This is worse than anything even remotely resembling "stagflation".

Too bad the article didn't bother to point out the sheer quantity of jobs leaving the U.S. and the fact that companies are using the situation to further downgrade everyone's paycheck!

Worst of all, what if we start a massive slide backwards? It is really frightening when a first-world country starts towards becoming a third-world power.

If the U.S. wants to create jobs, it needs to create the kinds of jobs for which the U.S. has an economic advantage.

Years ago when textile jobs left New England and moved to the Carolinas, New Englanders got no sympathy from the newly-employed Carolineans. When textile jobs leave the Carolinas and move to another country, should the Carolineans receive any sympathy?

If the U.S. cannot compete economically against other contries in the manufacture of textiles, then it should get out of textile industries and into industries in which it can complete economically.

You are bringing up the change in industry from textile plants in New England to the Carolinas? You have to be kidding....so much for education equating to the ability to apply intelligent thought. Textiles? What do textiles have to do with the article or what Clyde said? Did you just attend a seminar on Textiles in the 1800's or something and it stuck in your head?

While textile jobs have decreased by nearly a million paychecks in the last decade plus a couple years the issue is the removal or quotas and 'free trade' in one direction. In the past different types of manufacturing replaced the ones that left regions and that is no longer happening in the US. There are no more industries for the US to compete in because there is unfair competition going on and the congress is happily sending more and more jobs out of the US. What do you want? The US to be a place consisting of fast food restaurants and engineering groups? because that is where it is heading and in 20 years once India and China figure out how to be inventive rather than attempting to replicate the engineering will leave as well.

So what do we do slick? Do we ban immigration? Oh no, we can't do that because the US doesn't have enough educated people to fill the engineering jobs and why is that? Because pretty much all the schools have to meet quotas that don't include American kids and those same kids, if they get in, are expected to bank role themselves! Textiles left New England decades ago and the manufacturing shifted to industrial electronic goods,when those left high tech moved in. In the Carolinas, which was closer to the cotton markets clearly, went from agricultural to textiles and when textiles were leaving in droves high tech started moving into those areas where skivies were one produced. Then they changed laws allowing not only high tech but military and aerospace high tech to leave and that was that. What is to replace it I ask again? How do we pick the 150,000,000 people we need to kick out of the country or kill off to make it economically sound again?

The article is very clear, zero job creation because all manufacturing is done elsewhere now and we get cheap crap rather than well made items, thank goodness we pay less for them, those who have the money to purchase the stuff now.

Lastly, what makes you think the people of the Carolinas didn't feel bad for those that lost jobs that they got and why do you think that your mistaken belief means that what is good for the goose is good for the gander? You clearly do not work in manufacturing at any level what so ever and if you are not effected you don't care about those that are. I do care about them.

Lots of interesting issues here. Although he can speak for himself, S2000 appears to be speaking of "comparative advantage". Historically, for example, Canada has been good at producing raw materials such as ores and petroleum. The US has been good at manufacturing large goods such as cars, airplanes, ships, etc. Both countries were equally good at refining petroleum and smelting ores into useful metals (I'm making this up, but it's probably true). Now the big policy question in both countries is this: where do we put our resources in order to grow. The Economics 101 answer is: both countries should invest in what you are better at, and then have free trade. The political answer is: invest in what the locals do so that they have jobs and vote for me.

If we can trust the economists, then we should put up with short-term pain (e.g. unemployment, layoffs, abandoned towns, etc.) for long-term prosperity. This, I think, is what S2000 is suggesting.

And as usual, I think I see the question, but I don't see the answer.

John

Lower taxes, it has always created jobs.

First step: Political Athieism. See what actually IS rather than what ANY politician, ANY union or ANY political party says it is.

Second step: Learn 'What comes next.' Learn to extrapolate the stupid moves being made NOW. While you have a hand in and can do something about tomorrows history.

Third step: Question and DEMAND answers. Do not suffer fools who pretend to rule.

Fourth step: Question the answers. Remove the fools.

Fifth step: Limit their power. Severe term limits. Refuse tenure.

For most of the past 70 years, the U.S. economy and others has grown at a steady clip, as a result of the people going deeper and deeper into debt as wages have gone down in real terms, if that is what you call growing. Those who think they live in a capitalist country where no capitol exists are living in the land of Fiery. The bankers have pulled the plug, there is no more credit and no one can pay their debts. So the simple solution is to kill the 300 families we owe the money to. Or remain a debt slaves. Or just wait until 2012 when the world will end. In the meantime form a criminal gang as it’s the only thing with any future prospects.

One easy answer (which the conservatives here may not like): do what virtually every other country does, and raise tariffs on imported goods- especially imported goods we're fully capable of producing ourselves. Yes, it will raise prices, but it will also create more domestic jobs, meaning you've got more money to spend on American goods.

Late 1900s, actually.


Exactly.


You got it! Long-term economic expansion has to be financed by consumer demand, not government spending.


Overall, this leads to economic inefficiency.

U.S. consumers - all consumers, actually - are better off if we produce the goods and services for which we have a comparative advantage, and let others produce the goods and services for which they have a comparative advantage. The same is true for producers.

But only if these tax breaks result in jobs. Municipalities are starting to grow a pair and hold businesses accountable for the tax breaks they are givien. Recently Chicago pulled a tax break from Target because they came up 66 jobs short of what they had promised when they were given breaks for a distribution center they built.

There is only one reason I have the job I do. It is because the company I work for wanted to expand in the US to cover more regions they were told that if they got the approval they MUST move X amount of jobs for a period of at least five years. They very reluctantly agreed but the pay level is about equal to manual labor, the benefits exist in name only, and they are gearing up to send the jobs back over seas after the five years because you can't beat the pennies paid on the dollar in India and other countries. So manufacturing is dead, the service industry is trashed, and economist have proved themselves to be as accurate as weathermen without satallite images.

Well, there are jobs in the medical field, the issue is that the schools don't have the funding to hire the staff to be able to admit everyone who could qualify.
As an example, I think for physical therapy there is something like four times the jobs as there are qualified PT's.

Not all fields are tight and we can find careers that are in need of people. I can't picture an US with 25,000,000 nursing assistants, mostly Indian and Phillapina, and 50,000,000 PTs

S2000- I've heard we still have good, high quality steel production, and it's actually cheaper for companies to go with US-made steel than foreign. Yet we're still importing foreign steel. Any ideas why? Also, could you please expand on how tariffs lead to economic inefficiency? I'm genuinely curious, since I don't see a better way to encourage domestic industry in this age of outsourcing.

I did say that we should focus our tariffs on goods we can easily produce here, like steel, which encourages domestic production and industry over foreign imports. Money raised by tariffs could go to support our labor and manufacturing infrastructure- roads and power grids, vital to industry, yet neglected for years.

Santa's right- US manufacturing's dead. Despite the facts that once shipping costs are factored in, it costs nearly the same to produce goods in China and ship them to America as it does to manufacture them in the US directly. Where's the real savings? China's got more looser salary and environmental standards.

critter- I've heard about this as well (from a nurse, actually); we actually do have a lot of nurses in the country. The problem is that nobody wants to pay them what they want for the job- which can be grueling and demanding at times- so they go and find other jobs with better pay. (Note to Santa- the Indian and Phillipino nurses are willing to work for that pay, compared to what they can make in their own country.)

Yup, they will work for that pay.

Redshirt and I come from the same manufacturing environment so I think we will tend to agree on those issues. He is correct about what he says about tarriffs (and quotas which really was the death kneel for textiles). I don't know if it is still true but a few years ago US Customs was the only department of the gov that actually was actually bringing in money rather than just spending it. He is also absolutely correct about shipping cost which includes the value of inventory in the air, problem is most companies don't consider freight in the same measurement as they do labor and raw materials. Another neat trick used by companies in Asia, started by the Japanese companies, is the rebate program. The way it works is the manufacturer in the US figures his cost to be $2.50 for the item for raw materials and labor. The assembler wants to make more money off it but the manufacturer doesn't want to so the assembler or raw material provider says "okay, we'll keep the price the same but how about you let us control the freight and bill that back to you so we can get a better discount?". The morons say sure and what happens is the forwarder will bill an additional amount for freight which covers the cost increase the assembler wanted and then the fowarder gives a rebate check to the assembler or material provider....viola you have your increase without it being measured by the manufacturer as such! Tada!

Very astute Mr. Redshirt.....

... but then again, ya' gotta' wonder- who will be the next American Idol?....

My opinion, strictly my opinion, but I refuse to listen to the news media. All they do is report the doom and gloom. Bar rooms and the area's around office water coolers and internet forums are filled with "experts" who are really no better. As far as the media goes, the only thing cheaper than them is their talk.

Whatever happened to American ingenuity? It seems people have lost faith in who we are and what we are. This is the United States of America, when thigs get tough we get tougher. The America I know never backs down and never gives into the non-believers. Yeah we got knocked down, so what. The United States of America I know stares adversity in the face and says "just bring it."

I believe the United States will fare just fine. Sua Sponte.

Peace and Godspeed.

Pretty much where I am at as well.

That reminds me of a true story . . .

Back in the 80s in NYC the irascible Ed Koch was mayor, and his signature tagline with the public was "How'm I doin'?" So one campaign day he's pumping the flesh at a subway stop and he's going "How'm I doin', how'm I doin'?" And a old lady replies, "Ed, you're doing great. The rest of us, not so good."

I'm trying to stay positive.
As the old asthma medicine commercial goes, though, "When you can't breathe, nothing else matters."

When you can't pay your bills and feed/clothe your families, economic ideology and talk of 'solutions down the road' ring hollow.