Tuesday, March 22, 2011

The economic toll of a changing economy-4

Now we come to the businesses, who have been ruthlessly trying to cut costs by laying off people, off shoring whatever they can and in the process leaving our precarious middle class struggling for their American dream. Then they bring back the cheaper products that they have outsourced to the United States to be sold to the struggling middle class. Our manufacturing base has been slowing eroding for the past 30 years due to outsourcing and we have now become a bunch of low wages nation selling food stuff and working in stores selling cheap overseas stuff. It is this pressure of the businesses on the private sector that creates the incentive to cut more union jobs or reduce their benefits because the jobless people cannot support the well paid union jobs.

The jobs which have not be cut or outsourced to other countries are being cut here by in sourcing with small private contractors or the increasing use of automation. Right now the basic idea is to preserve jobs and if the businesses can be convinced to keep the jobs here then the unions would have to keep out of the equation since any creation of jobs is better than no jobs. The businesses should also be made to realize that in order for their goods to be sold here must also be made here with cheaper non union labor (which has been done in the south).

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