jordan: “Topic was…or is how we rebuild manufacturing in the US.”

Gelly: “That’s a topic I like.”

Jordan: “Why’s that?”

BuickGelly: “I come from a manufacturing background. My father worked at Buick in Flint and my grandfather worked at Fisher Body in Flint.”

Jordan: “Why did I not know that? Were they hourly or salary?”

Gelly: “UAW and very proud of it.”

Jordan: “If your grandfather worked at Fisher Body and given how old you are…”

Gelly: “…but not as old as you.”

Jordan: “I know. Could your grandfather have participated in…”

sitdown strikeGelly: “…the sit-down strike? Yes he did and he was very proud of it until the day he died.”

Jordan: “The sit-down strike at Fisher #1 really changed lives for a lot of families.”

Gelly: “If you ask me, the change was all for the better.”

Jordan: “Why do you think so? A lot of people today think the unions, and especially the UAW, are the reason so many companies sent manufacturing off shore.”

Gelly: “They’re reasoning is BS. Try working for low wages and no job security. Look, I’m not saying the UAW was perfect but I do know that wages were a whole lot more Unfairequitable than they were before the union and even now.”

Jordan: “I don’t think I’ve seen you this fired up before.”

Gelly: “Because of the UAW, our family was able to afford a decent house and have a decent life.”

Jordan: “What about schooling?”

Gelly: “My sister and I were the first members of the family to go to college.”

Jordan: “She go to Michigan State also?”

Gelly: “Another Spartan. We couldn’t afford that rich kids school in Ann Arbor.”

Jordan: “Now, now. Let’s not get personal.”

Gelly: “You know what I meant, Jordan. I just get tired of people who trash working class families. And I really get upset when people trash Flint and Detroit.”

Jordan: “But both cities are in the dumper. Coming back a bit now but a long way to go.”

Gelly: “People need to understand and appreciate what Detroit and Flint have done for America.”

Aretha-aretha-franklin-27121751-1280-1024Jordan: “You mean more than The Four Tops, The Spinners, The Supremes, Aretha…Motown?”

Greenie: “Seriously, Jordan, if it weren’t for the auto companies and auto workers, the world might be a different place. In just a few months after WWII started, the plants went from making cars to making tanks and airplanes. Buick even made engines for bombers. Seems to me the people in France and Belgium have more respect for what the companies and workers did than the people in America. Makes me angry.”

B-24_bomber_at_Willow_RunJordan: “It is an amazing story, which very few people seem to appreciate.”

Gelly: “Maybe you should make the southeast Michigan story part of your conversation with POTUS.”

Jordan: “Interesting idea. People can talk all they want about software zillionaires, social media and the like. At the end of the day, a country’s value comes from manufacturing things. Software is a great enabler. But you still have to manufacture stuff.”

Gelly: “I’d really appreciate it if you would mention it to POTUS. I sometimes think I’ve let my family down because my job is to push paper around and not really make stuff.”

Jordan: “Gelly, I’m certain your family is very proud of you. And I am very proud of you for how you respect what they’ve done.”

#179 POTUS Calls re Rebuilding US Manufacturing Base, Middle Class (Part #3)

10 Sunday Jan 2016

Posted by Jordan Abel in Corporate Policy, Economics, Education Issues, Gov't Policy, Possible Solutions, Societal Issues

≈ 8 Comments

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Jordan’s office. Regular work day.

Gelly (Jordan’s assistant): “Jordan, sorry to interrupt you but I think you might want 092615_2031_Characters7.gifto take this call.”

Jordan: “Anyone important?”

Gelly: “Try POTUS. He’s calling you personally.”

Jordan: “Oops. Thanks. (Picking up phone.) Good morning, Mr. President.”

POTUS: “Morning, Jordan. Hope all is well with you. Have a nice holiday break?”

Jordan: “Yes, thank you. Had a chance to visit my wife’s family.”

021214_1242_24Resultsof1.gifPOTUS: “That’s what I understand. And don’t ask how I know.”

Jordan: “I know better than to ask.”

POTUS: “Calling to see what you learned on the trip. I can’t really get out and visit with people like you can. What’s up out in the heartland?”

PilotLogoJordan: “One of our stops…really one of my stops…was a truck stop in Central Illinois. Had an interesting chat with a fellow diner.”

POTUS: “Was it productive or the usual politics?”

Jordan: “Very insightful. The guy…his nickname is Doughman…talked about companies Pillsbury-Doughboymoving manufacturing jobs out of the US and relocating in Mexico or China. He just could not understand why we would want to gut the middle class in this country by shipping jobs elsewhere.”

POTUS: “What’d you tell him?”

Jordan: “I could not tell him much he didn’t already know.”

POTUS: “You mean like crazy tax laws that benefit CEO’s and other executives by moving jobs outside the US? And those laws really transfer wealth of the middle class to the executives and to the other country.”

TurtleneckJordan: “Tax laws are part of it. So are the negative perceptions of unions and a few other issues. But…”

POTUS: “…but what? Have you got a solution?”

Jordan: “The solution, at least to me, seems to be more education about why manufacturing in the US can be as profitable, if not more profitable, than manufacturing overseas.”

POTUS: “What about fixing the tax laws, increasing training for workers…ideas like that.”

factory_07Jordan: “Tax laws are out of whack and need to get fixed. But the real problem, I think, is American companies do not understand total costs…or maybe don’t know how to calculate total costs. As a result, they focus on individual components…like wages…and miss the big picture.”

POTUS: “Sort of like some of these yahoo politicians focusing on one part of the problem in the Middle East and pretending the related problems don’t matter. So, OK Swami, what are we going to do about rebuilding the manufacturing base…and rebuilding the middle class?”

swamiJordan: “First step is to find some examples of companies that have expanded US-based operations rather than shipping jobs overseas. We can have them talk about what issues they considered in the decision.”

POTUS: “OK, then what?”

Jordan: “We need to reach out to other CEO’s and CFO’s (chief financial officers) and educate them why it can be cheaper to manufacture in the US. The conversation needs teacherto focus on all costs, not just labor costs.”

POTUS: “That’s a big job. Who are going to get to be the spokesperson? Might need several people.”

Jordan: “The most credible would be CEO’s and CFO’s of companies that have either expanded in the US or brought operations back.”

POTUS: “What about some consumers? Some folks really prefer to buy US-made product.”

Jordan: “Good idea. And maybe you can use the bully pulpit to help persuade some companies to focus more on US manufacturing.”

walmart_logoPOTUS: “You mean like Wal-Mart. Sam Walton must be turning over in his grave. Wal-Mart went from US-made products to “Made in China” for just about everything.”

Jordan: “Wal-Mart might be more receptive than we think about returning to US-made products. They’re struggling.”

POTUS: “Any bully pulpit effort needs to be very quiet and behind the scenes. Can’t give countries the impression I don’t support free trade.”

Jordan: “The naysayers are going to argue that China offers lower costs and therefore that helps the middle class.”

POTUS: “You sound like some politician.”

Jordan: “Should I wave my arms and raise my voice as well? Actually the argument might be true for some items. But when the people who used to buy your goods are out of a job and have no money, what does a lower price do for them? They still can’t afford it.”

POTUS: “Hasn’t much of the price decline for a lot of products been due to technology and not labor cost per se?”

bingo-607633Jordan: “Bingo. And that’s the core argument with the CEO’s and CFO’s. Cheap labor doesn’t matter for many products. Technology has reduced labor content to a much smaller percent of total cost.”

POTUS: “Not sure this is the right example, but your old stomping ground – the auto industry – has reduced labor costs, right?”

Jordan: “Yes. Over the last say 25 years, labor hours per car have decreased dramatically.”

POTUS: “Just thought of another point we need to emphasize. If labor costs in the US are so high, why have so many of the foreign car manufacturers set up assembly plants here?”

Jordan: “Duh. Think those companies might understand the value of manufacturing in the US better than many US companies do?”

questions_answers_5POTUS: “OK, so we’ve identified a problem – the middle class is shrinking; and we’ve identified a partial solution – rebuild US manufacturing base; and we’ve identified a way to get started – educating CEO’s and CFO’s about how to calculate total cost….”

Jordan: “…and educating the public.”

POTUS: “Jordan, I buy the argument and the base solution. We’ve had the Revenge Revolution, which should make people more receptive.  Now, how do we really get started?”

Jordan:  “Want to talk now?”

POTUS:  “Can’t.  Have a cabinet meeting.  I’ll get back to you.”

(Continued)

#178 Manufacturing in the US. It’s Competitive and Rebuilds the Middle Class. (Part #2)

06 Wednesday Jan 2016

Posted by Jordan Abel in Corporate Policy, Innovative Thinking: Ideas and Products, Personal Stories, Societal Issues

≈ 1 Comment

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Pilot Truck Stop, Central Illinois. Jordan having breakfast, sitting at the counter.  (Conversation started Entry #177.)

PilotLogoJordan: “The coffee is good. What an improvement from the old days at truck stops. Coffee was like used motor oil.”

Patron: “Some of us think the truck stops have wimped out. Too much like Starbucks fufu-coffee and not enough real-man coffee.”

Jordan: “OK, let’s get back to the topic at hand. Bringing manufacturing jobs back to America and especially mid-size and smaller communities. First question is ‘Are the workers trained for the higher-tech jobs?'”

middle_aged_man_by_asimplesongPatron: “Are the workers trained in Mexico or China? Not at first so somebody had to train them.”

Jordan: “What about the unions?”

Patron: “What about them?”

Jordan: “A lot of business people, mostly Republicans probably, claim that the unions killed manufacturing in America.”

Patron: “Another excuse by CEO’s and politicians. Most of those guys don’t know dog poop from apple butter about what goes on in manufacturing. Did these guys ever look at Germany? Lots of manufacturing, lots of exports…and very strong unions. What’s Turtleneckwrong with that model?”

Jordan: “Nothing, I guess. The education system in Germany has more emphasis on learning skilled trades.”

Patron: “Well, so did we…at least when I was growing up. In our high school we had an opportunity to take classes to become an apprentice plumber, electrician, metal worker, auto mechanic, etc. ”

Jordan: “Those courses are not available now?”

manufacturing-production-operations-jobsPatron: “Apparently someone or some bodies decided that having everyone get ready for college was more important than learning a skilled trade. So now there are no more of what we used to call ‘shop classes.’ And guess what? We’ve got a shortage of skilled trades and college grads driving cabs.”

Jordan: “Wonder if those same people ever correlated eliminating shop classes, as you called them, and the loss of manufacturing jobs?”

FartPatron: “Why would they? Those folks probably never cut anything in their life…except maybe a fart.”

Jordan: “That’s funny. Sad and true but funny.”

Patron: “You’re asking me all these questions. Whadda you think?”

Jordan: “I think you’re right…and let me tell you a story why I think you’re right.”

Patron: “Shoot.”

Jordan: “A few years ago I ran small manufacturing company in northern California – Sonoma County.”

122913_1337_14BringingU2.pngPatron: “I thought they only grew grapes and made wine there.”

Jordan: “Lots of agriculture. But this company manufactured…really assembled…electric bikes, electric scooters and some other stuff.”

Patron: “Sounds like a fun place. Why’d they want you? Just kidding.”

Jordan: “When I arrived, the company assembled an average of 37 scooters a day. The problem was some days it was 75 and some days is was zero.”

Assembly Line 2Patron: “So they hire you to fix the assembly line.”

Jordan: “The Board of Directors wanted me to move all the production to China right away.”

Patron: “Same old BS. Move to China because labor was cheaper, right?”

Jordan: “I told them to give me until the end of the year…about 7 months…to fix the problem. Then we could revisit whether to assemble in China.”

Patron: “What happened?”

Line chartJordan: “In the 7 months we increased production from 37 per day to 250 per day.”

Patron: “What’s that about 5 times…no 6 times more production each day.”

Jordan: “Yep.”

Patron: “What’d you do…buy a bunch of equipment?”

Jordan: “We bought virtually no equipment, other than some carts to move parts between stations.”

Patron: “Add a bunch of people?”

Jordan: “No the only people we added were in the shipping department.”

Patron: “What did you do?”

Listening.EarJordan: “Listened to the workers. We asked for ideas on what changes would make their jobs easier and improve product quality.”

Patron: “So you listen, make some changes to the product and the assembly line but keep the same number of people, the same equipment and production increases from 37 to 250 per day. That’s impressive.”

Jordan: “Here’s the kicker. Labor cost per unit dropped so much that we could have doubled the pay of workers in California…and paid workers in China nothing and…”

Patron: “…it would have been cheaper to build in California. Right?”

Jordan: “You got it right. Amazing, huh?”

People OrdinaryPatron: “One more question. What about the workforce? They must have been highly skilled.”

Jordan: “The workforce was a bunch of ordinary folks who lived in the area. For some English was a second language…a distant second language. We even had a couple of guys on parole from prison.”

Patron: “And you still made it all work? You’re a genius.”

Jordan: “Thanks for the compliment but all I did was listen to the people involved and then get resources to help them do their jobs better.”

Patron: “What happened to the company? Must have become very successful.”

Jordan: “Unfortunately some investors got greedy and…”

Patron: “…then moved production to China. And then the company filed for bankruptcy.”

Jordan: “You’re the genius.”

Patron: “No doubt some of the investors got their money out and left the regular investors and employees holding the bag. Makes me sick.”

Jordan: “Me, too. While it’s a sad ending, the good part of the story is there is hope for manufacturing in the US…and small town America.”

fife-drum%201Patron: “Maybe the Revenge Revolution will begin to change attitudes about the importance of manufacturing. And you need to tell your story.”

Jordan: “Thanks for the encouragement.”

Patron: “Listen, I need to run. By the way, I never did introduce myself. I’m Rich Johnson…but everyone call me Doughman. Cause I look like…”

Pillsbury-DoughboyJordan: “…the Pillsbury Doughboy?”

Patron: “Looked this way since grammar school.”

Jordan: “Doughman, I’m Jordan Abel.”

Patron: “Well, Mr. Abel, nice chatting with you. Good luck on helping bring manufacturing jobs back to the US.”

#177 What’s Causing Middle-Class America to Go Away? (Part 1)

02 Saturday Jan 2016

Posted by Jordan Abel in Causes of the Revolution, Corporate Policy, Societal Issues

≈ 8 Comments

First-time readers, this blog is set in the future (sometime after the year 2020).  Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution.  More about Revenge Revolution and author, Entry #1.  List and general description of entries to date.  Annual assessment whether Revolution plausible.

Note: most characters appear in a number of entries, with many entries building on previous conversations.  Profile of characters.  You’ll catch on quickly.  Thanks for your time and interest…and comments. 

Scene: Pilot Truck Stop, Central Illinois. Jordan having breakfast, sitting at the counter.

waitress-clipart-waitressWaitress to Jordan: “Coffee?”

Jordan: “Yes, please. Thanks.”

Waitress: “Ready when you are.”

Jordan: “Two eggs, over easy; hash browns, dark; English muffin, dry.”

Waitress: “Orange juice?”

Jordan: “Good idea.”

middle_aged_man_by_asimplesongPatron (Sitting next to Jordan): “Excuse me. Visiting?”

Jordan: “Yes. Wife’s family. Taking a break. My wife is with her mother and sisters. They won’t miss me. You visiting?”

Patron: “No. Live nearby. Come here for breakfast every now and then.”

Jordan: “You farm?”

Patron: “No. Retired now…but not by choice.”

TurtleneckJordan: “What happened?”

Patron: “Factory closed. We made axles for medium and heavy-duty trucks. You know the 18-wheelers. Then the owners moved all the production to Mexico and China.”

Jordan: “What’d you do at the plant?”

Patron: “Skilled trades – machinist.”

Jordan: “Why’d they move?”

BeanCounterPatron: “Supposedly cost. Some bean counter claimed it was too expensive to manufacture here compared to Mexico or China.”

Jordan: “Employees try to save their jobs?”

Patron: “Yeah, but the suits…I mean management really didn’t want to listen. They seemed to have everything lined up before we had a chance to try to save our jobs.”

man_in_suit_clip_art_22944Jordan: “Was management right? Costs lower in Mexico and China?”

Patron: “I’m no financial expert but here’s what I do know. The plant here made high-quality product. Turn-around time was short. And customers were very happy.”

Jordan: “What about now?”

Patron: “From what I hear turn-around times are much longer and customers are frustrated.”

Jordan: “You think they’ll bring the work back here?”

Patron: “Probably not. The plant is closed and management would rather keep the crow-clip-art-COLOR_CROWplant in Mexico than to have to eat crow and admit a mistake.”

Jordan: “What’s happened to the town?”

Patron: “You drove through it. It’s dying. The farmers are doing OK but there are few to no factory jobs. Middle-class America is dying.”

Jordan: “If you were president, what would you change to bring factory jobs back to America?”

Patron: “The tax laws. Look, I’ll gladly pay my fair share. But people who don’t really Money-clip-artproduce anything – you know, those cats on Wall Street and those guys that manage money…”

Jordan: “…the hedge fund managers?”

Patron: “That’s them. Those guys and the guys that get all those stock bonuses…they should pay a higher tax rate than guys like me. I mean what do those guys really bring to the table for all that money?”

Jordan: “What about CEO’s…you know, heads of companies?”

Patron: “”When I had a decent job, I didn’t much care what the big dogs made. We could afford a decent house, an OK car or two and even take a little vacation now and then.”

factory_07Jordan: “But then the plant closed.”

Patron: “You got it. The plant closes and I get screwed along with about 1,000 other people. Yet the CEO and his buddies make even more money. That does not seem fair.”

Jordan: “By the way, you OK talking about this? I don’t want to ruin your breakfast.”

Patron: “My breakfast has been ruined since the day they announced the plant would close. What’s one more ruined breakfast?”

Jordan: “Two questions. #1 is Do you think CEO salaries should be capped. Have some sort of limit? Say some multiple of the average worker.”

UnfairPatron: “You mean if the guy on the shop floor makes $50 grand per year, the CEO could only make 10x as much? So how much is that…$500 grand a year?”

Jordan: “That’s the idea. Some countries have such limits. The US does not.”

Patron: “I like that idea. The current system is unfair.  There ought to be some limit on those CEO’s and especially those guys on Wall Street. I’m still not sure what they do to deserve all that money.”

Jordan: “Second question. What political party did you vote for when you were working?”

dunce capsPatron: “Mostly Republican. You know this is small-town America.”

Jordan: “How about after the plant closed?”

Patron: “I hate to admit it because it sounds so stupid now. I voted Republican.”

Jordan: “Why do you think voting Republican was stupid?”

Patron: “Because I was voting against my own economic interest. Republicans were not for the little guy like me. Their policies favored the rich and screwed guys like me.”

Jordan: “But you voted for them anyway.”

Patron: “I told you it was stupid on my part. Then I eventually woke up.”

Jordan: “And joined the Revenge Revolution?”

abraham_lincoln_clip_art_15515Patron: “You bet. What the Republican leadership forgot is the Republican Party is the party of Lincoln. And what did Lincoln say about fooling people?”

Jordan: “You can fool some of the people all the time, and all the people some of the time, but you can’t fool all the people all the time.”

Patron: “We’d been fooled long enough so we said ‘no more Republicans.'”

Jordan: “You think Democrats will bring the jobs back?”

Patron: “What I know is the elected officials in DC need to start working together on policy changes to help bring jobs back to this country. Otherwise, all these smaller towns – and maybe some mid-size towns – are going to suffer a slow death. When middle-class America goes away, then what?”

Waitress: “More coffee, gentlemen?”

(Continued)

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