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U.S. Structural Jobs Paradigm

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China-US Wealth Transfer

 

There are usually unintended consequences from paradigm shifts, and the outsourcing paradigm of the last 25 years has been no exception. Where do you think all that wealth responsible for building all those cities in China came from? The United States, European and other developed countries of the world, think of it as a vast wealth transfer from the richer nations to the poorer nations mainly on the backs of the ‘middle of the bell curve’ in terms of jobs. 

 

Outsourcing Includes Management Positions

 

It isn`t just the lower wage manufacturing jobs that are lost in such a major paradigm shift of the last 25 years, it is all the jobs that support these manufacturing jobs, from administrative, support, and white-collar management jobs. Then add all the supply chain industry jobs that feed into the local manufacturing supply chain for the given goods and services and this is a monumental exporting of good jobs to foreign competitors. It should be reemphasized that these are not just the low paying manufacturing jobs, but all the college degreed mid and upper level management jobs as well being outsourced. 

1950s Glory Days

 

It used to be the case that if you worked hard and got an education that you were guaranteed a job in this country in the 1950s, but due to the major transfer of jobs overseas, this is no longer the case. Furthermore, this structural disconnect in the jobs market was partly masked by the booming financial sector of Wall Street and the Housing Mortgage underwriting sector jobs, but once the tide went out with the financial crisis America found out that these jobs are no longer needed now that the Mortgage Underwriting bubble has burst – those jobs are never coming back to the United States.

 

Structural Jobs Disconnect - Masked

 

The Technology sector has helped mitigate only a slight fraction of these lost manufacturing and management exported jobs, and now that the financial markets have been losing jobs due to consolidation, improved technology requiring less people, and bubbles bursting there are just not enough good paying jobs in the United States for all the college educated working professionals who want to be gainfully employed.

 

Major Layoffs Coming in the Financial Markets

 

25 Years of Outsourcing – Unintended Costs

 

The US Companies, Politicians, Tax system, and Legislation have sold out the American worker from the lower middle class all the way upwards to the upper middle class in this country with 25 years of an outsourcing good jobs policy.

 

There just aren`t enough jobs for the citizens of the United States, and with colleges being big business these numbers are only going to get worse until there is a major correction in the bubble that is college education. And you guessed it the college education bubble is largely the result of governmental subsidies driving up tuition prices and making the business of college highly profitable and well beyond market pricing. 

 

Add to this all the manufacturing workers needing to go to college due to the evaporation of these good paying middle class jobs being outsourced, and you have more kids going to college than the Job Market can support – thus exacerbating the education bubble in this country. 

 

Until the education bubble collapses, and there is a major consolidation in the number of colleges, and degreed individuals competing for the same jobs in the market this dynamic of structural disconnect is only going to get worse.

 

Manufacturing Renaissance?

 

The other alternative is to bring back a large portion of the exported manufacturing industries to the United States but if the last 25 years is our guide, and the perpetual ineptitude of the leaders in this country persists, this seems like a real longshot.

 

Student Loan Debt

 

We see this played out in the student loan debt issue, all these American citizens take out loans to become educated in the hopes of attaining a decent paying job, and when they graduate they find that the jobs related to their education are just not available in the economy. This problem is acerbated by the American ideal of sending one`s kids to college as a core value.

 

In the future American students are really going to have to conduct a thoughtful analysis whether they should go to college at all? It is starting to look like there are only so many good jobs to go around in the modern economy, and that America is going to have a large portion of their citizenry on social welfare programs just due to the lack of jobs relative to available candidates in the economy as a result of poor structural planning of our economy.

 

The Bell Curve

 

We are not just talking about lazy people or those unwilling to work but the structural effects might necessitate large portions of the population being severely under-employed relative to their education.

 

Those at the top of the food chain having good paying jobs, the lowest rungs being largely housed in prisons and on welfare, and the main difference from the past is large segments of the middle and upper middle class being out of the job market and largely supported by employed family members or social welfare programs for the bulk of their professional lifespan. 

 

It will really get bad when the military is finally forced to cut back jobs and downsize due to constrained budgets in 15 years when the interest on the National Debt far exceeds incoming tax revenues.

 

The leadership of the United States over the last 25 years has really screwed up this once great country!  

 

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Thu, 11/07/2013 - 13:22 | Link to Comment azzhatter
azzhatter's picture

TPTB always hated the uppity peasants in the middle class. That's because with prosperity came freedom and choices. They hate that. They want and get endentured servitude. Fair trade only exists between nations at like stages of development. Anything else is wealth transfer. I.E- US and Canada can trade freely without destruction but US and Mexico transfers wealth from US to Mexico (mainly politicians)

Thu, 11/07/2013 - 14:23 | Link to Comment sgt_doom
sgt_doom's picture

Not exactly, although there is always financial transfers among the oligarchs and hegemons among the nations --- we call them the transnational capitalist class, or scumbags for short!

After NAFTA was passed, helped along greatly from the lobbying from the Rockefeller-founded Council of the Americas, within NAFTA was the verbiage allowing for the Mexican banks to be foreign-owned, and within a year 90% of them were, thus ensuring that lucrative drug money laundering profits to banks like the Rockefeller Chase Manhattan (today called JPMorgan Chase) and Credit Suisse FB (formerly First Boston) and UBS of Switzerland, et al.  (Read Ravi Batra's Greenspan's Fraud for the concise list of banksters.)

Know how many Iraqi banks are foreign owned, and by whom?????

 

Thu, 11/07/2013 - 13:22 | Link to Comment NoTTD
NoTTD's picture

Not a single new thought in there.

 

Thank you, Captain Obvious.

Thu, 11/07/2013 - 14:19 | Link to Comment sgt_doom
sgt_doom's picture

Exactly, but it is no only that this moron and halfwitted lowbrow, Captain Obvious (great tag, my good citizen!), stated the blithely and glibly obvious, but as usual, per the US Chamber of Commerce and Business Roundtable, he spews forth the same vomitous talking point memes, "unintended consequences" as if none of this were planned, as if it "just happened" --- just like all those hedge fund-financed books the last five years on the meltdown, or more recently, the JFK assassination and the Rockefeller-owned Warren Commission!

What utter bullcrap and we know this Captain Obvious to be yet another complete fraudster by his religious and robotic repetition of said meme!

Thank you.

Thu, 11/07/2013 - 13:18 | Link to Comment lasvegaspersona
lasvegaspersona's picture

In 1960 Robert Triffin (Triffin's Dilemma) essentially predicted this outcome.

It has far less to do with evil politicians than it has to do with the effect of supplying the reserve currency.

To supply that reserve (and reap the rewards of the exorbitant privelege) the country MUST net import. This results in cheap oil and lost jobs. Any politician whosaid no would be replaced by the guy who said 'What do you have against cheap oil (and other imports)"?

This was inevitible and will end ....soon.

It will be quite painful. Eventually many jobs will return. They will have to compete this time with workers from all over the planet and we will lower our standard of living.

Thu, 11/07/2013 - 13:29 | Link to Comment Ghordius
Ghordius's picture

I still see Triffin's dilemma as a convoluted way to do what you wanted to do anyway

a bit like a wife telling the husband that if she does not draw the credit card to the max she can't reap the benefits of the bonus miles

remember that the whole concept of "exorbitant privilege" was a complaint, specifically a French one

nothing compelled Uncle Sam to supply USTs 'cause demand was so high. except a hot war in Vietnam, of course, yet the VietCong weren't burning down the White House, at that time

Thu, 11/07/2013 - 13:42 | Link to Comment TBT or not TBT
TBT or not TBT's picture

Nah, you are right. The vietcong and their ilk didnt make it to the White House, not until inauguration day in 2009. Looking on the bright side, they have not burnt it down, but you can't put it past them.

Thu, 11/07/2013 - 10:37 | Link to Comment shovelhead
shovelhead's picture

Bright side:

When the dollar dies and gets revalued and the cheap ride on oil is over, manufacturing will be back because the cost will be too high to ship halfway across the world.

Expensive oil will be needed for production instead of wasted on shipping.

Hopefully the transition will be gradual instead of abrupt.

Abrupt would truly suck because I don't think you can make a blanket or shoes from a pile of derivatives.

Thu, 11/07/2013 - 10:31 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

American workers have to be equated to third world laborers!!!!

That is their goal.

Once US workers are making as much as workers in Nigeria or some other place with nothing, the US will once again be a place to build and sell stuff.

My worry is that before that happens, the US will collapse.

 

Thu, 11/07/2013 - 10:49 | Link to Comment Urban Redneck
Urban Redneck's picture

Non-specialized labor in Nigeria runs about $2500 per YEAR now, pre-tax (or a little over $200 PER MONTH).

Thu, 11/07/2013 - 09:42 | Link to Comment foytik
foytik's picture

It will really get bad... in 15 years when the interest on the national debt far exceeds income tax revenue

Good news! 15 years from now the US wont have to be making any national debt payments.

What I mean by that is looking at the current trajectory it seems inevitable that we will have a collapse of the dollar and a new sort of government before 15 years is past.

Thu, 11/07/2013 - 14:30 | Link to Comment sgt_doom
sgt_doom's picture

The really humorous reality is (and many will disagree with me, but that's alright, few truly understand arithmetic and aritmetical relationships today) that the debt could be converted to shares and sold off to pay off the debt, which will never happen, because debt is their ultimate weapon, always has been always will, just as their ultimate entitlement is their "right" to create money.

I really like this clip from the fictionalized filme on BCCI, called, The International, when the Italian presidential candidate, an aerospace corporation CEO, is explaining finance to the Europol investigator (Clive Owens) and the deputy prosecutor from NYC (Naomi Watts):

http://www.youtube.com/watch?v=2B_SxGmSJP0

 

Thu, 11/07/2013 - 08:53 | Link to Comment SnatchnGrab
SnatchnGrab's picture

No mention of NAFTA or GATT/WTO? NAFTA especially DECIMATED the Textile mills in North Carolina.

Thu, 11/07/2013 - 14:40 | Link to Comment sgt_doom
sgt_doom's picture

Of course not, the fraudsters (paid-to-play) never do.

So please allow me to explain for any unwashed masses out there:

NAFTA allowed for the foreign takeover of Mexican banks, ensuring lucrative drug money laundering profits, primarily, and seocondarily the following takeover of the Mexican agriculture industry, ensuring cheap labor flooding up north as the independent farmers were kicked off their lands.

NAFTA was lobbied for strenuously by David Rockefeller (founder of the Council for the Americas, the chief lobbyist group for NAFTA) and his ilk.

Just as his bunch lobbied heavily for GATT, the WTO and China's entrance into the WTO.

After all, it was David Rockefeller who accompanied President Nixon, and Rockefeller's boy, Henry Kissinger, to China to first open up relations with the USA.

And it was David Rockefeller who established banking operations in Beijing and Moscow in 1973.

A little point which frequently escapes attention, just as it was David Rockefeller (and his brother, Nelson) who owned the Warren Commission which put out that report claiming a Marine Corp vet murdered a Navy WWII vet, President John F. Kennedy.

Easy to confirm what I said, simply look at the two top dudes involved, Allen Dulles and John McCloy, and their life tax returns, showing how the vast majority of their earnings derived from the Rockefeller family and Rockefeller business interests, both before and after their involvement with the Warren Commission.

Sure, people are still dumb enough to believe that the two top guys appointed to investigate the investigation into the murder of a prominent American citizen, President Kennedy, might be the one dude he recently fired for misleading him on the Bay of Pigs invasion, presaging the Cuban missile crises (Allen Dulles) and the other dude having been an attorney for I.G. Farben in Nazi Germany before WWII (and who sat next to Adolph Hitler during the Olympics in Germany), but the reality is that they were both owned by the Rockefellers, who owned that Warren Commission and ensured that bogus Warren Commission Report.

And this, and 9/11, and the missing $8.7 billion in Iraqi oil funds, and the Iranian hostage situation, and so much other perfidy costing people untold money and human lives and suffering, is the reason why the assassination of President John F. Kennedy, and Rev. Martin Luther King, Jr., and Senator Bobby Kennedy still matter.

And only the waterboarding of David Rockefeller will give us the immediate truth!

Thu, 11/07/2013 - 11:26 | Link to Comment STP
STP's picture

Yep, not only NC, but we used to have a huge Textile industry all over the South!  That's all gone now...

Thu, 11/07/2013 - 06:40 | Link to Comment doggis
doggis's picture

I WISH THESE WRITERS WOULD STOP APOLOGIZING FOR GOVERNMENT BECAUSE GOVERNMENT IS INEPT.

THIS CHARACTERIZATION IS INACCURATE.

THOSE POLITICIANS ARE FAR FROM INEPT.

THE JOBS OF THE USA WERE SHIPPED OFFSHORE BECAUSE IT WAS PLANNED.

WHAT DO YOU THINK ENRON WAS - IT WAS A BACKDOOR WAY FOR GOVERNMENT (THINK BILL CLINTON/BUSH) TO BUILD UP THE INFRASTRUCTURE IN INDIA USING ENRON AS A FRONT, FOR THE SOLE PURPOSE OF OUTSOURCING JOBS - SPECIFICALLY IT JOBS. ENRON WAS THEN TAKEN DOWN IN AN ENGINEERED DEMOLITION SO THE DOTS COULD STAY UNCONNECTED.

IT IS DESIGN THAT JOBS ARE BEING OUTSOURCED, AND IT IS TREASON THAT THE POLITICIANS ARE SELLING OUT THE PEOPLE TO SECURE THE INTERESTS OF CORPORATIONS.

LOOK AT BLACKSTONE, CARYLE GROUP, APOLLO GROUP, KKR PRIVATE EQUITY. THEY ARE THE ENRONS OF TODAY. THEY ARE FURTHER DEVELOPING THE INFRASTRUCTURE OF INDIA AND AFRICA FOR ONE PURPOSE - OFFSHORE MORE JOBS. THEY ARE THE ENRON OF TODAY.

WAKE UP PEOPLE OF USA. YOU ARE BEING HAD AND CONNED! WAKE THE FRICK UP!!!!!!!!!!!!!

Thu, 11/07/2013 - 14:49 | Link to Comment sgt_doom
sgt_doom's picture

Thank you.

And the first private equity firms (with their offshored funds to avoid tracking and taxation) were AEA Investors, financed and founded back in the 1960s by Rockefeller, Mellon, Harriman and a member of the Warburg banking family, and the other was Warburg Pincus, founded by a different member of the Warburg banking family.

And this was to ensure the hiding of their ownership and wealth, as Wright Patman, the great populist from Texas --- with the support and backing of the Kennedy administration --- began a years-long congressional investigation into how the super-rich hid their ownership and wealth within foundations and trusts, which was why the offshore tax have, or offshore finance center of today, exploded in number beginning in the 1960s.

Unfortunately, with the assassination of JFK, and Nixon into office, Patman's study was interdicted by the selection of Rockefeller lackey (and future founder of the largest private equity firm on the planet, the Blackstone Group), Peter G. Peterson, to hid the commission to enforce the study.

Which was the paramount reason for those assassinations in the 1960s (the Kennedy brothers and Rev. King), the Kennedy administration was going after them at their most vulnerable and sensitve point:  their financial command and control!

[FYI:  Ted Sorensen, former JFK speech writer, who claimed to be a progressive, would spend the rest of us life at their law firm representing Apollo and Carlyle Group --- was always super-suspicious of Sorensen, Ben Bradlee and Dean Rusk (CIA????).]

Thu, 11/07/2013 - 06:30 | Link to Comment Bearwagon
Bearwagon's picture

There is a quite interesting "working paper", published by the "Oxford Martin School", regarding future employment: "The Future of Employment: How Susceptible Are Jobs to Computerization", from September 17, 2013: http://www.futuretech.ox.ac.uk/sites/futuretech.ox.ac.uk/files/The_Futur...

Attention: It is a PDF

Thu, 11/07/2013 - 04:02 | Link to Comment no more banksters
no more banksters's picture

Breaking: neoliberal dictatorship invades in the ERT building!

http://failedevolution.blogspot.gr/2013/11/breaking-neoliberal-dictators...

Thu, 11/07/2013 - 03:08 | Link to Comment dinkum
dinkum's picture

 

In America, the shadow/parallel/black/underground monetary policy and banking system is arguably 9 to 10 times larger than the de jure/by law government monetary policy and banking. In this regard you can categorize value/political systems in three camps:
  1. Those who believe and practice STEM & BAT (science, technology, engineering, math & best available technology)
  2. Those who  do not believe and practice STEM & BAT
  3. Those who proudly proclaim they do not know or care about STEM & BAT but leave it up to political parties' nominees for whom they vote or independents who vote for issues affecting them within 5 km radius of their homes -- in spite of being local governments' responsibilities.  

28 years ago most schools of economics were in agreement that technical half lives were in the 7 year range. Past decade the half life ranges is under 5 years. Meanwhile, academia, law, lawmakers and policy makers are one to four half lives behind STEM & BAT. Tests of American adults reflect 47% function at year 4 or lower in math and English for various reasons. 

In the US heartland in the 1950s nearly all major and medium sized manufacturing companies in my hometown had R&D divisions/subs that pushed the envelope STEM & BAT-wise just as they did 100 years earlier. Standard Oil companies looked for three characteristics of college recruits:

  1. Dissatisfation with the status quo
  2. Ability to do something about it
  3. Sense of urgency

We were taught to always compete and innovate, and, unions always pitched the "guarantee job for life" entitlement. This clash of being dissatisfied and satisfied with the status quo caused the flight from closed shop regions to open shop regions mostly in the South. Those in the South who wanted a guaranteed job or welfare for life migrated to the North. 

Thus the key cause of premise of the EconMatters blog is protectionist legislation for non-competitive manufacturing operations starting with the upstream of the value added chain -- raw materials that in the auto industry comprise 40% of a unit cost. Labor costs of American Motors in Toledo, the least efficient auto plant in the US was 12%. Honda in Marysville, Ohio started with 7% labor costs per unit with less than 35% robotics due to training workers to understand what was the role of robotics before increasing them and reducing labor costs further. 

An ignot and billet plant in Chicago shipped its product to Japan for fabrication and back to Chicago instead of fabricating the steel across the street from the mill. Protecting raw materials became a death sentence for downsteam buyers who could not Buy America and compete. By the time US became a debtor nation n 1987, LTV Steel sought bankruptcy protection with USW seeking cash from unconstitutionally created successor priority secured creditors who did not fund third party beneficiary contracts for employees subject to multi-employer union trustees -- 50% management, 50% union managers. 

I begged a friend who was a USW regional rep to negotiate for credit to buy, sell and distribute off-shore subsidised steel being dumped to downstream US buyers. AFL-CIO implemented the "stop" tradition to protect Teamsters in warehousing and distibution. Put another way, the three branches of government were sidelined by a parallel legal system. 

By the 1990s 62% of all US steel manufacturers at one time sought protection in bankruptcy court. 

Since I was born an entrepreneur most of what I see are opportunities for management and training jobs in industrial sectors that are grossly mon/mis/mal managed. If only governments got out of the way with unions, protectionism and other "helpful" isolationist policies with consistent "unintended consequences".

 

 

 

 

 

Thu, 11/07/2013 - 03:40 | Link to Comment SAT 800
SAT 800's picture

Yep. the Government is the problem; the only problem worth discussing; all the blabbing about the banks is a serious misdirection; all the banks did was buy some Congressmen and then proceed to exploit the deregulation they bought themselves. Lousy; crooked, anti-patriotic, me first government; Government alphabet soup growing like cancer; all completely dysfunctional and lined up against progress or business at any price; granting China most favored nation trading status; just check out that one item; that's the floor level of the pyramid of self-destruction of this country made possible by politicians willing to sell their country down the drain.

Thu, 11/07/2013 - 13:49 | Link to Comment TBT or not TBT
TBT or not TBT's picture

The clintons rented out the Lincoln bedroom to a Chinese foreign agent they had found financially generous.

Thu, 11/07/2013 - 08:39 | Link to Comment redd_green
redd_green's picture

Who do you think runs the government, and controls the monetary system?  The banks.  

Wed, 11/06/2013 - 23:14 | Link to Comment MikeMcGspot
MikeMcGspot's picture

1950s Glory Days..

As much as we may wish for the old days and bring them back, manufacturing plants with hundreds of workers each, making the products and infrastructure of greatness.

The days of yesteryear are gone and at least for now, untll we start a steep decline in energy and hit an inablity to advance our technolgy, those days are gone.

Should there be a big move to bring manufacturing back, what might a plant look like?

Great halls of robots snapping things together with greater precision and lower cost than thousands of humans. 

No matter how the ruby slippers tap together, people chanting "there is no place like home, there is no place like home".

Home is not in the past, the streets were never and will never be paved with gold.

There is no going back for the time being.

Let's bring manufacturing back, fire up the robot plants.

Insource everything, see what that does to the employment rate.

The needle on that tank will continue to sink as long as the application of technology and science towards production continues in an all consuming Moores law type way, the answer is not in bringing the past back but rather remodeling the presence.

Thu, 11/07/2013 - 04:16 | Link to Comment starfcker
starfcker's picture

if that were true, the robots would be here. get back to me when foxconn fires it's 1.2 million workers

Thu, 11/07/2013 - 03:44 | Link to Comment SAT 800
SAT 800's picture

It has nothing to do with energy; make me dictator and I'll straighten out the whole mess in 90 days. Cut off China, cold turkey; evict the UN from their headquarters building in NY; and rent it out; cancell and delete every alphabet soup Fed. agency in existence and bring back the Gold standard. within one year everyone who wants a job will have one manufacturing the things we need and use here in the US. I might even cancell the interest payments on all the T-Bonds the Chinese own.

 

Wed, 11/06/2013 - 22:41 | Link to Comment justsayin2u
justsayin2u's picture

Government jobs have the best pay and benefits.  Thats where people should look.  With all the new federal agencies federal employmemnt should be booming soon.

Thu, 11/07/2013 - 03:50 | Link to Comment PT
PT's picture

If you can't make a profit then don't do it.  Find out what your "customer" wants and give it to them.

:P

Thu, 11/07/2013 - 14:52 | Link to Comment sgt_doom
sgt_doom's picture

Moron, in a so-called consumer based society (70% consumption and the GDP) does not exist when the top 15% are responsible for the vast majority of that 70% figure!

Wed, 11/06/2013 - 22:03 | Link to Comment wkwillis
wkwillis's picture

It's a self correcting problem. When the rest of the world stops giving us free stuff the dollar will renormalize, jobs will renormalize, housing costs will renormalize (as we build factories in the flyover instead of the metrocoastal areas), the illegals with children at home and who aren't earning much in hard currency terms will return (those with children here have their expenses here and don't care about the exchange rater), etc.

Wed, 11/06/2013 - 22:11 | Link to Comment Carl Popper
Carl Popper's picture

Self correcting over 20 painful years of global labor convergence.

Thu, 11/07/2013 - 14:53 | Link to Comment sgt_doom
sgt_doom's picture

Except I've been hearing that pile of bullcrap over the last 40 years.

Thu, 11/07/2013 - 01:24 | Link to Comment hidingfromhelis
hidingfromhelis's picture

WWIII won't last for 20 years, and that's going to be the big correction.  After that, there will be full time employment for everyone that remains, also known as trying to stay alive.  

Thu, 11/07/2013 - 14:16 | Link to Comment TBT or not TBT
TBT or not TBT's picture

WW III lasted from '46 to '90. We are on IV now.

Wed, 11/06/2013 - 22:12 | Link to Comment Carl Popper
Carl Popper's picture

Labor has priced itself out of the market.

All the regulations and business taxes and noncash benefits.

Labor would probably like to cut back on the taxes and regulations component of their "total compensation" package, and receive it in cash wages instead, but labor is often too economically illiterate to know that it pays for all those things.

Thu, 11/07/2013 - 03:58 | Link to Comment PT
PT's picture

Minimum wage Australia (after tax) ~ $500 per week.
Comfy wage China = $50 per week.
How do we compete with that again?

What if we did all suddenly start working for 50 bucks per week, bringing manufacturing back to Australia.  Then what would happen? 

Thu, 11/07/2013 - 12:24 | Link to Comment ponyboy96
ponyboy96's picture

"Minimum wage Australia (after tax) ~ $500 per week"

Wait, What?  Min wage in the US before tax = $290/week. Wow, I guess Australia is really screwed.  Lovely country though, great people.  Would have loved to retire there, but I doubt I could afford it.

The average blue colar worker (in the south at least) doing construction, electrical or factory work only makes about $15/hr if they are lucky, so $600/week again before taxes.  The illegals come in and do it for about $10-12/hr though under the table no tax.  Yeah, we are screwed one way or the other.

 

Thu, 11/07/2013 - 03:41 | Link to Comment PT
PT's picture

In my city:  minimum wage = $500 per week.  Cheapest house in cheapest suburb = $450 per week mortgage, and don't tell me that rates / electricity / gas / water will be covered by the other 50 bucks, let alone repairs (it was the cheapest house) and the price of food and transport (not exactly walking distance to jobs).

Labour is squashed between low wages overseas and high debt / real estate prices locally.  And I don't just mean the price of houses.  The local grocer / mechanic / manufacturer has to pay the rent / mortgage too, and pass that cost onto the customer.  In order for labour to compete, debt and real estate prices MUST come down.  But then the rentier class will lose all their "wealth".   Notice how the rentier class has their wealth, real estate and share prices, artificially inflated while everyone else is left to fend for themselves in the fwee markits.  Not that I don't like FM, but everyone is still ignoring the part that is openly rigged.

Thu, 11/07/2013 - 13:17 | Link to Comment Carl Popper
Carl Popper's picture

The rentiers need to face competition too. Most people dont see the barrirs to entry they have arranged for themselves.

You cannot compete with china on wage alone, but there is no reason our labor needs to be priced even more uncompetitively due to economically unenlightened labor policies that merely harm labor in the long run.

Wed, 11/06/2013 - 21:40 | Link to Comment tony bonn
tony bonn's picture

"..The leadership of the United States over the last 25 years has really screwed up this once great country..."

that comment is deceptive.....you would have been correct if you stated that they intentionally screwed up this country....and so much of it is rooted in greed....the greedy assholes didn't like pollution laws so they moved to china where they can destroy the environment with impunity and give lung cancer to 8 year old girls as reported in these pages recently....

it is the love and worship of mammon plus the debt based dollar....those 2 factors have been the greatest in destroying jobs.

Thu, 11/07/2013 - 04:18 | Link to Comment SAT 800
SAT 800's picture

The comment is not deceptive. it stands. you didn't provide any evidence of deception.

Wed, 11/06/2013 - 21:16 | Link to Comment BlueCheeseBandit
BlueCheeseBandit's picture

Welcome to white slave niggardom.

You gonna take it? Or you gonna pick up a weapon and externalizer your pain to the pigs?

Killing a cop: 50 points.
Killing a politician: 1000 points.
Killing a politician who gets more than $10k a year from a bank: 10000 points

Happy hunting.

Thu, 11/07/2013 - 04:16 | Link to Comment SAT 800
SAT 800's picture

Are you sure you want this on an NSA thumbdrive; with your SS number on it?

Wed, 11/06/2013 - 21:10 | Link to Comment Kreditanstalt
Kreditanstalt's picture

"these are not just the low paying manufacturing jobs, but all the college degreed mid and upper level management jobs as well being outsourced"

Well, it's about damn time some of these mid-level management, technical staff, technicians, office paper-pushers, and government employees lost THEIR jobs, isn't it...

Lower-end jobs are all gone.  Service sector produces NOTHING.  The only way we're going to get a re-set will be via unemplyment soaring - the destruction of higher-paying jobs.  Ever wondered why 'production' keeps rising?  Profits rising?  Dividends being paid?   Those with hgher-paying jobs are all the people who keep on consuming even as the rest of us are in recession...BRING IT ON!

Wed, 11/06/2013 - 21:02 | Link to Comment Vendetta
Vendetta's picture

I don't remember there ever being a real debate about trade agreements and/or outsourcing... that is because both major political parties are in total agreement to deprive American workers of jobs in favor of payola from their corporate and banking masters.  If anybody here knows of a real debate by politicians regarding the topic please post the link to the video.... I expect crickets since Ross Perot was only one to say anything negative about it way back in 92.

Thu, 11/07/2013 - 10:05 | Link to Comment geno-econ
geno-econ's picture

Trade agreements are wonderful in order to boost big company exports of agriculture and machinery from the US. However it only lasts for one or two years and thereafter the trade balance goes negative with imports rising from abroad since all trade agreements give special market access to the U S market. This has been the pattern with virtually every trade agreement in the past 30 years which explains how cheaper labor rates abroad become a big comparative advantage in replacing US jobs for the sake of big company gains as they gain exports initially and then shift jobs overseas to profit from imports into the US.. It is called Free Trade but dumb US economics.

Wed, 11/06/2013 - 20:54 | Link to Comment 11b40
11b40's picture

Bingo, Falak.
The Savings & Loan fiasco was a warning shot that went unheeded. Then, Ross Pirot laid it out for us in 1982, but no one listened.
Any honest person who was really paying attention knew Reagun was a G.E. Sponsored shill from the 1950's forward.

Wed, 11/06/2013 - 20:51 | Link to Comment awells
awells's picture

Just a couple of anecdotal examples - X-rays reviewed by radiologists in India. Software development labs migrated to India and China. IBM now employs more people in India than in US. China is fast getting there, and that doesn' sales of entire divisions to China. These are not middle of the bell curve jobs, they are the top 20% and better.

Wed, 11/06/2013 - 21:19 | Link to Comment Cynthia
Cynthia's picture

For the most part, healthcare is still a different story. What you need to understand about our healthcare system is that it is an enormous jobs program. Something like 20% of our working population works in the healthcare field, and a large number of those have nothing to do with actual medical care. They are paper shufflers working for the health insurers, the mega providers, people working at the state and federal health agencies. Those people have a vested interest in protected a bloated, inefficient healthcare industry because making it less bloated and less inefficient would cause them to lose their jobs.

Thu, 11/07/2013 - 14:45 | Link to Comment TBT or not TBT
TBT or not TBT's picture

A big juicy voting block too. As seen in every other western developed nation, too big a voting block to leave in the private sphere. In the USA government unionized workers are huge backers of the government party, teachers, postal workers, IRS workers, all beholden to the big government agenda.

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