[Congressional Record Volume 157, Number 115 (Thursday, July 28, 2011)]
[Senate]
[Pages S4981-S4982]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING AMERICAN MANUFACTURING
Mr. BROWN of Ohio. Madam President, I wish to talk also about another
issue where we should have done a clean extension--as we have done
dozens of times in this country. In the past three decades alone, we
have avoided default by addressing the debt limit 38 times; 34 of those
were with Republican Presidents. That is almost 90 percent of the time
we have raised the debt ceiling--more precisely, avoided default--it
has been under Republican Presidents.
A lot of us did not like it. We maybe made a public statement saying
we did not like their fiscal policy, but we never stood in the way, we
never tried to take hostage--take the government hostage or each other
hostage by saying--almost like children--if I do not get my way, then I
am going to block this and I am going stop--I am going to potentially
throw our financial system and our economy into turmoil. What kind of
behavior is that for adults?
Then, when I hear Speaker Boehner and some of his radical kind of
cheerleaders on the far political right say we should do this again in
6 months, I wonder what are they possibly thinking, when we go through
this right now.
I spend a lot of time with manufacturers around my State. I love
seeing
[[Page S4982]]
things made. My State is the third largest manufacturing State in the
country, exceeded in production only by California, three times our
population, and Texas, twice our population. I talk to manufacturers,
and some of them are not investing now for a variety of reasons. Mostly
they do not see the demand for products because the demand is still
anemic in our society, in our economy, for companies to grow.
But they also talk about the uncertainty. They talk about the
uncertainty in the economic environment. This is the worst kind of
uncertainty we are going to inject into our economy if we are going to
say let's do this in 6 months. Do they think anybody in North Carolina
or Ohio or around the State, around the country, any businesses are
thinking: This is a great time to invest, right when Moody's and
Standard & Poor's might downgrade us, right when we do not know what is
going to happen in the next week with a potential default.
Do they think anybody is going to make a major investment decision
right now? Of course, they are not. So let's do it again in 6 months?
When I heard Speaker Boehner--I like John Boehner personally. He is
from my State. Our offices obviously work together in places such as
Butler County, Preble County, and the Dayton-Cincinnati areas. But I
would have thought people would have laughed when he said: Yes, let's
do this again in 6 months because we do not have a jobs problem to
worry about. Clearly, we should get this done with and focus--that
means cutting the budget. I understand that. We have to work toward a
balanced budget.
We knew how to do it in the 1990s. In the early 1990s, President
Clinton--I came to the House the year he was elected President. We
faced a terrible budget situation and an unemployment situation. But
you know what. We cut spending. We increased taxes appreciably for only
a relatively few number of people, the wealthiest people in our
society. We continued to make investments in education, health care and
infrastructure and our economy.
We had almost 8 years--not quite, maybe 7 years some months--of
regular economic growth, and 21 million new jobs were created. So we
know how to do this. But this crowd wants to hold the government
hostage saying, if you do not do it exactly our way, we are going to
let the government go to default, and once we solve that, let's do it
again in 6 months.
I just think it does not make sense. What we should be doing instead
is focusing--I know what an important manufacturing State the Presiding
Officer represents in North Carolina, as in Ohio--on manufacturing. We
are still a country that makes things. My State is particularly a State
that makes things.
The year after what is called the American Recovery Act passed, my
State got more new jobs in clean energy than any State in the United
States of America. My State is a leader in aerospace. It is a leader in
auto and steel and chemicals and cement and paper and aluminum and
glass. Yet we are also in the kind of traditional industries, and we
are also, as I said, a leader in solar, in Toledo, OH, and other
places.
We are a leader in wind turbine component manufacturing, especially
in the northeast but all over Ohio. We are a leader in aerospace, as I
mentioned. We are a leader in biomedical and biotech, in large part
because we have great universities and great teaching hospitals in, I
was going to say, prominently in northeast Ohio but also Columbus, also
Cincinnati, also Toledo--all over our State. Clearly, we know how to do
these things. But what we have seen in the past three decades is a
shift in our Nation. Thirty years ago, manufacturing was 25, 26, 27
percent of our gross domestic product. Basically, one-fourth of the
dollars in our economy were all about manufacturing.
That created great wealth, because the way to create wealth is to
make something, to grow something or to mine something, preeminently.
So 30 years ago, manufacturing was some 23, 24, 25, 26 percent of our
GDP. Financial services was only 11 percent in those days. Today, it is
almost the reverse. Financial services makes up about 20 or 22 percent
and manufacturing makes up only about 11 percent of our GDP and even a
slightly smaller percent of our workforce.
Why does this matter? It matters because we know when we make things
it creates wealth. Manufacturing jobs pay 20 percent more, on average,
than service jobs. We know the difference between retail versus making
steel or the difference between fast food restaurant work versus making
cars or chemicals or glass or biotech.
We know manufacturing jobs have a strong multiplier effect. So if we
have an auto company--let me give an example. The Chevrolet Cruze is a
car my daughter just brought--by and large, an Ohio car. It would not
have happened if we had not done the auto rescue that so many of my
colleagues opposed for ideological reasons, not substantive, practical,
let's-make-it-work reasons. Nonetheless, we know the auto industry is
coming back and we know manufacturing jobs have increased--far too
anemically, but they have increased over the last year.
But the Chevy Cruze, the engine is made in Defiance, OH, and the
bumper is made in Northwood, OH, and the transmission is made in
Toledo, OH, and the steel comes out of Cleveland, OH, for much of the
car. The aluminum wheels come out of Cleveland, OH. The stamping is
done in Parma, OH. Some of the other stamping is down in Lordstown, OH.
The assembly is done in Lordstown, OH. There are 5,000 people working
just on the assembly alone. So that is the multiplier effect. When we
assemble in Toledo, we assemble the Jeep. Chrysler assembles the Jeep
in Toledo.
Some 3 years ago, only 50 percent of the components for the Jeep were
American made. Today, over 70 percent are American made. So we know
manufacturing creates all kinds of jobs, making 20 percent more, on
average, than service jobs.
Since the beginning of the recession, though, we still see profits at
large financial institutions and other service firms increase, but our
Nation's unemployment rate is still hovering around 9 percent. So when
profits go up for those financial services firms--and I appreciate
JPMorgan Chase in Columbus, OH. I met with their top person in Ohio
just this week--just moving from Cleveland to Columbus. I know the
important work they do in my State. I know they provide thousands and
thousands and thousands of jobs. That is all a good thing.
But I also know in an economy which is not paying attention to
manufacturing, we do not get the multiplier effect, we do not get the
higher wages, we do not get the employment growth that we might get
otherwise.
That is why, yesterday, Senator Rockefeller and I convened a meeting,
where Senator Whitehouse, Senator Jack Reed, Senators Schumer and
Klobuchar and Feinstein and others attended. We talked about a real
national manufacturing strategy. That means closing the skills gap. We
have a lot of jobs in places such as Iowa and North Carolina, Ohio,
where they go unfilled because we do not have well enough connected
worker training with those jobs, with the needs. We need to pursue
better tax and trade policies. We need to pay special attention to
manufacturing.
Yesterday, the Senate sent to the House legislation we passed
unanimously that said: When the government buys American flags, rather
than 50 percent--a requirement that 50 percent of them be made in the
United States--the requirement now is that 100 percent be made in the
United States.
Why do we not put more focus on ``Made in the USA''? It will matter
for us. It matters for our national pride on flags, to be sure, but it
matters for our communities, it matters our companies, and it matters
for our workers.
I yield the floor and I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. HARKIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________