This page was last updated 07/16/09
Please, take the time to read about this issue and the solution offered, sign the petition and contact your representative to support this issue.
WE the People have the opportunity to create a 'win win situation' for all concerned.
Having always been the individual with more questions than answers, I decided to bring attention to an issue that is on my priority list: the issue of the dwindling middle class and the loss of jobs in America.
Is America for sale?
Are you aware of the L-1B and H-1B's visa problem?
Sign petition: e.thePeople: Petition: Saving American jobs!
the following by Jim Grimes
The Great Depression
Coming To Your Neighborhood Soon
This is what a so called "jobless recovery" will produce.
Put your senator on notice -- if your job is in jeopardy, so is his/hers/theirs.
Many visitors to this site will lose their jobs within the next 40 months. And most will never find employment that will provide anything near the income they now earn.
They will fall into the McJob category. Because of offshoring and H-1B legislation.
Here's the litmus test for you and YOUR future:
Can your job be done in Toledo, Ohio, Whippany, New Jersey or Longview, Texas? If it can, then it can be done in real time, in India or China, for a fraction of the cost. This applies to Physicist, Chemist, Bio Engineers, Airplane mechanics and Aeronautical Engineers; the list is endless. And the economic impact on future college graduates will be absolutely devastating. Because of the inequities created by the H-1B visas travesty. The H-1B's will work for far less, with little or no benefits.
The L-1, (a related H-1B program) allows companies to transfer employees from outside the U.S. to fill high-level positions. Many companies then use the L-1 visas to import IT workers who are then hired out to other America companies such as Microsoft, AT&T, Verizon and hundreds of other large corporations, including state governments. And they're primarily entry level positions.
In theory you're safe if your occupation requires a physical presence in the USA. But in reality, state, county and municipal governments will try to counter growing deficits, by implementing from 2%-5% layoffs. Even though state agencies and contractors are loaded with H-1B's. It won't be the H-1B's who go.
Your future may not be in jeopardy, but what about your children?
Urgent! Congressional Petition to Save American Jobs
Sign up now! e.thePeople: Petition: Saving American jobs!
personally endorse the following candidates for national office because they
understand the insidious consequences of
offshoring and H-1B.
I would urge you to donate, (however small) to
these campaigns and to become actively involved. And set aside your
political persuasion, these issues transcend political ideologue.
If you have a candidate in your state, that you feel understands the seriousness of these issues, have him/or her contact me. email@example.com
The Money Trail
Not yet convinced how serious this situation is? Then, read on, and follow the money trail and find out where all the dollars saved by offshoring American jobs and importing H1-B's to replace American workers, actually ends up.
Today, many states, counties, cities and towns are trying to counter growing deficits, by implementing layoffs. Even though state agencies and contractors are loaded with H-1B's. It won't be the H-1B's who go. And Corporate America is doing the same thing.
Don't confuse small companies with big business. Small companies are being forced by pressure from big business to offshore and/or utilize H-1B's.
Why am I so sure of this! As a retired former Chairman and CEO of an American corporation, I can tell you from first hand experience when my competition gains a competitive edge in labor cost then I have no choice but to do the same thing; or I'll be out of business.
And your paycheck is only the surface of your total cost to me!
Almost without exception, the single greatest expense to a corporation is labor. Labor expense can be defined in two categories of fixed expenses:
Direct expense: this is primarily salary or an hourly rate.
Indirect expense: this is the hidden killer. It includes, FICA, Workmen's Compensation, state and federal Unemployment tax, health insurance. In some cases pension funds and/or employer contributions to 401's.
When my competition can shed itself of any percentage of these labor expenses, he gains a competitive advantage, that as a CEO, I can only counter by doing the same thing and to a larger extent. If I don't, he can put me out of business. At that point, there is no other choice.
This isn't a matter of collusion or a national corporate conspiracy. It's a matter of survival for most corporations.
However, there are some corporations headed by ruthless, greedy CEO's who are just piling to drive up the stock price and exercise options. Either way it has to be stopped, because ultimately it's economic suicide for you and this country.
The Grimes Labor Equalization Surcharge will equalize the foreign labor rate (on average of a $1.20 an hour) to a comparable American rate (in the case of the big 3 -- $52.85 an hour including indirect expense)
A savings of $51.65 per man hour.
Savings one week: $2066.00
Savings one month: $8884.00
Savings one year: $106.608.00
That's only the savings on one mans labor.
Multiply that number by millions, and you're talking billions of dollars in reduced labor expense.
That's why your jobs are leaving this country.
The surcharge revenue will go into the General Fund, to fund Infrastructure Construction, Education & Healthcare. When there is no labor cost advantage to go offshore, it will stop. And Corporate American will relocate back to the United States. Creating jobs for American workers who then become consumers.
Stopping and reversing the destruction can only be done by Congress.
By implementing a labor equalization surcharge.
Nothing else will stop it.
If you're not sure why you should sign the petition yet, continue reading.
The impact on the global economy
It will be equally beneficial to (so called) developing economies. The political leaders of countries like China and India will have to actually work to develop their own economies. As opposed to acquiring great personal wealth by exploiting their own workers at the expense of American workers.
I listen to all the hue and cry about excess global production capacity. There is no such thing! There is however a global excess of unemployed and underemployed people (in the neighborhood of three billion) who could soon be turned into consumers. Consumers who could and would buy American made goods and services.
I refer you to the following New York Times article, dated, July 17th, 2003. It's IBM's and Corporate America's future business strategy as outlined by IBM.
The absurdity of such logic
With a population of one and a quarter billion people, China doesn't need the American market to develop it's economy. Nor do other countries. They need to take a page from the lesson book of Henry Ford, "Pay the workers enough to buy the products they make. It isn't anymore complicated than that."
What China and other countries need are real domestic
economies. Manufacturing and producing goods and services for internal consumption. In the course of developing their own economies they will out of necessity purchase American made goods and services they're unable to provide in the development stage. And we can assist these countries in the planning and development. This a win/win situation for everyone.
Implementing this project will keep the United States and world economies running at full capacity for decades.
The fly in the ointment is the greedy moneychangers of Wall Street. They literally can't see beyond today's closing bell. And unfortunately they own the American political system: lock, stock and barrel.
The United States is essentially a corporation. The
President is the
CEO, and Congress is the Board of Directors. Their responsibility is the
over-all welfare of the economy. And they've abdicated that responsibility. Both parties are equally
Long before Corporate America realized the potential of the Internet, they could only outsource assembly and production labor. Even Bill Gates didn't grasp the real utility of the internet until 1993, When he finally did, he devoted all his resources to the development of Internet Explorer.
Today, Corporate America realizes they can outsource virtually everything in real time, and they are!
Even before (and without) the use of the Internet, one of the most efficient ruthless plunderers of the American economy is Nike. Nike has a labor force of virtual child labor. Children as young as 10, working 12 hours a day. Essentially, the equivalent of slave labor. (I don't mean to belabor the term, but there is no other way to describe it). As a result, Nike, before the indirect expense of advertising and sales promotion is the most profitable company in the world as a return on investment.
Variable Expenses: Advertising and marketing are variable expenses. Which means they can be raised, lowered or eliminated if the need arises. In any event the amount spent in this category affects net earnings.
The only real expense Nike has, is in advertising and marketing. With a 5 cent an hour labor cost. Each child is exploited to the tune of sixty cents a day. Nike's gross profit is astronomical. The difference between American labor cost and slave labor produces billions of dollars in savings. That's why Nike can shell out hundreds of millions of dollars in endorsement contracts to celebrities and athletes.
In reality, Nike is racking up billions in operating profit because of the net savings in the cost difference between American labor and slave labor. What they gain in slave labor, they invest in advertising and marketing.
Because of this enormous amount of cash Nike has, Nike is able to pay multi-million dollar contracts to executives, anchors, actors, writers, producers, directors and others in their particular industries.
The bottom line is this: all the money Corporate America saved in slave labor cost at the expense of millions of American jobs, became a variable expense making multi-millionaires of a few hundred thousand people. And a few million more extremely wealthy
If you're still skeptical, look at the payroll of the NFL, NBA, NHL and MLB. Or the multi-million dollar purses of the PGA and NASCAR. I'd be remiss not to mention college football and basketball coaches with multi-million dollar contracts.
All of these contracts are at the expense of slave labor vs. American labor!
LaBron James, a high school basketball sensation, signed a deal with Nike for $90 million before he ever played one professional basketball game. That $90 million is at the expense of thousands of American jobs. Nike does the same with Tiger Woods, to the tune of twenty five million a year and additional millions for hundreds of other athletes. At the cost of thousands of American jobs.
A Rod, a baseball player recently signed a seven year contract for $127 million. It breaks down to $435 thousand per week. And it's not an unusual contract. Throw in his other endorsement contracts and he probably makes close to $600,000 ($ix hundred thousand) a week.
In one year he'll make more than most Americans will earn in their life time. (That is, if their jobs aren't outsourced to a foreign slave labor market), and 3 out of 10 will be. This baseball player won't buy thousands of cars or thousands of homes. But, the bypassed Americans in the American labor market would have.
Are they really worth so much, and you so little? When's the last time you had a $70.00 cigar, or a $800.00 bottle of wine?
You should be outraged!
Nike is just one of thousands of American corporations doing the same thing. As you continue to read on you'll find: GM, Ford, Chrysler, GE, and hundreds of American icons in a mass exodus to China and India.
And they're demanding that their suppliers do likewise.
The Bureau of labor Statistics
In June of this year, the city of Benton Harbor, Michigan erupted in rioting. Benton Harbor is a black community with 40% unemployment. It's easy to dismiss that as an isolated incident. But, it isn't.
Unemployment is that high in many urban areas.
The Bureau of Labor Statistics doesn't consider these people to be unemployed. They're euphemistically termed discouraged workers. This is a metaphor for people who would rather live on welfare than flip hamburgers at McDonalds for $7 an hour, $280.00 a week.
The Bureau of Labor Statistics magically eliminate them from the labor force statistically. But, they get can't get 40 hours a week, because that would entitle them to benefits. The net is approximately $4.90 an hour. Welfare provides more than that. What terrific options.
When your field of expertise becomes an export
item, you may be rioting in the streets too. Don't believe the government
statistics for a minute.
Even more outrageous, the Bureau of labor Statistics recap the reported new jobs through a survey of payroll records from 300K businesses like: IBM, Nike and Microsoft. These are hard figures. What isn't broken out is this: where those jobs are. Many of jobs are held by H-1B's, employed by a dummy third party company contracted by companies like Microsoft and IBM, in addition to federal and state agencies.
They aren't Americans, and most are working directly from from their country of origin. Yet the BLS reports them to be new American jobs.
So technically they're not lying. Those published reports are worse than useless. They are dangerous!
As an example, when a worker loses his/her $80,000 per year job. And to survive, takes two, twenty hour a week, $9.00 an hour jobs. The BLS correctly reports 2 new jobs created. Unfortunately one person is holding both jobs! And if out of necessity, he’s forced to take a 3rd just to survive, that too, is a new job created.
Pak adds: Bush cut overtime pay. In reality the workers will need to work more jobs and longer hours to feed their family or to pay for transportation to the three jobs they are required to work to make ends meet! A vicious cycle that benefits corporations over WE the People!
Reporting people who have exhausted their unemployment benefits as employed is criminal.
Let me illustrate: if all America (with the exception of one person) were to be laid of tomorrow and drew unemployment for 39 weeks and exhausted their benefits, on the 40th week the Bureau of Labor Statistics would report, those people have returned to full employment. And productivity has reached an all time high. When exactly the opposite would be true.
This is an issue that transcends political partisanship. Below is a petition to four selected senators. It just happens that most are democrats because they represent states with extremely high unemployment with people just trying to survive, unlike the senators on the petition. If they serve just one term and leave, they immediately begin to receive a multi-million dollar pension. A pension fund they may have contributed to for as little as four years or maybe not at all.
Information on their pension funds and social security is difficult to get. There are conflicting published reports with wide variances. I tried to get this information directly from my senators and received from one, a computer generated, (I share your concern) response. I never heard from the other one.
They also have health care coverage the likes of which, you have never seen, or ever will (of course, at no cost to them). They can go to any hospital, see any doctor and have anything done without paying one thin dime. Including prescriptions. Incidentally, they just voted themselves a 2% raise.
The new generation of corporate executives
To compound the felony, the new generations of corporate executives cook the books to drive up the stock prices, and then exercise their stock options. They buy low and sell high. Now they couldn't do that without the complicity of their so called 'independent' Wall Street auditors.
Occasionally, they get caught, but usually only when the corporate cash flow dries up. On paper they still looked good, except they had no cash. And everyone on the inside knew it was a shell game.
Pak adds: Recall that of the 538 top American companies 68% have been indicted and those are the ones who were caught!
Those who do get caught before the cash is gone, pay a few hundred million dollars in fines, get a slap on the wrist and continue on their merry way. You have to ask yourself this, how much did they steal to be able to pay a hundred million dollar fine?
Oh, by the way, it was OUR money they stole.
I can't indict the Wall Street 'Moneychangers' enough. They are the bane to economic solvency. Consider your stock portfolio. Essentially, it's a 10 carat, gold plated brick. Scratch the surface and you have nothing. It starts with the 401's-the Golden Goose of Wall Street. The Eternal Money Pump.
Here's it works for Wall Street. And why it's a Catch 22 for you. Your contribution is tax deferred. That alone makes it irresistible. Throw in an employer contribution, and you have to be an absolute fool not to participate.
Over the years as more and more people signed on to 401's, Wall Street became flooded with cash. With no place to legitimately invest. The Moneychangers have two choices, artificially inflate stock prices or return your money. What option do you think they'll take?
He buys and sells at an incredible rate, and lo and behold, the $5 dollar stock is magically trading for $80 a share. Trouble is, the $5 dollar stock, is still a $5 dollar stock, maybe!
You can only put so much air in a balloon, and then it burst. Millions of Americans went belly up when the balloon burst. That's bad enough, but Corporate America bought into the euphoria too. They invested the cash reserves of their guaranteed pension funds.
Guess what? They're a little short on cash to fund these pensions funds.
General Motors recently floated a $16 billion bond issue to cover it's pension fund cash short fall. It isn't just the Auto industry that invested guaranteed pension funds on Wall Street; The Insurance industry, Airlines, Steel, Rubber, State and Local governments.
There is one notable exception, Microsoft Corporation. Microsoft has a cash position of $37 billion. That's billions, and in cash. Why do you think Gates hasn't invested heavily in the stock market like most of Corporate America? Because he knows how the game is played.
The Insurance industry is trying to recover their loses by huge across the board rate increases. The states are billions and billions of dollars in debt. The Airline industry is hopelessly in debt and hopelessly mismanaged. With the exception of SouthWest.
Beyond, what you've just read, there exist a National Debt of $6.6 trillion, that's growing by leaps and bounds daily. Forty eight states are running mammoth budget deficits. And by law they are required to maintain a balanced budget. As well they should. In short, the country is in real trouble, and it doesn't have to be.
The 21st Century should be, and can be, a Century of unlimited global opportunity and prosperity.
The petition is a wake up call to congress and Corporate America
Sell it Here, Make it here, all of it. Make it in China, sell it in China.
This doesn't close the US market to foreign investment by any stretch of the imagination. Investment capital is always welcome. If they want to sell here, manufacture here, and pay American wages, welcome aboard.
In the mean time, the solution for Corporate America is simple. Relocate back to America, create jobs for people who then can become consumers. If they're well managed, their profits will increase and the value of their stock will rise legitimately and your portfolio will have real value.
After you sign the petition, forward the link to your friends and associates. We need every signature we can get.
Thanks for your time and attention.
James J. Grimes
I recently received an e-mail so eloquently
expressing the plight of the American worker that I asked and received her
permission to publish it on this site.
For sale, one pair of hands - rough, care-worn, and well used. Hands unafraid of hard work, tedious tasks, and pain. Hands now idle, searching for activity, useless to stop the tide of American jobs given to third world countries because of the need to feed the already bulging, well-lined pockets of corporate boards.
For sale, one heart
- once beating with life, burning energy earning a daily living, swelling
with pride at a job well done, loyal to the employer. A heart, now broken
from empty, ineffectual promises of an empty, ineffectual government, facing
the greed of corporate America robbing the heart of life.
For sale, one mind
- inquisitive, generating ideas, inventing, dreaming the American dream. A
mind, now confused and searching, worried about providing for the family
once so strong and proud. A mind trying to understand where the American
dream has gone, and why has the government stopped listening to the voice of
Why are these items for sale? Why is the American worker in need of a job? Why is the government allowing American jobs to be sent overseas? Is there logic to sending American jobs overseas, shipping the finished goods back to the United States, to be offered for sale to unemployed citizens that cannot afford the purchase? Ah, you say, "It keeps the costs down." For who? Does the price go down on the finished product? Or does the profit margin increase for the select few pockets?
How long will we continue to waste lives and resources chasing after tyrants, when we have our own particular brand of tyrant on our own soil? "What kind of tyrant", you ask. Simple, the tyrants with so much greed that no amount of money will satisfy, the tyrants that have sold your right to work and earn a living ... "and in the eyes of the people there is a failure; and in the eyes of the hungry there is a growing wrath. In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." - John Steinbeck.
For sale, one soul - no, not for sale. My soul remains intact. Let the government and the corporate boards sell their souls and beggar the country...if they have souls to sell.
Pak states: "My soul is not for sale -- I will fight even if I am the only one standing and I will stand against all odds."
WE the People have the Power!
"If we are strong, our character will speak for itself. If we are weak, words will be of no help." John F. Kennedy, undelivered address, Dallas, November 22, 1963
Sign petition: e.thePeople: Petition: Saving American jobs!