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Blog of Mass Destruction

Why There Are No Jobs

By The Reverend Published: September 6, 2010

Labor Day.

If there is one holiday that politicians and Villagers have little-to-no interest in celebrating (other than enjoying the day off, barbeques, etc.)'s Labor Day.

Make no mistake. I consider myself to be an unapologetic liberal. However, I must say that alleged progressive elected officials have little-to-no interest in celebrating....labor. Sure, progressive leaders will give lip service to the 'hard-working' Americans who, you now, labor for a living. However, as we learned during Bill Clinton's presidency.....and will shortly learn from Barack Obama's presidency.....when the choice is helping those who actually labor for a living or bolstering the bottom lines of non-laborers on Wall Street....alleged-to-be progressive leaders seem to always rush to stand on the side of those who wouldn't know what labor meant if labor was biting their collective asses. Just consider Rahmbo's recent comment...."F*ck the U.A.W."

Today it seems as if there is some unified-theory about labor which has been accepted by the Very Serious. The United States can no longer afford the cost of American labor. Labor is a detriment to corporate profits. That's why labor has not received any raises now going on 40 years. That's what all the union worker bashing was about during the bailout of GM and Chrysler. Not one Villager, not one Republican came to the defense of autoworkers. Autoworkers, not Toyota's non-union workers but Detroit's union workers, were portrayed as greedy, lazy, overpaid socialists who singlehandedly were responsible for GM and Chrysler's economic problems. Toyota's non-union labor exploitation was uplifted as the model moving forward.

The message was clear. If you are an American laborer, someone who actually works......not someone who dresses up before leaving for not only are not respected,......unless you will work for Mexican or Chinese labor rates, you are the source of America's problems.

But both political parties are guilty of having encouraged corporate profit-seekers more profits, by outsourcing and offshoring their labor costs. The evidence that this is so is found in the fact that neither Democrats nor Republicans have tried to stop, or even slow down, the gutting of America's workforce.

On the contrary, that's what Clinton's NAFTA agreement was all about....helping huge corporations lower their American labor costs through offshoring and outsourcing. Other "free trade agreements" with countries with pauper labor rates will undoubtedly be agreed upon by timid Democrats and a surprisingly conservative President Obama. See....doing so will show conservative and Republican voters that Obama is Bipartisan.....the Holy Grail of the Village.

Here's the former Reagan administration appointee, Paul Craig Roberts.....

The offshoring of American jobs resulted from (1) Wall Street pressures for “higher shareholder returns,” that is, for more profits, and from (2) no-think economists, such as the ones engaged in the debate over fiscal stimulus, who mistakenly associated globalism with free trade instead of with its antithesis--the pursuit of lowest factor cost abroad or absolute advantage, the opposite of comparative advantage, which is the basis for free trade theory.

Globalism does not equal free trade. Globalism rushes to the lowest of the world's labor costs in order to make more profits. "Absolute advantage." Wal-Mart is the poster child for globalism.

Roberts goes on to describe why Obama's, or anybody's, "stimulus" will not, and can not, call sufficient numbers of workers back to work......

The reason fiscal stimulus cannot rescue the U.S. economy..... has to do with the fact that a large percentage of high-productivity, high-value-added jobs and the middle class incomes and careers associated with them have been given to foreigners. What used to be U.S. GDP is now Chinese, Indian, and other country GDP.

When the jobs have been shipped overseas, fiscal stimulus does not call workers back to work in order to meet the rising consumer demand. If fiscal stimulus has any effect, it stimulates employment in China and India.

Think.....Obama and the Democrats passed a stimulus bill in order to keep America's overall demand for goods and services from collapsing into some economic death-spiral. However, the increased number of goods and services ultimately purchased with that stimulus did not require hiring back American workers because America doesn't produce those goods or services anymore.

Now the really bad news.

It's easy for skilled, white collar employees to be dismissive of what's happened to their fellow Americans who used to have jobs making stuff, etc. But that would be a mistake. If you think that American professionals are immune from offshoring and are not being realistic.

Medical, legal, architecture, accounting, educational, and engineering professionals are seeing, and will continue to see, the offshoring of their professions. In fact, it's difficult to find ANY line of work, other than measly-paying retail jobs involving ringing up foreign made goods for ever-poorer American consumers, that won't continue to be hollowed out for the sake of profits for a tiny minority of America's richest.

This is the legacy of Reaganistic theories of economics. Both political parties signed on to those theories, and our nation's true workers have, and will continue to, pay the price.



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