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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.
Resource Box:
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