Exporting Jobs

Capitalism Magazine ^ | August 19, 2003 | Walter Williams

[snopercod]

In my depressed area of NC, it's entirely possible to make more doing day labor for $10 per hour (cash) than working at the available "legitimate" jobs.

[ChromeDome]

But with the destruction of the industrial economy and the end of any substantial need for low and semi-skilled labor that rung of the ladder was destroyed.

An economy without low and semi-skilled stable jobs is an economy in which it is not possible to work your way out of the ghetto.

I never thought about this particular aspect. Very interesting.

Bump for further reflection

-ChromeDome

[Tokhtamish]

Those were the days, Dennisw.

Whatever respect I had for Walter Williams has evaporated. If he thought as a black conservative (or black anything, for that matter) instead of as a corporate whore he might have seen some connection between deindustrialization and the black community's greatest problem; the absolutely awful rate of black male incarceration and the consequent identification in white eyes of blacks with violent crime. Without stable jobs you cannot have a stable community in which law abiding people control the streets, not street hustlers, and in which families can control their children.

Libertarians don't understand that their is such a thing as a community. And a community has a moral character for good or for ill. External factors (like pervasive joblessness. after all, their low-semi skilled jobs are jobs America can afford to lose, aren't they ?) can destroy that moral character by disempowering the good people and empowering the bad.

[jimt]

Well I can not argue for others but other tahn a ping I have kept to issues.

That comment wasn't directed at you in particular, but to the emotional crowd.

Walter puts up a good target. Either he's right, partly right or wrong. But the target's clear. Instead of worrying about whether he's a libertarian or a conservative, shoot at the target - his thesis that tort lawyers and goobermint are the causes of "exporting jobs", and that those jobs are largely going to Europe, not Asia.

[CIBvet]

" ... SLACKADEMICS ... " indeed !!!

Thanks dennis ... it's a keeper.

[LibertyAndJusticeForAll]

"that those jobs are largely going to Europe, not Asia."

In 1996, but not NOW. He very dishonestly ignored every year after 1996 because he could not make his case after 1996.

For 2002, the trade deficit with all of Western Europe was $89 billion.
We have a gigantic trade deficit of $103 billion with China alone and it is climbing.
http://usembassy.state.gov/tokyo/wwwh20030221a2.html

http://money.cnn.com/2003/02/20/news/economy/trade_deficit/
"For the third year in a row, the greatest trade gap, by country, was with China, $103B in 2002.

[Sachem]

What about requiring goods sold in America to have been made in countries complying with minimal regulations for worker safety and environmental responsibility? We write the sensible regs.

Further, the manufacturers cannot be government subsidized but must be authentic profit enterprises?

Finally, foreign manufacturers not just American retailers, must be legally responsible for unsafe products due to their design or construction.

[CIBvet]

While I agree with you on the Tort Laaw-ya thing, and that the big-goobermit bureaucrats are only concerned with expanding, expanding, expanding their sphere of influence and control (hence their GS/retirement-rating), the answer for any future America, as we've ever known it, is not to ship all our decent-paying, family-supportive jobs over to predatory tyrants in the 3rd World, and then allow the importation of those finished products to return, for sale to what's left of our Middle Class.

This only benefits the selfish bureaucrats, the predatory tyrants in the 3rd World, and the greedy CEO's and a few upper-level types in U.S.Corporations.

The end result is an America gradually reduced to a 3rd World level.

[happygrl]

You have said it well.

[CIBvet]

Bulls-eye my friend.

The truth will set us all free.

[jpsb]

Yes, that is the root of the evil that now lives in the USA.

Eitther we fund government as the fonders intended or we lose the Republic. And it really is that simple.

[warchild9]

Your ideas are all sound, except for the fact that your sound ideas are competing with the bribe money pouring into Washington (W is headed for a quarter BILLION--oh, say the bots, there's no strings attached to that loot).

[scottlang]

AKA the common man turning to government socialism (voting DemocRAT) in times of economic peril. In times when he feels betrayed by the mega-corporations. Not that the RATS have real and good solutions. Just that people will vote for the almighty gubbermint to bail them out


If the right dem comes along, yes.

[jpsb]

Ain't just a black problem, in my little white town I am seeing the same thing. No jobs, young adults turn to crime, drugs, break ins, gangs and prositution.

How diferent things were when I was young. Anyone any color could get a job that if they stuck with and worked hard would get them into the middle class. No more those days are none and we blacks and whites and whatevers will paid dearly because of it.

[EagleMamaMT]

Thanks for the ping. This is such a good thread, with so much fantastic insight into what's happening here in America as a result of "free" trade. I'll be sending your list to my Senators and Representative, and the White House as well. Harpseal, thanks for all you do!

[Tokhtamish]

Thanks for the kind words.

Tell me, you think there is some correlation between deindustrialization and suddenly every town seems to be sprouting "gentlemen's clubs" ? Think of it. A woman who strips knows that she makes herself a lowlife among outcasts with no real chance of respectable marriage. But in a community of working class deindustrialization the respectable people no longer call the shots and few of the men she knows are all that great marital prospects anyway. So while she is still young and her body is firm it means maybe college money or maybe some guy with money will take a fancy to her.

[harpseal]

Your ideas are all sound, except for the fact that your sound ideas are competing with the bribe money pouring into Washington (W is headed for a quarter BILLION--oh, say the bots, there's no strings attached to that loot).

If there are no strings then here will be his chance to prove it. I for one hope he comes through.

[lelio]

Just that people will vote for the almighty gubbermint to bail them out

When people see no other prospects, what do you think they are going to do? Just sit around and wait for the local bank to take their house?

Not that I approve, but a lot of people on FR are ignoring reality (this isn't directed at you): the Republicans are mostly to blame for the transition from Hoover to FDR. He sat back thinking the market will correct itself and we'll eventually get out of the slump. Eventually's not soon enough when you're suddenly on a breadline.

If Bush wants to stay in office he should really look at the offshoring trend and prospose some ways to keep business employing Americans.

[jimt]

The end result is an America gradually reduced to a 3rd World level.

So how do we fight it? That's what Walter is talking about.

Imagine what would happen if we reduced the size of goobermint (and its taxes) by about half. And then changed our taxation system to 100% retail sales tax.

From the first action, cutting goobermint, we could expect a minimum of a 25% cost reduction in American products. Taxes add zero value to products, but are definitely included in costs. What cost $1.00 would now cost 75 cents.

From the second action, eliminating all taxes except retail sales taxes, we'd get a further 25% reduction off the base cost of products - because all that tax is passed along to the consumer in the form of higher prices. So what cost 75 cents would now cost 50 cents. A hefty sales tax would go along with it, of course, probably around 25%.

BUT - while the cost of American goods has gone down by half, the Chinee goods are taxed just like the American goods. American goods no longer have their taxes "built in". Imported goods become vastly less attractive.

Meanwhile, with the alphabet soup agencies off our backs, Americans be come more productive and more cost efficient. So our costs will probably be less than 50% of costs in today's market. The US wins and we skewer foreign competition.

[harpseal]

You are welcome for the ping and thanks for helping america by getting the message out.