Outsourcing the American dream for nightmare

Sidney Herald ^ | Tuesday January 17, 2006 | Ellen Robinson

[Willie Green]

For education and discussion only. Not for commercial use.

Inspired by a reader who sent a list of once American corporations who's profits are no longer funneled to the hard-working American employee, I investigated the subject.

The clip that landed on my desk was from "America is Selling Out," published in The American Conservative, December, 2005. As I digested, emotionally charged from the publication's Web site at www.economyincrisis.org, I agreed with some of the information, discarded the sensational propaganda and extrapolated my take on the issues' raw facts.

From what I've experienced and witnessed first-hand, I consider the current state of the American economy as a politically driven "the rich get richer, and the poor get poorer" economic model.

There are too many alarming signs in our country for the politicians to actually be blindly racing the mad horse into the flaming barn as it might appear. The social-economic gaps in our nation are at record heights. In recent years, there have been more billionaires than ever, more fresh college graduates filing bankruptcy than ever and increasing numbers of the middle class economically sinking.

Sadly, this is all by design, not some directionless fluke. Since the rich are richer than ever and the most profitable corporations are breaking records, the misled reports boast positive economic growth that are not a true reflection to what has happened to the nation's work force as a result of active globalization.

The weight has gotten heavier for those who pull the load - the American population - because it's the increased sweat that fuels the skyrocketing extravagance of the filthy elite few. This is the reversal point of the American Dream into the American Nightmare.

The current American economic model seems like a reversal of Robin Hood. The big and powerful are profiting and becoming even more powerful as the comfortable livings of the endangered middle class are reallocated for the increasingly exclusive and isolated pockets of wealth hoarders.

No one who is aware will deny that the corporations who apparently are running this country are outsourcing our jobs. The rationalization for the mass outsourcing is to provide American consumers with cheaper products. It almost makes sense that consumables should be cheaper since the displaced workers no longer have the higher-paying jobs to afford historically high-quality, American-made products.

The American Dream - the belief that through hard work, courage and determination one can achieve prosperity - has vanished in the atmosphere of this greed and power driven frenzy.

These days it's looking more like the American Dream is being outsourced in exchange for the American Nightmare which the vast majority of the nation's population is waking up to in this cheaper reality.

[Phantom Lord]

All the while American manufacturing continues to increase its output.

[quantim]

What a pant load:

The current American economic model seems like a reversal of Robin Hood.

That's patently untrue.  The libs, dems, socialists and to be sure some RINOs steal more and more every day, week, year.  If in fact the middle class is getting squeezed it's because of multiple tax-to-death gubmint layers.

If only we could export our domestic socialists.

[tkathy]

Cheap labor never ever comes cheap.

In the end, it costs far more than providing decently paid jobs.

[lewislynn]

All the while American manufacturing continues to increase its output.

When I buy a GE refrigerator made in Mexico is that counted as "American manufacturing output"?...Just wondering.

[B4Ranch]

http://www.economyincrisis.org/congress/foreignownedind.asp

Foreign Ownership of US Domestic Industries
This data comes from IRS (Internal Revenue Service) - Current as of 2002 (latest data available)
Foreign ownership refers to ownership of assets of a particular industry by foreign controlled domestic U.S. Corporations (FDC) 50% or more owned by a foreign entity.


FOREIGN OWNERSHIP OF SPECIFIC U.S. INDUSTRIES

INDUSTRY PERCENTAGE FOREIGN OWNED
Sound recording industries 97%
Commodity contracts dealing and brokerage 79%
Motion picture and sound recording industries 75%
Metal ore mining 65%
Motion picture and video industries 64%

---

Wineries and distilleries 64%
Database, directory, and other publishers 63%
Book publishers 63%
Cement, concrete, lime, and gypsum product 62%
Engine, turbine and power transmission equipment 57%

---

Rubber product 53%
Nonmetallic mineral product manufacturing 53%
Plastics and rubber products manufacturing 52%
Plastics product 51%
Other insurance related activities 51%

---

Boiler, tank, and shipping container 50%
Glass and glass product 48%
Coal mining 48%
Sugar and confectionery product 48%
Nonmetallic mineral mining and quarrying 47%

---

Advertising and related services 41%
Pharmaceutical and medicine 40%
Clay, refractory, and other nonmetallic mineral products 40%
Securities brokerage 38%
Other general purpose machinery 37%

---

Audio and video equipment mfg and reproducing magnetic and optical media 36%
Support activities for mining 36%
Soap, cleaning compound, and toilet preparation 32%
Chemical manufacturing 30%
Industrial machinery 30%

---

Securities, commodity contracts, and other financial investments and related activities 30%
Other food 29%
Motor vehicles and parts 29%
Machinery manufacturing 28%
Other electrical equipment and component 28%

---

Securities and commodity exchanges and other financial investment activities 27%
Architectural, engineering, and related services 26%
Credit card issuing and other consumer credit 26%
Petroleum refineries (including integrated) 25%
Navigational, measuring, electromedical, and control instruments 25%

---

Petroleum and coal products manufacturing 25%
Transportation equipment manufacturing 25%
Commercial and service industry machinery 25%
Basic chemical 24%
Investment banking and securities dealing 24%

---

Semiconductor and other electronic component 23%
Paint, coating, and adhesive. 22%
Printing and related support activities 21%
Chemical product and preparation 20%
Iron, steel mills, and steel products 20%

---

Agriculture, construction, and mining machinery 20%
Publishing industries 20%
Medical equipment and supplies 20%

---

---

http://www.economyincrisis.org/congress/foreignfinanceddebt.asp




Foreign Financing of US Government Debt
This data comes from US Federal Reserve - Current as of September, 2005

Total foreign ownership of US Federal deficit currently stands at 45% as of end of first half of 2005


COUNTRY OWNERSHIP OF U.S. GOVERNMENT DEBT
Japan $687.3 Billion
China $252.2 Billion
United Kingdom $182.4 Billion
Caribbean Banking Centers $102.9 Billion
Taiwan $71.8 Billion
Germany $63.5 Billion
Korea $61.7 Billion
OPEC $54.6 Billion
Hong Kong $48.1 Billion
Canada $47.8 Billion

---

Grand Total $2,065.5 Billion

Conclusions:

Foreign sources financed 54% of US Federal deficit in 2002, 73% in 2003, and 99% in 2004

Total foreign ownership of US Federal deficit currently stands at 45% as of end of 1st half of 2005

The US Government currently owes Japan $687 Billion, China $252 Billion, and Korea $62 Billion - together $1.0 Trillion

The US Government currently owes $2.0 Trillion to foreign lenders

FOREIGN OWNERSHIP OF MAJOR U.S. INDUSTRIES

INDUSTRY PERCENTAGE FOREIGN OWNED
Mining 27%
Information 24%
Manufacturing 20%
Professional, scientific, and technical services 20%
Finance and insurance 11%

---

---

http://www.economyincrisis.org/congress/foreignconsumedgoods.asp

Percentage of US Consumption Spent on Foreign Goods
This data comes from US Bureau of Economic Analysis (US GDP Output by Industry and Commodity) - Current as of 2003
(lastest data available)


CATEGORY DESCRIPTION CONSUMPTION
Forestry, fishing, and related activities 18%
Farms 8%

---

Subtotal - Farms, Forestry, and Fishing 10%




Oil and gas extraction 45%
Mining, except oil and gas 6%

---

Subtotal - Oil, Gas, and Mining 39%




Apparel and leather and allied products 64%
Computer and electronic products 45%
Miscellaneous manufacturing 39%
Electrical equipment, appliances, and components 36%
Machinery 32%
Transportation Equipment 32%
Primary metals 24%
Furniture and related products 23%
Chemical products 22%
Textile mills and textile product mills 21%
Wood products 16%
Nonmetallic mineral products 15%
Fabricated metal products 12%
Paper products 11%
Petroleum and coal products 11%
Plastics and rubber products 11%
Food and beverage and tobacco products 6%
Printing and related support activities 5%

---

Subtotal - Manufactured Goods 24%


Examples of how to read these figures (current as of 2003):

$1 in $4 American dollars spent on manufactured goods goes directly to imports
America imports 45% of its oil and gas
More than 2/3 of apparel goods are imported
Nearly 50% of computer and electronic products are imported
1/3 of our transportation equipment is imported (plus consumption of US domestic production that is actually owned by foreign corporations)


Needing more facts? See http://www.economyincrisis.org/category_1.html

[quantim]

Calling President Bush a "backstabbing weasel...tyrant and despot" says more about you than it does about him.

[Onelifetogive]

Foreign Ownership of US Domestic Industries

I didn't see any stats on "Domestic Ownership of Foreign Industries." Your numbers are meaningless without the other side of the equation. I imagine that at least a few Americans have diversified by investing in other countries, just like foriegners have diversified by investing in America...

[ex-Texan]

The harsh truth about America's open borders, illegal foreign workers and corporate outsourcing is these practices undermine the middle class. But as long as U.S. companies sell goods made in China, India and Mexico to Americans eager to buy them, we all have a major problem. All those HB-1 visa workers do not help either. As a conservative, I'm upset most about our open borders. After all, we are fighting a war against terrorism. But terrorists disguised as Mexicans easily can walk over our borders. Our national security is at risk. Vincente Fox is not America's friend. I have seen illegal documents forged by Mexicans working in Los Angeles. They even forge passports so illegals may travel back and forth to their home countries. It is time to lock down our borders.

http://www.economyincrisis.org/article_11.html

[dakine]

Yep, soon the foreign owners of those mines cited will be packing up and moving them...same with other industries mentioned....

[Clintonfatigued]

"The rationalization for mass outsourcing is to provide American consumers with cheaper products."

And due to depressed wages & benefits, those Americans will be forced to buy from companies which outsource because they won't be able to afford the cost of products made domestically or sold in family-owned or partnership-owned small businesses.

It's appalling.

[mlc9852]

"who's profits"

Anybody see anything wrong? I just couldn't take him seriously after seeing that.

[ex-snook]

Hey we are all economic citizens of the world now.

Blame unions, management, government, lawsuits, competition, customer tastes, whoever, for the demise of American industry. No one gives a sh't. Who wants to hear another canary singing in a mine if you are not in the mine?

[chimera]

Yep, soon the foreign owners of those mines cited will be packing up and moving them...same with other industries mentioned....

Some things can be moved. In my town an entire defense aerospace plant was gutted and the functional components moved to...you guessed it...mainland China. The company sold out its workers and infrastructure for a few pennies on the quarterly bottom line. And, between you and me, I don't think the Chicoms are going to be using those machine tools to make high-tech woks. But, hey, the company made it's thirty pieces of silver, and that's all that matters. (not)

For things you can't move, you can control them, where their output goes, who is employed at the facilities, what the production schedules will be. Unless you're contemplating doing a Chavez and nationalizing those facilities, when foreign ownership becomes a fact, you've lost some measure of control over your own destiny.

[Niuhuru]

I fully agree. There are too many foreigners competing with native born Americans for already scarce jobs in a declining economy. If Bush would face reality for a few hours then he would possibly be able to pull himself together and save the country.

[IronJack]

I don't think this can be writtn off entirely, though I do think it's little more than a tortured diatribe. In fact, Big Oil has announced record profits in the last year. And offshoring is cutting into the middle class's standard of living. Those are facts that can't be ignored.

However, it is working those facts too hard to make them carry the accusation that Bush and the administration are "waging war" against the middle class.

Bush has betrayed the middle class in a number of ways -- trade deficits prompted by PNTR with China and the NAFTA/CAFTA debacles, reluctance to close our borders to illegal immigration, burgeoning government spending, poor energy policies, etc.. But blunders alone do not constitute a "war."

[Niuhuru]

"Hey we are all economic citizens of the world now."

Whether we like it or not.

[phil_will1]

The author does have some good points and there are ways to address his concerns. However, he seems so ideologically driven that I have to wonder if he is really interested more in blaming or in adressing problems.

"...the filthy elite few.
So wealthy people are evil?

".....outsourcing our jobs."
Uhhhh, who is OUR? Who do the jobs belong to? Don't those who pay the wages have some sayso?

[Paul Ross]

Uh, explain the failure to veto a single, solitary bill. He's had 5 full years. Not one. And then to add insult to injury he has called fuming piles of pork and unconstitutional excesses "good bills".

To the extent he admitted up front he was a RINO ("compassionate-BIG GUBBERMINT conservative"), maybe calling him "backstabbing" goes a bit far.

The secondary Defintion of Weasel: A person regarded as sneaky or treacherous. Weasel is accurate to describe all RINOs who are indeed sneaky and treacherous.

As for 'tryant' and 'despot' that also goes too far. T'sk. Rhetorical excess, don't you know? Which is also a two sided street, eh...

E.g., Like GWB isn't guilty of rhetorical excess when he calls conservatives such as the Minutemen "Vigilantes"... or says conservatives are too often guilty of "not caring" for their fellow man.

I have had just about enough of the lying liberal critique coming out of his mouth. Others here apparently have simply got a shorter fuse...

[Wolfie]

Self-pinging for later, when a Dem's in the White House and suddenly the selling out of the American worker becomes a problem again.

[B4Ranch]

Yep and they'll be taking all the mining techniques and research files with them.