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U.S. Structural Jobs Paradigm
By EconMatters
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.
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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And no one reading this article should ever forget that none of this shifting would have been possible or have happened if it were not for the FedRes and their magical stealing machine, "printing."
"The Tree of Liberty has been poisoned by green ink."
The Outsourcing meme was initiated massively by the US NWO elites for one reason; it was cheap labour arbitrage to maximise profits for the supply sider Oligarchs; period.
It was a deliberate attempt to break down the welfare state at home, destroy all labour representation and social cohesion so that the WS asset bubble incorporated all the inflationary juice, not the salaried working classes as previously. We thus walked away from Henry Fords mantra of "I pay my workers good salaries so that they can buy my products" to "I pay the Chindians low wages 'cos with my outsourced technology I maximise profits for WS assets, and for my shareholder club, by minimising labour input costs."
Pure economic heist based on DEBT financed model as the american consumer bought all on cheap debt; like a junkie.
The elites didn't care, they felt their model was a perpetual machine as they had $ reserve pegged on oil and world consumption pegged on debt, with the big MIC stick to keep the natives docile; including the new first world plebes.
We are MORE and MORE there as the world elites now run the world model and first world demoncracy is now string pulled on a stage managed basis like in the third world via political surrogates.
Its called inverted totalitarianism and it was blue printed under Ronnie and Maggie, in a tax havened paradise and NSA controlled environment from 1980 onwards. The elites had created the blue print during the relative decline of US power in the 70s based on the old Keynesian cum Friedmanian model that continued to fuel salaries and inflation due to oil imports upto 1979. Trilateralism was born and bred.
Volcker stopped the Keynesian cum Friedman model's inflation in salaries, MAggie ramped up the social dismemberment and Reagan nailed it once he recovered from his own assassination attempt; was it a warning from him to get the job done pronto?...
All conjecture...until somebody provides the information trail on that.
Oh what a wonderful world was the inception of the JR, Sue Ellen and Dynasty era, spooked up on Rambo and Terminator type steroid pumped fiat fed asset mania. Nostalgia is not what it used to be!
It was a deliberate attempt to break down the welfare state at home
******************************
Except it has had the opposite effect. MORE people than ever dependent on the "gubment".
Nah, it was business managers trying to get competitive advantage against other businesses. That was and is the fundamental driver right there. It LOOKS to some as if there is a conspiracy when this continuous quest for advantage generates appeals and lobbying to governments to get out of the fucking way, and/or help. Eventually these look like coordinated efforts because of how government sausage gets made: it is a monopoly, and a very large one, with guns and prisons galore, huge in comparison to any given business that wants something from it. So they form alliances of common interest against this much larger force. Individuals do the same, forming political parties, churches, professional associations, and on and on.
My belief has been that the globalists understand that to have continual "growth" they must bring up the standard of living of debt slaves around the world. Given that the ability of slaves (with automation) to produce is far greater than the abilty of slaves to consume, it is clear that one must rob from Peter to Pay-Pal ... errr Paul. And while robbing Paul, there is no harm in taking advantage of a little labor arbitrage on the side eh? wink, wink, nod, nod.
"Think of Jobs Outsourcing or Offshoring 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."
It is certainly not a vast wealth transfer from the rich of richer nations, to poorer nations.
Even those who prospered by outsourcing and those who prospered by providing services to the global businesses are finding their children are unable to find decent jobs. Many are living with parents or are being subsidized by their parents. But existing wealth will dissipate within one or two generations and we will all be poor compared to China. Nobody seems to care because we are living for today in our consumer driven debt economy. Are you listening Ben and Janet ?
I've been in the tech biz all my life and when I saw the jobs disapearing and foreign workers and then bosses showing up I knew we were screwed. Americans have been sold out. The only cure is to hope that the global economy blows a huge fucking hole in it and Americans have to start making their own shoes again. It's just a matter of time before Uncle Sams credit card gets cut up. If you want the number one reason we are in a mess now this is it.
When I got out of high school, in 1960; the United States exported shoes to China, at a profit. there's nothing impossible about it. The country has literally been sold out from under the population; who by and large, remain un-aware.
You can't have your cake and eat it too. You can't call for capitalism and free markets and then tell a company not to look for the cheapest source of labor. Government doesn't have the right to tell me how to run my business. Blame the dumbass populace who chose to encourage businesses to bring the cost down as much as possible. No civil activism in this country. Pathetic.
One of the completely legal Constituional Powers that Congress has is to regulate trade with foreign nations, and set tariffs; this was understood at the founding as necessary to defeat what they knew the British plan was; economic colonialism; and it worked to the great distress of the English Ruling Class. Congress voted in a treaty giving China Most Favored Nation Trading Status; and they can vote it back out again.
come on kito. elected representative goverment is supposed to represent the people who vote to be represented. remember a guy named bush, running for re-election promoting NAFTA? we dumped him, and ross perot got the highest vote for a third party candidate in my lifetime. the moment clinton signed NAFTA, ordinary people lost a great deal of the value of the labor, skills and businesses they spent a lifetime building. add in ZIRP and QE and now their capital became worthless, too. that's what borders are for. that's what tarriffs are for. throw a little pat buchanan in your reading, and not just forbes. i recomend 'death of the west'. we're going to have fix this at some point, question is when, and how much damage we are going to tolerate.
Correct.
This is false. Yes you can have capitalism and free markets an not do business with Communist China. Of course, you can. Think again.
"...Government doesn't have the right to tell me how to run my business..."
Bullshit. A company is not a human being - it has no rights. It can be told anything the people want. The founding fathers of the U.S. were generally suspicious of corporations because they were the most visible instrument of the Crown's corruption, exploitation and cronyism.
The states role in granting corporate charters and licenses to do business - as envisioned by the founding fathers - allowed businesses to conduct a very narrow scope of activites at the convenience of and to the benefit of the citizens. There was no such thing as a perpetual business license - it could be revoked any time at the whim of the state. Don't like state's conditions? Then hit the f*kin' road.
The founding fathers never whored out citizen's rights to 'capitalism and free markets' - that was only the wet dream of the priveledged that were too lazy to compete.
What America's industrial so-called leaders have done for the last generation is sell the plant and the land and fire all the workers. I don't call that capitalism. Capitalism is something that preserves the capital - and the return on capital. America's so-called leaders have simply STOLEN the capital. They are thieves and fools and traitors, not capitalists. I guess a free market has a buyer even for stolen goods, but I don't think that's the point of it.
Absolutely correct. Remember when Clinton signed the Most Favored Nation Trading Status Treaty for China, he told everybody, "Globalism will be good for everybody"; and he was a rhodes scholar, not a no hope product of a series of headstart programs; he knew he was selling out the country. And they're setting up Hilliary, a life long criminal, who is indictable, for the next election.
Oh its the leadership!!! how bout its the American people!! The ones who sold their country's soul for Wal-Mart priced shit. I didn't hear the masses complaining as they racked up debt so they could buy more worthless low priced throwaway crap!!! How bout people take a long hard look in the mirror instead of their 50 inch flat screen TVs and ask who is to blame. It's always the leaders fault, you know, the ones that the ignorant masses keep voting into office- Americans have themselves to blame. It's on their watch.
You're wrong. It is definetely the leadership. They sold their public office to the multi-national Corporate Kingpins; and they sold the US down the drain. How could anyone have avoided this trap? Clinton was intelligent and personable; how could any voter know he had already made a deal with the ruling class? He's the reason Wal-Mart exists; of course, if it's there, people are going to take advantage of the low prices; what do you expect?Henry Ford understood that his workers, ordinary assembly line grunts; needed to be able to buy a new Ford; otherwise something was wrong with the economics; this you might call common sense economics; When he realized this wasn't the case; he raised all their wages to five dollars a day; with no prompting or encouragement from anyone. He was right. If everyone loses their good paying job, where the fuck are they going to shop, but Wal-Mart? I mean that's all part of the plan; of the leadership.
As if the American people had any choice in the matter! They sold nothing as they had no power or ability to sell anything...those who did have the power made full use of it and have socked their money away in various tax havens so that they really don't care what happens in the good ole USofA anymore.......
Exactly correct; the beautiful beaches of the British Virgin Islands are chock full of middle age spread male flesh with delicious bikini babes hanging all over them; and that's just one of their winter rallying points.
If your argument is correct, Congress would never have passed Obamacare. The majority of Americans did not want it. The truth of the matter is that Congress passes laws to appease their big corporate campaign contributers. Members of Congress do what is good for themselves. They do not care about the American people. Regardless of who you vote for, it is business as usual after the election, despite the rhetoric to the contrary during the campaigns.
Of course business is always looking to cut costs but at the same time each country has a right to protect the economic interests and standard of living of its people. A lot of the outsourcing could have been prevented if the USA had engaged in fair trade instead of free trade that mostly favored the trading partners of the USA. Maintaining import tarrifs to preserve US msnufacturing jobs would not have been difficult but US multinationals wanted higher profits and larger bonus checks for their executives so the pressure was put on Congress to eliminate those import tarrifs. Sure, consumers got somewhat lower prices but at the expense of the loss of millions of good paying manufacturing jobs.
I think you're both right.
"The leadership of the United States over the last 25 years has really screwed up this once great country!"
YES - Your comment is correct. It was also been done knowingly and willingly by bought politicians at the behest of financiers, industrialists and the 1% globalists.
There is only one way to fix our current problems.
Renounce the one world globalists. Return to the concept of America and her citizen needs come first, rather than the needs of the globalist elite. Return to our Constitutional roots.
It will not happen of course. The one worlders have an excellent chance of succeding as truth has become lying and lying has become truth.
I it not just about America, but every country need to return to the concept of "citizens needs comes first" and return to the constitutional roots.
And seems like at least both of us are "extremists".
I'm sorry to say, I couldn't agree more.
Other economies have been down the over-educated ski-run before. It seems a hallmark of centrally-run economies to maintain overcapacity in, among other areas, academia, and pump out too many graduates for the economy to absorb.
My off-the-cuff observation is that those underemployed degrees turn their energies to political action, whether its thru the srum for power in the local dominant party, or otherwise. (Argentina's dirty war, for example).
So America's debt-serf youth will remain playing GTA 5 in front of their consoles for only so long.
Speaking of the jobless rate. Two timely reads that will be getting presented by the "powers that be" shortly.
http://www.godlikeproductions.com/forum1/message2402906/pg1
I'm sure it's nothing a few hundred million hollow-point rounds won't solve.
At least, that would appear to be the DHS's position.
Speaking of the jobless rate; don't forget it's a percentage; and it's absolutely necessary to legalize all 13 million of those illegal aliens just to make damn sure you never get a job that pays anything. Your Presiident says it will be done; and it will be done; and that's why.
"We've all been raised on television to believe that one day we'd all be millionaires, and movie gods, and rock stars, but we won't. And we're slowly learning that fact. And we're very, very pissed off."
Fight Club
"Millionaires", "movie god", "rock stars"???
How 'bout just a 2 bedroom 2 bath house "white picket fence" that is worth it's actual value and is bought and paid for with an income that isn't taxed by the Federal Government?
"Millionaires", "movie god", "rock stars"???
How 'bout just a 2 bedroom 2 bath house "white picket fence" that is worth it's actual value and is bought and paid for with an income that isn't taxed by the Federal Government?