Television News

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...

Walter Shapiro: "Dodd, who is one of the last of the old-style Ted Kennedy liberals in the Senate, still has the potential to eke out another term. Connecticut is such a Democratic state that its last orthodox Republican senator was (it is worth waiting for) Prescott Bush, the father of one president and the grandfather of another. (To be technical, erratic liberal Lowell Weicker was also a GOP senator, but certainly not an orthodox one.) Attorney General Richard Blumenthal -- the one powerhouse Democratic statewide official who could theoretically challenge Dodd in a primary -- is apparently prepared to wait and hope that Joe Lieberman (remember him?) does not run for re-election in 2012."

Oy:

(Hat tip: Conor)

North Korea?"s underground detonation of a nuclear device on May 25 has rattled the global community and confronted President Barack Obama with a major national security challenge. It seems every so often that the regime in Pyongyang engages in provocative behavior, so as to bind world attention. ?SWe are unpredictable and dangerous, so world, you better pay attention to us,? appears to be the radioactive clarion call being uttered from North Korea. In the past, these unorthodox tactics on the part of the ?SDemocratic People?"s Republic of Korea,? or DPRK, have been employed as an effective means of blackmail. In the wake of the DPRK?"s first nuclear test, in October 2006, then U.S. President George W. Bush agreed to American concessions to North Korea that seemed inconceivable based on his prior rhetoric. Many of these concessions involved economic support for the ailing North Korean economy, especially with regard to the supply of energy and foodstuffs.

The latest nuclear escapade by North Korea is being interpreted as continuity with its longstanding policy of using its possession of weapons of mass destruction as a means to creatively employ economic blackmail. However, the North Korean political economy is so dysfunctional, I think there may be a much more radical calculation emanating from Pyongyang.

There are few countries on the planet that have economies as shattered as North Korea?"s. Officially a Marxist-Communist state, its reality is in fact much different. Peculiar for a nation supposedly based on Marxism, North Korea is ruled by a family dynasty. The founder of North Korea, Kim Il-Sung, is worshipped as a God, and his lifeless corpse is constitutionally still the president-for-life of the DPRK. The son of Kim Il-Sung, Kim Jong-il, is the current ruler of North Korea and it is rumored that one of his sons is also being groomed for political succession. Like his father, Kim Jong-il is also deified, and referred to in every proclamation as ?Sthe Great Leader.? However, despite his exalted status, his people have endured repeated famines that have snuffed out the lives of millions, according to international relief organizations. Furthermore, with the demise of the Soviet Union and the termination of its subsidies to North Korea, the nation?"s industrial infrastructure has essentially collapsed. Men still show up for work in the factories, but nothing is produced, for the most part, and the pay is a pittance. It is the women who actually run the economy of North Korea, largely through the black market. Though theoretically illegal, this otherwise draconian police state largely tolerates the female-dominated black market, estimated by some observers to represent 80% of the DPRK?"s meager economic output. The women of North Korea are the breadwinners in that society, having rediscovered entrepreneurial skills and are engaged in craft production and trading goods smuggled into the DPRK from China.

Having a national economy largely based on the black market is actually in conformity with other aspects of North Korea?"s unique political culture. Another example is how its communist-indoctrinated diplomats are expected to engage in profitable capitalism while posted abroad, so as not to bother Pyongyang with inconsequential and mundane matters, such as paying the rent on their embassies. For that reason, numerous North Korean diplomats have been expelled by their foreign hosts for engaging in activity ?Sincompatible with their status.? That term usually means espionage; in the case of the DPRK, the diplomats were expelled for engaging in narcotics trafficking.

In this basket-case of an economy, North Korea has had only one export commodity that has consistently been a strong earner of foreign exchange; armaments. In the past, ballistic missiles have been a hot export commodity for the rulers in Pyongyang. However, many of North Korea?"s traditional missile buyers, including Iran, now manufacture their own rockets. With demand for its medium range missiles potentially drying up, North Korea must look at new products that will stimulate demand. Long range ballistic missiles that can strike targets in the United States are one example of product diversification that may explain the DPRK?"s recent test of a supposed satellite launch. However, the crown jewel in North Korea?"s product portfolio is its nuclear weapons capability.

Though most analysts believe that the recent detonation of a nuclear device by North Korea was just its traditional blackmail-driven saber rattling, I think there may be a far more dangerous motive behind the atomic weapons test. North Korea?"s first nuclear test in 2006 is widely viewed as being a dude. While the basic concept of creating a nuclear blast is relatively simple-bringing together a critical mass of fissile materials-the means of achieving full yield requires sophisticated physics and engineering. The small yield of the blast in 2006 revealed that the DPRK had not yet mastered the technique of ?Sextending the generation,? meaning prolonging the natural onset of a nuclear explosion by a ten millionth of a second. What seems like an insignificant time factor makes all the difference between an explosion that is in the same category as a large conventional bomb, and a blast on par with the bomb that destroyed Hiroshima in 1945. Until the DPRK had demonstrated its ability to ?Sextend the generation,? potential foreign buyers of nuclear weapons would have little faith in North Korean nuclear weapons technology.

The May 25 nuclear test by the DPRK was, by all accounts, successful. The Russians estimate that the device detonated by the DPRK had a yield of between 10 and 20 kilotons, on par with the bombs dropped on Hiroshima and Nagasaki. Potential customers, including both rogue nations and non-state actors such as Al-Qaeda, have now received a ?Sproduct demonstration? that is convincing.

While my theory that North Korea?"s recent actions are based on a policy decision to begin surreptitiously marketing nuclear weapons technology, and possibly fully assembled nuclear weapons to the highest bidder, may seem far-fetched, there are signs that key decision-makers in the U.S. national security establishment have adopted a similar viewpoint. Recently, the Department of Homeland Security has abandoned plans to place radiation detectors in most ports of entry to the United States. This decision was based on the conclusion that technology does not exists that would reliably detect a well-planned attempt to smuggle a nuclear weapon or its components into the United States. However, there is another area that the Department of Energy, in particular, is aggressively moving forward on. A new field has been invented, called ?Snuclear forensics.? It is based on the belief that a nuclear detonation is so unique, post-blast analysis can reveal the origin of the fissile materials that were used in the weapon. This seems to be the new deterrent doctrine; if a country such as North Korea sells a nuclear weapon to a terrorist organization that then used it to destroy an American city, the U.S. will be able to scientifically determine the point of origin of the nuclear device, and launch a retaliatory response against the offending nation. The Obama administration considers North Korea a major nuclear proliferation threat

As if the Global Economic Crisis was not enough to worry about, we now may be witnessing the emergence of nuclear proliferation as an export-based strategy for capital formation. It makes one hope that nuclear blackmail is all that North Korea is truly interested in. President Obama will have many sleepless nights worrying about North Korea.

The Dish was all over yesterday's big story - the assassination of George Tiller by a crazed Christianist. We traced O'Reilly's troubling rhetoric here, here, and here, and readers checked my reaction here. We chronicled the disturbing role of Operation Rescue here, here, and here, and commentary from the far right here, here, here.  A noteworthy voice on the far-right was Robert P. George, who struck the perfect chord. We also aired personal accounts of abortion here and here.

A traumatic Sunday, to say the least. For the right approach to religion, listen to Bob Wright.

"What I do support is what has been termed the responsible closure of Gitmo. Gitmo has caused us problems, there's no question about it. I oversee a region in which the existence of Gitmo has been used by the enemy against us. We have not been without missteps or mistakes in our activity since 9/11 and again Gitmo is a lingering reminder for the use of some in that regard...

I don't think we should be afraid of our values we're fighting for, what we stand for. And so indeed we need to embrace them and we need to operationalize them in how we carry out what it is we're doing on the battlefield and everywhere else...

 So one has to have some faith, I think, in the legal system. One has to have a degree of confidence that individuals that have conducted such extremist activity would indeed be found guilty in our courts of law.

When we have taken steps that have violated the Geneva Conventions, we rightly have been criticized, so as we move forward I think it's important to again live our values, to live the agreements that we have made in the international justice arena and to practice those," - general David Petraeus, conceding that the US violated the Geneva Conventions under president Bush, and pledging to remain within the laws of war in the future, as the best way to win the war on terror.

(Photo: Brendan Smialowski/Getty.)