Did someone just say “Industrial Policy”?

by Stan Sorscher

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Let’s take a breath and step back from our circus-like introduction to the Trump era.

A few weeks ago, we were trying to decode voters’ messages in the US and UK. Donald Trump, Bernie Sanders, Hillary Clinton, and millions of voters said we have lost trust in the way we’ve managed globalization. Brexit and the US presidential campaigns broke the spell we had been under during 20 years of neoliberal free trade orthodoxy. Even before the election, growing public opposition had worn away support for TPP, the 12-country trade deal. TPP failed because our free trade approach to globalization is exhausted.

Decades of neoliberal market fundamentalism had conditioned us to accept millions of lost jobs, reduced bargaining power for workers, deindustrialization, stagnant wages, and unchecked climate change.

We are ready for a new approach that would balance trade and share the gains from globalization. Labor, environment, and other civil society groups have specific goals – deal with inequality, climate change, access to medicine, food security, internet freedom, and other non-economic issues at home and abroad.

Donald Trump openly endorses industrial policy. To me, “industrial policy” means intervening in markets to prevent or correct market failures. For decades, it was the policy that could not be named in Washington DC. Industrial policy is the conceptual opposite of neoliberal free market – free trade orthodoxy.

Industrial policies can be good or bad. Good ones can serve legitimate national interests and bad ones cause grief – just like good or bad policies for health care, banking, infrastructure, and education. Good industrial policies can help us manage globalization better.

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Restoring Trust after Free Trade Charade

by Stan Sorscher

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The 2016 elections threw a bucket of cold water into the face of free-trade orthodoxy. It’s no surprise that voters in Wisconsin, Michigan, Ohio, Pennsylvania, and elsewhere are deeply discouraged by decades of failed promises of boon from establishment leaders. The real surprise is, what took us so long?

We need a new approach to globalization that does as much for workers and the environment as it does for global investors.

Everyone I know wants trade and globalization. However, we have managed globalization badly.

Our failed “neoliberal” approach has been to manage globalization through trade deals, written by and for the interests of global companies. The neoliberal vision is a fully integrated global economy, where national identities are blurred, shareholder interests have top priority, public interests are devalued, and gains go almost entirely to investors.

Nothing in trade theory or history says global economic integration is a good idea.

In this neoliberal vision, markets will solve all our problems, government is bad, and power and influence should favor those who already have plenty of both.

A growing number of economists and policy-makers recognize that neoliberalism is exhausted, politically unstable, and increasingly reckless. Martin Wolf, the most influential living British economist, argues that our failed market orthodoxy weakens Democracy. What Wolf sees in Europe is doubled in the US political experience.

The collapse of the Trans-Pacific Partnership (TPP), a 12-country NAFTA clone, is a historic event. TPP was radioactive all through the presidential campaign, for good reason – voters have lost trust in the neoliberal NAFTA approach to globalization.

The discussion has started on a new approach. Representative Sander Levin and economist Simon Johnson recognize that our distorted power relationships and insistence on maximum possible trade cannot solve our problems.

Jared Bernstein and Lori Wallach go through TPP’s shortcomings, suggesting remedies. A recent proposal from the AFL-CIO offers 6 objectives for renegotiating NAFTA. A Sierra Club discussion paper brings environmental interests into sharper focus.

Jeff Faux makes it crystal clear. It’s time to start over.

“The trade policy of the last quarter century is now bankrupt, economically and politically. This is the moment for America to go back to the drawing board and rethink strategies for competing in the global economy in ways that raise living standards for all.”

 

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Unions Celebrate Victory over TPP

TPP

by Paul Garver

The Teamsters (IBT) and the Communication Workers of America (CWA) informed their members that the long campaign against the Trans Pacific Partnership [TPP] has succeeded in blocking a ratification vote in the lame duck session of Congress.

The Communications Workers of America (CWA) reported  this on the news that the Trans-Pacific Partnership (TPP) trade deal won’t be brought up for a vote this Congress.

The news that the TPP is officially dead for this Congress is welcome, overdue, and a lesson for the future. We’re glad to see that all observers finally recognize the reality that TPP will not and should not go through. For more than five years, CWA members, allies, and working families throughout the country mobilized to expose this corporate-friendly trade deal and the serious consequences for working families and communities if it did take effect. CWA members and allies long have been ahead of Washington on the issue of TPP and trade policy, and this work built a strong public base of voters who rejected what they clearly recognized as bad deal, no matter their political party.

As CWA has been stating throughout this past year, the votes in Congress simply aren’t there to pass TPP. But beyond the vote count, the very act of trying to advance the corporate-friendly TPP would have demonstrated that Washington was willfully ignoring the American public. After a 2016 election season in which anti-TPP sentiment was a rare area of bipartisan agreement and a major factor in shaping election results, trying to ram through the TPP in lame duck would have been an act in willful opposition to the American electorate’s stated wishes.

We will be ready to take on any attempt to revive the TPP in the next Congress or advance other corporate-friendly trade pacts based on the same failed and outdated model of trade.

http://www.cwa-union.org/news/releases/cwa-on-news-tpp-dead-for-congress-welcome-overdue-and-lesson-for-future

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TPP’s End is Near Thanks to Workers

After years of taking aim at the terrible Trans-Pacific Partnership (TPP), the Teamsters and their allies can finally see victory in their sights.

In the wake of last week’s election results, congressional leaders made it clear they would not press forward with considering the 12-nation Pacific Rim trade deal. And U.S. trade officials acknowledged on Friday that efforts to pass this corporate boondoggle would not continue this year.

The good news is that view will not likely change anytime soon. President-elect Donald Trump was an outspoken critic of the TPP and his transition team has made it clear it will not move forward with consideration of the trade deal. In fact, it plans to drop out of it.

But this looming win is not about any one political leader. It is about the long-standing coalition of union, fair trade, environmental and health care advocates that have stood strong against efforts to craft a trade proposal that would have further fattened the wallets of the corporate elite at the expense of everyday Americans who continue to struggle to support their families.

Concerns about the TPP were first raised more than six years ago when allies gathered outside the first U.S.-based negotiation session to raise concerns that the TPP was a dramatic departure from previous trade deals that would only further the interests of big business. And it grew to become a bipartisan opposition bloc on Capitol Hill.

As Arthur Stamoulis of the Citizens Trade Campaign wrote, “Let’s make sure we’re not letting Trump steal credit for something he didn’t earn. And let’s especially make sure that the movement of movements is getting the credit it deserves. We’re heading into some very rough years ahead, and people need to be reminded of their power.”

The TPP is a scourge on society because not only would it have shipped American jobs overseas, it also would have depressed salaries at home as well. It promised to increase the amount of unsafe foods and products shipped to U.S. store shelves, worsen the global environment and drive up drug prices worldwide.

It also would have left member nations on the hook for any perceived efforts to curb the profits of multinational corporations through legislation or regulation. Pro-corporate tribunals would have heard complaints filed by companies, and taxpayers would have had to foot the bill.

That’s not right or just. But because Teamsters and others took a stand against TPP, now workers and all Americans will benefit. Thank you members for your work!

https://teamster.org/blog/2016/11/tpps-end-near-thanks-workers

Labor for Our Revolution Now

Workers Independent News Podcast

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Workers Independent News radio interviews Labor for Bernie co-founders Rand Wilson and Larry Cohen about the lessons of the Sanders’ campaign and next steps for Our Revolution.  Larry Cohen also discusses the struggle to block the TPP.

Listen to the “podcast” online by clicking here.

From Workers Independent News:

“Throughout this spring’s primary season, Democratic candidate Bernie Sanders’ agenda of social and economic justice galvanized many in the nation’s progressive movement, including a solid contingent of labor activists focused on improving the lives of working people.  With less than a week remaining until the November presidential election, we’re taking a look at the effect the Sanders campaign has had on the campaign of Democratic nominee Hillary Clinton, ongoing mobilization efforts by Sanders supporters, and the future of the progressive movement in the wake of his candidacy.”

Click here to play the pod cast!

Workers Independent News (or WIN radio) is a great source for labor news across the country.  WIN provides short “daily reports,” more in-depth reports and the “week in review.”  You can subscribe for free by clicking here.

Stop the TPP Now: Restoring Trust in Trade Policy

by Stan Sorscher

  • TPP won’t work. The process that gave us TPP won’t work. TPP would lock in bad policy for a generation. That approach has lost legitimacy and it has lost trust.

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I’m in favor of trade. I don’t know anyone opposed to trade. A better question is, “How should we manage globalization?”

We’ve lost trust in our approach to globalization. The Brexit vote in Europe was a vote of no confidence. Millions of voters in our presidential campaigns send a similar message. Globalization is not working for us.

We should rethink our approach to globalization if we hope to restore trust.

Strike one for trust in “free trade” – gains go to the top.

Under our trade policies since NAFTA, the gains from trade have gone to a few at the top, while workers and communities have lost out – even after counting the cheaper goods we buy from low-wage countries.

The US has lost millions of good jobs, and entire industries have disappeared from our economy. This would be OK if we had created millions of new good jobs. But we haven’t.

Workers in Mexico, Honduras, Guatemala and Colombia are still waiting for their gains from trade. NAFTA, CAFTA and other trade deals disrupted their economies. Millions of workers lost their jobs, their social support structures were weakened, and violence increased. Thousands of workers and unaccompanied minors were forced to leave their villages and migrate in search of work.

The issue is not workers in the US versus workers in Central America. The issue is workers in every country versus the 1% in every country.

Strike 2 for trust in “free trade” – bad power relationships

Mistrust reflects the bad power relationships in the policies we’ve chosen to manage globalization. Our trade policy helps global corporations move jobs and production from the US to Mexico. The same dynamic then applies when workers in Mexico see their jobs going to lower-paid workers in China. Workers in China worry about their jobs going even lower-paid workers in Vietnam. Workers everywhere lose bargaining power.

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Labor for Bernie: Our Revolution is Just Getting Started

by Peter Olney and Rand Wilson

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 DNC, photo by Rand Wilson

Now that the Democratic National Convention in Philadelphia has ended with Hillary Clinton as the party’s nominee, Bernie Sanders’ campaign for “political revolution” moves to its next phase.

Everyone who supported Labor for Bernie is very proud of the of the unprecedented grassroots effort to rally rank-and-file members on his behalf. A network of tens of thousands of supporters (largely recruited via the Labor for Bernie website and social media), campaigned in nearly every union to get trade union organizations to endorse Bernie.

By the end of the campaign, six national unions and 107 state and local union bodies endorsed Bernie. Just as importantly, Labor for Bernie activists kept many Internationals and the AFL-CIO on the sidelines during the primaries; enabling their members to more actively support Bernie.

But it wasn’t just about endorsements. Labor for Bernie was an all-volunteer army; a movement of members and leaders who took on the labor establishment. Labor for Bernie activists formed cross-union groups in dozens of states and many cities. They generated strong working class support for Bernie’s candidacy and carried his message into thousands of workplaces. They worked independently of the Sanders campaign, but in tandem with it.

Particularly in the later primaries (WI, IN, PA, CA) workplace outreach helped to identify new Bernie supporters and get them to turnout on Primary Day. In many states, the majority of union households went for Bernie, often accounting for his margin of victory.

Democratic National Convention

More than 250 Labor for Bernie delegates from 37 states attended the Democratic National Convention in Philadelphia (and undoubtedly there were many more). Labor for Bernie leaders played a key role in fighting for a more progressive platform and for changes in the rules that could make the Democratic Party a more open and populist party in the future.

These changes were negotiated between the Sanders and Clinton campaigns just prior to the convention. As a result, there was little for the Sanders’ delegates to do at the convention. Yet despite the compromise agreement on the platform, there was widespread concern among delegates that the platform didn’t have strong enough language opposing the Trans-Pacific Partnership (TPP).

A Labor for Bernie leader from Illinois printed up 2,000 “No TPP” signs. The printer folded them twice so that our network of delegates could more easily smuggle them onto the convention floor.

When the platform came up for a vote, Labor for Bernie helped orchestrate “No T-P-P” chanting by the delegates that briefly brought the convention to a standstill. It captured the attention of the national news media.

Outside the convention there were spirited mass rallies in support of Bernie’s candidacy and the environmental and labor issues brought forward during the campaign. National Nurses United organized a forum on Medicare for All. Union supporters held a forum on organizing to stop passage of the TPP during the Congressional “lame duck” session after the November 8 election.

The small but feisty Working Families Party hosted a forum with speakers discussing ways to build an autonomous and independent faction inside the Democratic Party. Democratic Socialists of America had a standing room only session on the lessons of the Sanders campaign.

Delegates were grouped by their state both on the convention floor and in their hotels. There were obvious and deep differences in the political perspectives of the Sanders and Clinton delegates. One group apparently satisfied by the status quo in the Democratic Party, the other determined to change it. Sanders’ delegates often felt they were “crashing” someone else’s party.

Just prior to the start of the convention, WikiLeaks revealed emails showing widespread favoritism and manipulation by the Democratic National Committee to assist Clinton in the primaries. This confirmation of what many already suspected enraged many Sanders delegates and at times tensions flared in arguments both about the conduct of the party and debates on the issues.

The shared experience among the 1,900 Sanders delegates may be the one of the most important lasting outcomes of the convention.

The political revolution doesn’t end in Philadelphia

Union members allied with Labor for Bernie now face the dual challenge of decisively defeating Donald Trump and stopping the Trans-Pacific Partnership (TPP) treaty.

Yet, as Bernie argued at the Convention, we can’t allow this election to become only about the differences between Trump and Clinton. Wherever possible, we have to continue to inject our issues into this general election campaign.

And that’s where “Our Revolution,” a new organization that is emerging from the Sanders’ campaign, comes in. It will continue to bring together a new majority for economic and social change by supporting candidates at the local, state, and national level who support the mission, issues and values of the Sanders campaign.

Sen. Sanders will provide more specifics in a “live stream” video presentation set for the evening of August 24. Many of Bernie’s volunteers in the labor movement will be hosting events in their union halls or living rooms to help kick off “Our Revolution” and lead this effort.

The Sanders’ campaign showed how unions might engage in politics in ways that enhances membership involvement and organizational clout, rather than reducing it. When labor organizations decide to endorse candidates, after a democratic process open to the entire rank-and-file, it changes the whole dynamic of union-based political activism. As a labor network strongly in favor of this approach, there will be a continuing need at the local, state, and national level to back electoral campaigns inspired by Bernie’s run for president.

 

ABOUT THE AUTHORS

Peter Olney is retired Organizing Director of the ILWU. He has been a labor organizer for 40 years in Massachusetts and California. He has worked for multiple unions before landing at the ILWU in 1997. For three years he was the Associate Director of the Institute for Labor and Employment at the University of California.

Rand Wilson has worked as a union organizer and labor communicator for more than twenty five years and is  currently an organizer with SEIU Local 888 in Boston. Wilson was the founding director of Massachusetts Jobs with Justice.  Active in electoral politics, he ran for state Auditor in a campaign to win cross-endorsement (or fusion) voting reform and establish a Massachusetts Working Families Party.  He is President of the Center for Labor Education and Research, and is on the board of directors of the ICA Group, the Local Enterprise Assistance Fund and the Center for the Study of Public Policy

Reposted from the Stansbury Forum

Who Gets the Gains from Trade?

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by Stan Sorscher

Let’s start the debate about trade policy on the right foot. Everyone I know is “for” trade. A better question is, “Who gets the gains from trade?”

Gains from anything, trade included, can be divided in 3 ways.

  1. Someone might give you your share of gains, for whatever reason.
  2. You might take your share, if you have power.
  3. You might get nothing, or possibly lose what you have.

Option 1 presumes some level of trust. Microsoft’s CEO, Satya Nadella, projected that sentiment onto women, when he told them to be patient and not ask for raises. Their bosses would recognize their value and reward them in due time. Nadella and other CEO’s are accustomed to power. He was probably expressing benevolence, muddled with sexism.

Ultimately, power relationships determine how gains are shared. If you have power, you get gains. If someone else has power, they get gains. If power is balanced, then gains are more likely to be shared.

Nadella’s paternalism is reflected in an edgy cliché told about trade policy, “Sure, trade creates winners and losers. The winners could compensate the losers.” Right. Winners might voluntarily compensate losers, but the point of being a winner is to win, not to compensate someone else!

Where do workers get power? I remember a time when unions made demands. They could strike to increase their share of gains from productivity and work. Union contracts would then set standards for employment generally.

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Figure 1. Large works stoppages over time.

In the late 70’s that power started to evaporate.

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The Democratic Party’s Draft Platform Doesn’t Oppose the TPP—That’s Bad Policy and Bad Politics

By Larry Cohen

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Working-class Americans have had enough of trade policies that accelerate the race to the bottom.

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How Low can the Trans-Pacific Partnership Go?

by Stan SorscherSorcher TPP sinking ship

[Ed. note:  With all the major Presidential contenders opposed, the Trans-Pacific Partnership (TPP) might be regarded as a sinking ship, but the unholy alliance of the mainstream Republican Party, Business Roundtable, U.S. Chamber of Commerce, and President Obama is plotting to sneak its ratification past the American people during the Lame Duck Congressional Session after the November 2016 election.  Stan Sorscher reminds us just how bad an idea this would be].

The Trans-Pacific Partnership, the huge new 12-country trade deal, raises the question: How low would we go to get the next NAFTA-style deal?

The basic idea of a trade deal is that we will lower our tariffs, you will lower your tariffs, and trade goes up. That would be a trade deal.

TPP is much more than that. The tariff schedules in TPP are not controversial. Really, TPP will not pass or fail based on the tariff schedule.

Rather, the rules in TPP are very controversial because the rules define power relationships, and those power relationships determine who will take the gains from globalization.

President Obama wants us to set the rules, so China doesn’t. Good.

But “our” rules were written by and for global investors. Those rules are very favorable to corporations who want to move production to low-wage countries with weak social and political systems.

  • Using very optimistic assumptions, the International Trade Commission estimates TPP would increase GDP by 0.15% after 15 years– a number too small to measure. Our lived experience with NAFTA CAFTA, and other deals tells a different story. Under those NAFTA-style deals our economy has steadily de-industrialized, and millions of jobs have moved to low-wage countries.
  • TPP’s rules for dispute settlement create corporate friendly tribunals, which pay no attention to our Constitution, our Supreme Court, or our legal traditions, and are not accountable to any political process. These tribunals shield global companies from government actions intended to protect public interests.
  • TPP’s toothless rules on currency rates allow China, Korea, Japan and other countries to distort trade, favoring goods produced in their countries for export to the US. This is great for US corporations who produce in China, but is bad for workers and communities in the US.
  • TPP’s weak “Rules of Origin” encourage high-wage countries to source more of their products in low-wage countries. Countries with terrible labor and environmental standards can ship parts to 11 other TPP countries, and voilà! – those parts are now TPP-qualified for favorable access to our markets.
  • TPP’s rules on labor and human trafficking are pathetic. Malaysia qualifies as one of our TPP partners, even though our State Department ranks Malaysia among the worst in the world for human trafficking. Malaysia has a documented history of forced labor and the worst forms of child labor. Malaysia knows that we will never hold them accountable for improving conditions.
  • Our indifference to global labor standards is so deep that Vietnam can embarrass President Obama– to his face – during his latest trip there, by forbidding labor activists from accepting Obama’s invitation to meet with him. President Obama inspires us with soaring rhetoric on human rights in Vietnam, but Vietnam’s leaders know we will never hold them accountable for improving labor conditions.
  • TPP’s environmental protection rules are a step back from earlier standards. That is neither here nor there, because we have never enforced any environmental rules in any trade deal.
  • In spite of repeated documented violations. Peru and other countries with sorry records for environmental standards know we will never hold them accountable when they ignore environmental standards.
  • Berta Cáseres, an internationally recognized Honduran environmental activist, was assassinated in her home. Honduras is one of our CAFTA trading partners. Honduras is arguably the most dangerous country on earth for environmental activists. Civil society around the world condemned Berta Cáseres’ murder, but not a word can be found on the web sites for the White Houseor the US Trade Representative.
  • Another CAFTA trading partner is Guatemala, which is arguably the most dangerous country in the world for labor activists. Our trade officials have “consulted” with Guatemala, and an 8-year old inquiry is underway into Guatemala’s dismal record regarding labor standards. Honduras, Guatemala and Colombia [another free trade partner] know we will never hold them accountable for improving labor conditions.

So, how low would we go to get the shadowy 0.15% growth of GDP after 15 years with TPP? Influential House and Senate members will answer that question.

For many years, Representative Sander Levin has been a strong advocate for trade language that raises labor and environmental standards and protects access to life-saving medicines for treatable diseases in developing countries. As TPP negotiations finished up, Mr. Levin realized that TPP was a step backwards. He opposes TPP and is a champion for a better trade policy.

Mr. Levin’s postcard description from Vietnam describes labor leaders being beaten and jailed. His message stands in contrast to President Obama’s weary acceptance of conditions there.

Representative Earl Blumenauer was an early champion for stronger environmental rules in trade deals. Peru ignored its commitments under previous trade deals, and recently fired the public official who was trying to move those standards forward. We will see how low Mr. Blumenauer might go.

Oregon Senator Ron Wyden worked hard to reveal the details of TPP, which were negotiated in strictest secrecy. He promoted “Oregon values” which meant creating good jobs in his state, promoting human rights, improving labor conditions, safeguarding the environment and protecting a free and open internet. Now, Senator Wyden must decide if TPP upholds Oregon values, or is too low to go.

House Minority Leader Nancy Pelosi said her leadership role did not obligate her to promote a bad trade policy. She said she would happily vote for a deal that does as much for workers and the environment as it does for global investors.

Hillary Clinton says she “opposes TPP before and after the election.” She adds, “I’m not interested in tinkering around the margins of our trade policy. I think we need a fundamental rethink of how we approach trade deals going forward. It is critical that we address labor protections and ensure that human rights are protected, as well as health, environmental, and consumer safety issues in any new trade agreements.”

Larry Summers(!!) backs away from TPP, preferring a trade approach where “issues such as labor rights and environmental protection would be central, while issues related to empowering foreign producers would be secondary.”

TPP is an historic disappointment. Sander Levin, Hillary Clinton, Larry Summers, and Nancy Pelosi recognize that we can’t tweak TPP into shape. We need a new approach. To paraphrase Naomi Klein, “TPP is the no that must be said before the yes.”

The more the public hears about TPP, the less we like it. For most voters, TPP is too low to go. We are very much looking forward to stopping TPP, and starting a “rethink” of our approach to globalization.

Stan Sorscher is Labor Representative, Society for Professional Engineering Employees in Aerospace.  This essay is reposted from the Huffington Post with the permission of the author at
http://www.huffingtonpost.com/stan-sorscher/how-low-would-we-go-for-t_b_10336934.html

Follow Stan Sorscher on Twitter: www.twitter.com/sorscher

 

The TPP Will Cost 448,000 Jobs

by Celeste Drake

The Trans-Pacific Partnership is a so-called “trade deal” that could cost 448,000 U.S. jobs, suppress U.S. wages, and irreparably weaken our democracy and sovereignty.
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Yet U.S. Trade Representative Michael Froman is trying to get your member of Congress to vote for it. To win the vote, he is uniting with “Republican-friendly organizations” to win votes from the Republican side of the aisle, while ignoring many Democrats who stand with working families.

If this deal is so great for working people, why are labor unions and many environmental, consumer and human rights organizations united against it, while the U.S. Chamber of Commerce, the Business Roundtable and the U.S. Fashion Industry Association (representing apparel importers) and other business groups are for it? Can you recall a time when these special interest groups worked hard to create more American jobs and raise our wages? I can’t. So we shouldn’t believe their empty promises this time, either. Continue reading