Who killed off Woolworth's in the UK? Who is killing off hundreds
of small or light manufacturers in the USA. Why are we having such
a relatively 'jobless' recovery. See below.
No, it was not, for once, The Big Banks/Wall Street who dealt a real body
blow to the U. S. job economy. The loss of jobs across the Nation has been
and continues to be a very large factor, maybe the largest, in the aching
economic stress in the U. S. Please note it is "loss" of jobs; it is not a matter
of a failure of job growth.
Let's go back fifteen years: Bill and Hillary were having their policy wonk
buddies at the Renaissance meetings at Hilton Head or Aspen, and in
such circles the big thing was an idea that the World is all one market,
one economy, and barriers to "outsourcing" jobs and fully free trade
must be removed. "Outsourcing!" What a painful word that has become.
We were told that high-tech jobs, service businesses and sophisticated
marketing would easily fill any jobs gaps that might occur in the U. S.
home economy, specifically the manufacturing sector. Remember the
funny little businessman/politician with big ears, the one from Texas
named Ross Perot? And what was it he so graphically talked about?
Let's see, was it "a big sucking sound south of the border?" Yup, it was!
And Asia, and South America, and lots of other places where very low
wages are standard. Perot warned of that in no uncertain terms, and
our leadership just laughed. How silly!
Believe me the REAL problems relate to Employer Loss, not just
jobs loss, but employer loss. Or, perhaps more pointedly, Employer/
Capitalist decisions to abandon the American manufacturing base,
one of the greatest strengths in the American system, and just go for
the lowest common denominator, the low-wage overseas suppliers.
Now, years later, does the idea of Buick automobiles made in China
taking a part of the American market seem as outlandish as it might
have in the 1990s? No, I don't think so. It may not happen -- but
don't count it out.
Q: What's missing in all the above? A: Government leadership that took
us in the wrong direction and still has not course-corrected. Our own
government, hand-in-hand with giant consumer marketeers (Yes,
Wal-Mart, Target, electronics businesses etc.), blindly took us down
a path to that great Emerald City on the horizon named: Made in China.
It is not a partisan matter -- outsourcing of goods and services was
fostered by Republicans and Democrats alike, both of them strongly
driven by the engine of American retailers looking for low-cost sources.
There was a blog in this room about 18-months ago on the subject
of why Woolworth's in UK was shut down. Here is what the writer,
expatyank, said:
"The race to the bottom, outsourcing , and its predatory
capital connections are ultimately what destroyed a
previously successful business -- what other retail,
food and product companies are on the same path
to destruction?"
What indeed!!! Ask the residents of Ohio or Indiana or Missouri --
or any part of the US that is suffering from a cruel decline in the
employment rate. Is it any wonder the Obama Administration is
having poor luck restoring jobs? If the manufacturing company
that previously offered employment is no longer there to do so,
or if that company has gleefully sent the jobs overseas to low wage
sources, of course not! Neither Bush, or Obama or anyone else
has been able to reverse the outflow. "The race to the bottom!"
That sort of sums it up, doesn't it?
Be wary, be very wary, when highly-educated politicians and
policy mavens grab an issue and start to run with it and ultimately
enact it into law or policy. Don't blame Obama, we are all guilty.
The person who can grab this out-of-control phenomenon and
reverse it enough so as to start restoration of America's
manufacturers and exporters will win the crown and he should
have it. Job growth starts with employer restoration.
Yes, this is simplistic and I overlook many contradictory
details, but I very much believe we are on the wrong road on
jobs, and I think we need to take a fresh look at where the
problem originated. I can't tell you how to fix it, but it helps
to start with recognition of where the problem started.