More Than Lip Service

Yesterday, I had the opportunity to hear Debbie Stabenow (D-MI) speak at the Kennedy school. To be honest, the only draw was that she has represented my district since before I can remember, first at the State and then National level.

In my opinion, the fundamental problem facing Michigan is how to combat the decline in the manufacturing industry. The loss of jobs and the reduces wages/benefits, have led to a downward spiral. To see this, all you have to do is visit old factory towns on the east side of Michigan. Local governments are in shambles, schools are subpar, and without any new investment coming in, there is little hope for change. This is not a problem Michigan faces alone, although it is unique in the way its fortunes follow that of the auto industry (both now in decline).

Stabenow acknowledged the fact that this was a critical issue facing Michigan and the rest of the country, but she gave no new ideas. It was the same tired story that Kerry used in his failed election bid and full of quantified. For example, we cannot afford a "race to the bottom", we need "a race up". Everyone knows we need "a race up", but how can we do that?

The US cannot compete with Canada's high skilled labor and nationalized heathcare that lowers employer burdens. Nor can we compete with the cheap labor and lax regulations on Mexico. Yes, NAFTA and CAFTA have hurt those employed in the manufacturing sector (as Gov. Granholm said, "NAFTA and CAFTA have given Michigan the shafta"), but we cannot continue to play the blame game. Let's hear and evaluate real ideas. Both Kerry's taxation solution (roll-back tax breaks for US companies that move jobs/factories off shore) and Stabenow's "trade prosecutor" solution (the trade prosecutor would monitor the behavior of other countries for violations -- e.g., copyright issues with China) are starts in the right direction. However, they are band-aids. They would treat the symptoms and top some of the bleeding. For America to become truly competitive, we need to restructure healthcare and continue to focus on innovation.

According to Stabenow, there are over 45million people in the US without health insurance. Yet per capital spending on healthcare if ~%5,600, twice that of other countries in our peer group. Companies ranging from Wal-mart and GM are actively trying to reduce healthcare costs, which either can or do overwhelm their balance sheets. Even the US government is trying to scale back costs associated with administering Veteran's healthcare. How would Congress would feel if their benefits were taken away! In an era when pharmaceutical companies are accountable to no one and CEOs take home record paychecks, why can't we adopt a system like that in Europe with strict controls on pricing? Our citizens should not be subsidizing cheap drugs elsewhere. Today healthcare costs and premiums have the potential to drive working families into bankruptcy. The rest of the Western world has adopted nationalized healthcare, in this area it might not hurt to look to our peers for advice. Or at the very list bring down healthcare costs across the board from medicine to doctor/hospital fees. Does it make sense to have "free markets" decide how much a life is worth?

In order to stay competitive, it is key that the US remain at the forefront of innovation. Our current edge is being threatened. South Korea has become a pioneer in genetic engineering just as school boards across America are mandating creationism be taught alongside evolution in science classes. The "brain drain" that the US so profited from is drying up. More and more companies are setting up centers in India and China, getting the advantage for well trained professionals and the lower cost of labor. At first lower skilled jobs were threatened (e.g., call centers, factory positions), but now high skilled jobs are at stake (e.g., software, backoffice functions). What will come next? are we prepared?

I had not meant to have this turn into the rant it did. The speech I attended yesterday was frustrating in that it answered few questions and made me ask more. The most trying part was when a student began her question with, "It's so refreshing to hear a politician talk about real issues instead of just paying them lip service...". I almost laughed.