2006-05-04

"Lost" Manufacturing Jobs Good for Americans?

Righteous Brother Walter Williams lays down some economic facts that should help explain why the loss of US manufacturing jobs has coincided with a US economy that continues to attract an annual net of about a million souls into our borders.

4 comments:

Nadir said...

It's nice of Williams to joke about the loss of jobs to technology over the past century. As an academic, he isn't in danger of losing his job yet...

The increased productivity seen in American manufacturing is the result of massive layoffs and corporations forcing the remaining workers to do the work of two or three other employees for the same wages. Those employees now work more hours at the same rate of pay or less because they fear losing their own jobs.

People like Paul can be summoned to the office at midnight by a thankless boss because he fears losing his corporate slave gig.

So increased productivity does not result in an improved quality of life for most Americans. It means only greater profits for corporations.

Paul Hue said...

Why does nobody immigrate from the US? Why do so many immigrate here?

These are not slave jobs that we have, Nadir. You are aware of how slaves lived, and live, right? My boss is free to fire me; I am free to quit, and to seek other employment. He and I are both free. However, we have obligations to each other. He is obligated to pay me a set amount -- to which we both agreed -- for each hour of work that I provide him. But I am not obligated to work when I want to quit, and he is not obligated to keep employing me when he wants to fire me.

I thought that you knew how slavery worked.

Nadir said...

Okay. Then you do not consider your corporate gig to be a slave gig. That's a good thing.

Yes, I know how slavery works. My point is that the reason productivity has been up until the most recent numbers is because companies were using fewer people to do more work.

The most recent numbers show now that hiring and compensation are beginning to outpace productivity for the first time in a while. Which shows that now companies who have been working shorthanded have begun to hire individuals with less experience than those that they laid off but at lower wages with fewer benefits.

And they wonder why Americans complain about the quality of US goods.

Paul Hue said...

Nadir: Some American goods are indeed crappy... though only cars come to mind. Many others reign the quality list.