Obama's India Visit Showcased His Corporatist Credentials

Obama's visit to India appears to have been a PR success.  But it was CEO's that Obama was targeting, not American workers.

The drivel that Obama was spouting about creating 50,000 jobs out of the deals signed by American and Indian companies was offensive.  How stupid does he think struggling Americans are that he thinks he can flimflam them by ballyhooing that meager number as if it could make a substantial difference in the unemployment crisis in the US?

Instead of a 21st century New Deal Works Progress Administration (WPA) to put millions of jobless Americans to work, Obama dishes out more lipstick on a pig rhetoric.

Obama's trip to India afforded the president a backdrop to showcase his DINO corporatist credentials.

Roger Bybee at Working, In These Times explains the realities:

"Outsourcing is just a new way of doing international trade." —N. Gregory Mankiw, chair of George W. Bush's Council of Economic Advisors, 2004

"I've seen the New India. Nearly a billion people in shacks supporting a teeny minority's right to shop in air-conditioned malls. It is a Fritz Lang film in Hindi. Just look at the numbers. India's productivity has exploded, tripling in two decades to the world's fourth largest in purchasing power. But not many Indians are doing the purchasing….79.9% of the population still makes under $2 a day." —Greg Palast, in his 2006 book Armed Madhouse.

"The New India depicted in U.S. media accounts of President Obama's trip during the last few days bears little resemblance to Palast's grim portrait. The corporate media assure us that India is an emerging economic super power of 1.2  billion people, growing its GDP at 8% a year. A giant potential market for U.S. corporations, purportedly.

"The very limited buying power of the wretched of the earth surviving on less than $2 a day has not been a prominent topic in either Obama's speeches or the U.S. media accompanying him. Nor has there been much discussion of India's badly-skewed development that creates billionaires while driving near-starving farmers to suicide. The country is

"But President Obama's speeches have not been geared toward the suffering majority of India, nor even the restless majority of Americans back at home whose wrath took a pro-Republican turn on November 2.

"Instead, his remarks have been aimed at US CEOs swarming around him in India and to India's elite, which has been enriched by the increasing flow of U.S. corporations shifting their information technology and back-office operations to low-wage India.

"President Obama argued strenuously that investment overseas can create jobs at home that would provide relief to the persistent high unemployment and sinking wages that have plagued America:

There still exists a caricature of India as a land of call centers and back offices that cost American jobs. That’s a real perception.

But these old stereotypes, these old concerns ignore today’s reality: In 2010, trade between our countries is not just a one-way street of American jobs and companies moving to India. It is a dynamic, two-way relationship that is creating jobs, growth, and higher living standards in both our countries.

"Not quite, Mr. President: jobs and wages are heading one way, downward. A race to the bottom is not a two-way relationship. As pro-globalization Prof. Jeffrey Garten of Yale, a former Clinton undersecretary of commerce,  put it in Business Week,                

As US -based employers consider the costs of adding either one American or, say, one Indian to the payroll, the alternative of offshoring will put downward pressure on middle-class wages throughout the U.S.

"Obama appeared more preoccupied with winning back the approval of corporate CEOS.....

"Obama's big prize for the CEOs is a new "free trade" agreement (FTA) with South Korea based on the NAFTA model that grants supremacy of investor rights over national laws, and lacks important conditions protecting Americans from the loss of jobs.

"Without labor's intensive efforts on Nov. 2 and the fact that many Democrats were saved largely because of their fierce opposition to "free trade" agreements precisely like the one with Korea, the Democratic bloodbath would have been even worse. Yet even with labor's all-out electoral push and the anti-trade message from the voters (incuding Republicans), Obama seems almost compulsively drawn back to his old ways.

"With his trip to the Far East, Obama is once again trying to appease his enemies and neglecting the devastation that will result—especially in the industrial communities now pockmarking the Midwest."

 

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