26 May 2011

How are American workers supposed to compete?

   America has been decimating its manufacturing base since the 1970s by shipping a steady stream of  jobs to foreign nations. In the 1990s, America began to ship its corporate support, marketing, engineering and software jobs to foreign nations in volume. Neither Congress nor any Administration has ever made any genuine attempt to deal with these trends.

   The resulting effect has included a sharp reduction in the availability of corporate middle class jobs. Without a robust middle class, America has come dangerously close to losing its ability to create new physical product wealth. This kind of wealth creation is being done in other nations, by foreign multinational corporations, who will eventually decide they do not need American partners. They only need American subsidiaries that employ low wage workers.

   And then there is Barack Obama.   He promised “Change”.

   But thus far, America is not seeing the economic policy “change” it really needs to restore a robust economy. We are, in fact, moving in the opposite direction at a terrifying speed. And if one complains about the loss of jobs, there is an instant cry of protest. No politically correct politician will utter these words: “American jobs are for Americans”.

   American middle income labor will not be competitive with foreign labor until after the decimation of America’s economy, the collapse of its welfare system, high rates of unemployment and underemployment have forced desperate workers to take any job that will feed them, and there is an ascendency of a more affluent middle class in competitive foreign nations. 

   By default, failure is the economic policy of the American political establishment. The first three items in the preceding paragraph are in place... they are happening. The development of a higher paid foreign middle class, if it happens in sufficient strength to balance international middle income labor costs, may take awhile - or it may never happen.

   America is competing with foreign nations that have robust mercantile economic policies. Neither our Administration, nor Congress, has evidenced any substantial interest in creating off-setting policies to defend America’s economic interests. Without them, there is no hope for America’s middle class.

    If you are not an American, and this short essay disturbs you, I should point out that North America (the USA and Canada) is the largest cohesive and relatively open marketing opportunity available to any non-American corporation. But. America will only be an attractive marketing opportunity so long as Americans and Canadians have sufficient income to purchase goods manufactured elsewhere.

   Just remember: A prosperous America is an attractive trading partner.

0 comments: