Monday, January 23, 2006

Answering a DeVos Defender

Anonymous left this comment in response to my Domino Pizza/DeVos Alliance post: “DeVos simply never said, "Michigan workers are paid too much." Try looking something like that up, instead of blindly reposting from Christine Barry. As far as "shipping jobs to china?" Check that one out too, it simply didn't happen-not one job was shipped, driven, flown, or generally moved.”

I reread the post and comments and owe anonymous a clarification. Dick DeVos did not make the comment about Michigan workers being paid too much; however, his wife, Betsy DeVos, Republican state party chairwoman, did make the comment as noted by Left Coaster.
The Republican state party chairwoman raised the issue Tuesday when she issued a press release saying high wages were partly to blame for Michigan's economic woes. "Many, if not most, of the economic problems in Michigan are a result of high wages and a tax and regulatory structure that makes this state uncompetitive," DeVos said in the prepared statement.

The point is actually moot though since Betsy DeVos speaks for the Michigan GOP and, by extension, her husband.

Moving on to the second point anonymous made about DeVos never shipping, driving, flying or moving jobs to China, let me clarify: DeVos never moved the jobs to China, he simply eliminated 1,400 jobs in Michigan and created tens of thousands of jobs in China according to current Michigan Democratic Party Chair Mark Brewer.
"Dick DeVos likes to brag about his success as a businessman, but the real key to his "success" is an old formula of inherited wealth and the abuse of soft money," said Michigan Democratic Party Chair Mark Brewer.

Taking advantage of the family political influence created by millions of dollars in soft money contributions to the GOP, as President of Amway DeVos sought and got federal tax breaks on Amway's China investments and favorable China trade legislation, legislation which resulted in hundreds of millions of dollars of benefits for Amway, himself and his family.

"While he eliminated 1,400 Michigan jobs at Amway, DeVos has been a tireless promoter of free trade in general and with China in particular, all to benefit Amway's overseas profit-making," said Brewer. "He used the influence generated by huge soft money contributions to lobby for and get free trade legislation with China in 2000."

Another company associated with the DeVos family was also responsible for jobs being eliminated in Michigan according to former Michigan Democratic Party Chairman Butch Hollowell.
When it was announced that Milwaukee-based Johnson Controls Inc. [JCI] was sending 885 jobs to its auto visor plant in Mexico, where workers earn $2 an hour, Hollowell said, "If (DeVos' family) were so concerned about job losses, they shouldn't have sold it to JCI in the first place." The JCI operation in Holland [MI] was originally Prince Corp., founded by Betsy DeVos' father, Edgar Prince, and sold by the family in 1996 for $1.35 billion.

So, what’s the bottom line? The DeVos family used soft money to gain favorable tax breaks and trade regulations for their family and Amway, and they eliminated Michigan jobs while creating new jobs in China.

DeVos is a bad fit for Michigan workers. As Hollowell said, “DeVos still doesn't get it when it comes to the economy. "This just underscores how remote the Republican leadership is from ordinary people. ... It means the Republican Party in general just doesn't get it. The fact that we had a manufacturing economy which paid people good wages is responsible for our middle class," Hollowell said. "They allowed people to send their kids to college, make improvements on their homes, save for their retirement. That's the American dream."

1 comment:

Kathy said...

The point you're missing is that manufacturers are increasingly under pressure to reduce wages, benefits, etc., because of policies implemented by the current Republican administration. (I'd add that Clinton and NAFTA got the ball rolling in this regard.)

The current administration passed trade laws that did more to boost multi-national corporate profits than protect the living standards of working people in the United States.

For instance, Congress passed the Foreign Sales Corporation tax legislation in 2004 that was supposed to encourage domestic manufacturing by lowering the corporate tax rate on manufacturing activities here in the U.S. The way the final legislation was written though provided NO reduction in the tax rate on domestic manufacturing for GM and Ford and only a little to Chrysler because of their current financial situations. However, foreign automakers are receiving substantial tax benefits from this law. I don't think that's fair to American workers.

Also, DeVos lobbied for favorable tax breaks and trade legislation with China that helped his bottom line - but this did nothing to add one single job in Michigan.

DeVos is around 64 on the Forbes list of richest Americans. I have nothing against a company making a profit, but those profits are increasingly coming at the expense of workers. How many billions does a person need?

I think Michigan workers have a right to press Devos on this. Neither Betsy or Dick have pressed the Bush administration to help keep the auto industry strong and solvent. They haven't pressed for fair tariffs on foreign manufacturers. Their solution is to keep chipping away at the wages and benefits of the workforce.

Well, Exile, the workforce is getting tapped out - and not just here in Michigan. Financial experts are concerned about the excessive credit debt people have amassed in the last few years and the slow-down in the housing market, which is alarming since many people maxed out home equity lines to keep themselves afloat.

Believe me, when the dominos start to fall, the ramifications will be felt all across the country. You may be somewhat insulated since you're employed in a lucrative field, but I bet small town attorneys will be forced to reduce the fees they charge for services simply because people won't have the money. Multiply this by the other service industries and professionals forced to reduce their fees and what do you end up with? A country with an even wider chasm between the haves and the have-nots.

Anyway, I don't buy into the line that Granholm is solely responsible for the economy in Michigan and neither do the majority of the people I know. If anything, my friends are angry that Bush hasn't put Americans first.