the working room: Economic Inquiry: How Does Moving Jobs Overseas Benefit US Citizens?

Economic Inquiry: How Does Moving Jobs Overseas Benefit US Citizens?
Sunday, December 23, 2007

I haven't purchased or read any books on Globalism, I usually peruse articles on the topic. I'm sure they're nice books, especially those written by brand name journalists such as Thomas Friedman. Plus I loathe the idea of putting money into their pockets.

I'm bemused by the argument that unemployed Americans improve our overall economy.

Friedman's book, The World is Flat, is one of those treatises that claims Globalism is great. US Citizens should celebrate the transfer of jobs from the US to developing countries (India, China and the like).

Why? Well, it helps them (and us) because, you know, somewhere down the road (decades from now) as their standard of living goes up - they'll be able to buy stuff from us. Since our manufacturing base is shrinking, and moving overseas, exactly what stuff can these poor countries buy from rich ones?

It's easy for tenured economists, and their journalist ilk, to write about the joys of Globalism.

Universities and media companies aren't eliminating their particular jobs. They enjoy tenure and have no competition. At least not yet. When one is employed in a market that is 100% closed, it is easy to write that the suffering of others is acceptable, even warranted.

If a guy making $35 per hour is let go from a job he worked at for 15-20 years, how does that benefit the rest of us?

Oh right, his job goes overseas to someone who'll make $35 per month. Yeah, the "savings" are passed back to the CEOs that run the corporation and there is product price reduction, but what about the other side of the damage?

What's the other side of the damage?

The US Citizen's $35 per hour salary necessarily supports the infrastructure of his local neighborhood, his state, and his country - not the rest of the damn world.

This citizen's money went to: Social Security and Medicare / Medicaid - the entire FICA scheme, his retirement funds, local property taxes, sales taxes and whatever is left is disposal income.

The US economy survives on over 70% consumer spending.

In US politics, the rest of the world should never come above and before the interests of US Citizens.

If fair trade practices mean we buy their goods, I'm all for it.

Yet, how does a job in India and China contribute to our infrastructure?

Didn't a bridge in Minnesota just collapse this year?

Isn't this country running a deficit that in bills could reach the Moon?

How does this help America again? Oh that's right, cheap products: lead based toys, poisonous pet food, polluted fish and produce, and who knows what other garbage they ship. Why do we get this crap? Because it is cheap!

And how have the lower earning among us been making do? With credit cards.

Any income gap that the low wage job didn't cover came from borrowing. People were encouraged to employ equity loans. Their cash machines came from the rising value of homes, because the money certainly wasn't coming from a well paying job.

Is the subprime mortgage mess making sense now?

Labels: globalism, jobs, subprime mortgage, work

posted by GoldenAh

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