Rome News

I could forgive the dripping misogyny, but this isn't even a little bit funny.  And I don't mean that in the feminist, "You shouldn't laugh at dumb blonde jokes!" way.  I mean, it's not funny like listening to your Great Uncle Fred do his Milton Berle impression isn't funny.  Guy Cimbalo doesn't seem to realize that just saying "fuck" a lot is no longer comedy gold.  Yet historical records indicate that it lost its shock value sometime around 1966--eighth grade graduation at the very latest.

My ex-boyfriend and I had a collection of vintage Playboys picked up at a garage sale, which we used to, yes, read for the articles.  (The centerfolds had long since been scissored out, presumably by the chap who sold them to us.)  Those were good articles, written by good writers, about interesting topics--Bill Cosby on race, William F. Buckley on religion and society, Gore Vidal on . . . Gore Vidal.    Now we have Guy Cimbalo and his Frantabulous Late-Nite Borscht Belt Shockers. 

Srsly?

President Barack Obama, according to a headline in The New York Times, is "Upbeat for G.M.'s Future."

That seems a bit, well, wacky. But then, this is the same guy who is "upbeat" about the Middle East peace process, according to AFP. So that puts the remark in perspective, I suppose. After all, as Justice-to-be Sonia Sotomayor now knows, context is everything.

Over at Out of Control, the Reason Foundation's Shikha Dalmia, with some entertaining snippiness followed by good economic analysis of G.M.'s situation: 

"I am confident that the steps I'm announcing will mark the end of the old G.M., and the beginning of a new G.M.," [Obama] said. Great! Then what do, we, the taxpayers, who have just been forced to fork over $50 billion to G.M.—in what is it? loans? stock?—have to worry about? The president is cool with it. And he, after all, has an Ivy League degree, a silver tongue, not to mention a glamorous wife with lovely arms who dotes on him. But even His Awesomeness can't command a drowning man to swim after tying lead weights around his ankles.

The president seems to think that there is nothing that G.M. has that a visit to bankruptcy court won't cure. Amputate its liabilities to bondholders, excise all its promises to unions (no, actually, scratch that one, that didn't quite happen) and, presto, it'll be ready, once again, to kick some foreign ass.

If only!

Read the whole thing, and stay tuned for an upcoming cover package on the GM fiasco in our next print edition.

Sen. Tom Coburn (R-OK) announced he will seek another term in the Senate, Tulsa World reports.

What's the administration's specific aim in bailing out GM? I'll give you my theory later.

For now, though, some background. First and most broadly, it doesn't make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any manufactured goods from coming in from abroad -- something I don't recommend -- we'd still be losing manufacturing jobs. That's mainly because of technology.

When we think of manufacturing jobs, we tend to imagine old-time assembly lines populated by millions of blue-collar workers who had well-paying jobs with good benefits. But that picture no longer describes most manufacturing. I recently toured a U.S. factory containing two employees and 400 computerized robots. The two live people sat in front of computer screens and instructed the robots. In a few years this factory won't have a single employee on site, except for an occasional visiting technician who repairs and upgrades the robots.

Factory jobs are vanishing all over the world. Even China is losing them. The Chinese are doing more manufacturing than ever, but they're also becoming far more efficient at it. They've shuttered most of the old state-run factories. Their new factories are chock full of automated and computerized machines. As a result, they don't need as many manufacturing workers as before.

Economists at Alliance Capital Management took a look at employment trends in 20 large economies and found that between 1995 and 2002 -- before the asset bubble and subsequent bust -- 22 million manufacturing jobs disappeared. The U.S. wasn't even the biggest loser. We lost about 11 percent of our manufacturing jobs in that period, but the Japanese lost 16 percent of theirs. Even developing nations lost factory jobs: Brazil suffered a 20 percent decline, and China had a 15 percent drop.

What happened to manufacturing? In two words, higher productivity. As productivity rises, employment falls because fewer people are needed. In this, manufacturing is following the same trend as agriculture. A century ago, almost 30 percent of adult Americans worked on a farm. Nowadays, fewer than 5 percent do. That doesn't mean the U.S. failed at agriculture. Quite the opposite. American agriculture is a huge success story. America can generate far larger crops than a century ago with far fewer people. New technologies, more efficient machines, new methods of fertilizing, better systems of crop rotation, and efficiencies of large scale have all made farming much more productive.

Manufacturing is analogous. In America and elsewhere around the world, it's a success. Since 1995, even as manufacturing employment has dropped around the world, global industrial output has risen more than 30 percent.

More after the jump.

--Robert Reich

MORE...

Appearing on MSNBC, Pennsylvania Gov. Ed Rendell (D) says he's backing Sen. Arlen Specter (D-PA) in a possible U.S. Senate primary next year.

Said Rendell: "I'm a great admirer of Joe Sestak and worked hard to get him elected and re-elected. And I'm going to work hard to get him re-elected when he runs for Congress next year. Not for the Senate. Joe should not run for the Senate in the Democratic primary. He would get killed."

When asked what would happen if Sestak went forward with a challenge, Rendell said, "We will lose a terrific Congressman. Joe Sestak runs against Arlen Specter, he is out of the Congress after just two short terms. We will lose a terrific Congressman and when he loses to Arlen, he fades into political obscurity."