News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
October 20, 2003

CONTACT: Wendy Belzer, Kate Davis, 202-225-4038

Velázquez: Policies Needed to Keep Jobs Here
Negative impact for U.S. manufacturing and tech sector as work moves overseas

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Democratic Member of the House Small Business Committee, today highlighted the need for policies that will protect U.S. high-skilled and blue-collar jobs from the effects of globalization, so that they remain competitive and strong in the world market and in the United States.

"In today's global economy, the movement of jobs and operations abroad has become a major factor affecting the manufacturing and technology sectors," Congresswoman Velázquez said. "Many are looking to markets overseas in order to remain competitive, while others are driven purely by profit."

The decline in many of our nation's most important industries - namely manufacturing and high-tech, is becoming increasingly apparent. Since 2001, more than 2.4 million jobs have been lost in the manufacturing sector. It is also predicted that 3.3 million white-collar jobs and $136 billion in wages will be lost to countries overseas by 2015. An array of factors is responsible for this massive job relocation abroad, further draining an already weakened U.S. economy.

Many of our domestic firms are taking advantage of tax incentives offered abroad and cheap labor costs, which allow them to produce products for 50 to 60 percent of the cost associated with making them in the U.S. In addition, trade and monetary policies - such as GATT and NAFTA - negatively impact U.S. businesses, causing domestic producers to lose market share to foreign competitors, encouraging job dislocation and plant closings across the country.

"Since small firms are the drivers of our economy, we must be sure to take their interests into account when re-evaluating some of these policies," Congresswoman Velázquez said. "We have watched the U.S. manufacturing sector decline - and now have new fears of a similar fate permeating the high-tech industry. It becomes clear that we must work to protect these vital sectors, and our small businesses, so that they remain competitive and strong. Only then can we look forward to an economic rebound and job creation where we need it most - right here at home."

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