Ms. Chao spoke to members of 24 local Asian-American associations at a short program addressing the challenges facing the 21st century American workforce. Free trade will inevitably result in job losses for some, but America’s resources are better spent on improving competitiveness than opposing the tide of globalization, she said. The Labor Department's responsibility is to ensure that workers have a safety net when the workforce goes through such growing pains. Elaine Chao was the first Asian American to serve as director of the Peace Corps. She has served as the nation's Secretary of Labor since 2001.
Chao Speaks to Local Asian-American Groups
U.S. Labor Secretary Speaks to Local Asian-American Groups
Trevor Williams - Reporter
Atlanta - 08.06.08 EMAIL THIS STORY
Elaine Chao
The U.S. labor secretary called the diversity of the American workforce the nation’s “true competitive advantage” and warned during a July 30 speech in Atlanta that protectionism would hurt the U.S. economy.
“The best way to crater our economy is to install and implement protectionist measures,” said Elaine Chao, the first Asian-American cabinet member.
In her seventh consecutive year, Ms. Chao is the longest serving labor secretary since the Eisenhower administration.
While U.S. companies outsource 300,000 jobs per year, subsidiaries of foreign companies support an estimated 12-22 million jobs in the U.S. that would be in jeopardy if the government enacts tighter regulations toward foreign enterprise and trade, she said.
She cited her native China as an example of the negative impact of protectionism and the dynamism that economic openness can foster. In doing so, she painted a dreary picture of the 30 years of self-imposed isolation the communist government implemented after it won a civil war and launched the People’s Republic in 1949.
“There was no garbage on the streets because there was nothing to throw away,” she said.
But three decades since the government opened itself up in 1978, China has become an economic power, and its per capita income has increased 20-fold, she said.
Ms. Chao spoke to members of 24 local Asian-American associations at a short program addressing the challenges facing the 21st century American workforce.
Free trade will inevitably result in job losses for some, but America’s resources are better spent on improving competitiveness than opposing the tide of globalization, she said. The Labor Department's responsibility is to ensure that workers have a safety net when the workforce goes through such growing pains.
With 17,000 employees, 3,500 career centers and a $70 billion budget, the department has a variety of programs work toward that end, Ms. Chao said.
Those who have lost jobs to trade are eligible for two years of unemployment insurance, new training, direct income assistance and help with medical expenses. For workers over 50 whose new job pays less than their old one, the government pays half the differential.
Some advocates point out that these programs are outdated and inadequate to address the inequities workers often face in today’s global economy.
The Financial Services Forum, a consortium of financial executives, recently released a report recommending that the federal government expand and revise existing unemployment insurance programs and trade adjustment assistance. Read about their recommended revisions here…
The forum’s top officials visited Atlanta recently for a globalization conference at Emory University.
