Home / Get a job – in Shanghai or Bombay

Get a job – in Shanghai or Bombay

Please Share...Print this pageTweet about this on TwitterShare on Facebook0Share on Google+0Pin on Pinterest0Share on Tumblr0Share on StumbleUpon0Share on Reddit0Email this to someone

More US jobs have been lost during this administration than since Herbert
Hoover’s time: 3.2 million jobs gone
and there
are now 9 million unemployed. (Hoover’s term was worse, but is that any consolation?)

The "strong recovery" being promised isn’t going to fix the problem.
The economy will get better, but most of the jobs lost will stay lost.
Companies will do better, but Americans need to brace for a lower quality
of life than their parents and grandparents had.

Historically, about 40-45% of jobs lost during a recession have been recovered
quickly (a relative term if you’re one of the unemployed), then more jobs
were slowly added to the economy as the country and economy

It’s different this time.

New jobless claims were down to "only" 395,000 in the last reported
week [400,000 is the economists’ "magic number" for this measure]. New jobs
created were just 0.057 million. At that rate, it would take 56 years to
the jobs
aren’t exactly booming yet.

More than 85% of the jobs lost (2.8 million) were in manufacturing and many
of those moved to Mexico, China, India and other low wage countries. Worse

yet, this time around non-manufacturing jobs have left and are continuing
to leave the country.

The reason is simple: money. The average annual salary of an electrical engineer
with five years experience in San Jose, CA is $106,000; in Bombay it’s about $5,000
[BW 10/6/03: Engineering
on the Cheap
. In the year 2000, there were 195,000
H1B visas issued to allow engineers and
other high tech workers into the US – this year it’s down to 65,000, since
they can be hired even more cheaply to work in their own countries.

The job exports also affect another measure of how the economy is doing:
productivity. That’s essentially the Gross Domestic Product divided by the
number of employed.

Productivity appears to be going up, but all is not as it seems.

When Levi
shuts their last US factory
and fires 2,000
workers, the company contribution to the GDP remains the same but there are
that many fewer workers so productivity "goes up" even though nothing
really changed (at least not for the better). Add the 130,000 H1B workers
that are not in the country now and you get another "productivity boost." And
the millions of manufacturing jobs gone forever lift the measure yet again.

The US is well on the way to becoming even more of a service economy than
it is (80%). Your grandchildren may have to look forward to a future career
of waiting for cruise ships to dock, hoping there are going to be a lot of
tourists, if
current trends continue.

to Senators

to Representatives

Powered by

About Hal

  • John Mudd

    Corporations are stupid. The current trend they are incorporating of shipping jobs overseas is only going to create a young generation of Teddy Roosevelts who will, undoubtedly, win with large margins and force coporations to become competent, once again.

    There is a reason that corporations reside within the U.S., so perhaps they will simply have to pay a higher price to stay here so the government can create jobs for the people they are putting out of work.

    Corporations should be investigated fully as to why these layoffs are taking place and audited at any given time they put more than 500 Americans out of a job.

    It is too easy for the thankless companies to get rid of the people who paid their blood sweat and tears to make these corporations so profitable.

    They must be accountable for their actions, and they will be accountable if they continue their outlandish carelessness with the lives of Americans.

    Americans deserve jobs and corporations will provide them or pay a higher price – guaranteed.

  • Kyle Beilke

    Last I checked this was a free-market society, so corporations can hire and fire as they wish. If we stopped corporations from firing people, nothing would get done, we would just have people going throught the motions at work, with no productivity. Oh, yeah, that is communism.

  • “Americans deserve jobs and corporations will provide them or pay a higher price”


    Nobody “deserves” a job, and Kyle is right about how it “worked” when tried in the former USSR.

    However, government policies could and should be set up to benefit workers in this country instead of in others.

    As an example, I think that the Chairman of the House Ways and Means Commitee (Republican Bill Thomas from my state of California) should not now be in the process of replacing an export subsidy for goods manufactured in the US with a much larger tax break for companies who manufacture anywhere in the world.

    I can see subsidies being used to promote economic policy, but subsidizing manufacturing in other countries strikes me as a very bad idea, especially with US unemployment where it is today.

    Shows you what campaign financing can achieve, though.

  • JR

    Funny, once I got a job, the first thing I wanted to do was retire as soon as possible.

    If the corporations would be willing to pay my bills, I’d be happy to look the other way while they outsource or automate all the jobs. Isn’t the goal of increasing productivity supposed to be so that we don’t have to work as much? Seems like we don’t know what to do with our own success.