we get five or six states that are recognized. i do not think he will solve health care, transportation, or education without a strong business community as those states do better, other states will follow. that will help the entire country. >> let's go down >> let's go down to where things actually happened. the federal government -- our schools, our advanced research institutions, and most importantly, our firms -- you have been there for a short time, coming up the business sector but one of the biggest -- first things you did is start a collaboration with a sister city lexington about one hour

away. you have a new initiative that is primarily around making this part of northern kentucky a platform for advanced manufacturing. what are you doing? what are you thinking about? this is an interesting multi- city multi-level collaboration -- not something that happens in the united states. what was the impetus? >> i have been there for just over a year, and like most cities we need jobs, and how we going to get these jobs is the strategy. 55% of the people in kentucky live in a metropolitan area. that is almost like all of the states. a new marion lexington kentucky -- a new mayor in

lexington, kentucky, both of us are former businessmen who happen to be theirs. -- mayors. we say our competitive it said it appears to be advanced manufacturing. we had two ford manufacturing plants. it is in this cluster we call the bluegrass movement. we are identifying assets weaknesses, and how to align business strategy but the government strategy -- education, foundation, and nonprofits so we can drive excellence in and then it -- advanced manufacturing? there's a lot of support and interest from the private sector, which i was part of. you feel like you are succeeding

despite government help, or a well-intentioned alignment. so, learning a lot of things in the six months the project has been under way. >> we are going to run the circuit, and orphans for some of the issues that have the greatest. jay timmons the national organization advocating on behalf of american manufacturers. i look at your manufacturing renaissance planned, and there are goals there. the u.s., the best place in the world to manufacture, the u.s. expands access to global markets, a workforce that is 21st century in manufacturing firms are the world's leading indicators. what is your sense of the federalist conversation?

everyone in washington is very self-referential. how you feel about the federal state, and local and engage mid-? >> you took my entire -- engagement? >> it took my entire set of remarks away. we talk about those four goals. they are based on the fact that it is 20% more expensive to bend a factor in the united states then among major trading partners. -- to manufacture in the united states than other men major trading partners -- partners. april 1, we will have the highest corporate tax rate in the world. it is also based on our energy policy, our regulatory policy and it does not take into account differences in labor costs. the 20% is the number we have

imposed on ourselves, and we have an obligation to fix. if the partnership between the governments it is critical. i worked for a governor in the 1990's in virginia, and that is not that long ago but state -- at that time states have the luxury of competing against each other. every governor wants to say there are more private-sector jobs existing in their state than before they became governor, but today, as we have heard referenced several times already, we are in a worldwide competition for jobs. if the federal commit has to be a partner. one of the ways -- if the federal government has to be a partner. one of the ways they can be a partner is to reduce the 20% to allow us to compete and succeed with international competitors. >> that the start and go through

each of these fish -- let me start and go through each of these issues. this pedal is describing the peddlers for a manufacturing be read the sub -- this panel is describing the pillars for a manufacturing renaissance. i run the metropolitan program at brookings. >> thank you. >> senator portman, your and bowles-simpson which you were on bowles-simpson. let's take the sec -- you were on bowles-simpson. let's take the tax system. what needs to happen to begin to provide the platform for advanced manufacturing? >> bruce katz, i was not on bowles-simpson, because i was running a campaign, but i was on the super committee. >> the super committee, i am sorry. >> i call it the not-so-super committee.

[laughter] >> our tax system is antiquated in the sense that we are not keeping up in a global economy. and it's in the corporate tax code as a great example of that. -- i mentioned the corporate tax code as a great example of that we have not really touch the corporate tax code in a substantial way. during that time, everyone of our trading partners have reformed their code. all of them have. it is not just about the raid, although that is -- the rate, although that is important, it is also about the complexity of the code. over 80% of the purchasing power is outside of the united states. a company like ge makes most of its money outside the country. we are competing with one hand tied behind our back.

partly, the rate partly the system which means other companies haven't said fitch. and the budget have an advantage. and the individual side, -- had advantage. on the inthe individual side, i am the owner of a sub chapter s company, and that is held 85% of businesses operate. that is to be simplified as well. there is growing consensus which is lowering the rate and broadening the base. that basically means getting rid of tax breaks, some call the locals. the bottom line is there are more and more exceptions to the code, which means the effective

tax rate might be lower than the statutory rate, but there is a lot of inflation. if you're an economist, you would say we want to allocate resources more efficiently. to do that, we need to broaden the base. i think we have the opportunity to do that. on the corporate side, it can be done. it can be bipartisan. it certainly was in the super committee. with regard to the individual rate, there is more political controversy because the 2001- 2003 tax code is ending at the end of this year, so the so- called bush tax cuts are ending. that is a tax increase, that no one wants to see happen. my view would be let's not let that happen, and reform the whole code so that it is more

pro-growth, pro-manufacturing, and gives us the ability not to have a separate code for all constituents we represent, but to be more competitive in the global marketplace. >> let me bring the two of you into the conversation, and broaden that out so it includes what kind of investments we need to make. i apologize. i a bowles-simpson of my mind too much these days. probably because jeff immelt mentioned it again. >> they're very similar. >> i thought was interesting about all of those efforts is they talk about cut and invest, but as we are reforming the tax code to be more competitive as a general proposition, we are also selecting those investments one

of their advanced research and development, skilled workers -- whether they are advanced research and development skilled workers. if you think about tax reform for the state and local level and listening to the national conversation, is it just about the tax code itself, where does it include investment imperatives that we need to make at all levels? who wants to take that? >> well, our key toward growth, if you look at louisville over the last 18 months between ford motor co. and ge, we have over two dollars billion invested in the community -- $2 billion invested in the community. that is big for any city anywhere in the world. that can about what the state and local government coming together with tax incentives to

make the transition easier, and then a partnership between the companies and organized labor as well, which resulted in a two- tier compensation system. some people are critical about that, but the bottom line for two-tier systems are we're not talking about having a $25 an hour job or $50 an hour job but you're talking about $50 an hour or $0 an hour. >> i echo that to a large extent. colorado does not start from a high level in terms of manufacturing experience, but when general electric was looking at a solar manufacturing facility, we competed with a number of other states. you put incentives on the table

but that is just the anti. that is not what will we knew the game. businesses are looking for a partnership and the predictability that comes from that partnership. i do not think our incentives were the highest but we worked hard to convince ge we would be the best partners at that level. >> and electronics company most global headquarters from new york to colorado, and again, it was not been sentenced. here is an advanced manufacturing company, a company no one had heard of, and they will bring a whole string, a whole cluster of small manufacturers with them that want to be close to them. when you're talking about taxes one of the things we have not

got into his in business, what gets rewarded, gets done, yet we do that reward companies for creating jobs in any real way. that is probably the most simple important thing that people care about, creating jobs finding incentives and some reward for those businesses who create jobs. >> anybody can put incentives on the table right? what is next? what comes back time and time to us is what is your work force? do you haven't advanced the defector and culture? is your pipeline one that supports manufacturing? how do we partner on that? that is review the whole culture

we are trying to form with our progress and economic advancement moment. >> eni stick of this point for one second and then come back -- can i stickum this point for one second and come back? work force, it keeps coming back -- do we have the skilled workers? it strikes me as we have several issues here. one, what is the perception of manufacturing in the united states. do people think these are the old caricature of manufacturing jobs -- 30, not technologically sophisticated -- dirty, not technological sophisticated. there is a perception issue on the ground level. if you this is an issue? -- do you find this is an

issue, and can you ultimately deliver workers? as you talk to firms what seems to be the central barrier here, how much does this perception issue come up as something we really need to tackle of the national scale? does anyone want to take that? >> let me say briefly i had the opportunity to visit about 100 factories and what i hear time and again is even at a time of high unemployment, ours is lower than it was a couple of years ago, but people cannot find the skills they are looking for. 82% of manufacturers said they cannot find the skills they are looking for. some of those skills are not there because there is not the community college and the connection with the universities that there ought to be, but some of it is perception.

a small manufacturer in cincinnati is working on this, trying to convince the next generation that it is a cool thing to do. in a while, the average salary is $67,000 -- in ohio, the average salary in manufacturing is $67,000 a year. these are high-paying jobs. a few years ago, i go to a manufacturer where there was one operator, and now that same operator has 3 or four of different machines, all monitored, all computerized requiring the ability to and arrested the software enough to fix problems. these are high-tech jobs that require training and therefore higher salaries. part of our challenges to change the roughly 40 programs that work through nine different agencies and departments, and make it more efficient.

that is what is frustrating. if i did not think the federal government is doing its part. even when you get to that, you have to change this image of manufacturing and make something that is more attractive for the next generation coming up. >> to the same point, we are working on that. when we talk about the perception of modern manufacturing, 68% of americans understand that manufacturing is critical to economic growth and job creation, but the perception of manufacturing has diminished over time. so, when my grandfather stood in line to get a job manufacturing of that era, 80 years ago, it is very different than today. it is cool. i use that word all the time. it is a technological-driven very modern, in deficient.

we -- efficient. we have plenty statement -- states that it implemented a program called dreamed it, do it, which helps young people understand manufacturing and the potential. i want to rewind to your question just before this. it is not just trade associations governors, mayors and certainly businesses that can change the perception of manufacturing. it really needs to stop right at the top. there has to be a commitment that the federal level to embraced manufacturing understand its promise and potential understand it has the highest multiplier effect of any dollar invested of any job that is created, and we have to have that commitment from the top. to this president's credit he is like a commitment to manufacturing in his state of

the union speech. many members of congress are talking about manufacturing. governors and mayors are increasing the promise but there is no coordinated effort. when i worked for a governor, day one we thought about things that would create jobs in the state, enhance manufacturing and attract business. if you are doing anything else, stopped doing it. we have to have that commitment. the president has to work with congress on a daily basis to talked not just about tax reform but trade, workforce issues where 5% of manufacturing jobs go unfilled -- research and development activities -- all of those critical components need to be part of a comprehensive package

to advance manufacturing in this country, and to make sure we embrace it for many generations to come. >> i would add on that we have to translate that into the culture. >> kids today, up to beat a hairstylist -- , up to beat a hairstylist. they know they will only make one third of the money. they like the food did, the culture. somehow we need to brand that. kids do not believe they will be able to go to college and get these advanced manufacturing jobs. when jeff immelt talked about doubling internships and connecting those two scholarships that is the kind of stuff -- even with social media, we have to be very intentional about how we make this appealing and attractive. to a certain extent people are

sitting around reading "people magazine." part of that is our job. >> making sure people have the opportunity to see what happens in the facility. when i go to them all over the country, the work force there has often been there 15, 20, 25 years because they love what they do. they're working with their hands, innovating, and they're competing. they love that challenge. i get inspired every time i go to a manufacturer, large and small. workers feel like a heavy stake in this. i think that is critical to our success. that is done at the state and local level. you said something interesting

earlier. states compete with one another and working at the local level helps because it is a rising tide. i think that is true. competition is good. you're competing now with indiana, but with india, and indiana, and ohio. that is really exciting and good. i think there is a federal overlay that is not keeping up with that. to jay timmons' point, there has to be a concern -- concerted effort to put manufacturing at number 1. >> i think there is a cultural overlay as well. so often people look at work or education as toyo -- "i have to

work. i have to go to school." this is a journey of life-long learning. when you go to companies that are best in the world, a ge appliance in louisville, you could eat off of the floor number one. people are learning to operate as a problem solvers leaders followers. it is a place where i am going to engage with an employer, and i am always going to learn new things giving me more capability and deere medical compensation abilities. that is great for the workplace -- theoretically compensation abilities. that is great for the workplace. it is huge for our country. those translate into your churches neighborhoods, the way we look at ourselves as a nation working together for something bigger than ourselves. that culture is so polar from

oil. i think we need to celebrate that type of culture. this is who we are. this is our country. we do not emphasize that enough -- this is what it is all about. this journey should be full of joy. >> you are starting to see that pivot, too, if you look to the super bowl and see the ads that were playing there. it seems to happen more. >> clint eastwood in halftime in america. >> this is an interesting trajectory of commons. in d.c., and frankly state capitals in city hall, the conversations tend to be programmatic -- will we do on tax, work force, land, etc. what we are describing is a culture shift dignified work again, and talking about

craftsmanship again. one of the more interesting things are high-school bringing back what we used to call vocational education. you go into some inner-city high schools or their teaching manufacturing because of the wage effects. >> one of those things that john mentioned that is working in some parts of ohio is business partner in with high schools bringing kids in, showing them that manufacturing can be cool. there is a company in cleveland that is doing this with a public high school and give the cleveland area, and they indicate that it is working getting to kids discipline, and also developing a workforce so the kids get a two-year degree, then come back to the school.

i think there is an opportunity for companies to get engaged at a relatively young level. >> for kids to see what a job is. those that did not have the educational supports -- that side is getting bigger every day. they might not know what the job is. for some summer jobs programs, the mentoring where we introduced kids to see what an office looks like, and what social skills are required to get a job. if we can not get caught up up here and understand that we have a society that does not understand these issues we are talking about. >> i think the adding of a culture shift is critical, or else we will make all the policy reforms in the world, and we

will still deal with the perception of manufacturing, which is not accurate, but deeply held. a couple other issues raise by prior panel's i thought would be good to air here. energy -- the notion that the united states can have cheap reliable, predictable energy as a platform for manufacturing it is an enormous shift. we have some really hairy environmental issues to deal with. how do we do this? how do we get beyond the polarization, and not just partisan polarization, but their real concerns people have about the environment? >> in ohio we have these new shelf lines, and in the west there used to having these fines. in ohio, we're becoming a

producer of natural gas and oil and we are going to be a net exporter in the next decade. it is a huge opportunity for jobs specifically manufacturing jobs because we make new pipes. u.s. steel is expanding in northeast ohio. we also make pumps and other structural steel. there is a huge opportunity. i think the environmental issues can be handled. we were caught with this because we are interested in making sure the hydraulic fracturing can be successfully done and it is properly regulated. the companies that have been doing this for 50, 60 years are good at it, and have dealt with a lot of these issues. ohio happens to have good regulations in place. i think there is an enormous

opportunity. i do not see that there is a huge disconnect between what the community wants and what the industry wants when it is done in a safe, way, in a regulatory environment that requires them to do it. >> i could not agree more. it is a great opportunity. we talk about competition been so valuable. also collaboration, putting in the time -- time spent with people creates a relationship. deepening that relationship creates trust. there are two marketing groups in colorado that's a collaboration is the new competition. we pushed the environmental committee and the oil industries to become more transparent turned there has been a level of

almost -- transparent. there is no level of almost hysteria with people worried about hydraulic fracturing. almost one month ago it was agreed to a set of regulations that would allow haliburton to protect trade secrets, and give the environment committee full trust they will reveal what the chemicals are. is like coca-cola. -- it is like coca-cola. they have the most valuable trade secret, and they put it on the label. let's do a baseline. let's take a water test. in colorado, we can not find an example of a fracturing ever getting into groundwater.

there have been hundreds of thousands of jobs over the last several decades. we know there have been places on the east coast where that has happened but how do we give the public more assurance? this will bring back the chemical industry, creating all kinds of jobs. there is a disconnect pr-wise. >> the president said we need and all of the above strategy, and he is right. the 20% differential has one interesting fact. for the first time, we actually have a costed vantage on energy right now it is very slight, but we need to drive the number up. it will help us in all other areas. the senator and governor both talked about hydraulic fracturing. we need to get the policy right. the potential is enormous. we've done a study that shows

that the shell plays will create 1 million manufacturing jobs in this country in the next few years than you think about the spin-off jobs that occur from that. -- that happen from that. that does not take into account all of the benefits that businesses will derive from lower-cost energy. we need to focus on that, and take the politics out. congratulate the governor of that achievement. sometimes, we equate politics with the energy policy. the keystone pipeline is a great example. that needs to move. we need to make sure we are trying to encourage every type of energy supply and development that we possibly can in this country because it means jobs in the future. >> in the meantime, private industry is driving innovation, conservation.

and ge appliance have a great reduction in energy costs. fuel efficiency standards. while we're dealing with all of the set the high level, the businesses are listening to consumers, we want to spend less energy of the same time. >> this is about global competition. imagine that the legislation would change the game. it is about helping companies to have the tools of the need to move toward efficient technology. people are looking -- making things with a lot less energy these days and with fewer people. this is part of how we are willing to get more competitive and be able not just to expand exports, but be more competitive in this country serving our own market. soca the energy efficiency is something which it so, energy

efficiency is something the united states legs -- so, energy efficiency is something the devastates legs in. >> we are in d.c.. we had might as well talk about politics. there seems to be on this panel, and frankly whenever we get federal officials governors mayors together, we seem to move toward the pragmatic space. if we took the bat president's -- the president's panel, and went through their core set of recommendations for a national policy and for state and local can we think about a place, one year ago whoever is elected where there is a small set of big telesis the changes that can

happen at the -- sat systemic changes that can happen at the state level? then eventually washington would reflect did division? this is one of those few issues where we can get beyond partisanship? it seems like the way we are talking about it here, it will be against these practical not ideological approaches. >> i believe there is a huge opportunity with all of the challenges that we have. i mentioned energy, regulations and taxes. there is no reason this cannot be bipartisan. the president's own jobs and competitiveness council has made recommendations that says

advanced manufacturing, and if you look at it is regulatory relief. it includes some things we talked about earlier. we have a bipartisan bill that the administration has not supported yet. corporate tax reform -- lowering the rates, and broadening the base. these are things i noticed administration has talked about doing -- i know the administration has talked about doing. it will be talking a political year. there is growing consensus on the tax reform side, and the energy side. my hope is we will be able to make progress if not this year, then right after the election, regardless who is collected. >> -- elected. for>> and not a lot happens at this

level. what are you all pushing for and the end of this day, what do you want on the priority list? >> i still think like a business guy. i do not know about you, but i just happen to be mayor right now. you own a company. you have these competitors. you're dysfunctional your competition loves it. if your china or germany and you are watching us bicker over all of these things, they loved it, especially when it comes to manufacturing and manufacturing policy. the have federal industrial policies were they're not playing with the same rules we are, and they say that is not fair. well, guess what, the world has evolved. how does our economy evolves so we feel like we can learn something from germany or china? waterweed learning, and how we

adapt our system -- what are we learning, and how we adapt our system? >> i echo that and go further. i think in the short term the real innovation will happen in cities come in to a lesser extent state. i wish as a former mayor i could take some credit when question is how do we get more business people -- credit. when question is how we get more business people? you need lifetime public servants as well. i think you are going to see in addition short-term in cities, and ultimately the big changes have to happen of the federal level. >> first i would just say that we cannot afford for it to be bipartisan actually non- partisan. every business leader, every american needs to set the table so that manufacturing renaissance can happen after the next election.

>> so, that is the final word. i want everyone to say thank you to the panel, and i have some housekeeping to do. thank you all. [applause] >> a former mississippi governor haley barbour also spoke at a conference hosted by general electric about the need for educated workforce and mississippi's efforts to attract more manufacturing jobs in the aftermath of the hurricanes seven years ago. this is about 40 minutes. [captions copyright national cable satellite corp. 2012] [captioning performed by national captioning institute] >> ladies and gentleman, please welcome the chairman and ceo of ge, jeff immelt. [applause] >> thank you very much. it is my distinct pleasure to introduce governor haley barbour. all of you know he was the two-

term governor of mississippi. as i mentioned, he is been a great partner in attracting business, and has really been focused on work force training as a way to make mississippi competitive. he is a fantastic leader of the national stage. several times, he ran the republican national committee, and things like that. he did a great job in mississippi. the won quick story i would like to tell is i was responsible for the business council in 2005, and this kind of association of the 125 biggest companies in the united states, and we happen to have a meeting two weeks after the hurricane katrina and i invited the governor of louisiana and governor haley barbour to speak at this group. haley barbour came, and with no notes, for an hour, described to the ceo's in the room the crisis management. it was only two weeks after the

disaster. the leadership levels of deal with that -- he looked everyone in the eye and said he will make mississippi pro-business state. he really lifted everything he said he was quite to do and then some. is my great honor to introduce governor haley barbour. [applause] >> thank you. thank you jeff. thank you at all of you for being here. i have to mention about that story about the business council, i feel like i knew initially, and it's certainly proved to be the case, it is going to be the private sector that rebuilds and the area after a mega-disaster, and that is why two weeks after the storm and was willing to talk to the 125 biggest companies in the dead states because despite the help we needed and received from the

federal government, our sister states charities, and everything else, at the end of the day, if you're going to rebuild your community, the private sector is going to rebuild your community, and that has happened thinks to companies like general electric, and i appreciate him telling that little story. i will talk to your ball manufacturing. -- about manufacturing, about america being competitive from the perspective of a governor. i want to make plain for you that if i do not get but one thing across is that we in mississippi have not given up on manufacturing. some of you are old enough to remember ed sullivan. remember "the ed sullivan show" on sunday night? about half of the television sets would be to and in. in the 1950's, ed sullivan had

conrad hilton on the show, a guy who created a new business, the luxury hotel chain. maybe the bill gates of his day. he walks out on the stage and ed sullivan surge to him and says if you could only tell the american people one thing, would you tell them? conrad hilton said put the shower curtain inside of the tub. [laughter] >> there was a guy who knew what was important to him. if i can not get but one thing across to you, we in america need to emulate what we have tried to do in mississippi, do not give up by manufacturing in america because we do not have to. i come from the poorest state in the country, a small state a state where when i was a young lawyer, 40 years ago companies that came to mississippi came looking for strong backs and low

wages. today, the kumquat for strong minds, and are willing to pay for it. -- bay, look for strong mines and are willing to pay for that. general electric is a great example of that. when i was governor, we have companies closed plants in mexico in move the work to mississippi. we can do that all over the united states. before getting into that too deeply, i do want to comment on what a great partner general ledger is. -- general electric is. is easy to be a great partner when you have a partner like general electric. they have a couple of facilities in my state. one of which when it was announced, i think those of you that recognize mississippi's image, and i understand mississippi has suffered with a negative image for most of my

life, but they decided to open this plant in mississippi general electric for the generation x engines, and a positive jet engine fan blades and assembly. not that i have the vaguest idea of what that was. the chairman of the board came down for the announcement they would open this. he said this is the most sophisticated manufacturing general electric does anywhere in the world. well i can't help -- i can assure you, 20 years before that people would have been flabbergasted when they heard the second half of the sentence, "and we are going to do it in northern mississippi." we do manufactured in north mississippi, 50 miles south of memphis, and less just leave it at this -- they have double the plant's size in the five years

said it has been open. i remember when david choice, the head of the ge aviation came for the -- dated joyce, the head of ge aviation came for the opening, and somebody said to him we put the places many blockers here as we were supposed to. that is lockers for the employees that work there. we spend a couple of hours there at the plant said the managers spent some time with david, and as we walked out digit plant. the managers spend some time with david, and as he walked out he said we're going to sell all of the lockers. not only have they filled them, they have expanded since then, and they built another sister plant in south mississippi. it is about 20 miles from the university of southern mississippi.

part of, i think about success in manufacturing in the united states is a strong tie with higher education i am going to talk a little bit about work- force training in our community colleges, the lead me mention first our universities. the university of southern mississippi, which is in hattiesburg, for more than 30 years has had a polymer institute. now, those of you did not know what polymers are should run for governor of mississippi because i will never forget when i went down campaigning to see the is to divest the head of it sheldon, what is a polymer? he gave me an illuminating answer, and said it polymer is a repeating molecule. great. [laughter]

>> what the hell does that to do with anything? of course, it is the heart of the composite industry. we have a composite center now, associated with our industries and the mississippi gulf coast. to do such things such as make paint that will not burn or will not smoke when you have a naval vessel -- the ability to keep from having smoked seven levels down in the ship is obvious when you think about it. well, that is a company that was spun-off by the university. they went from research and development to application, to commercialization. and that is what you need your research universities to do. we have four research universities, and in the last eight years they have begun more, and more, and more, to go

on the path towards commercialization, and ge is a great beneficiary of that, as well as a bent -- benefactor because they helped in list in our polymer institute which allows us to focus state efforts on advanced manufacturing with advanced materials. the composites that are used to make the fan blades and assemblies for the engine are just an example of that. we focus, not exclusively by any stretch, but we focus on three clusters for our manufacturing side -- our aerospace automotive, and energy. we are and all of the above energy state. today, southern co. has a cold- fired generation facility under

construction in mississippi -- two point $5 billion that will burn indigenous lignite coal, which is low-grade, and when i was growing up, people thought it was a nuisance because you could not farm it. well, we have learned how to burn lignite well enough to generate electricity and now this will be the first coal- fired power plant in the united states that will have carbon capture and sequestration and a commercial scale, and it will be met at the rate of a natural gas fired power plant. but, that is the best manufacturing and we are trying to do in energy. jeff immelt and i were talking about it. we have two solar panel manufacturers. ge has a big one in colorado. we have a couple of them in

mississippi. we make dynamic glass windows. what is dynamic glass, i would have guessed? you know how you can buy glasses that when you go in the sun they turn into dark glasses? well, you can make windows for office buildings out of that, except you can design them and control them so that if it is like it is today, 30 degrees and sunny, you can keep them clear to take in the heat but if it is like it is usually in mississippi, sunny and 95, they can be darkened simply by the way you set the glass. you can save 10, 11, 12% of the energy bill. we make petroleum out of wood. obviously, it is a petroleum substitute. it is not regular petroleum, the

we make a motor fuel out of wood that fedex has an agreement with to put in their trucks. the refined the gasoline that can be dropped in to your gas tank to be used with regular gasoline. in fact, one of our agreements with the country is we would not -- company is we would not give the state support on the same major oil company agrees that they would refine this product with regular tour -- regular petroleum, which they do. so, we are in some pretty sophisticated and advanced manufacturing of different types in a state that has never been known for manufacturing. a big russian steel company has a steel mill in mississippi. it is a mini-meal regis -- it is

a mini but it is pretty sophisticated for all the different products they do. of the 600 and some people they work there about 550 of them, it is the first steel plant ever seen let alone work in. we are very proud of it. the first year that it was open, average pay was 90 two thousand dollars a year, not for the exit -- $92,000 a year, not for the executives but for everyone to work there, primarily because of the overtime. the defection of jobs are the highest paying jobs for my state. if -- manufacturing jobs are the highest paying jobs for my state. we have many different kinds of manufacturing. the maker of cars and trucks has its only engine manufacturing

plant in columbus, mississippi. for years, and what was the in the trucking business, the u.s. for either a cummings engine or a caterpillar and gin. they did not make their own engine. decided to do debt -- they decided to do that, and again their first plant is in colombia, mississippi. a european base built helicopters for the u.s. army. just up the road did build the replacement for the humvee. we are not a state of manufacturing history, but as ge will tell you, we are a great place to manufacture. we have succeeded in replacing

thousands of low-skill, low- paying jobs with high-skilled, high-paying jobs. witness in the year 2010, our per capita income in seven years had gone up 30%, even though there were fewer people working. in plymouth was down about 2% -- employment was down about 2%, but income was up 30%, and it was largely replacing low-skill, low-paying manufacturing jobs with toyota, nissan, more shipbuilding, more aerospace and so on. i have not been governor a month. i was up dead mississippi state university our engineering and agriculture school, and a

professor said to me our businesses in mississippi have three choices. they could innovate, and the great, or they could evaporate. -- immigrate or they could evaporate. that is a cold way to tell the truth. if you're going to stay competitive in the global marketplace, you're going to have to innovate. it requires a workforce that can deploy the new technology, make the integration work. when of the perverse effect about that is generally -- one of the perverse facts about that is generally innovation destroys jobs. it means it takes fewer people to produce the same amount or even more units of whatever it is you produce. that is just a fact. however, that is how you stay competitive in the global

marketplace. if you want to talk about america staying competitive, we have to use more innovation. we have to keep going, but then we have to learn how to create other jobs. how do we create things that we were not doing before? that is not easy. i can tell you essential to it is to have a quality work force. let me just close by saying something that every governor who has been involved in economic development can tell you. the first thing the customer wants, the first thing a company looking for a site wants is a quality work force. when toyota chose mississippi in 2007 for its eighth north american assembly plant the first thing out of their mouth was we picked mississippi because of the quality of the

workforce. i think general electric will tell you they like mississippi and continue to expand in mississippi because of the quality of the workforce. obviously, education is an underpinning to a quality work force, but do not let that confuse you into thinking everybody has to go to the university, everybody has to be on the baccalaureate track. that is not true. in fact, it is wrong-headed. i do not know what percentage, but a small percentage of the students that go to university in america today need to do that to perform their job. what they go there for is they need to go there so they can get an interview for their jobs. diploma it is the certificate that this person is worth considering for a job, even

though most of the time the very little relationship to what you learned in the university -- in my case, it was drinking and chasing. well, i am a lawyer. there is more of a relationship than i thought. [laughter] >> the fact of the matter is we learned to do at the university. but there are millions of people in the united states that weren't to do what they learned to do in workforce training. yet we have so stigmatized work force training and job training in the a that it is almost shunned in high school. i can tell you how i got to be in shop in 1964. if you were in shop, you smoke.

if you got caught smoking you went to shop. that is where the bad kids go. [laughter] pigeon of the average out -- auto mechanic makes $70,000 per year? twice the amount of the average person in mississippi. how many of them were sent to that learning by their counselor in high school. 15 years ago and my wife had gone to the beauty parlor and said that my son had decided that he was going to learn a trade at a community college what would they have said at the beauty bar? marcia, what is wrong with him? that is literally what it would have said. we have got to take away the stigma on work-force training in this country if we want to take advantage of what we can have

for american competitiveness. because it is essential. if you do not have a workforce that can deploy the technology and put in place the innovation, you cannot get the productivity required to stay competitive. so, i am going to close with that thought. if we are going to be the country competitive in manufacturing, we're going to have to remember to focus on that. not to the explosion -- exclusion of all else, but fred smith in mississippi has a saying. fred says that the main thing is to keep the main thing the main thing. the main thing is to keep the main thing the main thing. if we expect to be competitive in america in manufacturing

the main thing is for us to invest smartly in a work force the companies like general electric will be proud to have working and manufacturing in the united states. stick with the main thing. thank you all. [applause] thank you. >> it is more fun to hear speeches like that when they are out of office. [laughter] i have a couple of questions to ask. first thing there is a lot of big business, like general electric, but there are a lot of small businesses around the country. how do you keep small business competitive? what do we have to think about that is different in that regard? >> first of all, most of our

jobs are created by small business. we should not forget the tie between them. many of them exist and their biggest customer base is selling to big business. we have a tax system that is not fair to small businesses. most get taxed on the individual rates. they are proprietorships that are right now worth 38.9%. add-on what you are going to add on for the health care program. they paid too high rate for taxes that needs to be reduced. second they suffer more than you for regulation.

when you run up the cost of health insurance today we are talking about health insurance costs going up 10%. how does the small businessman hire more people when he is being threatened with a $1.50 trillion tax increase she did not know her obligations to provide it. based on what the government is going to do to the credit like that they have a harder time getting credit and a harder time keeping more of what they're -- of what they are because of the taxes. >> university of mississippi southern state great schools.

looking at what you had to do, but others as well, budgets and things like that, how can we manage our states and still preserve this college system that has been a source of competitiveness? >> lots of people do not like me saying it, but going to university in mississippi is a bargain. about $5,000 per year for the basic cost of going. that has gone up seven times in the last eight years. spending has actually gone down over the last eight years. we have huge student aid programs. we have federal and state money. some of our schools are a very high percentage. it is the late bargain and we need to keep it a bargain.

right now we are able to continue to have record -- we are able to continue having record enrollment. they have had record enrollment almost all of my eight years because it is still not that expensive. as i say, there is a lot of student aid. i worry about the debt. that is something we have to keep an eye on. but as long as we keep it in a range, keep it more than the cost of where it is to go -- we have to keep an eye on costs but so far we are still making it. >> if you thought about the mood of the country's, if you were out on the stump right now, what would be the two -- two or three

things that you would be pounding away on? how to get the economy going and getting people unified behind that tax -- task? >> trent lott and i went to college together. he was a third year law student when i was a freshman. still, i used to tell them that the difference between governors and senators is that senators talk about things and governors do things. in the purple governor of a blood red state. i am considered pretty far to the right even on that circumstance. [laughter] you cannot imagine how much we agree on. we are both results oriented. people elected me to get things done. and we have a huge budget deficit.

we want results. right now they are not satisfied with the results. we have a very anemic recovery. this has caught me by surprise. the january unemployment numbers have been hailed as if this was some great surge. if you read the data about 250,000 people got a job in january. the obama labor department says the more than 450,000 people, almost twice as many, quit looking for a job because they became discouraged with their inability to find one. what kind of recovery as it when 1.2 million people drop out of the work force last year? that 30 million people have dropped out in the last three years?

there are 2 million more unemployed today but that does not count the other 3 million that quit looking. to meet, one of the most encouraging things of my governorship is when the labor participation rate, the percentage of adults looking for a job, or who have won went from 60% to 64% during my eight years. that is because people keep thinking i might can get one. i might can get a job. it keeps our unemployment rate higher, but nationally the country is coming down to meet us. incredibly lower by historical standards because people cannot find a job.

i spoke to 2000 college students and told them that one of the things they need to be concerned about is that old people my age, are planning to keep jobs. the percentage of people 55 and older that are working is for -- is historically very high. meaning that jobs are not opening for young people. true enough, the percentage of people under 30 who have a job is historically low. and the ones that have a job are not the ones going up. the 64-year-old are scared to death. they are scared of this -- i would call what a rotten, anemic economy. it is growing a bit. it is better than it was a few years ago. but on main street it is hard to tell the difference between

recovery and recession. in jackson mississippi or a small town like where i live. >> you came out of a crisis called hurricane katrina and your reputation went up. what can we all learn about leadership that you learned during hurricane katrina? >> the thing that i will say is that be lucky enough to represent a strong, resilient self-reliant bunch of people. they were the real heroes, the courageous and compassionate people of our state. they were not winding, moping, or looking for a handout. they got knocked down flat. the next day they got up and bridges went to work. they went to work of only helping themselves, by helping

their neighbors. the stories of selflessness and putting other people before themselves are so myriad on the mississippi gulf coast remember this hurricane had hurricane force winds that were 240 miles inland. we are the 120,000 homes that are on and have little -- uninhabitable. more than 40,000 were in land. one third of the fatalities were inland. the people, wherever you were, those people waited their turn. they were grateful for the help. that is the most important thing. my job was to make people have confidence that if they returned to their community their community could be rebuilt.

meaning open schools housing even if it was a fema trailer -- it is not a mobile home, it is like a camper like you would go hunting in. we have families that lived in them for three years. 600 square feet. marcia, my wife, made jim come into one to prove that a grown man, particularly one that was my size or his, could not go the bathroom and close the door. which cannot. our job was to make people feel like -- if i go home biloxi is going to be normal again. or better than it was. that is all those people needed was some hope. >> what are the odds of a

brokered gop convention? what would it be like? >> the odds are enormously against it. the fact that it is even in our conversation is unusual. i was at the last contested republican convention in 1976. it was a convention where there were only two candidates. by the reagan nor ford had the votes when we got there. -- neither reagan nor ford were -- had the votes when we got there. i think that we republicans would rather be called the contested convention, not a brokered convention. [laughter] but if there is a contested convention this time, it will not be two people. it will be three or four possibly. depending on what happens, it could even be five, if there

continues to be no apparent winner you have the possibility of a late entrant. some of you remember jerry brown. jimmy carter lost eight of the last 15 primaries in 1976. a lot of people thought that he was in trouble until mayor daley, after the illinois primary he came out and said that this guy one, fair and square it is over and he had the juice to make it stick. you could get a late entrant which could be the first indicator that it will be a contested convention. all of that is interesting to talk about but very unlikely. >> i want to say thank you to governor haley barbour. thank you all very much. thank you all. [applause]

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> president obama gives his weekly address from the boeing production plant in washington. he talks about removing tax breaks for companies that send jobs overseas and giving them to businesses that create jobs in the u.s.. then, cathy mcmorris rodgers delivers the republican address in which she criticizes the budget request. >> hello, everyone. i am speaking to you this week

from the boeing plant in everett, washington. what they're doing today as folks really excited. at this plant, they are building the plane of the future. the dreamliner. it is an impressive sight. to be honest, part of why i came was to see it up close. the last few decades have not been easy for manufacturing in this country. new technology has made businesses more proficient and productive, which is good, but it has also made a lot of jobs obsolete. the result has been painful for a lot of communities and families. jobs that provided decent livings have been shipped overseas. the hard truth is that a lot of those jobs are not coming back. it does not mean that we have to settle for lesser future. i do not accept that idea. there's always something to do

to create more manufacturing for the middle-class. in america, we do not give up we get up. that is what we are doing. businesses have created 3.7 million new jobs. manufacturers are hiring again for the first time since the 1990's. companies like boeing are supposed to repair -- realizing that even though we cannot make things cheaper than china, we can make things better. right now here business is booming. last year orders for commercial aircraft rose. to me that rising demand, thousands of folks were put to work all over the country. we want to see more of this. we want to make it easy as we can for our companies no country

should get a tax break for outsourcing jobs. instead wishes -- the vaguest tax breaks should go to the high tech. it is time to stop rewarding businesses that ship jobs overseas and start rewarding businesses that create jobs here in america. another thing that we are doing is trying to make it easier for companies like boeing to sell their products all over the world. more exports mean more jobs. two years ago it is not only something that will help us to succeed today and we know what

we need to do. skills for american workers. above all we have to value the qualities that have made this country great. hard work, fair play, shared responsibility. right here is where the first one went off its original trip. as sharon saw the first airplane take flight, she got goose bumps. in her words we said we would do it and we did it. we have seen challenging time with before, but we will emerge

stronger. thank you. have a great weekend >> in the mother of two young kids. like millions of mothers i am concerned about the future of our children and the economy that they will inherit. during a fiscal responsibility summit at the white house president obama made a promise to the american people. he said he was pledging to cut the deficit by half by the end of his first term in office. in the budget that he submitted to congress, the president admitted that he would not keep the promise not even close. because of his failure in each

of his four years in office. on his watch the size of our debt has surpassed the size of our entire economy making it hard for small businesses to create jobs and pushing it closer and of all the trillions in savings to rational republicans insisted that the president signed last year in response to his demand for an increase in the nation's debt limit. and another comes from what we call the war gimmick. money that was never requested

and will never rudy spent on wars i and -- the president's budget the she's about 1/10%. it is not all the this uprising when you consider that a lot of what the president has promised about the economy has turned out to be not true. friday was the three-year anniversary of the infamous stimulus spending bill. the president's team said that unemployment would stay below 8% if the taxpayers gave the government a blank check for programs. but that did not work out either. unemployment has been over 8% for three years running. gas prices have doubled. the new health care law is making it harder for small

businesses they believe that they can grow the economy and create jobs by increasing taxes. but the american people know is by cutting government spending and keeping taxes low it continues along this long path. instead of leading the effort and of making tough choices the president is urging that we spend more and more. all of his tax hikes would make it tougher to compete with china.

keeping on gone like this, as we have learned the president's budget is not a blueprint for america. it is a road map to greece. it did not have to be this way. and create a better environment for job creation. the president's battle for the senate has not produced a budget in three years. that is like writing checks about ever balancing the checkbook. there would not even except spending cuts agreed to by republicans and democrats this week. spending cuts mostly came from the president's own proposals. now, after breaking his promise to cut the deficit in half, the president cannot even offer a

credible budget. that just is not leadership deserve much better. the spraying, considering the future of opportunity for us very and learn more about the republican job plan by visiting a. jobgov.ogovj -- ob.gov.gov. thank you for listening. god bless america. >> the final vote in the house was 293-132. in the senate the final was 60 to 40 fit -- this is one hour 20

minutes. to legislation prevents a tax increase on 160 million americans. as a conservative, i look at the agreement and see some very big wins. ief among them are the most significant reforms to the federal unemployment program since it was created in the 1930's. all designated to promote re-employment and paychecks instead of unemployment and benefit checks. while extending unemployment benefits through the end of the year, this agreement creates a national jobs search standard for the first time. covering benefits from beginning to endnd requires every unemployed american to look for

a job if they receive unemployment benefits. the agreement allows states to spend unemployment funds on paying people to work instead of just sending them a check while they are out of work. it ensures taxpayer funds are properly spend by -- spent by permitting drug testing under commonsee rules that help people get ready for a job. it expands work sharing programs to help avoid layoffs in the first place, and it improves fiscal responsibility butot only recovering more overpayments which currently total a staggering $12 billion per year, but also by making sure that this program is fully paid for. the last item something i want to focus on for a moment. all government spending in this agreement is fully paid for and not with one dime of higher taxes. all spendinobject un-- on unemployment and health care are fully paid for. this is a significant victory for those of us concerned about the national debt. and the culture of deficit spending that has gripped washing for far too long. for example the unemployment

program has added nearly $200 billion to our nation's debt over the last four years. no more. we paid for it in december, we are paying for it today, and we set a clear precedent that the congress must live within its means, no more spending unless it's paid for, period. i understand this is a compromise. and not everyo likes everything in here. if i had my way, the bill passed by the house in december would be the law. that was the only bill that extended these programs through the end of the year. it was the only bill thatas fully paid for and it was the only bill that ensured seniors and their doctors were protect interested dramatic cuts for at least two years. but we don't control washington. democrats still control washington. they control the senate and they control the white house. utilizing a ocess that dates back to our founding fathers, house republicans have scored significant victories in this conference committee. our founding fathers recognize that washingn would not always be united. in their wisdom they knew even