The House of Cards Economy by Paul Donovan predicted the coming
of our economic crisis. It was published twice in the Steel Industry Magazine - the first time about ten years ago.
See
also Paul's article at Google .. Unions and the value of work - Ethics Box about unions and the value of labor- HOUSE OF CARDS ECONOMY - Ready to fall _____________________________________ By: Paul M
Donovan, Steelworker, Local 188 retired from SteelLabor Magazine 2001/2002. People
get worried because 5,000 (Cleveland) LTV steelworkers may soon lose their
jobs and the community will lose millions of dollars because these jobs added dollars for others up the line from raw product
to the finished product and then through distribution channels.
If this is dangerous, we should know that once there were 140,000 steelworkers in
Ohio (1965 Statistics) represented by five union Districts. There is now only one District left in the State. In our local
region, we once had 29,000 steelworkers and now there is less than 8000 left. (since then, 5000 more steelworkers have lost
their jobs with only 3000 left in the region now in 2002).
Our region, which led the way in steel and other manufacturing, is now replaced by an economy based on taxpayers with very
little value-added stages left. Of the top twenty-five employers, five are government employers. The biggest employer is the
Federal Government with the County and Cities close behind. Seven are related to the medical industry. Three are in school
systems or colleges. Two are utilitiy companies. Following these employers are banks and insurance, which depend on
other value-added stages to exist. So, out of the top twenty-five employers, only two are left who are value-added manufacturers. This is an economy based on a house of cards. ( and primarily supported by
taxpayers.), If only a few more cards are pulled from the base the whole thing will topple. The businesses that are thriving
are temporary help offices, payday loan stores and equity loan businesses. This is not a foundation to build your economic
house. We have a house of cards economy ready to fall. (Paul
M Donovan ) ON SWEATSHOPS -------------------------------------------- On Sweatshops -By Ray W. Tapajna from Catholic Universe Bulletin,
4/4/97 I am afraid the textile industry is not the only one that depends on sweatshop conditions.
We represented
the last computer manufacturer who actually made computers in this country. Computers are only assembled here by $5.50 an
hour workers with the parts coming from all the sweatshops of the world. Even software is now included with the
White House awarding a contract to the lowest bidder from India. We can also do the same with almost every industry now with only a brand name left as
the face to the customer. Everything else of the company like this no longer exist. I have been trying to get the story out for
years with very little success with both parties backing NAFTA and GATT. Both bills were passed in a fast track mode too.
GATT was passed by a lameduck Congress which did not answer to the people. If you just cover one area in clothing goods, you may be doing an injustice because this
issue alone will hide the rest.
ON SWEATSHOPS -------------------------------------------- On Sweatshops -By Ray W. Tapajna from Catholic Universe Bulletin, 4/4/97
I am afraid the textile industry is not the only one that depends on sweatshop conditions. We represented the last computer manufacturer
who actually made computers in this country. Computers are only assembled here by $5.50 an hour workers with the parts coming
from all the sweatshops of the world. Even software is now included with the White House awarding a contract to
the lowest bidder from India.
We can also do the same with almost every industry now with only a brand name left as the face to the customer. Everything
else of the company like this no longer exist. I have been trying to get the story out for years with very little success with both parties
backing NAFTA and GATT. Both bills were passed in a fast track mode too. GATT was passed by a lameduck Congress which did
not answer to the people.
If you just cover one area in clothing goods, you may be doing an injustice because this issue alone will hide the rest.
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