Ports, trade and jobs

In Steven Solomon’s book “Water: the Epic Struggle for Power, Wealth and Civilization” he notes two of the greatest water decisions that helped make America a global power are the building of the Erie Canal and Panama Canal. Both gave the US the ability to conduct trade more easily. I mention these decisions as many east coast US ports have dug deeper channels to permit larger ships to enter their harbors. And, non-port cities have developed trans-modal distribution facilities to get goods on and off planes, trains and trucks often going to or from ports.

The leaders of ports and these trans-modal facilities have concerns over the tariff wars that are beginning because of the short-sighted decision of the US President. While some industries will see job increases, peripheral and other industries will see job losses. But, the ones who see red flags are those who handle the distribution of goods.

The port leaders are concerned the return on the investment to dig deeper ports may be watered down. But, less trade also means fewer truck drivers, rail workers, dock workers and distribution handlers. This is on top of industries specifically hit by tariffs.

Nick Hanauer, a venture capitalist spoke on a Ted Talk about his frustration that business leaders called themselves job creators. He asked “Do you know who creates jobs? Customers.” It should be noted the first and third Presidents who witnessed the most jobs were Bill Clinton (22.9 million) and Ronald Reagan (16.1 million). Per David Smick, an economist who worked for both, this was in large part due to their emphasis on free trade.

Tariffs hurt the wrong people. They may help some targeted industries, but they end up hurting far more employees than they help.They do hurt business owners, but in the end, they reduce the number of customers. And, fewer customers cause fewer jobs. The math is that simple. Any decision that adds to customers is job accretive, while the converse is also true. And, one thing is certain – we cannot shrink our customer base to greatness.

Sunday sermon-ettes

No, this is not intended to be overly spiritual. It is intended to offer a few vignettes, some spiritual, some historical, and some pedestrian.

– The Erie Canal is turning 200 years old. What I did not know is the US government did not want to fund its $7 million cost which was privately raised. That is astonishing as the Erie Canal (as the Panama Canal did later) significantly increased trade and promoted several cities like Chicago, Detroit, Rochester and Cleveland to prominence.

– I have been witnessing a letter to the editor debate on whether Jesus would have made the cake for the gay wedding couple, the refusal of which launched a court case. My favorite summed up my sentiments – Jesus would have made the cake and accompanied it to the wedding. We should remember, Jesus tended to hang out with the disenfranchised. He also said something about he who is without sin should cast the first stone.

– The ABC show “What would you do?” warms my heart and reveals the good in people. This Friday it aired a show where the ruse was an American Muslim couple waiting to be seated at a restaurant, but other couples were offered seats before them. When the couple complained, the female maitre’d¬†said openly we don’t want to offend our other customers. Couple after couple stood up for the American Muslim couple, some leaving and one inviting the Muslim couple to join them. It made me feel better about real Americans.

– The Catholic Church has benefited greatly from the people’s Pope Francis. Surprisingly, there are some within the Church that do not care for the openness and discussion of considering changes to traditions. Although, I am not Catholic, we should remember when traditions began. Priests were allowed to officially be married until about the 12th century and some were married as late as the 16th century. The reason – money and property. If a Priest were married, he would retain control over his assets. A retiring Priest said today the Church is missing out on some very good ministers because of this restriction.

– Finally, I read today from one writer that it is not the job of the President to be a role model. I could not disagree more with that statement regardless who was President. Bill Clinton lessened his otherwise effective ¬†Presidency by chasing women outside of marriage. John Kennedy’s womanizing may have as well had he lived longer, but the Press did not report everything like they do now. Invading Iraq under false pretenses damaged George Bush’s credibility. And, Donald Trump has shown Americans how not to act and has turned up the flame on incivility. The President sets the tone and can help reduce tensions, but the incumbent throws gasoline on some fires and starts others.

That is enough sermons for today. I would love to hear your thoughts.