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RSS Tc04041

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The United States has lost a vast amount of jobs to foreign countries. Large corporations have cut jobs in the U.S. and moved them overseas to decrease their annual operating expenses, which you can't blame them because they are making decisions that will better their corporations. However, despite bettering their company from a monetary standpoint, the problem in this model is that corporations do not care about the United States—as a country. When the board members of a company meet to make decisions to cut jobs or increase productivity within a company, they are not thinking about what’s best for the country, rather they are driven by decisions that best reflect the interest of shareholders.

Decisions made today by corporate America are based on greed, because all they care about is the price per share earnings ratio to sky rocket. Upper executives do not have the capacity to make sound moral decisions that will lead to an outcome that will suit the best interest for the workers that have dedicated 30 to 40 years of their lives for the company.

This is the double-edge sword of capitalism and it’s killing the U.S. economy. In 2004, the Midwest U.S. alone lost 7,555 in a matter of three months in 2004—almost all to Mexico. This number is part of the 2.7 million manufacturing jobs lost since 2000 in the United States. Think of the economic ramifications these job losses have created, everything from paying on mortgages on homes to buying goods—severe effects trickle their way down the economic ladder. Compare this 2.7 million loss since 2000 to General Motors situation in present day 2008. The government announced this past week that if General Motors fell it could put the U.S. into a severe Recession or Depression, with the loss of 2.5 million jobs total (manufacturing, assembly, tiered suppliers, dealerships, etc). Anyway you look at it, the exchange of money from individual to business to business declines dramatically with these job losses.

I’ll keep it simple and finish up for everyone. Because of our job losses in the manufacturing and assembly sectors, this has led to auxiliary losses in other sectors and our country has become less self-sufficient in correlation to other countries, which now have those “U.S.” jobs. In other words, if you don’t make anything, then you are not appealing to trade with, and eventually countries will not trade with you. Adding to this, the U.S. is still the number one consuming country in the world—number one in imports vs. (China #1 in exports). Furthermore, if we are not making anything in our country to sell to other countries, then a trade imbalance or deficit has been created. We are already in debt as a country and the U.S. is currently borrowing money from other countries to pay for a bailout, sparked by the sub-prime mortgage crisis.

I found this documentary to be very interesting. Take a look at what Warren Buffett and David Walker are saying:

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