How a New Jobless Era Will Transform America

[MaklodaSux]

Quote from misterno:

In order for that to happen the US wages should be lower than the Chinese wages

Now, that is impossible

Entirely depends on the quality of work you want done.

 

[MaklodaSux]

Quote from nitro:

If you take nothing from that article, remember this :

"...Strong evidence suggests that people who don’t find solid roots in the job market within a year or two have a particularly hard time righting themselves. In part, that’s because many of them become different—and damaged—people. Krysia Mossakowski, a sociologist at the University of Miami, has found that in young adults, long bouts of unemployment provoke long-lasting changes in behavior and mental health. “Some people say, ‘Oh, well, they’re young, they’re in and out of the workforce, so unemployment shouldn’t matter much psychologically,’” Mossakowski told me. “But that isn’t true.”..."

Good quote.

 

[Mr Pain]

This article is dead on. What gets me is the attempts to prop up the housing market. The economy is changing for good and high housing prices aren’t in the cards. If the government can reduce health care and housing costs, US workers can work for less and be more competitive globally. You don’t have to make what a Chinese person does because there is far more quality in the US. When a man working a non union blue collar job can support a family again, we will have arrived.

 

[jagadish]

IMO Americans should also look for opportunities beyond borders.

 

[GS19]

misterno is correct, its a wage thing.

Some years ago our company was making an electronic product that cost us around $10 to make, we made about 30000 a year.

The owner of the company said lets make some in china, so we did that. The result was a cost to us of under $4 each, quality is about the same as our Illinois supplier. So then they had them all made in china.

Anybody know the labor cost in China?

GS

 

[Daal]

Good luck aligning your FF view with this jobless recovery, whether you think 0% rates help or not is irrelevant, the FOMC thinks it helps and they set it

 

[Scataphagos]

Quote from GS19:

misterno is correct, its a wage thing.

Some years ago our company was making an electronic product that cost us around $10 to make, we made about 30000 a year.

The owner of the company said lets make some in china, so we did that. The result was a cost to us of under $4 each, quality is about the same as our Illinois supplier. So then they had them all made in china.

Anybody know the labor cost in China?

GS

Still around $1/hr for manufacturing.

 

[Scataphagos]

Quote from MaklodaSux:

What's the answer to this though? We need some new technologies...

"Technology and innovation" will NEVER solve our unemployment problems. The real money isn't there... it's in the "making"... manufacturing. And as long as Chindia is available as a source*, we will NEVER be able to compete with their labor costs.

That's why our unemployment problems are permanent and structural. Oh sure, many unemployed will get government "make work" jobs... but that doesn't help our economy... might as well just put the unemployed on permanent government stipend.... until everyone who has anything has had it sucked away by the government... and then as a country we run up debts to exhaust our borrowing capacity. Easy to see what comes after THAT!

*same is true for service jobs

 

[trade4succes]

Let them unemployed start their own businesses or free lance ventures, as long as there is enough food being grown on US soil, US citizens shouldn´t be hungry.

Anyway, people around here prefer to whine it seems. and ralph was right, once the baby boomers start retiring, there will be an oversupply of jobs.

 

[Kassz007]

Quote from Scataphagos:

"Technology and innovation" will NEVER solve our unemployment problems. The real money isn't there... it's in the "making"... manufacturing. And as long as Chindia is available as a source*, we will NEVER be able to compete with their labor costs.

1. USA manufactures plenty. Still no jobs.
2. Technology and innovation WILL solve unemployment problems. In fact, technology and innovation are the ONLY things that will solve the unemployment problems.