Why American jobs are gone, going, going !!
Our top research people are taking our future jobs to China because the Chinese are willing to support people who can innovate new and useful products, and American government and business aren’t. China has for decades been setting itself up as the world’s producer of goods and services while America and Europe have been setting consumption as the goal. The American idea was that consumption drove business to produce more goods, and that doubled back and employed more workers and thus everyone benefited. The problem became acute for the American worker when transportation across the world became safe, reliable and cheap. That permitted the goods to be sold worldwide at a price determined by the cost of manufacture in China and over a few decades all manufacturing jobs moved away from expensive American workers to less expensive foreign ones. American bankers saw this and invested American dollars in foreign and especially Chinese workers and industrial infrastructure and abandon expensive workers less productive equipment in the US.
Further exacerbating this departure of productive capacity was the American public which continued to consume beyond its own productivity and to be encouraged to spend even more of their money on expensive items. They were told spending their money was a good thing to do because it supported American business and therefore created American jobs. The result was that American workers spent more money than they had and soon couldn’t even pay the mortgages on their homes bought on credit because they lost their jobs to foreign workers. The formerly employed are now unemployed and they are being supported by the echo of wealth coming from the former productivity of bygone years. There is still residual goodwill which supports these unemployed people in various ways, such as adult children living with their parents and welfare. This non-productivity will eventually consume all the former savings and the hope for new jobs will turn to despair, anger and resentment. Unhappy people will seek support with others in the same desperate situation and resentment will attack the nearest perceived evildoers – the US government, the Wall Street bankers and eventually the media.
Why the American jobs and money won’t come back.
A short story from Massachusetts Institute of Technology magazine should be a real tearjerker for Americans. Why Boston Power Went To China. This tells us why one of America’s most creative and productive people took her $100 million dollar research company to China. It illustrates why the future jobs created by her American based research wisdom will go to Chinese workers. The productivity of the new products will be first distributed in China and then to the world, when it is perfected. That will make the products she creates there better and cheaper and they will soon totally dominate that soon to be desperately needed commodity.
For years American business has been transferring their production workers and production equipment to foreign countries, but now they are transferring their research facilities there too. Americans have been restored to prosperity in the past by American productivity, but it won’t happen this time, because not only have the people and equipment been shipped abroad but the very means to innovate. America has become a hollow shell of what it formerly was, having been self-gutted by our own politicians, investment bankers and media. Like the old song says: