unskilled labor is one of many factors of production. skilled labor and plant capital are key, and explain our productivity levels. You don't need to devalue 95% to achieve what we're talking about. And that is because our productivity levels blow away developing Asia.
Summers said the rebuilt U.S. economy must be more export-oriented
- Thread starter ASusilovic
- Start date
unskilled labor is one of many factors of production. skilled labor and plant capital are key, and explain our productivity levels. You don't need to devalue 95% to achieve what we're talking about. And that is because our productivity levels blow away developing Asia.
I like that ! F-U China ! LOL ! US Exports to China: 2000-08
Click on specific state to see China export data by state and district.
NEW:
* China export data by district posted in June.
* Read about companies in your state that do business with China.
Click on any state to see the latest.
http://www.uschina.org/public/exports/congressional/2000_2008/
http://www.uschina.org/public/expor...008/state_export_report_executive_summary.pdf
Impact of Imports from China
on U.S. Employment
http://www.tradepartnership.com/pdf_files/2005_China_imports.pdf
A lot of good information on this website...
http://www.uschina.org/tradefacts/#usimports
Just want to add a component to this, in real dollars.
I know a small furniture mfg nearby. They used to have 20 workers in the factory, now have about 2 (due to overseas competition). One of their fixed overhead items is disposal of "finishing room rags". This means rags with lacquer thinner. The number of rags they currently use is probably what you can fit is a large paper bag, and the fixed cost is sllightly over $500/month. The disposal contractor is Waste Management. So you say, why not just put those rags in the garbage, or burn them, whatever, then hire a part time worker? OK, if they did that and got caught by the EPA or state DEP they would get fined so bad, they would go out of business right now.
OK, and what about their counterparts, in China. Yup, they just burn the rags. No $500 costs for them.
Of course, these same folks who have constructed these regulations in the U.S. are the constituencies who control this White House and this Congress. Not that I am for pollution, but some middle ground seems reasonable. But for the folks who control the future of this country, middle ground is not reasonable.
So, Larry Summers, even if he had a working plan to fix this economic mess, is in no position to get anything done.
And if any form of Cap & Trade is passed, jobs are gonna leave this country so fast, it's gonna look like a jail break.
In the final analysis, the only thing this administration is going to export is good jobs. Stupid is, as stupid does.
The above is a reason to rejoice, not a reason to become depressed. Environmentally unfriendly, $8 an hour jobs have successfully been moved to China. That's a positive, not a negative.
Now those 18 workers that were laid off can find something more productive to do and something that hopefully pays more than $8 an hour.
This is nothing new, this has been happening for 100 years. Contrary to popular belief, exporting jobs is a motor of productivity and growth, not the opposite. If jobs were never moved to low-wage countries you'd still have people hand-harvesting cotton and manually sewing clothes for $2.50 an hour in the US.
Yes, you would think so, but it isn't happening is any volume.
My last "daytime" job, I was a project manager at the secure internet portal for a multi-national bank. 200 employees there. Less than 20 were U.S citizens. Huge number of h1Bs - china, India, Taiwan. Java Developers, UNIX developers, Oracle, etc. We had one U.S. born Java Developer. I hired him. I later regretted it.
I think the crux of the problem is the U.S. educational system. In the U.S., education is an entitlement. In foreign countries, nobody is entitled to anything.
Yes, lets break out the champaign. More jobs sent to China. Rejoice!
The manufacturing jobs lost usually pay more than the type of service job that non-college people can get (if they can find a job).
I think you are being a bit too cavalier here.
One solution would be to have the government pay for the environmental piece, funded through a VAT tax or something. Since we all live on the same planet and breath the same air, its not like we are doing a lot of good to send pollution heavy jobs to Asia. Its just shifting the problem from one place to another.
The manufacturing jobs lost usually pay more than the type of service job that non-college people can get (if they can find a job).
I think you are being a bit too cavalier here.
One solution would be to have the government pay for the environmental piece, funded through a VAT tax or something. Since we all live on the same planet and breath the same air, its not like we are doing a lot of good to send pollution heavy jobs to Asia. Its just shifting the problem from one place to another.
Then maybe it's time for those non-college people to learn a new trick or two. What about those guys that lost their jobs in the textile, shoe and apparel industry in the 50s and 60s. Did they cry, whine and blame politicians or wages in Asia or South America?
If America (and the rest of the West for that matter) want to stand a chance the only viable way is NOT protectionism (which is ridiculous -- if it worked then the former Eastern Economic Block lead by the Soviet Union should have been a manufacturing workers paradise!). The only way IMO is a combination of thrift, education and entrepreneurship. Why have some of these virtues of our parents' generation become lost with so many?
It seems to me Americans became too fat and lazy over the last 20/25 years. An entire generation with *huge* expectations (McMansion + Beach House, Gucci for the Wife, Porsche for Him) of what life has to offer them but with no balls, no discipline, no work ethic nor brains to live up to those expectations.
Non-college degree workers make up about 2/3rds of the population. Many are just not cut out for higher education. I don't think any of them had aspirations for a McMansion, Gucci or a Porsche. Just a decent paying job that would allow them to raise a family.
Your examples are extreme and ridiculous. I don't know if you are an American, if you are you should be ashamed of yourself. If not, you can go fuck yourself.
Personally I think we have been suckered on a lot of these trade agreements. Our negotiators were corrupted by special interests and played a weak hand just to keep the free trade ball rolling. I think some form of tariff or VAT is needed (as other countries have) and we need to match the non-tariff barriers that others have or cause them to open up.
On top of this, no Asian currency manipulation. I mean, WTF is that all about?
_________________________________
Your examples are extreme and ridiculous. I don't know if you are an American, if you are you should be ashamed of yourself. If not, you can go fuck yourself.
Personally I think we have been suckered on a lot of these trade agreements. Our negotiators were corrupted by special interests and played a weak hand just to keep the free trade ball rolling. I think some form of tariff or VAT is needed (as other countries have) and we need to match the non-tariff barriers that others have or cause them to open up.
On top of this, no Asian currency manipulation. I mean, WTF is that all about?
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I suspect even that won't work. People will have to educate themselves ABOVE middle-class type of capabilities, as such jobs in Chindia are not going away. Most Americans will not go to that effort.
So, what kinds of jobs will work for above average earnings?
In medical field... nursing, Physician's Assistant (3 years of college beyond Bachelors degree)...
Something others don't want to do and probably gets you dirty.... plumber, HVAC, mechanic, painter.
The world has an "excess of labor" now.... difficult competition for anyone.
When one wants to learn the basics of a language....one can learn the words that one commonly uses....which really narrows down the number of words to be learned....
The next focus in the US is to simply view a representative population segment....then review the basics of what they do everyday....and then review what these categories are....and then review how one can participate....
It is a given that one has to be able to offer something that can not be easily done or offered and is in demand....which usually means access to time, know how, physical assets, currency, etc....
Food
Energy
Clothing
Transportation
Education
Internet
Health
Manufacturing tools
Asset Distribution
Government
Construction and repair
Innovation and design
Human development
Legalities
etc., etc...
When one thinks even for just a few moments about each category....one can quickly surmise needed improvements....
Thus....there is a lot to do....
...................................................................................................
Since taxes represent a very significant cost of all products ....to the degree that human freedoms are dramatically reduced and continually threatened.....This is an area that can be effected immediately with a stroke of a pen.....whereas other endeavors may require decades or generations....
One should pay a cost for what one uses....
One should not pay a cost for what one does not use....
Govt. should be constructed such that it cannot be gamed....
The asset distribution highway should be set up such that direct access by personal computer cannot be gamed ....and truly universal....in the currency of choice....all asset classes of securities ....all countries....no taxes on any security....
...........................................................................................
These actions alone regarding taxes and securities ....would plant the seed for a better economic construct....and a more promising near term economic future....
The next focus in the US is to simply view a representative population segment....then review the basics of what they do everyday....and then review what these categories are....and then review how one can participate....
It is a given that one has to be able to offer something that can not be easily done or offered and is in demand....which usually means access to time, know how, physical assets, currency, etc....
Food
Energy
Clothing
Transportation
Education
Internet
Health
Manufacturing tools
Asset Distribution
Government
Construction and repair
Innovation and design
Human development
Legalities
etc., etc...
When one thinks even for just a few moments about each category....one can quickly surmise needed improvements....
Thus....there is a lot to do....
...................................................................................................
Since taxes represent a very significant cost of all products ....to the degree that human freedoms are dramatically reduced and continually threatened.....This is an area that can be effected immediately with a stroke of a pen.....whereas other endeavors may require decades or generations....
One should pay a cost for what one uses....
One should not pay a cost for what one does not use....
Govt. should be constructed such that it cannot be gamed....
The asset distribution highway should be set up such that direct access by personal computer cannot be gamed ....and truly universal....in the currency of choice....all asset classes of securities ....all countries....no taxes on any security....
...........................................................................................
These actions alone regarding taxes and securities ....would plant the seed for a better economic construct....and a more promising near term economic future....