Manufacturers Voting With Their Feet As Obama Kills The Economy

Emerson Electric, an American company founded in 1890, ranking number 111 on the Fortune 500, and the nation’s largest manufacturer of electronics and electronic equipment, is saying bye-bye to the country that hired Barack Obama.

You have to wonder how many businesses are saying goodbye to Obamination with their feet – or will soon start as his policies begin to take hold.

Emerson Electric Votes With Its Feet, Saying The Goverment Is Destoying American Manufacturing

By Richard McCormack
richard@manufacturingnews.com

One of the country’s most important industrial companies says the United States is not a good place to manufacture and it will continue moving its assets offshore.

The federal government is “doing everything in [its] manpower [and] capability to destroy U.S. manufacturing,” says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are “places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”

In his Powerpoint presentation available on the Emerson Electric Web site, Farr notes that the federal government is damaging prospects for U.S. economic growth with a $1.41 trillion federal deficit (10 percent of GDP); $12 trillion in government debt that will grow to $20 trillion in 10 years; a policy of printing money; a “non-targeted $800-billion stimulus”; bailouts for Wall Street and the automobile companies; the prospect for cap and trade legislation; a “government takeover” of health care to the tune of more than $1 trillion; increasing taxes and regulations; and a “lack of U.S. $ support” for manufacturing. The global stimulus “soon will fade,” says Farr.

If I wanted to destroy a nation economically from within, I would do precisely as Obama is doing.  I would create a climate of confusion and uncertainty by preventing businesses from knowing what the future will hold for them so that they could not plan.  I would constantly threaten them with policies that will necessarily provide them with disincentives to hire new employees or expand their operations.  I would burden them with higher taxes and more onerous regulations.  And I would make essential resources (such as energy) more expensive.

And then I would simply sit back and watch that economy crawl into a hole.

You might like socialism just fine, but many of the companies that actually employ workers and produce the profits that keep government revenues flowing, don’t like it at all.

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8 Responses to “Manufacturers Voting With Their Feet As Obama Kills The Economy”

  1. hl Says:

    Great article, but sad, sad news for America.

  2. Michael Eden Says:

    The sooner that enough people realize what is happening and turn against the Democrats, the less damage will be done.

    We voted to undermine ourselves and our economy, and that WILL happen. But we can always decide we’ve suffered enough undermining.

  3. Dave Terpstra Says:

    Having worked as an engineer for a very large corporation I have to say the move of manufacturing is nothing new, I was working for companies that were building plants in Shang Hai China, Katavice Poland, Monterrey Mexico and plans for India. The programs to move the manufacturing were initiated in 2002 and the North American plant closings were announced in May of 2008. If you think Manufacturers are leaving simply because of Obama, some greater homework needs to be done. Ross Perot had it right when he talked about the big sucking sound as manufacturing leaves the country. The loss of our manufacturing base has a whole lot more to do with globalization and corporate profit and less to do with political figureheads. America does need to wake up, there are hard times ahead, but Republicans blaming Democrats and Democrats blaming Republicans is not the road to prosperity, divisiveness is not good for any true patriot.

  4. Michael Eden Says:

    Well, fine. Only it’s apparently not just me who needs to do “greater homework” in this case, but the chairman and CEO of the country’s largest electrical manufacturer, David Farr.

    I know you’re attempting to cite your career bona fides as evidence of your authority in this issue, but it doesn’t seem to me that your bona fides trump Farr’s. Just the opposite, I’m afraid.

    I mean, yes, Dave, every dunderhead knows that outsourcing has been an issue for decades, and not just since Barack Obama took the oath of office. If that’s the entirety of your point, thank you.

    But Farr is saying we’re now in a climate that approaches a war on manufacturing under THIS government. Take cap-and-trade. Take health care. Both are going to force businesses – and especially manufacturers – to spend all kinds of new money to pay all kinds of new taxes. All the while forcing them to pay for massive new regulations that will be thrust on them. Farr is saying that Obama is taking a dangerous trend and turn it into a horrible crisis.

    As to your last sentence, ten years ago I would have agreed with you. But Democrats have employed blame, demagoguery, demonization, and unrelenting attack to an entirely new level. They have turned this into a war. And now any sane and intelligent person has a moral and intellectual obligation to wake up and see what these Democrats are doing with the power they demagogued their way to.

    Democrats declared war on Republicans and conservatives years ago, and it is long past time we fight back. Otherwise we simply forfeit.

    I have to wonder what would have happened if George Washington and the real patriots had employed your attitude about “divisiveness” against the British.

    As to “prosperity,” while we all want the freedom and liberty to pursue it, one of Aesop’s lines is in order: “Better to starve free than be a fat slave.”

    Semper Vigilanis. Sic semper tyrannis.

  5. Dave Terpstra Says:

    Thanks for your reply and yes, I am always in need of more homework, that is why I engage in discussions with people who are informed and passionate enough to put their thoughts out there.

    I do find it interesting with Emerson, that the very policies that are creating a burden to them that is driving them out of the country are the same looming policies that are driving an expectation for a sixteen fold increase in renewable energy sales from 50 Million to 800 million dollars in the next five years. I suppose perspective determines whether the policies are an unbearable burden or an exceptional opportunity.

    Globalization makes sense, after all when you can have a $300 monthly encumbered labor rate with throw away employees as opposed to a $300 daily encumbered labor rate with a high probability of legacy costs who wouldn’t shop the cheaper alternative.

    It does sadden me to hear your feelings on democrats attacks and I do not fault you for your reasoning. One of my favorite quotes is by Edmund Burke, “All that is required for evil to prevail is for good men to do nothing.” You Embody Mr Burke’s statement and that is honorable.

    George Washington and the real Patriots did employ the attitude about divisiveness, “United we stand, divided we fall.” We are after all the United States of America. This phrase has been around for a long time and has been attributed to Aesop, both directly in his fable The Four Oxen and the Lion.

    That is why the idealist in me envisions a united population in this country, unfortunately the anger seems so deep it will be a long time before there is a chance of this becoming reality. Until Americans face the common enemy that takes them away from the infighting this attitude is here to stay.

    Thanks for the Blog and your interest in our society!

    Semper Vigilanis. Sic semper tyrannis. Whomever they may be!

    Dave

  6. Michael Eden Says:

    Dave,
    Enjoyed reading your last, given your willingness to take bulls by their horns.

    Your para on globalization presents much of the dilemma that must be resolved: how do we have global economic competition and yet prevail against the $300/month worker with $300/day workers? Particularly when so many of our competitors don’t really play fair? That is a haunting question.

    I would submit that renewable energy sales aren’t as much of a panacea as your remarks might indicate. The problem is that 1) they are inherently inefficient and expensive relative to fossil fuels; 2) the only justification to seriously pursue most renewable energy projects is a faith commitment to anthropogenic global warming; and 3) the only way we will see these projects get off the ground is because of government imposing them and funding them. And I would further submit that when the government tries to force square pegs in round holes and vice versa, things often run seriously off the rails. Some companies will benefit, because they will be able to take advantage of government connections and government policies that they will literally be able to write, but many other businesses will be harmed.

    In any event, Emerson is clearly selecting the “unbearable burden” horn of your choices. Increased taxes, increased energy costs, increased regulation, increased wages/benefits imposed by increased unionization, and increased government control over business in general apparently do not strike them as the path toward a business-friendly environment.

    I agree with you that being united would be the far preferable goal to being fragmented. And I would think that any reasonably intelligent and moral person would agree with you. But united around WHAT? Can we just be united around the idea of being united? It seems to me that we need a certain core worldview and a certain core of goals to be united around.

    We USED to be united around the Judeo-Christian worldview. And our government and our churches largely were on the same page toward that end (with the government emphasizing a form of civil religion in overwhelming accord with Judeo-Christian principles, at the very least).

    It is amazing how a commonly held worldview can unite – especially when that worldview is good and noble. The Germans united around an evil worldview, and we can only marvel in horror at the results.

    At this point the left have kicked away most – if not all – of the supports that provided the foundation for any meaningful sense of unity. There is now for the most part a postmodern and existential ethic that insists on “the will to power.” [And, amazingly, it is largely the same set of premises from which Nazism flourished!]. And we must then fight like animals to secure our “rights” in this environment, at least until some great leader come to impose his stronger will upon our weaker wills and begin to build the next utopia.

    That is why I will not “unite” around a secular humanist agenda. I will not “unite” around socialist principles. I will not “unite” around anything other than the principles that our founding fathers united around: the Judeo-Christian worldview; the recognition that human nature is corrupt, and therefore separating, dividing, and limiting power is essential; smaller and more limited government, especially at the federal level; fundamental respect for individual liberty and property; and capitalism.

    I wrote another article dealing with which principles we should “unite” around.

  7. Stephen Says:

    I suppose perspective determines whether the policies are an unbearable burden or an exceptional opportunity. Here is now for the most part a postmodern and existential ethic that insists on “the will to power, and, amazingly, it is largely the same set of premises from which Nazism flourished.

  8. Michael Eden Says:

    I would agree with you.

    When you look at fascism, you are looking not at the OWNERSHIP of the means of production by the state (which would be Marxism), but rather state control of the means of production. And as we increasingly regulate, or “bail out,” (our banks) or partly own (GM), you are entering into the realm of fascism.

    We have seen from Obama and from the Democrat Party a fundamental distrust – and even outright hostility to – the free market. Recently, they have been damning and demagouging a private industry (health insurance) as literally evil. They have literally LIED about health insurance company profits, which are actually quite modest. And the fact of the matter is that half of Americans who have private health insurance have it with a non-profit insurance company.

    That demagoguery that Obama and the Democrats have relied upon again and again, btw, is also right out of the Nazi playbook.

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