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Recently, AFL-CIO President John Sweeney gave a stirring speech describing the affects of globalization on American workers and the environment. I wonder if his constituents are listening.
Globalization is just a big word for the increasing competition among nations for manufacturing facilities, investments, and jobs. Labor activists and environmentalists are on the front line of the anti-globalization effort, but ironically their efforts are actually increasing the flow of American jobs overseas.
Let me explain. Competing industries in developing nations pay lower wages and operate under less restrictive environmental and labor laws than companies in the United States. Because they have lower operating costs, they can sell their products more cheaply, undercutting American producers. Because consumers in the global marketplace seek out the lowest prices, those foreign producers have the advantage.
Labor activists and environmentalists should stop and think before they automatically lobby for costly new laws and regulations. In doing so, they only increase the competitive advantage enjoyed by our foreign competitors. Of course, price isnt the only factor in the global marketplace. American products are among the highest quality in the world. But if our prices are too far out of line, customers will go elsewhere.
The solution? American companies must become more competitive. In Washington State, the shocking news of Boeings headquarters move to Chicago spurred Governor Locke to form the Washington Competitiveness Council. The Councils recommendations provide a solid blue print for what our state legislators and regulators need to do to keep business-the job providers-here.
It is an action plan that needs action in Olympia.
Boeing Commercial Airplane President Alan Mulally drove the point home again when he testified before the Washington Legislature in January. He said Boeing would like to build the new sonic cruiser in our state, but right now Washington is uncompetitive in six important categories: Transportation, taxes and fees, energy and infrastructure, unemployment insurance, regulatory costs, and education/workforce preparedness.
Some union and environmental activists have challenged the Councils findings. They see some key recommendations as threats to the environment, worker benefits, and health and safety.
They are wrong.
Washington has some of the strongest environmental laws, worker benefit programs, and safety standards in the world. If every one of the Councils recommendations were enacted tomorrow, wed still have those tough laws and regulations, but wed be more competitive.
The Washington legislature needs to get moving on the Councils recommendations. If they put them on the shelf to gather dust, lawmakers will be burying their heads in the sand like ostriches hoping the danger goes away.
It will not. Global competition is not going to suddenly stop; it is only going to intensify. We have no choice but to tackle it head on. |