"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27, 2010


Tuesday, March 30, 2010

The Promotion Committee

On March 11, 2010, Mr. Obama, seeker of all things good for all people in need, issued an executive order promoting his goal of doubling US exports over the next five years. The press release accompanying the order was deceitful in that it included direct misstatements of facts about the position of the US vis-a-vis its exporting competitors around the globe. The US lost its number one position some time ago and now trails both China and Germany in absolute export dollar amounts but, even more important, when evaluated on a per capita basis, the US trails most all of its major exporting competitors. Now, the Obama gang, following a pattern of applying campaign logic (reach for the stars, speak in lofty terms, criticize others but never be introspective, avoid specificity in commitments and programs and always introduce either directly or subtly some form of fear) has recognized that the US is slipping and does not want to appear to be disengaged on what is a very important and growing problem. So, they issue an order and will be able to take cover behind this order as the reality of a growing uncompetitive America deals with countries that now produce more, sell more and accumulate more while America produces less, sells less and gets itself deeper and deeper into debt. Obama created an “Export Promotion Cabinet” to get exports going. Quoting directly from the order, here are Obama’s appointee’s to the Promotion Cabinet:

Sec. 2. Export Promotion Cabinet. There is established an Export Promotion Cabinet to develop and coordinate the implementation of the NEI. The Export Promotion Cabinet shall consist of:

(a) the Secretary of State;
(b) the Secretary of the Treasury;
(c) the Secretary of Agriculture;
(d) the Secretary of Commerce;
(e) the Secretary of Labor;
(f) the Director of the Office of Management and Budget;
(g) the United States Trade Representative;
(h) the Assistant to the President for Economic Policy;
(i) the National Security Advisor;
(j) the Chair of the Council of Economic Advisers;
(k) the President of the Export-Import Bank of the United States;
(l) the Administrator of the Small Business Administration;
(m) the President of the Overseas Private Investment Corporation;
(n) the Director of the United States Trade and Development Agency; and
(o) the heads of other executive branch departments, agencies, and offices as the President may, from time to time, designate.

If you ever don’t want to accomplish something, just create a committee of no real experience individuals such as the fourteen bureaucrats designated above. Not one ounce of business, competition or real life experience in the group. You can read the entire order by clicking on http://www.whitehouse.gov/the-press-office/executive-order-national-export-initiative  TheFundamentals would encourage you to also reference its posting dated February 23, 2009 entitled simply, “Exports” for the facts. By the way, Obama’s order never mentions the word “competition.” He never mentions the words “competitive advantage” or "product differentiation." Why do you think that is?

There are many major problems with what this government is doing; here are just two. First, they don’t approach a large problem such as the deteriorating competitiveness of the US as a problem to be analyzed, understood and then tackled with necessary remedial action for change. Second, they avoid the reality of a problem such as American uncompetitiveness because the principal solution to this problem requires a reversal of the very policies and programs that they have introduced, supported, passed into law, built bureaucracies around and secured the votes of millions of special interest beneficiaries in the process. How can one possibly correct bad theory when your livelihood and very political existence depend on the continuation of same?

In the Obama world, the road to prosperity is paved with the largesse of government support for special interest programs and legislation. There is no better example than referencing Obama’s very own actions. Can you imagine a world in which a committee of government bureaucrats successfully makes America's products and services more competitive in world markets? Would you like to buy a product that this committee endorsed? Why is America slipping behind? Why are other countries more successful in selling their products and services? Does America’s heavy reliance on government intervention in all aspects of commerce; constant lawyering, litigation and rule making and spectacular low result, high cost public unionization help its competitiveness?

Next, we will look at a labor practice where Obama can control the outcome. We will look at one other of his executive orders which was issued within weeks of taking office in January 2009. We will analyze whether his position on this “executive order” is consistent with this statement decreeing more exports. Or, could it just serve to make US exports even less attractive In world markets?

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