The Collapse of the American Standard of Living
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The Collapse of the American Standard of Living
By Stephen Bucaro
== Your Job Is Not Coming back ==
Over the past three years, 3 million American jobs have been
outsourced, primarily to China and India. In this article I'm
going to tell you:
- How and why those jobs were lost - Why 14 million more jobs
will be lost - why those jobs are never coming back - What the
future will be like for Americans - How you can survive the
collapse
Millions of American manufacturing jobs have been lost since the
1960's. But American inginuity allowed many of those jobs to be
replaced by high-tech jobs. The jobs we are losing now are in
Engineeering, Computer Science, Research and Development, and
most other high-tech areas.
Over many decades, American workers, through unions and scarcity
of skilled workers, have raised their standard of living.
American companies couldn't use cheap foreign labor because
communicating and coordinating over great distance was costly
and complicated. The Internet changed that.
Using cheap Internet bandwidth provided by American telecom
companies, American companies are now able to communicate and
coordinate with cheap foreign workers just as easily as if they
lived next door. The Internet has leveled the playing field for
all workers world-wide. An American worker now competes for a
job against workers in Beijing China, Calcutta India and
everywhere else in the world.
American companies have the choice of paying a reasonable wage,
or even the minimum wage of $6.00 per hour, to an American
worker, or paying 24 cents an hour for a worker in China, or 34
cents an hour for a worker in India. The choice is clear. Fire
the American worker.
Some experts are saying that the job oursourcing trend is not
permanent. Just like the high-tech revolution of the last
decades, America will find a way to replace the lost jobs.
Unfortunately, wishful thinking does not put food on the table.
The job outsourcing can end only when the American worker
becomes cheaper than their foreign competitors.
Since China and India each have a population of over one billion
(not to mention Indonesia and Africa), compared to about 300
million for the United States, the wages of American workers
would have to drop until their standard of living collapsed to
that of the average Chinese or Indian.
== Why the U.S. Government is Exporting Your Job ==
Over the past three years, 3 million American jobs have been
outsourced, primarily to China and India. A study by UC Berkeley
predicts that as many as 14 million more jobs will be lost. Why
doesn't our government do something? Has our government and the
Bush administration been asleep on the job? To the contrary, the
government is using the export of your job as a political tool.
Recall the tension between the United States and China over
Taiwan, and the "spy plane" incident. China is a country with
nuclear weapons. Why doesn't China just take Taiwan? Why didn't
China respond more aggressively to the spy plane incident?
Because tensions with the United States would cause 10 million
Chinese workers to lose their jobs. The 10 million American
workers jobs "gifted" from the U.S Government to China as a
political tool. Loss of those jobs would bring China's rapidly
growing economy to a halt and push China back into the poverty
of the Mao Tse-tung era.
Recall the tension between India and Pakistan over Kashmir and
the power base that radical Muslims have in these two countries.
Both India and Pakistan are countries with nuclear weapons. Why
haven't they responded more aggressively in the struggle over
Kashmir? Why have they taken strong action to keep the radical
Muslim element under control?
Because a war between India and Pakistan, or giving free reign
to radical Muslim terrorists, would cause 10 million Indian and
Pakistani workers to lose their jobs. The 10 million American
workers jobs "gifted" from the U.S Government to India and
Pakistan as a political tool. Loss of those jobs would bring
India and Pakistan's rapidly growing economies to a halt and
push them back into the poverty of the Mahatma Gandhi era.
The last several decades have been very stressful and dangerous
for the United States and the world. Personally, I am very
surprised that the world has avoided a nuclear incident that
would kill billions of people. The reason it has avoided that
disaster is because the U.S. Government has been offering up
American workers jobs to trouble- making foreign countries as an
incentive to behave themselves.
The loss of 3 million American jobs and a trade deficit of
$541.8 Billion is the cost that U.S. Government is willing to
pay to keep the peace. To keep the peace, we have to share the
pie. That's why 14 million more American workers will lose their
jobs. That's why those jobs are never coming back.
== What the Future Will be Like for Americans ==
According to the Bureau Of Economic Analysis, GDP in the U.S.
increased at an annual rate of 4.1% in the 4th quarter of 2003.
You would think business would need to hire more than the measly
21,000 new workers they hired.
A study by Cutting Edge Information found that 90% of all U.S.
business hire cheap foreign workers instead of American Workers.
That's why this has been a jobless recovery for America's 8.2
million unemployed.
Do the math; the 3 million American Workers jobs lost to
outsourcing over the last three years cost about $450 billion in
lost wages and about $150 billion in lost tax revenue for local,
state, and the federal government. This explains the states
crumbling infrastructure and the half a trillion dollar federal
annual budget deficit.
A study by UC Berkeley predicts that as many as 14 million more
jobs will be lost, costing local, state, and the federal
government about $250 billion each year in lost tax revenue.
With that magnitude of tax revenue loss, the states can forget
about investing in infrastructure. And they certainly will not
be able to continue unemployment insurance and welfare benefits
when the unemployment numbers reach 22 million.
Think that can't happen? Then you haven't been paying attention
to the news lately. Allen Greenspan, the head of the Federal
Reserve, stated that the federal government will not be able to
pay Social Security after the year 2015. Benefits must be
reduced and the age to receive benefits must be raised. A
Medicare act passed last year took Benefits away from 14 million
senior citizens.
Think retirees will be able to rely on their pensions? After
years of turmoil in the job market, few American workers have a
pension. Even if they have a pension, 63% of all companies have
underfunded pension plans. That's up 6.5% from a year ago and
rising at the fastest rate in history.
America is facing a future with 22 million unemployed and 70
million retired people (AARP 2030 projection) who will have very
little in entitlement systems to fall back on. Here in Phoenix
we are already witnessing the strange new phenomenon of people
70 and 80 years old robbing banks!
Mexico was America's low cost labor source, but they have been
"outsourced" to even cheaper labor in China and India. Here in
Arizona, we are under invasion from Mexicans hoping to find
work. People who can't find legitimate work will create their
own jobs; burglary, drugs, and prostitution.
If you are not taking my message seriously, do the math
yourself. China and India each have a population of over one
billion (not to mention Indonesia and Africa), compared to about
300 million for the United States. In order to compete in the
globalized economy, American wages and the American standard of
living will need to drop to the level of the poorest counties on
the planet.
== How To Survive the Collapse ==
Over the past three years, 3 million American jobs have been
outsourced. America now has 8.2 million unemployed, and a study
by UC Berkeley predicts that as many as 14 million more jobs
will be lost. Unemployment numbers could reach as high as 22
million. As U.S. companies shove American workers out the door
to be replaced by cheap foreign labor, how can you protect
yourself?
The way to protect yourself is to examine your current job to
determine if it's a candidate for outsourcing. If it CAN be
outsourced, it WILL be outsourced. The secret is to recognize
which jobs WILL be outsourced, and if yours is one of them, take
action to change to a job that can't be outsourced.
Below is a list of some of the jobs that will be outsouced.
- Accounting - Call Center - Computer Programming - Design -
Engineering - Medical Transcription - Research - System
Administration - Telemarketing
If you are in a job that can be outsourced, begin taking action
to change to a job that can't be outsourced. Jobs that can't be
outsourced are jobs that can't be done over the Internet. They
require a physical person to be present. Below is a list of some
jobs that can't be outsourced.
- Construction: Landscaper, Building Framer, Heavy Equipment
Operator. You can't transmit building or highway construction
over the Internet. Avoid design jobs such as architectual design
and cival engineering, which can be outsourced.
- Delivery: Furniture Delivery, Household Mover, Package
Delivery, Truck Driver. You can't transmit physical objects over
the Internet. They require a physical person to deliver them.
- Law Enforcement: Alarm Installer, Corrections Officer,
Courtroom lawyer, Police Officer, Security Guard. Crime is
soaring, providing opportunities for jobs that can't be
outsourced. Avoid legal documenting or research jobs which can
be outsourced.
- Service: Appiance Repair, Auto Mechanic, Cleaning, Computer
and Office Equipment Repair. These jobs require a physical
person to be present, but System and Network Administration is
questionable. Most administration can be done remotely.
- Movies and Entertainment: Movie making is a giant industry in
America. You might think some aspects of movie making can be
outsourced, but the industry is run with incredably tight
scedules that can be met only with maximum communication and
coordination. Even jobs like computer special effects require
real-time collaboration.
- Multilingual Coordinator: If you can speak Chinese and are
familiar with the customs of China, your chances of promotion to
manager are very high.
- Import/Export: If you can't beat them, join them. Become a
seller of foreign made products and services. You can make
millions of dollars and live in a mansion like Bill Gates just
by facilitating the loss of your fellow Americans jobs.
- Start Your Own Business. Choose a type of business where you
won't be competing with foreign companies. Examples are dry
cleaner, caterer, decorator, mail boxes and packaging. Anything
that requires a physical person to be present.
U.S. Companies will continue to fire millions American workers
and replace them with cheap foreign workers. If your job CAN be
outsourced, it WILL be outsourced. Examine your current job to
see if it's a candidate for outsourcing. If it is, take action
to change to a job that can't be outsourced.
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