Whirlpool gets $19M in Stimulus, offshore outsources the jobs

[Robert Oak]

This is a story that should disgust you. Whirlpool gets $19 million in Taxpayer Stimulus funds, Offshore Outsources the Jobs

It can barely get greedier than this: We're in tough economic times, so Whirlpool receives $19 million in taxpayer funds to create jobs. Then it turns around and announces it will shutter its Evansville, Indiana refrigerator plant and displace the 1,100 workers there. Disgusting.

raw link:

http://www.economicpopulist.org/content/whirlpool-gets-19-million-taxpayer-stimulus-funds-offshore-outsources-jobs

[Romulox]

1. Kind of like the majority of the Cash 4 Clunkers monies went to Japanese companies?

:hi:

[Robert Oak]

2. truly, that is incredible

and the AAM is pointing out Obama is out there promoting that as "Stimulus"...

$23B for it to buy products from China

http://www.economicpopulist.org/content/obamas-jobs-plan-comes-short

Here is the AAM trying to bring awareness this is just pouring good money after bad...

http://manufacturethis.org/?p=8304

[bullimiami]

3. but many of those japanese cars are made here.

[Romulox]

4. And many washing machines are made here. Your point?

It's OK for the government to stimulate the Japanese economy but not the Mexican economy? :shrug:

[Robert Oak]

5. this is caulk, not cars

this is cash for caulkers, not cash for clunkers.

This is caulking and all sorts of products to insulate your home, which is almost 100% made abroad....

and it's pretty ridiculous because for $308M, not $23B, you can hand every man, woman and child in the United States a tube of caulk.

A tube, retail costs a buck, so this isn't creating U.S. jobs, it is not stimulating the U.S. economy, the amount of savings on energy is small AND in terms of home energy costs, much of this energy is created in the U.S. (it's oil that is the huge import),

so, this is just well, like I said, pouring good money after bad in comparison to where it should be spent.

On cars, while FCDC (foreign controlled domestic corporations) do provide jobs here in the States, their profit centers are in Japan...

the profits and contributions to output are primarily registered in Japan, but ya know GM is busy offshore outsourcing too...

they sell Aeros in China for $1200 bucks (who can make any profit on that!)

so you can question that in another topic I guess.

[Romulox]

8. So what? Whirlpool and GM are both Michigan corps--a Michigan job lost is a Michigan job lost to me

To tell me that this is categorically different because virtually all the funds end up overseas instead of just most is not compelling to me.

[Robert Oak]

10. different topic, not different issue

Hey, if you go over to The Economic Populist, you will not see much defense on taking U.S. taxpayer dollars and giving it to corporations who are busy laying off U.S. workers!

We had a whole series of posts defending the UAW during that entire GM thing, many posts pointing out GM has billions, billions in funds offshore and plain overbuilt R&D centers offshore...all the while firing U.S. workers and even worse, if they cannot do that, import H-1B foreign workers, displacing any U.S. worker...

in fact they kept the foreign guest workers and laid off the Americans! (so much for those foreign guest worker visas being temporary!)

So, the focus is just on this latest action and because it's so brazen, so blatant, it's easier to identify the overall pattern.

[Romulox]

11. Right. But C4C still happened. AIG bailout (with 50% or more going to foreign banks!)

still happened.

I simply have no idea why this should be the line in the sand, when the Obama administration has spent trillions "stimulating" foreign corporations already? :shrug:

[Robert Oak]

12. there is no line in the sand

Again, over on The Economic Populist I wrote one of the first call outs on AIG.

The Real Screw Job

At this point, I'm not sure what your issue is, but I am the site admin for EP and Good God, we've been writing about all of this since the site started, about May 2008, pounding on it daily.

This is just one really outrageous event, which people can rally around. Writing up this post and using it as a protest rallying cry assuredly does not discount every other outrageous event, not be a long shot!

[Romulox]

14. There's a poster just below defending C4C just now!

"This is just one really outrageous event, which people can rally around. "

That's "my issue". I think C4C, bankster bailouts were FAR more outrageous. And yet we have a C4C apologist on this very thread how seems to have earned less consternation from you than I. :shrug:

[Robert Oak]

16. macro economics

In terms of cause and effect, I hate to tell you this but C4C was really successful as a Stimulus.

Sorry, it's true. It accounted for 70% of Q3 2009 GDP

http://www.economicpopulist.org/content/gdps-massive-downward-revision

I'm not saying at all, that number couldn't have been way better, say requirements of U.S. made, sourced cars exclusively for purchase and other ways to tie into U.S. workers (which is another thing I've personally pounded on, requirements of Buy American and Hire America is all stimulus bucks)...

But in terms of Stimulus it's not the sieve like others are.

Now on the Wall Street, Financial sector bail outs and the housing market...

Here's a post, deriving sources from the Housing market from SIGTARP latest report:

http://www.economicpopulist.org/content/residential-real-estate-ticking-time-bomb

Come check out EP and even create an account. I focus so heavily on the U.S. middle class, working America, digging around on screw jobs, rip offs and corporate welfare policy...it's a full time job!

But on C4C, well, thems the facts on it and ya know, I understand completely the point, it's probably the biggest theme on EP...
i.e. what about Americans, what about U.S. labor, what about the middle class, what about labor....daily that's the focus.

[Romulox]

17. Uh, huh. Did I not call it? It's an "as long as MY ox isn't gored" argument you make.

Your argument is similar to one in which Uncle Sam gives a US citizen $5 and a foreign citizen $5,000,000 and tells the US citizen not to complain as he is "better off" than he would be without the $5. In other words, your argument ignores the fact that foreign corporations aren't entitled to ANY amount of US taxpayer monies.

"Come check out EP and even create an account."

I won't be doing that. I get enough of the "outsourcing has gone too far when it is MY job on the line" sorts of arguments here on DU. Enjoy your outrage. :hi:

[Robert Oak]

18. that's a huge mistake

You are attacking the messenger here and truly overreacting on top of it! Not only do I talk continually on offshore outsourcing and from the theory thanks so much, I also have another site devoted to U.S. workers and trying to get some political action on it.

I don't think you could find someone out on the blogs who works harder to expose global labor arbitrage and you attack me ? That's pretty incredible, but oh well.

[Romulox]

19. I'm not attacking you--I'm attacking your defense of subsidies for foreign corporations.

Virtually every response you've made to me in this thread seems to involve your identity or personality in some way. I don't know who you are. If you defend C4C but find "outrage" here, then I strongly disagree with you. Regardless of your reputation.

Again, good day! :hi:

[Robert Oak]

25. nowhere do I defend that

You need to read and understand first before attack. If there is anything I've repeatedly pointed out is not Keynesian economics, it is giving U.S. taxpayer funds to foreign nations and corporations. That is on our blog, The Economic Populist. I periodically post some topics on DU, where I have been long time member, when they involve political action to get support. But that's just really almost insulting and implies someone is just not aware of what we're all about or reading even the material cross posted in the DU econ forum.

[Orrex]

6. Actually, not at all like that.

The stimulus money was paid directly to the company, which promptly closed a plant and outsourced jobs. The corporation made a clear and direct decision to eliminate American jobs.

Cash-for-clunkers as a program by which car owners could trade in their inefficient vehicles and receive a substantial credit toward the purchase of a new vehicle. The purchasers were free to select from a range of brands, but at no time were they in a position to eliminate American jobs.

How, exactly, do you see these two different programs as "kind of like" each other?

I'd also be interested to see your citation supporting the assertion that most of the cash-for-clunkers money went to Japanese companies. I don't necessarily dispute that assertion, but I'd like to see a reference.


Thanks!

[Romulox]

7. It's exactly like that--US taxpayer monies sent to foreign corporations.

You think that laundering the money through the consumer changes the essential nature of the transaction?

"The purchasers were free to select from a range of brands, but at no time were they in a position to eliminate American jobs."

Except if they bought a Toyota instead of a Ford, you surely mean? :hi:

"I don't necessarily dispute that assertion, but I'd like to see a reference."

Then get to googling. You don't have a research assistant here.

[Robert Oak]

9. this is caulk, not clunk

ya all, once again, this is caulkers, the link, a different thing from clunkers, the 4k credit for any beater...

http://www.economicpopulist.org/content/cash-clunkers-nets-700000-auto-sales

The above has the stats on the sales via the $4k free money to buy a new car and trade in any rust bucket, gas guzzlin' beater.

But this isn't the topic, it's Whirlpool, taking the funds, firing people and the same can be found with IBM! IBM routinely gets large gov. funds, contracts, tax breaks and is busy offshore outsourcing every friggin' job that happens to be still held by someone with U.S. citizenship!

Honeywell is another, they are many more.

[zbdent]

20. but remember, the Repugs were against limiting it to "American" brands

because there were some anti-union "Japanese" (and other brands) automakers who had "employed American workers" in their states, so you couldn't have that "regulation" kick in ...

and you couldn't have a "regulation" saying that the car bought had to be "American-made" at all ...

too much regulation ...

and then, they screamed about "fraud" ...

:eyes:

[Romulox]

21. Let's be for real: so was Obama. nt

[1776Forever]

13. Whirpool still in Ohio - Washer and Dryer plant. Believe me the workers work damn hard there too!

Whirpool has warned them if they don't keep getting more efficient every so many months they are moving them to Mexico too!

Whirlpool Manufacturing Locations in the USA

Clyde, Ohio – top load washing machines
Marion, Ohio – top load and front load dryers
Findlay, Ohio – dishwashers
Cleveland, Tennessee – wall ovens, cooktops, slide-in ranges
Tulsa, Oklahoma – freestanding gas/electric ranges
Amana, Iowa – refrigerators (all bottom freezers)
Fort Smith, Arkansas – refrigerators (side by side)

[whathehell]

15. This is an ourtrage... and or what it's worth,

I just emailed the whitehouse to express my opinion. You might want to do the same.:mad:

[Joanne98]

22. NATCH!

[upi402]

23. I'm even madder than hell

if I can make a new saying... while firmly believing this nation is more deeply into madness than hell ever imagined. 'Mad as hell' just seems so 2009 now.

[Blue Owl]

24. Booooooooooooo Hissssssssssssss

Shame on you, Whirlpool.

Those greedy, short-sighted, cheap-labor Repbulican CEOs sure do suck.