Here’s Really the Biggest Problem in the American Economy – What nobody wants to say Part #2

A continuation of our earlier discussion in response to yet another attack on a free market economy.  In the first discussion, Here’s Really The Biggest Problem in the American Economy – What Nobody Wants to Say Part #1 we tackled the notion of redistribution.  In today’s post we will continue by discussing the impacts of globalization.

“One reason corporations are so profitable is that they don’t employ as many Americans as they used to”
-Henry Blodget, Business Insider

global map test

global map test (Photo credit: aleutia)

Demographics are changing.

I would estimate close to 25% of the people on my floor at work are “immigrants” representing almost every continent in the world.  Some might be first generation; many are work visa or green card holders.  A decade ago, there was a growing concern that all the science and engineering jobs were going to recent graduates from other countries who were getting degrees in sciences and math.  Well, here is a wakeup call – it is not just the science and engineering jobs anymore.  Or medical jobs.  My colleagues are all in “business administration” – marketing, accounting, finance, procurement, supply chain, and sales. Most of these positions are entry level; new hires.

I applaud these colleagues; it is inspiring actually and makes for a more robust, interesting workplace.  However, let me point out that all these are jobs that did not go overseas.  And they aren’t getting “underpaid” either.  These are all jobs that could be had here by any of us.  The inconvenient truth behind this is that the demographics of employment are changing.  High wages or job growth for unskilled labor is a thing of the past.  The global workplace is also a knowledge based workplace.  We need to stop blaming the laborer snapping a widget together in some overseas sweatshop for unemployment here.  Let’s stop spending time railing against the terrible white collar employees and managers, or college kids that earn technical, science, math or other challenging degrees and encourage children to choose a path of knowledge.  Stop the demonization of professional positions.  Slamming on “college kids” and education comes across as sour grapes – and the impact is more than just you.  The children are listening.

“Globalization” has opened up a vast pool of billions of workers who work for much less than Americans.  This, in turn, has resulted in companies shifting formerly middle-wage-paying jobs overseas.

-Henry Blodget, Business Insider

While more products are being made overseas and certainly there are jobs that have gone overseas as well, let be fair – globalization has brought much production and jobs here to the US as well.  Companies like Toyota, BASF, Nestle, BAE, Bayer and many others all have operations here in the US employing our citizens.  Let’s not try to blame globalization for the loss of “good” paying jobs.   And if we continue to vote for the candidate who simply tells us what we want to hear, we will still be sitting on our collective sofas lamenting the “loss” of employment and opportunities while the good jobs both here and overseas are populated by…well, everyone else.  Some of our politicians are trying to create an economy of a select few political overlords who know what is best for 300+ million dependent serfs with a victim mentality.

In the coming days I will continue to discuss:

  • Globalization
  • Technology
  • Stagnant wages
  • Business Profits

Let me know your thoughts.

The original post from Henry Blodgett of the Business Insider can be found by clicking here

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