Jobs? Send them back….
Not exactly rocket science. Send 18$ an hour jobs over seas and give everyone a job in Walmart at half that. Works every time destroying the middle class. At least these guys didn’t murder us like the commies did back in the twenties in Russia.
They just bankrupted us!!!
In 1979, manufacturing comprised 21% of the economy. In 2008, that number was 11.5%. One in six factory jobs disappeared between 2000-2007. When a factory goes away, it takes its supply chain, R&D, and other supporting companies with it. Richard McCormack writes that “one manufacturing job supports 15 other jobs. No other category of job has such a high multiplier.”
By outsourcing much of our manufacturing, we ended up relying on services to support the economy. It’s a precarious situation, especially since services are outsourceable, too. One Princeton economist says 40 million jobs could be shipped out in the next 10-20 years, including 1 out of 3 service jobs.
What have gained by transferring our manufacturing (and, by association, knowledge and wealth) to other countries? A massive trade deficit with 90 countries, for one. Consumers and companies don’t have a choice of where to buy products. They’re made abroad by default. If they were made here, they’d be prohibitively expensive, thanks to stringent regulatory requirements that the US doesn’t apply to goods produced elsewhere. It’s no wonder we’re a country that consumes more than it produces.
We have a trade imbalance of $232.5 billion with China alone. China produces most of the goods that American consumers buy. American companies offshore there because China is cheap and doesn’t have expensive regulations. Moreover, China owns an estimated $1 trillion in US Treasuries. Yet the US only makes up about 12% of China’s trading. If China drops the ball, we flounder. We’re forced to politically tap dance with China in order to maintain economic stability.