Commenting on the "jobless" recovery an Oct 17th 2003 article in Morgan Stanley's Global Stephen Roach wrote of "Imported Productivity" and "income leakage" vis-à-vis business cycle recoveries today compared to recoveries of the past.
"Wage and salary disbursements -- by far the dominant component of personal income -- are basically unchanged in real terms fully 21 months into this [2001] recovery. By contrast, at this juncture in the past six upturns, real wage income has been up, on average, by about 9%. The gap between the current cycle and the norm of earlier cycles works out to a shortfall of about $320 billion in real terms, or 4.4% of the current level of real disposable personal income...
"Sourcing demand through low-cost, offshore labor input has become an increasingly important tactic to enhance the operating efficiency of US businesses... the American workforce is not sharing the benefits. The resulting clash between the owners of capital and the providers of labor has resulted in profound tensions in the US body politic. Imported productivity, together with the jobless recovery and income leakage it implies, is the stuff of heightened trade frictions, mounting protectionist risks, and a populist assault on Corporate America.
". . . In my view, the income leakages of imported productivity raise serious questions about the sustainability of this recovery from an economic point of view. At the same time, the political reaction to the resulting jobless recovery raises equally profound questions about sustainability from a political standpoint."
That was the Bush years where we had a weak (job-loss recovery at times but it was a real) recovery.
Blame unions, taxes, and regulation.. how did foreign companies moving here as U.S. corporation vacated manage?
To wit, decide to stay here or move all to Red China. They are going to lose everything anyhow when Deng's version of Lenin's New Economic Policy (NEP) is fully implemented. It's accomplished much of its purpose.. the only things left are to see that there is enough wealth to prevent revolution, take the "useful idiot's" property, and put them on a slow boat to America.
Washington Times, June 27, 2005 Thefts of U.S. Technology Boost China's Weaponry (By Bill Gertz)
Washington Times article by Bill Gertz in the Congressional Record, submitted by Rep. Frank WolkRudy Guerin, a senior FBI counterintelligence official in charge of China affairs, said the Chinese aggressively exploit their connections to U.S. corporations doing business in China. "They go straight to the companies themselves," he said. Many U.S. firms doing business in China, including such giants as Coca-Cola, Boeing and General Motors, use their lobbyists on behalf of Beijing. "We see the Chinese going to these companies to ask them to lobby on their behalf on certain issues," Mr. Guerin said, "whether it's most-favored-nation trade status, [World Health Organization], Falun Gong or other matters."