James O’Keefe is the guy who made a video supposedly showing him in a “pimp costume” getting advice from ACORN employees on ow to run a prostitution ring. Except the video was doctored, he never wore a “pimp costume” and ACORN employees never did any such thing. But the story sounded good … so it went wide and ACORN was defunded by Congress.

And here we go again. It turns out the IRS was NOT singling out “Tea Party” groups for audits. The IRS was scrutinizing ALL groups applying for c4 status by asking additional questions. No audits. And only SOME (1/3) of those groups were conservatives — OTHERS were liberal, etc. Doesn’t matter, the right put out a victimization story making it sound like only conservatives were targeted for political reasons. (And Christians are a persecuted minority, Whites are discriminated against, etc.) The “mainstream” news media picked up and spread the lie, and here we are.

Again: Only 1/3 of the organizations that received extra scrutiny were conservative. The rest are not identified, but liberal and progressive organizations are reporting that their applications received the same scrutiny as conservatives. (And by the way almost 70% of the applications that were flagged WERE engaged in campaign activity that would disqualify them from c4 status.)

See:

Bloomberg News: IRS Sent Same Letter to Democrats That Fed Tea Party Row

Daily Kos: Liberal groups received same IRS letter that ignited Tea Party outrage

Washington Monthly: Two Rather Important Details About the IRS “Scandal”

From the Inspector General’s report on what happened, page 8:

Figure 4 shows that approximately one-third of the applications identified for processing by the team of specialists included Tea Party, Patriots, or 9/12 in their names, while the remainder did not. According to the Director, Rulings and Agreements, the fact that the team of specialists worked applications that did not involve the Tea Party, Patriots, or 9/12 groups demonstrated that the IRS was not politically biased in its identification of applications for processing by the team of specialists.

Look at how MANY of us fell for one more “pimp costume” story.

James O’Keefe never wore a “pimp costume” into an ACORN office, and conservative groups were not singled out for scrutiny by the IRS. But because of the right’s ability to spread these smears both are now firmly “true” in the public mind. Partly because the rest of us fell for it and helped amplify it.

TPP is a “trade” agreement between several Pacific-rim countries that is actually about much more than just trade. It will be sold as a trade agreement (because everyone knows that “trade” is good) but much of it appears to be (from what we know) a corporate end-run around things We the People want to do to reign in the giant corporations — like Wall Street regulation, environmental regulation and corporate taxation.

One-Sided Process

The TPP process appears to be set up to push corporate interests over other interests. The TPP is being negotiated in secret, so what we know about it comes from leaked documents. Even our Congress is being kept out of the loop. But 600 corporate representatives are in the loop while representatives of groups that protect working people, human, political and civil rights and our environment are largely not in the loop.

This one-sided participation unfortunately indicates that the interests of giant corporations are likely to override the interests of working people and those who want to protect non-corporate interests. Otherwise there would be more representation by representatives of organizations representing these concerns, and greater transparency into the process.

TPP Is A Very, Very Big Deal

The coming TPP is a very, very big deal. If it is agreed to by the Senate and signed by the President it will override American laws in many areas. We won’t be allowed to enforce laws and regulations that impede the “rights” granted to big corporations under this agreement, and it will be very hard to rescind the agreement once signed, no matter how much damage might result. Just look at how NAFTA, China’s entry into the WTO and other agreements are causing huge trade deficits and sending jobs, factories and industries out of the country while dramatically increasing income and wealth inequality.

Making the TPP work for We, the People should be up there on our “litmus test” of things we require of our elected officials — right along with pledging no cuts to Social Security and Medicare.

TPP Not Just Trade

It looks like TPP will go way beyond what most of us would consider to be in a normal “trade” agreement. TPP — negotiated by giant corporate interests — appears set to give giant corporations a veto over a country’s ability to set many laws and regulations that are designed to reign in those corporations. Quelle surprise!

Leaked documents appear to show that negotiators are writing provisions that will set rules that are binding on Congress and our state legislatures tell us what laws and regulations our own country can pass or enforce in areas like:

• intellectual property rights like patents and copyrights,
• government procurement like Buy American which would be banned,
• investment and land use,
• service-sector regulation,
• food and product safety,
• corporate competition,
• labor,
• even environmental standards.
• Leaks show that TPP even limits government regulation of financial services!

Dean Baker explains that non-trade items like patents in an agreement like TPP can have a huge effect on us by dramatically increasing prices of items like pharmaceuticals, in Political Corruption and the “Free Trade” Racket,

Tariffs and quotas might raise the price of various items by 20 or 30 percent. By contrast, patent and copyright protection is likely to raise the price of protected items 2,000 percent or even 20,000 percent above the free market price. Drugs that would sell for a few dollars per prescription in a free market would sell for hundreds or even thousands of dollars when the government gives a drug company a patent monopoly.

Again: There are over 600 corporate representatives participating in the TPP process, but few if any representatives of human rights, environmental, civil rights or worker rights organizations. And the resulting agreement will be binding on governments! The corporate powers apparently granted in the TPP can override domestic laws on environmental health and safety, and labor and citizens’ rights. If this agreement becomes law multinationals can claim that those domestic laws and regulations hamper free trade and can sue for millions of dollars in “damages.”

Bad History Of Trade Agreements Harming Economy, Democracy

Our one-sided, corporate-negotiated trade agreements have dramatically enriched Wall Street and a few CEOs. But the devastation that is apparent in many regions of our country along with the hollowing out of our middle class tells the real story of what these agreements can do to an economy. For example, we all know what has happened since China was allowed to enter the WTO. In the 2000s we lost 50,000+ factories and at least 6 million jobs just to China. Because of the massive cost of building a manufacturing infrastructure it will be very difficult to restore even key industries. But the 1% who pushed this made out extremely well.

Even the just-signed Korea Free Trade agreement is already hurting our economy. It has increased the trade deficit, increased imports and decreased exports! A recently-released fact sheet from Public Citizen looks at the damage our economy is already experiencing from the Korea, Panama and Columbia agreements. The section on Korea tells the story: exports to Korea down 10%, trade deficit up 37%:

“One year into the Korea FTA, U.S. goods exports to Korea have declined by 10 percent (a $4.2billion decrease) in comparison to the year before FTA implementation. U.S. meat producers lost a combined $206 million in beef, pork and poultry exports in the first year of the Korea FTA relative to the year before FTA implementation, while the U.S. auto and auto parts industries suffered a 16 percent increase in the U.S. auto trade deficit with Korea. Overall, the U.S. trade deficit with Korea has swelled 37 percent under the FTA.”

Just one of many examples in the fact sheet:

• Imports of cars and auto parts from Korea have soared 15 percent (more than $2.5 billion) under the FTA, driving a 16 percent increase in the U.S. trade deficit with Korea in autos and auto parts relative to the year before FTA implementation.

Also from the fact sheet — loss of 12,000 jobs:

“The combined U.S. trade deficit with Korea, Colombia and Panama under the FTAs has jumped 11percent above pre-FTA levels for the same months as exports to Korea have declined and imports from Korea and Panama have risen substantially. Using the same ratio employed by the Obama administration, this $2.3 billion combined trade deficit expansion implies the net loss of more than 12,000 U.S. jobs in just the first several months of the new FTAs.”

And that’s just the recent Korea agreement, and in just a few months since it went into effect.

Trade Can Be Good Or Bad, Depending…

No question about it, a good trade deal can boost exports, boost the economy, boost employment … And of course this promise is how these trade deals are sold to us.

But the bad trade deals we have gotten ourselves into have instead boosted the trade deficit, boosted unemployment, boosted income and wealth inequality, boosted the loss of factories and industries, boosted the hollowing-out of our middle class and boosted the domination of our politics by the large corporate interests.

All trade deals have winners and losers. NAFTA and letting China into the WTO were obviously big winners for Wall Street, the 1%ers, and their giant multinational corporations. But these and similar trade deals helped break the back of the unions, the middle class and our economy — especially manufacturing and its supply chains. The result of these changes has been that all of the gains from our economy as productivity increases have increasingly gone to fewer and fewer people who are higher and higher up the food chain.

We need an open, democratic process that ensures that We, the People are the winners from our trade deals.

Needed Fixes

The TPP negotiations should not just be negotiated to serve the interests of giant multinational corporations. The process should be opened up to the public and democracy, so people and groups with a huge stake in the outcome — like labor unions, environmental organizations, human rights groups and consumer organizations — can participate. With only corporate participation, only corporate interests will be served. Funny how that works, isn’t it?

The process of democracy should not be subverted by a “fast track” rule that keeps our Congress from fully considering the implications and effects of such an agreement. “Fast track” just extends the lack of citizen involvement in negotiations into a lack of citizen involvement in the finalization!

Last June 130 members of the Congress wrote a letter to the US Trade Representative asking for transparency in the TPP negotiations and consultation with members of Congress. In addition, more than 400 organizations have asked Congress to replace the “Fast Track” system that limits Congress’ (democracy’s) ability to get involved in the process, and to call for a new direction for TPP as well as other trade agreements.

We also need strong tests and irrevocable language about withdrawing from the agreement if it is harming our economy, environment, smaller businesses, tax base and/or our working people.

TPP and all future trade deals must include clear and enforceable rules covering currency manipulation and other ways that countries game the system.

Elizabeth Warren Drives It Home

Watch Senator Elizabeth Warren (D-MA) asking about trends in trading patterns with Korea since the new “free trade” treaty went into effect, and about how TPP looks like an end run around Wall Street regulation.

Get Involved

The next round of TPP talks will be held May 15–24 in Lima, Peru. It is time to start making sure that your voice is heard in DC. Trade deals can lift people on both sides of trade borders. But only if a true open and democratic process is used to reach agreement. Otherwise these agreements will continue to be gamed to enrich the few at the expense of the many.

One of the best comprehensive sources of information on TPP is at Public Citizen and their Global Trade Watch. They have a landing page just waiting for you: TPP: Corporate Power Tool of the 1%. Go take a look.

The Electronic Freedom Foundation has a TPP page, explaining their concerns about the sections involving Intellectual Property (IP) as well as the general lack of transparency and openness.

Public Knowledge has a TPP landing pageo expressing similar concerns.

The AFL-CIO has a TPP detail page and offers Trans-Pacific FTA Outline concluding:

“Although not all the news coming from APEC was good, it is too early to tell if the TPP will live up to its promise to create great opportunities for America’s working families. Now is the time to speak up. If you have concerns about some of these announcements, too, now is the time to speak up—the TPP is still being negotiated.”

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary

What Is The NLRB?

The NLRB is the agency that “safeguards employees’ rights to organize and to determine whether to have unions as their bargaining representative. The agency also acts to prevent and remedy unfair labor practices committed by private sector employers and unions.”

The NLRB supervises elections to form or decertify unions in the workplace. It investigates charges that employees, unions or employers violated rules over labor practices and rules on the charges. It works to get problems resolved rather than taken to court. And finally, when the NLRB has issued a ruling that is ignored it can take the parties to court.

But if the NLRB is prevented from operating there is no one to make sure that the rules for labor practices are being enforced. This hurts workers and companies.

Background Of The Nomination Battle

Individual workers have little power when up against giant corporations. They can ask for better pay, benefits and working conditions, please, and the giant companies can just say, “you’re fired” if they do — and working people know that. However, when the employees all band together it gives them collective power. It’s the old story of how a person can break a single stick, but when all the sticks are bundled together the person is not able to break them. Banding together the workers have the power to get better wages, benefits and working conditions.

The other side of this is that big companies can make a lot of money if they can keep their workers from organizing unions. So they use their money and power to try to stop workers from organizing unions.

Because the economy does better when people have better wages, benefits and working conditions, and because strikes and lawsuits can plug things up, it is the law that workers have the right to form unions and bargain collectively to balance out the immense power of the giant corporations.

This is why the NLRB battle matters. For years elected officials allied with anti-union businesses worked to block the NLRB from operating, so that workers are not able to form unions and existing unions are not able to enforce labor rules. At the same time these elected officials worked to get anti-union judges into the courts and block impartial judges from being confirmed. This enabled the giant companies to make more money — and working people less money. (Meanwhile as wages dropped nationally the economy slowed and slowed.)

A strategy unfolded, in which big companies would put up money to elect anti-union candidates. Then these anti-union elected officials blocked nominees to the NLRB and filled the courts up with anti-union judges. Senator Lindsay Graham, for example, has vowed to block all nominees to the NLRB, saying “the NLRB as inoperable could be considered progress.”

Over time this strategy meant that there were too few people confirmed to sit on the NLRB, and too many anti-union judges in the courts.

Timeline

After President Obama took office anti-union Senators rolled out a strategy of blocking confirmation of any appointees to the NLRB to keep the agency from having a quorum so it could not operate.

In 2010 the anti-union judges on the Supreme Court ruled that the NLRB could not issue rulings without at least three confirmed members.

Anti-union Senators continued to block confirmations to the NLRB.

In January, 2012 President Obama made recess appointments to the NLRB to enable it to operate again.

In January, 2013 anti-union judges on the U.S. Court of Appeals for the D.C. Circuit ruled that recess appointments to the National Labor Relations Board (NLRB) were unconstitutional.

Today’s Situation

Anti-union companies are refusing to comply with NLRB rules by allowing union elections or bargaining with unionized employees, thereby making money by keeping wages low. More than 85 companies are now challenging NLRB rulings that went against them, claiming the rulings shouldn’t count — even though they were found to have violated labor practices.

The result is that the rights of American workers to organize unions and bargain for better pay, benefits and working conditions are unprotected, and the big companies are taking advantage of this. Wages are stagnant and benefits are disappearing. Obviously the economy does better when people are paid better and have better working conditions, so this is also holding the economy back.

What Next?

Next week on May 16 a Senate committee will hold a hearing on the nominees to the NLRB. Anti-union senators are expected to try to block the nominations because a lot of money for the giant corporations rides on keeping the NLRB from operating.

Then the full Senate will consider the nominees.

What is needed now is for people to contact their Senators and let them know they need to confirm all of these nominees, Democratic and Republican alike, so the NLRB can get back to work.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary

A new report from the Alliance for American Manufacturing (AAM), Remaking American Security, Authored by Brig. Gen. Adams (US Army, Retired) looks at supply chain weaknesses and chokepoints, to see how vulnerable our security is to disruption by China and other “potentially unreliable” foreign suppliers.

Yes, we farm out critical defense supply contracts to that China, the country that has been hacking into our computers.

Take a look at AAM’s landing page for the report, Report Says U.S. Military Dangerously Dependent on Foreign Suppliers to see the Executive Summary and links into the report.

Conclusion: Our “over-reliance on foreign suppliers for critical defense materials” means that the country is dangerously dependent on “potentially unreliable” foreign suppliers for the raw materials, parts, and finished products needed to defend America.

Here is just one example from the report: “The United States is completely dependent on a single Chinese company for the chemical needed to produce the solid rocket fuel used to propel HELLFIRE missiles.”

Solutions: This is so important that I am going to list the entire summary of conclusions, details are available in the report and condensed on a separate PDF.

But first, I want to point out that following these recommendations will also increase our own job base, reduce our massive trade deficit and strengthen our economy.

• Increasing long-term federal investment in high-technology industries, particularly those involving advanced research and manufacturing capabilities;
• Properly updating, applying, and enforcing existing laws and regulations to support the U.S. defense industrial base;
• Developing domestic sources of key natural resources that our armed forces require;
• Ensuring that defense industrial base concerns are considered at the highest levels when formulating the U.S. National Military Strategy, National Security Strategy and throughout the Quadrennial Defense Review process;
• Building consensus among government, industry, the defense industrial base workforce, and the military on the best ways to strengthen the defense industrial base;
• Increasing cooperation between federal agencies and between government and industry to build a healthier defense industrial base;
• Strengthening collaboration between government, industry, and academic research institutions to educate, train, and retain people with specialized skills to work in key defense industrial base sectors;
• Crafting legislation to support a broadly representative defense industrial base strategy;
• Modernizing and securing defense supply chains through networked operations that provide ongoing communications between prime contractors and the supply chains they depend on; and
• Identifying potential defense supply chain chokepoints and planning to prevent disruptions.

Please visit AAM’s page on this report, and if you can please read the report.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary

A Million Manufacturing Jobs?

In the 2012 campaign President Obama set a goal of creating 1 million new manufacturing jobs. (This goal comes after the country lost 5.5 million manufacturing jobs between 2000 and 2009.) Manufacturing jobs bring money into the economy. Manufacturing jobs also bring along with them many jobs in other sectors that support manufacturing, from the supply chain to the maintenance to the marketing and sales of the goods. This is what the President understood when he set this goal.

But with the March jobs numbers out this morning the economy has created a total of only 39,000 manufacturing jobs this year — zero in March. That leaves the country with 961,000 manufacturing jobs to go in the time remaining.

Perhaps this dearth of new manufacturing jobs has something to do with the economic stagnation we see around us?

Job Report Summary

While the jobs report was not too bad overall, it was terrible for manufacturing. Job growth for January and February was revised up by 114,000, so average job growth for the last three months was 212,000. But job gains were largely in low-wage sectors with zero gained in manufacturing. Employment services, restaurant employees and the retail sector accounted for more than half of April job growth. Health care added 19,000 jobs.

The sequester started to hit, with 8,000 jobs lost in the federal government (3,500 of those from the Postal Service.) State and local governments lost 3,000 jobs, which means 224,000 jobs lost over the last year. Construction lost 6,000 jobs, apparently from public projects.

The #AAMeter Manufacturing Jobs Tracker

The Alliance for American Manufacturing (AAM) Jobs Tracker — the #AAMeter — tracks progress toward the President’s goal of adding 1 million manufacturing jobs. AAM uses the monthly jobs report data to keep track of how we are dowing towards reaching the 1-million-jobs goal, which would require an average monthly increase of 20,833 manufacturing jobs. The picture tells the story:

Not so great. What do we need to do to boost our manufacturing sector, bringing better-paying jobs and the jobs that support manufacturing?

First We Need A National Manufacturing Strategy

We need more jobs, higher-wage jobs, and jobs in sectors that do more for the economy. This requires a national manufacturing strategy.

Other countries have national strategies to increase the strength of their national manufacturing sector. We do not. We are wedded to an ideology that says that we as a nation should not protect our good-paying jobs and our manufacturing sector. In fact, the “free-market” and “free-trade” ideology even says it is wrong to have a strategy as a country to keep and strengthen our important economic sectors.

Alliance for American Manufacturing’s Scott Paul said, “The United States is the only major industrial nation that does not have a cohesive national manufacturing strategy. We’ve outlined steps the president should to help meet his manufacturing jobs goal. If the Administration and Congress show a genuine willingness to act on these common sense policies, we’ll see our Jobs Tracker move toward 1 million jobs gained.”

Democrats in Congress have, in fact, outlined a Make It In America legislative plan,

The Democrats’ Make it in America plan is a bold initiative to get America working again by building the products of the future here at home. Make it in America will create the conditions necessary to unleash American skill and ingenuity to power our 21st century economy. As President Obama has said, America must out-innovate, out-educate, and out-build the rest of the world and our initiative will help our nation do just that. When we Make it in America, American families will make it too.

Please click through to see information about the Jobs Opportunities Between our Shores (JOBS) Act, New Alternative Transportation to Give American Solutions (NAT GAS) Act, National Manufacturing Strategy Act, Build American Jobs Act, Build America Bonds to Create Jobs Now Act, National Infrastructure Development Bank Act, The Airports, Highways, High-Speed Rail, Trains and Transit: Make it in America, One Global Internet Act, Permanent R&D Tax Credit, Rare Earths and Critical Materials Revitalization Act, Energy Critical Elements Renewal Act, Resource Assessment of Rare Earths (RARE) Act, Currency Reform for Fair Trade Act, Innovative Technologies Investment Incentives Act, Small Business Start-Up Savings Accounts, Make it in America Block Grant Act, Clean Energy Technology Manufacturing and Export Assistance Act, Security in Energy and Manufacturing (SEAM) Act, American Manufacturing Efficiency & Retraining Investment Collaboration (AMERICA Works), Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act, The Keep American Jobs from Going Down the Drain Act, Berry Amendment Extension Act, American Jobs Matter Act and the All-American Flag Act.

Democratic Whip Sten Hoyer has been a leader in promoting the Make It In America agenda, with a Make It In America web page as well.

Ideology, or Something Else?

But here is the thing: everything is being blocked by Republican obstruction in the name of “free market” and “free trade” ideology.

And here is the other thing: those who are driving and funding the ideology are making big money off of the damage this ideology is doing! The financial sector funds much of the push to “free trade” and against a national manufacturing strategy. And as a result the financial sector is soaring at the expense of manufacturing and the jobs it brings. The oil and coal industries are funding much of the fight against alternative energy, energy efficiency, green manufacturing and the jobs it brings. And as a result the oil and coal sectors are booming at teh expense of the rest of the economy.

The Koch brothers alone gained $15 billion — a 43% increase — between March 2010 and Sept 2011. Are their motives really ideological? It turns out to be a very profitable ideological agenda for them.

And we don’t even know if other countries are helping drive America’s ideological opposition to national strategies by funding the right-wing “free market” “think tanks” that push it, because the funding for these efforts is not disclosed.

Other Steps

Along with implementing a national manufacturing strategy there are many other things we can do to promote our manufacturing sector to revive our economy and create meaningful, good-paying jobs. Among these:

Tax policies: End the tax incentives that encourage American companies to move jobs, factories and profit centers out of the country. Immediately end the “deferral” of taxes on foreign income. Companies get a tax advantage on foreign profits over profits they earn here, so they more operations out of the country.

The big one in tax policy is offshore tax deferral: Companies are currently holding $1.7 trillion out of our economy and away from shareholders, just because we let them avoid taxes until the bring it back. So they move profit centers of tax havens, etc. Repeal this deferral and make them bring that money home now and stop moving profit centers out of the country from now on.

Other tax policies that would help: Section 199 Domestic Production Deduction; Accelerated Cost Recovery; Depletion Allowances; Net Operating Losses; Last-In, First-Out Accounting; Interest Cost Deductibility; Research & Development Tax Credit; Current Tax Treatment of Employee Health Care and Pension Contributions; Credit for Prior Year Minimum Tax.

Currency manipulation: Countries like China manipulate their currency to give them a price advantage in international markets. This must stop. There are steps we can take to stop this but our administration is hog-tied by foreign policy needs that conflict with our country’s trade-balance needs. For example they can’t crack down on China and then ask China’s help with North Korea. The answer is for Congress to pass a law requiring balancing tariffs on goods from countries that manipulate currency.

Buy American policies: COngress and states should improve Buy American requirements in procurement. Our tax dollars should boost our economy.

A recent example — Reps. Pete Visclosky (D-IN) and Tim Murphy (R-PA) have introduced the American Steel First Act of 2013, a bill to require the Department of Transportation, the Department of Defense, and the Department of Homeland Security to exclusively use American-made iron and steel in infrastructure projects.

Defense procurement especially needs Buy American requirements. Contractors should be required to increase their domestic procurement. This is about national security vulnerabilities just as much as about our tax dollars supporting our economy.

Fix and modernize our country’s infrastructure: We could have full employment right away if we just did what we need to do anyway and will have to do eventually. Maintain and modernize our infrastructure (with American-made supplies.) Our infrastructure is crumbling. We need to completely modernize our infrastrucutre so our economy is competitive, and in the process we will revitalize jobs and manufacturing.

Invest in education: to improve our high schools, colleges and universities. We need 21st-century education with a renewed focus on manufacturing in America.

Invest in energy efficiency and green manufacturing: There is a green revolution taking place in the world and we are not in the lead. The President’s 50mpg mandate is a great start, but we need renewable energy standards, tax credits for alternative energy, and policies to promote green manufacturing, especially working to capture a share of wind, solar, advanced battery, electric car and similar manufacturing.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary

Visit AlecExposed to view the model legislation and learn more about ALEC:

http://alecexposed.org/wiki/ALEC_Exposed

Sign a petition to get corporations out of ALEC:

http://site.pfaw.org/site/PageServer?…

Read here why ALEC should have its 501 c3 tax status revoked:

http://www.commoncause.org/site/pp.as…

Go here for regular ALEC-related updates:

http://www.prwatch.org/

The March Report

The March trade deficit numbers were released today by the Census Department’s US Bureau of Economic Analysis. (It takes a bit of time to gather all the data, so we’re only seeing March numbers now.)

So here are the main lines from this report:

• The U.S. international goods and services deficit fell from $43.6 billion in February to $38.8 billion in March.
• The U.S. goods deficit with China fell from $23.4 billion in February to $17.9 billion in March.

According to the Alliance for American Manufacturing the $5.4 billion drop in our trade deficit with China “was almost exclusively due to a drop in imports of toys, games, and sporting goods; apparel; and, footwear.” Also AAM’s Scott Paul points out that the March trade deficit with China is always the year’s low point, so this might just be a blip not a trend.

“The U.S.-China data, looking back over more than a decade, shows March to regularly be the smallest or next-to-smallest bilateral monthly deficit in each year, so I’m not optimistic that it represents any sort of trend moving forward.”

The story here is that we still have a huge trade deficit, particularly with China. USA Today explains: U.S. trade deficit falls to $38.8 billion,

The U.S. trade deficit narrowed in March for a second month as the daily flow of imported crude oil dropped to the lowest level in 17 years. … Overall, the deficit shrank to $38.8 billion, an 11% drop from February’s $43.6 billion, the Commerce Department reported Thursday.

… A smaller trade gap can boost economic growth as U.S. companies earn more from overseas sales while consumers and businesses spend less on foreign products.

Trade Deficit Hurts Economy And Jobs

Note that last line — it’s important to get this. A trade deficit hurts the economy and jobs. Not only does it mean money is draining from the economy, but it also means our working people are pitted against low-wage workers. A trade deficit enables companies to cut wages. It is the primary reason everyone’s pay has been stagnant or falling since the end of the 70′s — when the balance of trade turned from surplus to deficit.

Now, look at this chart:

See if you can spot the relationship. Hint: Trade deficits enabled employers to squeeze workers. Wages decoupled from productivity increases, and the result is that today 40% of Americans make less than the 1968 minimum wage, had it kept pace with productivity growth.

And people wonder why they feel such a squeeze.

Who Benefits From Trade Deficits?

Another chart. See if you can spot the relationship between this chart and the charts posted above:

This chart shows that financial-sector and non-financial-sector compensation used to rise together, but in the early 80′s they decoupled (The “Reagan Revolution.”) Financial-sector compensation took off, while non-financial-sector compensation did not.

This is why the middle class is disappearing. When we allowed American companies to close factories here and open them there, and then ship the same goods back here to sell in the same stores, we made American workers afraid they would be next and afraid to make waves. So they accepted lower wages and longer hours. People are even afraid to take vacations and sick days. This enabled a few at the top get fabulously rich. This was the cause of the “hollowing out” of the middle class, the extreme income wealth inequalty, and the resulting economic stagnation.

Who benefits from the trade deficit? The 1%: the Mitt Romneys, the Wall Streeters, the corrupters.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary

Story at HuffPo: Stella Tremblay, New Hampshire Legislator, Says Jeff Bauman ‘Was Not In Pain’ After Bombing,

Tremblay also praised a YouTube video featuring a man who says he’s retired Army Lt. Col. Roy Potter, claiming the federal government was behind the attack. Tremblay said Potter looks honest when he asserts the bombing motive was to divert attention from a pending indictment of President Barack Obama and former President George W. Bush for war crimes, along with a drop in the price of gold and government dysfunction.

Potter says on the video that the federal government had planned to pin the marathon bombing on a “right wing extremist helped by al Qaeda,” but dropped the plan after being discovered.

Lets get these people away from power, please.

See also The Right Wing Cult Machine Exposed,

By definition, a cult is a group or sect bound together by adoration of the same thing, person, ideal, etc.

A cult promises you redemption. It tells you that if you do what it says, and as it believes, you will be protected from the evil people that are out to get you and the rest of society.

A cult purges the non-believers. And it actively tries to vilify all those who are not part of the cult, saying that they’re doomed and destined to go to hell.