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What will end up happening (and already is) is that the US will become a service based country with the type of service being one where you physically have to be there. Other services, like phone support, will be offshored.
Until the cost of living in the US comes down, there is no competitive edge for US workers.
Germany, Japan, and most of the other "industrialized" nations have higher cost of living than the USA. Cost of living is just an excuse for American big wigs and a lazy way out. The Germany's and Japan's of the world are still able to generate considerable levels of exports and economic growth in spite of higher labor and production costs.
The USA can continue its' path of racing towards the bottom, undermining the middle class, wages, and trying to circumvent laws, the climate, taxes, etc. etc. ... OR... we can continue to improve efficiencies, productivity, and use less labor to produce better and more. I read somewhere that the US manufacturing and service sector actually loses more jobs due to improving efficiency (automation, software, and technology) than outsourcing. So, we're actually able to produce more with less (Hence why per capita, US workers are actually more productive than those of China or India).
This is a general trend as with better technology, the same work would require less people. What happens when we don't need humans to produce or do anything? I've often wondered about that long term trend?
As far as the mid-term, sooner or later the Chinas, Indias, etc. of the world are going to be more expensive (which they already are with double digit wage growths). At that point... are we going to lose to them? The US has to get back on the ball. Cutting costs is one thing... innovation, productivity, and efficiency has to prevail for long term success. Costs will rise out there. Costs here should be relatively stable as automation/innovation reduces costs per unit labor.
And by that definition, "free trade" isn't really free is it ?
I would say that it is free trade.
Free trade is painful for workers who cannot compete globally. We are all susceptible to future competition, whether it is from immigration, automation or outsourcing. If you don't keep changing, you become obsolete.
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White collar software programming jobs pay at the upper level about $21K (US) in India. That is upper white collar. Can any software programmer here in the US compete and work for less (and still survive) ?
Literally speaking, yes, they can survive on $21k per year. And I think there's not necessarily anything wrong with paying them $21k per year.
If a programmer fancies himself/herself as 'white collar' or 'high-tech', it doesn't become the organization's responsibility to provide that person with any certain wage. It becomes the worker's responsibility to command a high salary, based on their value to the organization.
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What will end up happening (and already is) is that the US will become a service based country with the type of service being one where you physically have to be there. Other services, like phone support, will be offshored.
Until the cost of living in the US comes down, there is no competitive edge for US workers.
I think making predictions about the direction of the highest-tech economy in the world is difficult. I think the drivers of our future economy are either not yet invented, not yet understood, or not yet cost-effective. I also think - and I feel somewhat strongly about this - that these new drivers of the economy will only surface during a recessionary period.
You might be right; 20 years from now we might not have advanced at all, and maybe our quality-of-life will suffer. You have to consider; nobody saw the automobile coming, nobody saw the airplane coming, nobody saw the internet coming... etc. - so I suppose that I do have an inherent optimism about our long-term economic viability. I think our trump card is our universities. Nobody on Earth has universities like the United States.
The question was never whether or not Americans are willing to do the work.
The question was whether or not Americans are willing to do the work at a wage that is globally competitive.
I guess your solution would be for American companies to employ American workers, up until the point that Chinese companies inevitably run them out of business.
If an American worker wants to be paid 10x more than a Chinese worker, shouldn't he be 10x more productive? Isn't that "fair" ?
So your point is that American workers should work for the same wage as a Chinese worker, @ .18cents per hour.
The American worker is the most productive worker on the planet. The difference is they have the FREEDOM to not be subjected to working 20 hours a day 7 days a week. This is because several generations ago workers formed unions that did away with third world labor practices. Now you want Americans to be forced to compete with these third world countries by throwing out all the gains made by past generations.
Be real careful what you wish for on others. No job and no industry is safe from this type of forced reduction of living standards. Greed is the fuel of big business and they aren’t going to stop at blue collar workers. Talk to some of the displaced IT workers and you will see it’s only a matter of time, before all Americans are forced to accept third world living standards.
Unless Americans band together with one voice and stop this two class rich or poor society you will be next.
So your point is that American workers should work for the same wage as a Chinese worker, @ .18cents per hour.
No, I'm just pointing out reality, which is that American workers are competing against Chinese workers who make those types of wages.
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The American worker is the most productive worker on the planet. The difference is they have the FREEDOM to not be subjected to working 20 hours a day 7 days a week. This is because several generations ago workers formed unions that did away with third world labor practices.
The Chinese are free to govern as they see fit. It isn't our business, and furthermore, we couldn't stop them if we wanted to.
Besides, if a 15th generation peasant farmer from western China wants to quadruple his annual income by working 120 hrs/week in a steel mill, who am I to trample on his dreams?
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Now you want Americans to be forced to compete with these third world countries by throwing out all the gains made by past generations. Be real careful what you wish for on others.
I never said anything about what I wanted. I'm telling you how I think things are.
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No job and no industry is safe from this type of forced reduction of living standards. Greed is the fuel of big business and they aren’t going to stop at blue collar workers. Talk to some of the displaced IT workers and you will see it’s only a matter of time, before all Americans are forced to accept third world living standards.
Unless Americans band together with one voice and stop this two class rich or poor society you will be next.
China is growing the way it is because they have the manufacturing jobs that Americans had when America was growing.
That's right. It's what warren buffet blasted as a nation of sharecroppers in 2005. The fact is being pen and paper pushers may be more profitable career but 3/4 of American dont have a college degree and need those manufacturing jobs that are being outsourced. China's growth is slow but steady and in 2025 they should be the #2 super power, one may ask how they got there, well thanks to none other than America, something we may regret if one day we have to reckon with them.
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