[enurihent]

Need A Job? Too Bad! The Good Jobs Are
Being Shipped Out Of America As
Part Of The New One World Economy

The Economic Collapse
Dec 16, 2010

I hope that you enjoy the cheap foreign-made plastic trinkets that you will be exchanging with your family and friends this holiday season, because they are literally destroying the U.S. economy. As part of the new “one world economy” that both Democrats and Republicans insist is so good for us, millions of good paying middle class jobs have been shipped out of America. Do you need a job? Are you wondering where all the good jobs went? Well, the next time you are out just walk into a store and start looking at the product labels. Most of the things that are sold in our stores are now made out of the country. So if you need a good paying job to support your family that is just too bad – you have been merged into a global labor pool where you must compete for jobs with people on the other side of the globe willing to work for less than a tenth of what you usually make. Welcome to the “one world economy” where big global corporations make a fortune exploiting slave labor on the other side of the world while “overly expensive American workers” get dumped out on the street.

Are you in favor of a redistribution of wealth? Most of the time when the phrase “redistribution of wealth” is brought up, conservatives and libertarians visibly cringe – as they should. But did you know that right now the greatest redistribution of wealth in the history of the world is taking place and our politicians are doing nothing about it?

For a moment, imagine a giant map of the world. On that giant map, put a huge pile of money on the United States, and also put a huge pile of money on China and on the OPEC nations. Now imagine a big hand coming along once a month that takes tens of billions of dollars out of the U.S. pile and puts it into the piles of China and the OPEC nations.

As this continues month after month after month, what is eventually going to happen?

The U.S. pile of money is going to get far smaller and the other piles of money are going to get much, much larger.

And that is exactly what is happening in our world today.

Back in 1985, the U.S. trade deficit with China was 6 million dollars for the entire year – not really anything to worry about it.

Well, let’s fast forward to 2010. For the month of August alone, the trade deficit with China was more than 28 billion (that’s billion with a “b”) dollars.

In other words, the U.S. trade deficit with China in August was more than 4,600 times larger than the U.S. trade deficit with China was for the entire year of 1985.

My, how the world has changed in 25 years.

Oh, but doesn’t China “invest” some of that money they are getting from us back into our country?

Well yeah, our top officials regularly go over there to beg them to lend us more money. Now we owe China close to a trillion dollars. We also owe the major oil exporting nations of the Middle East massive amounts of money.

Is this a good idea? Let us keep in mind the ancient principle that the borrower always ends up the servant of the lender.

Is it wise for the United States to become enslaved to China and to the oil exporters of the Middle East?

Is that any way to run an economy? Is that any way to run a country?

All over the United States factories are closing down. If you go to shopping centers in many areas of America you would think that the hottest new store was called “Space Available”.

Since the year 2000, we have lost 10% of our middle class jobs. In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.

What kind of progress is that?

“But oh”, the supporters of the one world economy will declare, “the cheap goods, the cheap goods!”

Yes, I hope you enjoy paying ten percent less for your plastic trinkets. But you will also support American workers one way or another. Either you will provide them with good paying jobs, or you will pay for their food stamps and their unemployment checks.

One out of every six Americans is now enrolled in a federal anti-poverty program. As 2007 began, 26 million Americans were on food stamps, but now 42 million Americans are on food stamps and that number keeps rising every single month.

Can anyone out there please explain how the “one world economy” is supposed to be good for us when 42 million Americans cannot even feed themselves?

Allowing our country to be deindustrialized just so that we can consume more cheap goods from China is like tearing down pieces of your house to keep your fire going. In the end, you won’t have much of a house left.

Whatever your opinion of Donald Trump is, this next video is worth watching. Trump certainly should not run for president, but as a savvy businessman he definitely understands what China is doing to us….



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It is time for the American people to wake up.

We are being taken advantage of.

The one world economy is going to keep destroying the U.S. middle class. There is no way that American workers can compete with slave labor on the other side of the globe. It is impossible.

In fact, just about every kind of job imaginable is being shipped to places where labor is cheaper. Even engineering and computer programming jobs are being offshored and outsourced.

The United States is even being slaughtered in high-tech industries. Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

According to one recent study, China could become the global leader in patent filings by next year.

The United States has become a bloated, slovenly nation that consumes massive amounts of wealth but that produces relatively little.

With each passing year, we make fewer things inside the United States….

*The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

*Since 2001, over 42,000 U.S. factories have closed down for good.

*As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time that less than 12 million Americans were employed in manufacturing was in 1941.

*Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

*In 2010, the number one U.S. export to China is “scrap and trash”.

Oh, but won’t “getting more education” solve all of our problems and get the American people back to work?

No.

The truth is that tens of millions of Americans have a “higher education” that is not doing them any good today.

In his article entitled “The Great College-Degree Scam“, Richard Vedder explains that a large percentage of U.S. college graduates are working in jobs that have not historically required college degrees….

Here it is: approximately 60 percent of the increase in the number of college graduates from 1992 to 2008 worked in jobs that the BLS considers relatively low skilled—occupations where many participants have only high school diplomas and often even less.

Ouch.

Later on in his article, Vedder notes that the number of college graduates that are waiting tables or that are working as cashiers is absolutely exploding….

In 1992 119,000 waiters and waitresses were college degree holders. By 2008, this number had more than doubled to 318,000. While the total number of waiters and waitresses grew by about 1 million during this period, 20% of all new jobs in this occupation were filled by college graduates. Take cashiers as well. While 132,000 cashiers possessed college degrees in 1992, by 2008, 365,000 cashiers were college graduates. As with waiters and waitresses, 20% of new cashiers since 1992 are college graduates.

So do you still think that the “one world economy” is a great idea?

Well, you might want to practice the following two phrases….

#1 “Would you like fries with that?”

#2 “Welcome to Wal-Mart!”

Our economy is turning into a low-wage service economy because we don’t make much of anything in the United States anymore.

So if you need a good job, I am afraid that the joke is on you.

The good jobs are being shipped out of the United States as part of the new one world economy, and millions of unemployed Americans have been left to fight over the low paying service jobs that remain.

So if you are flipping burgers or stocking shelves for a big multinational retail chain, perhaps you should consider yourself to be fortunate. At least you still have a job. There are millions of desperate, hungry-eyed Americans that would take your job in a second.

And you know what? Things are only going to get worse.

[xiaoselangone]

Last year, the US created 19.9 per cent of world manufacturing output, compared with 18.6 per cent for China, with the US staying ahead despite a steep fall in factory production due to the global recession.

That the US is still top comes as a surprise, since in 2008 – before the slump of the past two years took hold – IHS predicted it would lose pole position in 2009.

However, a relatively resilient US performance kept China in second place, says IHS, which predicts that faster growth in China will deny the US the top spot next year.

The US became the world’s biggest manufacturer in the late 1890s, edging the then-incumbent – Britain – into the number two position.

Hal Sirkin, head of the global operations practice at Chicago-based Boston Consulting Group, said the US should not despair too much at the likelihood that it would lose the global crown in manufacturing to China.

“If you have a country with four times the population of the US and a tenth of the wages, it is fairly obvious they will pull ahead at some time in productive capabilities,“ he said.

Last year, according to IHS, goods output by the US totalled $1,717bn, ahead of China at $1,608bn.

However in 2011, on the basis of IHS’s estimates, China’s factory output will come to $1,870bn, a fraction ahead of the projected US figure for the year.

If China does become the world’s biggest manufacturer, it will be a return to the top slot for a nation which – according to economic historians – was the world’s leading country for goods production for more than 1,500 years up until the 1850s, when Britain took over for a brief spell, mainly due to the impetus of the industrial revolution.

The IHS figures are worked out on the basis of current-year output numbers, translated into dollars, with no adjustments for inflation. If the figures are calculated in inflation-adjusted, constant price terms, then I HS believes that the US will keep its top role in manufacturing for a little longer.

On an inflation-adjusted basis, which is based on a forecast that US inflation will be lower than that in China over the next few years, China is forecast to take over the number one position in manufacturing in 2013-14.

According to the IHS numbers, world manufacturing output last year came to $8,638bn (€6,979bn, £5,825bn) or 16.7 per cent of global gross domestic product.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.

[xiaoselangone]

Thriving in a Global Economy: The Truth about U.S. Manufacturing and Trade
by Daniel J. Ikenson

Reports of the death of U.S. manufacturing have been greatly exaggerated. Since the depth of the manufacturing recession in 2002, the sector as a whole has experienced robust and sustained output, revenue, and profit growth. The year 2006 was a record year for output, revenues, profits, profit rates, and return on investment in the manufacturing sector. And despite all the stories about the erosion of U.S. manufacturing primacy, the United States remains the world's most prolific manufacturer--producing two and a half times more output than those vaunted Chinese factories in 2006.

Yet, the rhetoric on Capitol Hill and on the presidential campaign trail about a declining manufacturing sector is reaching a fevered pitch. Policymakers point repeatedly to the loss of 3 million manufacturing jobs as evidence of impending doom, even though those acute losses occurred between 2000 and 2003, and job decline in manufacturing has leveled off to historic averages.

In the first six months of the 110th Congress, more than a dozen antagonistic or protectionist trade-related bills have been introduced, which rely on the presumed precariousness of U.S. manufacturing as justification for the legislation. Justification for those bills is predicated on the belief that manufacturing is in decline and that the failure of U.S. trade policy to address unfair competition is to blame. But those premises are wrong. The totality of evidence points to a robust manufacturing sector that has thrived on account of greater international trade.

According to data from the 2009 Economic Report of the President, as gathered and reported recently by George Mason University economics professor Don Boudreaux, since 1987, real U.S. manufacturing output has increased by 81 percent. And as reported by the Bureau of Economic Analysis, American real manufacturing value-added — the market value of manufactured goods, over and above the costs that went into their production — reached a record-high level in 2007 (the last year for which final data are available), breaking the record set in 2006, which broke the record set in 2005, which broke the record set in 2004. Notwithstanding the recent recession that has affected all sectors of the economy, U.S. manufacturing has been thriving in recent years.

If Meyerson isn't intentionally misleading Washington Post readers, he is simply unqualified to be rendering conclusions about the state of manufacturing. A basic look at the history of the statistic he used shows its uselessness to the point he wants to make. Manufacturing as a share of gross domestic product peaked in 1953 at about 28 percent of the economy — well before the period of U.S. industrial prowess Meyerson yearns for — and has been trending downward ever since. Today manufacturing accounts for about 12 percent of our services-dominated economy, but manufacturing output and value-added are higher than ever in real terms.

Second, if the United States doesn't "make things anymore," nobody does. According to data from the United Nations Industrial Development Organization, U.S. factories are the world's most productive, accounting for 25 percent of global manufacturing value-added. By comparison, Chinese factories account for 10.6 percent.

That may be hard to fathom, given that U.S. factories tend not to produce the sporting goods, toys, tools, and clothing found in Wal-Mart and other retail outlets nowadays. But U.S. factories make pharmaceuticals, chemicals, technical textiles, sophisticated components, airplane parts, and other products. American factories have moved up the value chain.

Contrary to this last point, Meyerson asserts, "The long-term decline of American manufacturing has depleted our high-tech, cutting-edge industries as much as it has our more venerable sectors." To support his claim, he cites the value of our "high-tech" exports falling behind China's beginning in 2004. By "high-tech," Meyerson means computers, iPods, and other consumer electronic gadgets so ubiquitous nowadays. But in reality, the percentage of Chinese value-added in these so-called high-tech exports is quite small. Economists at the U.S. International Trade Commission estimate that only about 50 percent of the value of U.S. imports from China is actually Chinese value-added; the rest is value added in other countries and embedded in the components, design, engineering, and labor.

For iPods, the Chinese value-added is a few dollars on a product that costs $150 to produce and retails for $299. So, as China's "high-tech" exports leave America's "in the dust," their sale in the United States and elsewhere supports high-paying American engineering, marketing, and logistics jobs, while providing Apple with the profits to conduct R&D to employ more engineers and keep the virtuous circle going.

The factory floor has broken through its surrounding walls and now traverses borders and oceans. What we have now is a world in which it is no longer "Us versus Them," but rather "Us and Them," a formulation that has been helping U.S. manufacturing to thrive. Without complementary Chinese and other foreign labor, far fewer American manufacturing ideas would come to fruition.

American manufacturing is by no means in decline. What should be is Meyerson's myopic way of seeing things.

http://www.cato.org/pub_display.php?pub_id=8750