The Results of the Offshoring of America
America used to symbolize American industrial might. Today the nation’s industrial lack symbolizes the offshored economy. Take Detroit as a stark example. Detroit’s population has declined by half. A quarter of the city is desolate with only a few houses still standing on largely abandoned streets.
President Obama and government economists continue to emit platitudes about recovery and the end of the recession. How does an economy recover when its economic leaders have spent more than a decade moving high productivity, valuable middle class jobs offshore along with the Gross Domestic Product associated with them?
Reports from the Bureau of Labor Statistics are frustrating to the average American. There have been record declines in both jobs and hours worked. At the end of last year, the U.S. economy had fewer jobs than at the end of 1997. Hours worked at the end of last year were less than at the end of 1995. The average work week is falling and currently stands at 33.1 hours for non-supervisory workers. Wages are not rising with productivity. Perhaps the explanation lies in the productivity data. How?
It has been pointed out that U.S. labor productivity statistics can actually be reflecting the low wages paid to offshored labor. An American company with production in the U.S. and China produces aggregate results in labor output and labor compensation. The productivity statistics measure the labor productivity of global corporations, which has nothing to do with U.S. labor.
For years, consulting companies like Deloitte have heralded jobs in the financial community and championed the causes of globalization. Those jobs have not only declined because of the recession, but have moved offshore as well. The financial economy which was to replace the industrial economy is nowhere in sight. The U.S. has only 5 banks in the world’s top 50 based on the size of assets. After the derivative fraud perpetrated on the world’s banks by the U.S. investment banks, there is no prospect of any country truly trusting American financial leadership. Wall Street has diversified its interests to the powerhouses of other nations, draining this nation to satisfy its own global interests.
The American economic and political leadership has employed power to serve its own interests at the expense of the American people. By enriching themselves for the moment, multinationals, bankers and politicians are ramming the U.S. economy into the ground, bankrupting any vestiges of the American Dream. The United States is on the edge as a third world nation.