How Offshoring Has Destroyed the Economy

[Donnachaidh]

http://counterpunch.org/roberts05312011.html

These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans.

To add to the amazement, their research report, “The Evolving Structure of the American Economy and the Employment Challenge,” was published by the very establishment Council on Foreign Relations.

For a decade I have warned that US corporations, pressed by Wall Street and large retailers such as Wal-Mart, to move offshore their production for US consumer markets, were simultaneously moving offshore US GDP, US tax base, US consumer income, and irreplaceable career opportunities for American citizens.

Among the serious consequences of offshoring are the dismantling of the ladders of upward mobility that made the US an “opportunity society,” an extraordinary worsening of the income distribution, and large trade and federal budget deficits that cannot be closed by normal means. These deficits now threaten the US dollar’s role as world reserve currency.

More at the link --

[BarbaRosa]

1. REALLY?

The two economists have taken a careful empirical look at jobs offshoring and concluded that it has ruined the income and employment prospects for most Americans.

REALLY?:banghead:

[Octafish]

2. Kicked and Recc'd and it stayed at 'Two.'

WTF? Is Democratic Underground now a "right-to-work" site?

Roberts is talking about real wealth: That which comes from creating things that make life better. A few decades ago, unionized U.S. manufacturing jobs built themiddle class. Nowadays, Wall Street makes paper profits for the few. Big diff.

[Elwood P Dowd]

3. If this important post had Palin in the title, it would not sink so fast.

Roberts is correct when he says our outsourcing and free trade policies are not remotely close to Ricardo's free trade theory.

[Wilms]

4. .

[LetTimmySmoke]

5. If I were running for president, I would make offshroring a major issue.

Americans are pissed off about it, and will listen to a message to the effect of "our economy sucks because of outsourcing" which is BOTH true and what people want to hear.

But, the Dems have to not be bought out by corporations in order for that message to be pushed effectively.