Here Is What Is Happening With #Sensata

If you are hearing about a company names Sensata, here is the story. Right now this company is moving equipment out of a factory in Freeport, Il. and shipping it to China. They are making the workers there train their Chinese replacements. And the end of the year they are laying off the American workers. The workers have set up a camp across from the factory and have named it Bainport. (please click!) Supporters are trying to block the trucks, and some have been arrested. This is all happening right now, even as Mitt Romney says he wants to “get tough on China.” So the workers have asked Romney to come to Freeport and help them.

“The week before they came they took the American flag down outside the plant. The week after they left they put it back up.”
See Wendi Kent’s moving photos of the Bainport camp, where workers are asking Romney to hep them:
Bainport, Illinois Pt.1
Bainport, Illinois Pt.2- Profits Over People

What’s Going On?

Republican presidential candidate Mitt Romney started the “private equity” firm Bain Capital. Bain Capital makes its money by purchasing companies using “leveraged buyouts” that borrow huge sums using the purchased company’s own assets as collateral. They often use part of the borrowed money to immediately pay itself. Bain then cuts costs by doing things like sending jobs to China, cutting wages and manipulating tax rules to cut taxes owed, along with standard big-business practices like consolidating business units, taking advantage of economies of scale not available to smaller competitors, squeezing distribution channels for price cuts, and other practices that bring competitive advantages. (Please see So DID Mitt Romney Really “Create Jobs” At Staples? for a look at how this works.) Then, after reorganizing the purchased companies Bain “harvests” them for profit. (“Harvest” is Romney’s word, watch the linked video.)
Bain Capital purchased a sensor manufacturer that makes key components for our automobile supply chain, and named it Sensata. They immediately announced they closing a factory in Freeport, Ill., and sending the manufacturing and jobs to China to save money. (This is significant because China is engaged in efforts to dominate American auto supplies. See China Cheating Costs 400K Auto Parts Jobs and Why The Latest Trade Complaint Against China Matters. )
Bain/Sensata brought in Chinese workers and made the Freeport workers train them. Bain/Sensata is moving the equipment out of the Freeport factory and shipping it to China right now. The Freeport employees have set up a camp outside the factory that they call Bainport and are trying to stop the Bain trucks that are moving the equipment out for shipment to China. Supporters were arrested this week, trying to stop those trucks.
The Sensata employees have asked Romney to come to Freeport/Bainport and help them. Read on to learn about Romney’s response to the Sensata workers, and how Romney is actually making big money right now from shipping their jobs to China.

Romney’s Opportunity

Mitt Romney is not running Bain Capital anymore. While he still makes millions from the company, and gets checks from the profits made when they ship jobs to China), this is a tremendous opportunity for him. Can you imagine a better spokesman for the Bainport employees than the former head of Bain Capital, who now says he opposes the kinds of things that Bain Capital is doing here?
This is an opportunity for Romney to show the public that he actually means it when he says he wants to do something about companies sending jobs to China! Here is his former company, people who know him, sending jobs to China right now and there is no one in a better position to put pressure on them to stop this than the former head of the company, and on top of that a presidential candidate!
What an opportunity for Romney to show that he means what he says!

Will Romney Help?

Mitt Romney wants to be President, and polls show that the public overwhelmingly wants something done about jobs and factories moving to China and the resulting was pressure that puts on the rest of us and on our economy. So Romney says he will do something about it.
But Romney’s current actions are opposite his current words. He complains about China currency manipulation, but refuses to ask the Republican House leadership to bring the China currency bill up for a vote, and refuses to ask more than 60 Republican co-sponsors of that bill to sign a “discharge petition” that would force a vote.
And Romney refuses to even meet with Sensata workers. When asked if Romney would help these workers the Romney campaign says Romney will not do it:

“Governor Romney has not worked at Bain Capital for over a decade, but for four years President Obama has been presiding over an economy that is creating too few jobs and sending more jobs overseas. Despite the President being invested in Sensata through his personal pension fund, and the government owning a major Sensata customer in GM, President Obama has not used his powers to help this situation in any way.”— Curt Cashour, Romney Campaign Spokesman.

PS – SNL

Here is SNL addressing the disparity between how Chinese workers are treated (because they don’t have a say) and American expectations:

For More On Sensata

Is This Why Romney Won’t Talk To Sensata Workers Whose Jobs Are Being Shipped To China?
You Should Know About Sensata – It’s What The Election Is About
Election Or Not, What Happens To Sensata-Style Workers?
Blocking Bain Trucks To Save Jobs In Freeport – This Is An IMPORTANT Story
Breaking – Arrests At Sensata “Bainport” Camp
Paul Harris at The Guardian: ‘I’m sick to my stomach': anger grows in Illinois at Bain’s latest outsourcing plan
Also, see:
Bain Of Our Existence – Go To place for stories and info about Bain Capital.
Laura Clawson at Daily Kos: Mitt Romney profits as Bain sends American jobs to China PLUS a Daily Kos campaign:
Send a message of support to the Sensata workers as they fight to keep their jobs and shine a light on what a Romney economy would look like.
Unraveling The Romney/Bain Tax Story,
Romney, Jobs And China – Let’s Connect Dots
Rights Report Describes Romney-Owned “Brutal Chinese Sweatshop”
Romney, Republicans Again Side With China Over US Companies
Ohio And China – One Side Promises While The Other Delivers
China Is Very “Business-Friendly”
Will Conservatives Support American Companies … Or Chinese?
Ohio And China — One Side Promises While The Other Delivers
Here is a Democracy Now! report:

This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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Producers Vs. Moochers, Freeloaders And Losers — The Cruel Pro-Rich Propaganda Of The Right

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“Producers” and “parasites.” Cruel language justifying extreme greed seems to be mainstream now. Even Presidential candidates feel free to disparage 99% of us! In today’s right-wing folklore government by We, the People is an evil thing that takes from “producers” and gives to “moochers,” “freeloaders,” and “losers.” Government and taxes “take money out of the economy.” Decision-making by We, the People is “collectivism” and “mob rule.” And those of us who think the insanely wealthy should pay fair taxes suffer from “envy.”
In today’s discourse wealthy elites receiving $20 million a year in “capital gains” while paying almost no taxes are “producers,” while janitors or nursing home workers, working two jobs and not making enough to pay rent and feed themselves, are “moochers” and “freeloaders.” Right.
This email came in to CAF yesterday, (see also Richard Eskow’s take on it, John Galt Is A Crybaby And So Are You)

I am really curios to know what motivates the mind of a socialist. Why do you think its fair to penalize those of us who produce while rewarding those who do not? If healthcare should be a right then where does it stop?
Could one not use the same argument that everyone has a right to free housing? A free car? Perhaps free air travel? Who will pay for all this?
What happens when the government has exhausted the money acquired from the producers? I have a feeling producers will stop producing if the government is just going to take it. Again, I ask why should the people who produced be punished to reward free loaders?

Actually, a right to housing, health care and decent transportation sound like the kind of things that proud citizens in a democracy ought to demand, if you ask me.
The Ayn Rand Poison
This email and others like it echo the language of the novels of Ayn Rand, which so many Republican politicians today embrace. The people writing them are disciples of Ayn Rand. They used to be teenagers who resented being told to clean their rooms; now they are grownups who don’t want to be told to pay their taxes. Republicans have enthusiastically embraced the poison of Ayn Rand, its justification of psychopathic greed and selfishness, along with her belief that altruism and democracy are “evil.”
This Ayn-Randian idea that there are two kinds of people, “producers” and “parasites,” is reflected across the language of the right today. The wealthy “producers” are “job creators” Republican Speaker of the House John Boehner, for example, regularly echoes this core philosophy of “producers” and “parasites,” saying,

I believe raising taxes on the very people that we expect to reinvest in our economy and to hire people is the wrong idea,” he said. “For those people to give that money to the government…means it wont get reinvested in our economy at a time when we’re trying to create jobs.”

“The very people” who “hire people” shouldn’t have to pay taxes because that money is then taken out of the productive economy and just given to the parasites — “the help” — meaning you and me…
Who Is The Real Freeloader?
With the release of his (but for some reason only the most recent) tax returns we learned that Mitt Romney collects over $20 million a year, while doing nothing, from the many millions he was able to get control of by stripping companies and laying people off or making them take huge pay cuts and loss of benefits. According to the Christian Science Monitor, this is the story of what happened to the workers in one company when the Romney/Bain machine “came to town”:

The new owner, American Pad & Paper, owned in turn by [Mitt Romney’s] Bain Capital, told all 258 union workers they were fired, in a cost-cutting move. Security guards hustled them out of the building. They would be able to reapply for their jobs, at lesser wages and benefits, but not all would be rehired.

According to the cruel language of the right, those workers are “losers.” If they need to get unemployment or food stamps they are “parasites” and “freeloaders” who are “asking for handouts.” When old, they will need the Social Security and Medicare they paid into all their lives, more “handouts.” People like Romney says these “entitlements” — the things we are entitled to as citizens in a democracy — are “draining the economy.”
Mitt Romney says government is the culprit, not people like him who show up and strip our jobs, factories, companies, industries and economy. Romney, who pays very little in taxes on the $20-plus million he receives in “capital gains” every year, wrote in a December USA Today op-ed titled, What kind of society does America want? that the very existence of government itself costs the economy jobs, writing, “With the growth of government has come an inevitable contraction of the private sphere.” Romney writes that programs like Social Security and Medicare are examples of “government dependency.” And, finally, he writes, “Government dependency can only foster passivity and sloth.”
Right. Mitt Romney, producer — who receives $20-plus million a year for not working — as contrasted with the “losers” who work two jobs at minimum wage, making so little they need food stamps just to get by. (They used to make more, but Mitt Romney came to town, buying the company they worked for, chopping it up and sending the parts they don’t sell to China, laying them off or cutting their wages in half, and taking their health care and pension.)
The Dependency Index
The conservative Heritage Foundation has published an “Index of Dependence on Government,” saying we have “unsustainable increases in dependent populations.” Heritage writes that, “Americans are haunted by the specter of enormously growing mountains of debt that suck the economic and social vitality out of this country.”
Heritage fails to mention that we were paying off the nation’s debt before Bush’s tax cuts for the wealthy. In fact, at the rate we were paying off the debt when Clinton was President the entire US debt would have been paid off by now. Except for those tax cuts for the wealthy. But according to Heritage, the problem is not wealthy people paying very low taxes, it is humans who have human needs who are a “a potentially ruinous drain on federal finances.”
Please take a look at Heritage’s “dependency index.” Social Security is “government dependence.” Medicare is “government dependence.” And on and on. Heritage says nothing about the huge, bloated, corrupt, enormous, massive, ginormous military budget — that doubled under Bush. Heritage says nothing about the incredible subsidies government provides to oil and coal companies. Heritage says nothing about the cost of all of the tax cuts handed out to the wealthiest since the Reagan era. Nothing at all.
Heritage says that We, the People doing things for each other “encourages dependence.” They talk about people as if they are squirrels. Like building the interstate highway system encourages dependence or having good public schools encourages dependence or a pension after a life of hard work encourages dependence or public health programs that keep epidemics from spreading encourages dependence or giving vaccines to children encourages dependence or, I guess, in the old days helping a neighbor put up a barn encouraged dependence.
It is the Romneys, getting their $20-million-plus checks for doing nothing — the “gains” from stripping our economy and sending our jobs to China — who are dependent. Not the people that the Romneys threw out of work or cut their pay in half. Not the people working two jobs yet not making enough to pay rent and get enough to eat. The real “producers” in our economy are the 99%, the people who work, not the1%er “parasites” who use their wealth and power and connections to game the system and reap vast “gains.”
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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Why Keep The Capital Gains Tax Break?

Mitt Romney’s ultra-low tax rate on his ultra-high income is reviving questions about the breaks and perks that the wealthiest of the 1% receive from the rest of us. One of these is a special low tax rate for investments — as if anyone needed special tax incentives to induce them to make a bundle.
High Incomes At The Top
How much does Romney make? We won’t know until we get a chance to see his tax returns — if we do — but Romney described his $374,328 income from speaking fees last year as “not very much.” If $374K is “not very much” of his income … well … at least we can understand why he feels he can casually make $10,000 bets as if he was just pulling a dime from his pocket.
In his post What Mitt’s Taxes Could’ve Paid For (If Not For Those Cushy Tax Breaks), Richard Eskow writes,

1,470 households made more than a million dollars and yet paid nothing — zero, zip, nada — in Federal income tax in 2009.
[. . .] The top 25 hedge fund managers in the US made $22 billion in 2010.

Low Taxes At The Top
Mitt Romney’s admission that he probably pays a 15% tax rate shows us what is going on. For you or me, when our taxable income passes about $35,000, we start paying a 25% rate, much higher than Mitt pays on his millions on income. (That doesn’t mean we pay 25% on money up to $35K, which is what most people think. It means any additional money we make after the $35K is taxed at that higher rate rate. If we make $35,001 we only pay an increase of ten cents. That’s how tax brackets work.)
Lots Of Money To Use To Attack The Deficits
This special low tax rate on capital gains is sucking a lot of money out of We, the People’s ability to pay for our schools, military, infrastructure, etc, which is part of why we are borrowing so much. How much? Continuing to steal from Richard Eskow’s post,

As we wrote earlier, eliminating these tax breaks would add as much as $44 billion to our bottom line in the next ten years. Or to put it another way:
Ending cushy breaks for these 25 billionaires could also reduce the deficit by as much as $44 billion. Paging all deficit hawks!
In 2008 the taxable income of everyone earning above $100,000 was $3.4 trillion. If we concentrate our tax reform on the upper end of that spectrum — the Romneys, not the folks in the $100-$400 thousand range — we know that every percentage point in increased collection comes out to another $34 billion per year. That ain’t chicken feed.

Why The Low Capital Gains Tax Rate?
The justification for a special tax rate for gains from investing capital is supposed to be to provide an incentive to invest. But there is already a really good incentive to invest: to make a bundle of cash. Piling a special “incentive” on top of making a bundle of cash creates market distortions – moving investors away from deciding where to put their money based on the value and merits of the investment and toward tax-reduction schemes.
The necessary precondition for investing capital is having capital. So a tax break on the return from investing capital is by definition a break for the well-off. Here is the reality: capital gains are taxed at a lower rate because most of the income of the 1% is from capital gains, and most of the income of the 1% is from capital gains because the tax rate is lower. The “incentive to invest” should be making a good investment, period.
I’ll bet you $10,000 that getting rid of this tax break helps fix the deficit, and leads to a saner investment climate. (Of course, I’m kidding, I think that is a lot of money.)
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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Santorum’s Make It In America Plan Shows Republicans Can Read Polls

One after another, the Republican Presidential candidates have come out with strong statements that appear to show support for making things in America and revitalizing American manufacturing. This is because they can read polls and polls show that Americans overwhelmingly want American manufacturing revitalized, are tired of offshoring, understand the importance of fixing trade deficits and want to see things made here again. Donald Trump gained a lot of traction from the appearance of taking on China. Mitt Romney also talks about how we need to take on China. Rick Santorum has his own “Made In America” plan. But do their actual proposals match up with their rhetoric?
Romney
Mitt Romney has strong words about China. For example, last week Romney visited Competitive Edge, an Iowa company that sells promotional campaign items that you can put your own brand or message on. (“We’ve got items for convention give-a-ways, business gifts, direct mail campaign items, fund raising, political campaigns, special events, company promotions, and more!”) At this campaign stop Romney said,

“I’ll clamp down on China that’s been cheating,” Romney said. “They’ve been stealing our intellectual property, our designs, our patents, our know-how, our brands, they’ve been hacking into our computers. That has got to stop.”
“I will stop it if I’m President of the United States,” Romney said.

However, in spite of Romney’s words, many wonder if he is only saying this to get votes. For example, the website for Competitive Edge, the site of his Iowa appearance, says, “Competitive Edge is a major importer of Specialty Products from Asia and Europe.” According to TPM, the president of Competitive Edge “said he doesn’t think Romney’s being completely serious when it comes to his tough China talk.” He explained,

“I think the rhetoric of a campaign is different than the actual application,” he said. “[Romney] will sit down and he will get the right people in, he will take the advice of maybe a Huntsman who will say, ‘this is how to handle China.’” … When it comes to actually governing, Greenspon said he expects Romney will take a much softer approach to China at the urging of his supporters in the business community.

So much for Romney. As with so many of his campaign positions, surrogates explain behind the scenes that he is just saying what he needs to say to get votes, what he will do if he is elected might or might be completely different, there is no way to know.
Santorum
Rick “not-Romney” Santorum is now the official #2 in the GOP race. Santorum can also read polls, and is offering a “Made In America” plan. The plan begins the way Santorum always begins, “Rick Santorum believes that to have a strong national economy, we must have strong families.”
Much of Santorum’s plan is the usual Big Lobbyist and Wall Street-backed Republican stuff about cutting taxes on the rich and getting rid of any restraints on the wealthy and powerful as “pro-growth” policies. Items 1,2,3,4,5,6,7,8 and 9 are actually all the same item: cut taxes on the rich and their big corporations.
And then Santorum diversifies. Item 13 is get rid of President Obama’s health care reform, with no explanation of how this will help manufacturing. Item 15 includes, “eliminate funding for Planned Parenthood and support adoption” and “eliminate funding for United Nations organizations that undermine America’s interests.” Again, there is no explanation of how these will help manufacturing. These points are apparently included in a manufacturing plan to reassure the Republican base that he is certifiably nuts, to attract Michelle Bachmann voters.
Some of the items appear to be the result of selling advertising space to lobbyists from various industries.

  • The oil industry purchased Item 20: Tap into America’s vast domestic energy resources…
  • The big Telco giants purchased Item 21: Unleash innovation in telecommunications and Internet consumer options by getting government out of the way…
  • Pete Peterson shelled out for Item 22: Reform Social Security and Medicare…
  • The big Wall Street firms that are investing in privatizing education purchased Item 26: Reclaim the role of parents as the decision makers in their children’s education and incentivize the states to promote parental choice…
  • Canadian oil companies that want to sell to China purchased Item 28: Approve the Keystone Pipeline…
  • Wall Street and promoters of “The Big Lie” purchased Item 30: Phase out Fannie Mae and Freddie Mac’s government backed role in mortgages…

The plan is not all bad. Santorum accidentally comes up with a few things that would actually help American manufacturing. Of course, they are mostly just more about cutting taxes, but these cut specific taxes on manufacturers, which might help bring some manufacturing back. These are:

  • Item 10: Eliminate the corporate income tax for manufacturers – from 35% to 0% – which will spur middle income job creation in the United States and will create a job multiplier effect for workers
  • Item 11: Spur innovation in America by increasing the Research & Development Tax Credit from 14% to 20% and make it permanent

Santorum’s Item 32 is important, and I’m singling it out for attention: Strengthen our national security and national defense so that we are not dependent upon our foes or competitors for critical manufacturing, technology, energy and other security needs
So Santorum’s plan has a few good points but only barely matches the promise of its title. In reality it only offers more of the same policies that boost the 1% at the expense of everything else, even harming smaller manufacturers trying to compete with the multi-national giants. The plan even offers a number of items that have ravaged our manufacturing base, pushing even more disastrous “free-trade” agreements. And, the plan has the added bonus of a series of unrelated proposals apparently included only as filler and the necessary proof of insanity to qualify him in a Republican primary.
President Obama’s Office of Manufacturing Policy
As one component of a set of policy initiatives to improve manufacturing President Obama recently set up a new Office of Manufacturing Policy that will have cabinet-level status, reflecting the importance of the manufacturing sector to our economy. The office will coordinate the efforts of different government agencies, such as the Small Business Administration, the Department of Commerce and the Transportation Department.
Congressional Democrats’ Make In In America Plan
In May Democrats in the Congress brought out a “Make In In America” package of specific legislative proposals to revitalize American manufacturing. In Democrats’ Plan Makes Jobs In America I described the plan:

Congressional Democrats yesterday unveiled the Make It In America plan for the 112th congress. This is a set of specific, detailed, targeted bills that clearly create jobs and restore our economic competitiveness, beginning with a national strategy for manufacturing. This is very different from the vague, sloganeering, lobbyist-written plan offered by Senate Republicans.
Yesterday House Democratic Whip Steny Hoyer and Minority Leader Nancy Pelosi unveiled their Make It In America plan “to support job creation today and in the future by encouraging businesses to make products and innovate in the US and sell it to the world through strengthening our infrastructure and supporting investments in key areas like education and energy innovation.”
This Make It In America initiative involves a series of bills that have been introduced for consideration by the 112th Congress. This initiative will create jobs here, grow the economy and reduce the trade deficit, all of which help reduce our budget deficits. Creating jobs and growing the economy reduces deficits by increasing tax revenues and decreasing spending on unemployment benefits, food stamps, etc.

Click through for details of the plan.
A Warning
There is a warning here for President Obama and all other candidates of either party running for office in 2012: the public wants to see plans to bring back American manufacturing. The public understands what the NAFTA-style trade deals have done to our wages, jobs, factories, industries, trade deficit and economy. They hate Wall Street’s quick-buck outsourcing schemes and the trade deals that enabled them, and want American manufacturing revitalized. Supporting Wall Street and trade deals and the quick-buck, offshoring economy harms the country and for that reason is political suicide
The public wants to go into stores and see “Made In America” again.
Frank Sobatka explains:

This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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