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Leo Hindery of Intermedia Partners weighs in on the state of the U.S. manufacturing sector and how to create more jobs.
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So we'll get to that but President Obama stated -- on the roads had to make -- stop today at a factory in Milwaukee.
Pushing more manufacturing jobs in the US and in the last two years alone.
We've lost nearly 800000.
Manufacturing jobs -- Ken -- On jobs creation.
We go through your -- -- we have but how will host stopped there.
Steve Jobs as reported in the -- comes look at President Obama when he was talking about bringing.
In Apple's main attraction back US he said the jobs are coming back you buy them.
Well the ones that have been luster hard to bring back just because of the this sort of the effects within -- company of of moving that number of people overseas are not optimistic about them coming back I think where.
Where the lead -- tried to take as soon as you've got to put your finger in the -- real fast right.
You know manufacturing jobs and in the president's commitment to them since the state of the union speech has -- been remarkable because.
Early in his administration June of 2009.
Larry Summers gave a speech on behalf of the president.
And made -- claim that a job is a job that there was no fundamental distinction to the economy between a service job in a manufacturing job.
Every evidence that's wrong.
The multiplier affects the average wage that.
The impacts on trade -- -- trade deficit all suggest we need to floor around 20% of workers in manufacturing.
What will happen to -- today in the election is it is it too late to bring it up with such bigger now.
-- but the decision on the election whether it's mr.
Romney here mr.
Santorum vs mr.
Obama what we made again is it's always -- on jobs and the economy.
This idea that Europe and the politics kind of complicates -- a little bit what we -- the numbers while you were speaking not only president Obama's administration but also the previous administration.
The eight years under President Bush when we lost four plus million.
Manufacturing jobs has been going on and it even goes back a lot for a while longer than that the idea stopping it which is what you allude to -- -- -- just putting up.
Stop sign on say let's hold it here is that even realistic because what's gonna change the dynamic the the globalization the IT revolution all these things that that we know are -- what's gonna change that dynamic.
You gotta ask yourself why we've been losing them you know we've been losing them unfairly it a lot of our opinions that subsidies out of China and that the most at least two which is currency manipulation.
It just made that the playing field so -- level.
We have now roughly eight or 9% of -- of workers in manufacturing.
Yet her counterpart the most successful.
Western economies Germany with 23%.
Right so there's some place out there which we have to get to.
Quickly and we we showed for decades that the number for an economy is is physically large as ours is about twenty per.
-- figure they'll by the way just real -- if those jobs didn't go you know -- the China even if the Chinese were there.
Other currency I was to -- -- somewhere else you know they go to Bangkok of the just somewhere else admit if wasn't trying to be somebody else but -- 90% of the other cost differential between a good manufactured in the United States and its counterpart in China currently has nothing to do with wages.
It has hearing you do with subsidies again that's not the -- -- which is currency manipulation.
But that we added 237000.
Manufacturing jobs last is the most since I think 1997.
And you are seeing from -- seeing serious strength.
In say auto manufacturing you -- -- foreign auto manufacturer bringing their production.
Are you still -- wouldn't even with that improvement.
Two tunnels coming you lost so many in the run up to that.
That you're -- here -- 9% but that does it looks like maybe we've stopped the bleeding.
We unify and if we stop the bleeding based on on on the vice -- visited China.
This week with President Obama if we if we are forceful on our trade relations with China once and finally.
Then you will stop this -- in you can contemplate building it back up which you can't do is it can't all come the private sector.
There won't be enough initiative and momentum out of private sector alone to drive the number up you're gonna have to have a manufacturing policy.
For this government you're gonna have to have a national infrastructure bank that focuses on manufactured goods.
You think we really will be because a lot of the debate now with what Vice President Biden said yesterday and President Obama to some extent is it is it just talk.
Or they really going to whether it's them of the next administration get a get tough fund.
On China because the Chinese -- the two separate audiences to you here.
She Jim Payne talking and he's talking of the Chinese audience back home at the same time try to satisfy international investors and everything else and people sometimes say one thing to do another.
Well -- the rhetoric of VOA campaign on the Obama side is very strong on reforming -- trade relations with China and then we backed up permit for three full years Mitt Romney is very tough on China in his stump.
As is Rick Santorum.
So that the query will be whether who believes whom come -- come October November in places like Michigan Pennsylvania Ohio Indiana Iowa.
And frankly next story here in New Jersey when this campaign's going to be run a traditionally.
The Republicans are gonna try to take the midwestern.
Manufacturing -- back.
Feeling comfortable with the -- that the traditional Reagan Democrat down south and -- they'll stick with whoever their nominee is.
And fight over Michigan Pennsylvania and Ohio -- about the nominee and what do you megas and -- -- sarge.
I think if Santorum.
Does well in Michigan and oral Iowa either -- from one or both.
-- you may have a brokered convention I don't see how you can bring it out.
Now is that it's that it's it's breathtaking really think that's gonna happen.
It's breath like one of those and -- you dreams have been -- on you know the caucus votes of last weekend for Santorum were -- -- impact but if he takes a fee takes a traditional industrial stay practically Michigan where.
Romney's roots are so so deep.
It it would be you could you brokered convention it were.
Sure manufacturing has made sure sure I mean I am by nature very much pro labor because I think I -- that I think labour has been abused in this country for too many decades that said.
I just want to see not the auto workers stood out as good.
Got saved by the sax player and the date they did -- and that's it that's a query for another time when we -- get into that as to whether that was the program strategy.
That said we still have to get above the eight or 9% plateau fast.
We really do have to run now who's gonna try to make some news to see whether you're buying the Dodgers before it left on trying to but I'm trying to -- the dot what's gonna happen there.
Will know in three weeks three weeks.
That I was in LA yesterday and and other capable groups are looking at him as well.
Well known about three weeks.
Would be talking in the next owner of the LA Dodgers from old and you're talking to -- -- are so before you -- that's based on our off man -- bought a lot of -- that's right to keep getting invited deck baseball in the when he got racing on the other good next time you're back.
Dot exciting that are needed down regards lay out what sport you protest and Italy.
