Newspaper logo  
 
 
Local Gov’t Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education

09.15 Missing aid millions deny Syrian kids education and fuel 'lost generation' fears

Letters

Ref. : Letters to the editor

Health Care & Environment

09.19 Canadian Doctor to U.S.: Try Single-Payer Health Care Instead Of Trashing It

09.18 China to buy $300 mn. in Lab-Grown Meat from Israel

09.18 Women of childbearing age around world suffering toxic levels of mercury

09.17 China to send over 100 pollution inspection teams to cities around Beijing

09.16 The Health Care Debate We’re Not Having [we need to fully expose and root-out America's profit-obsessed, mafia-like healthcare practices]

09.16 Conflicts and Climate Change Fueling Rise in World Hunger

09.16 Driving force: are electric cars crowding out traditional engines?

09.15 'Alarm bells we cannot ignore': world hunger rising for first time this century

09.15 California’s big battery experiment: a turning point for energy storage?

09.15 EU report on weedkiller safety copied text from Monsanto study

09.15 Half of Canada's monitored wildlife is in decline, major study finds [would the Koch brothers like to make a comment?]

09.14 On The Road To Extinction, Maybe It's Not All About Us [all of us—but especially oil & gas companies—need to know the harm and death we've caused to all life as we know it, and we must undo that damage]

09.14 The entrepreneurs turning carbon dioxide into fuels [end-products later burned and polluting aren't helpful]

News Media Matters

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

09.19 Single-Payer Movement Shows: Life After Trump May Not Suck

09.19 Gone Baby Gone

09.18 'Red Alert' Sounded: Trumpcare Is Back, More Brutal and Deadly Than Ever

09.16 Dawn of the Berniecratic Party

09.16 Sen. Warren Introduces Legislation to Save Consumers From 'Equifax Exploitation'

09.15 Why Bernie Sanders' Single-Payer Push Is Great Policy and Even Better Politics

09.15 Sen. Warren Rips Anthem for Sending 'Bigger Tax Cuts or Else' Ransom Note

09.13 Bernie Sanders unveils universal healthcare bill: 'We will win this struggle' [assuming typical cost-controls and efficiencies, ongoing total savings will be at least a $Trillion per year with government paying a larger portion of over-all costs]

Justice Matters

09.16 UK legal claims grow over exposure at work to toxic diesel fumes

09.15 'Inviting Bribes' as Legal Fees Soar, Trump Ethics Office Lifts Anonymous Gift Ban

High Crimes?

09.18 When Is a Genocide a Genocide?

09.17 The Forgotten Victims of Agent Orange [why was there no war crime trial and punishment for this?]

Economics, Crony Capitalism

09.18 GOVERNMENT BY GOLDMAN

09.18 The Growing Danger of Dynastic Wealth

09.18 College in the U.S. Is More Expensive Than in Any Other Country in the World [our 'mafia capitalism' is the best in the world!]

09.18 We need to make democracy work in the fight to save the planet

09.16 Capitalism and Poverty [as disemployment from automation and offshoring increases the population at risk of poverty will grow, so we'll have to help them or society will become more suicidal and violent]

09.15 Equifax Isn’t A Data Problem. It’s A Political Problem.

International & Futurism

09.18 The billionaires investing in Cyprus in exchange for EU passports

09.16 Alienation Is Killing Americans and Japanese

09.16 US foreign policy as bellicose as ever

09.15 Bill Gates: Don't expect charities to pick up the bill for Trump's sweeping aid cuts

09.15 The UN is failing – states must back off and give its leader the power to act

09.15 Migrants stuck on endless ferry journey as countries refuse entry [like the Jews on the Voyage of the St. Louis in 1939]

09.15 Moscow flaunts might against fading Isis as it alters balance of power in Syria [endless war cultivates a cavalier attitude]

09.15 Tillerson on North Korea: Russia and China must take 'direct action' over missile launch

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Nuking the Economy

COMMENTARY:

Nuking the Economy

Forget Iran—Americans Should be Hysterical About This

By Paul Craig Roberts
In five years the US economy only created 70,000 jobs in architecture and engineering, many of which are clerical. Little wonder engineering enrollments are shrinking. There are no jobs for graduates. The talk about engineering shortages is absolute ignorance.
Last week the Bureau of Labor Statistics re-benchmarked the payroll jobs data back to 2000. Thanks to Charles McMillion of MBG Information Services, I have the adjusted data from January 2001 through January 2006. If you are worried about terrorists, you don’t know what worry is.

Job growth over the last five years is the weakest on record. The US economy came up more than 7 million jobs short of keeping up with population growth. That’s one good reason for controlling immigration. An economy that cannot keep up with population growth should not be boosting population with heavy rates of legal and illegal immigration.

Over the past five years the US economy experienced a net job loss in goods-producing activities. The entire job growth was in service-providing activities--primarily credit intermediation, health care and social assistance, waiters, waitresses and bartenders, and state and local government.

Job growth over the last five years is the weakest on record. The US economy came up more than 7 million jobs short of keeping up with population growth.

US manufacturing lost 2.9 million jobs, almost 17% of the manufacturing work force. The wipeout is across the board. Not a single manufacturing payroll classification created a single new job.

The declines in some manufacturing sectors have more in common with a country undergoing saturation bombing during war than with a super-economy that is “the envy of the world.” Communications equipment lost 43% of its workforce. Semiconductors and electronic components lost 37% of its workforce. The workforce in computers and electronic products declined 30%. Electrical equipment and appliances lost 25% of its employees. The workforce in motor vehicles and parts declined 12%. Furniture and related products lost 17% of its jobs. Apparel manufacturers lost almost half of the work force. Employment in textile mills declined 43%. Paper and paper products lost one-fifth of its jobs. The work force in plastics and rubber products declined by 15%. Even manufacturers of beverages and tobacco products experienced a 7% shrinkage in jobs.

The knowledge jobs that were supposed to take the place of lost manufacturing jobs in the globalized “new economy” never appeared. The information sector lost 17% of its jobs, with the telecommunications work force declining by 25%. Even wholesale and retail trade lost jobs. Despite massive new accounting burdens imposed by Sarbanes-Oxley, accounting and bookkeeping employment shrank by 4%. Computer systems design and related lost 9% of its jobs. Today there are 209,000 fewer managerial and supervisory jobs than 5 years ago.

In five years the US economy only created 70,000 jobs in architecture and engineering, many of which are clerical. Little wonder engineering enrollments are shrinking. There are no jobs for graduates. The talk about engineering shortages is absolute ignorance. There are several hundred thousand American engineers who are unemployed and have been for years. No student wants a degree that is nothing but a ticket to a soup line. Many engineers have written to me that they cannot even get Wal-Mart jobs because their education makes them over-qualified.

Offshore outsourcing and offshore production have left the US awash with unemployment among the highly educated. The low measured rate of unemployment does not include discouraged workers. Labor arbitrage has made the unemployment rate less and less a meaningful indicator. In the past unemployment resulted mainly from turnover in the labor force and recession. Recoveries pulled people back into jobs.

Unemployment benefits were intended to help people over the down time in the cycle when workers were laid off. Today the unemployment is permanent, as entire occupations and industries are wiped out by labor arbitrage as corporations replace their American employees with foreign ones.

Economists who look beyond political press releases estimate the US unemployment rate to be between 7% and 8.5%. There are now hundreds of thousands of Americans who will never recover their investment in their university education.

Unless the BLS is falsifying the data or businesses are reporting the opposite of the facts, the US is experiencing a job depression. Most economists refuse to acknowledge the facts, because they endorsed globalization. It was a win-win situation, they said.

They were wrong.

At a time when America desperately needs the voices of educated people as a counterweight to the disinformation that emanates from the Bush administration and its supporters, economists have discredited themselves. This is especially true for “free market economists” who foolishly assumed that international labor arbitrage was an example of free trade that was benefitting Americans. Where is the benefit when employment in US export industries and import-competitive industries is shrinking? After decades of struggle to regain credibility, free market economics is on the verge of another wipeout.

No sane economist can possibly maintain that a deplorable record of merely 1,054,000 net new private sector jobs over five years is an indication of a healthy economy.

No sane economist can possibly maintain that a deplorable record of merely 1,054,000 net new private sector jobs over five years is an indication of a healthy economy. The total number of private sector jobs created over the five year period is 500,000 jobs less than one year’s legal and illegal immigration! (In a December 2005 Center for Immigration Studies report based on the Census Bureau’s March 2005 Current Population Survey, Steven Camarota writes that there were 7.9 million new immigrants between January 2000 and March 2005.)

The economics profession has failed America. It touts a meaningless number while joblessness soars. Lazy journalists at the New York Times simply rewrite the Bush administration’s press releases.

On February 10 the Commerce Department released a record US trade deficit in goods and services for 2005--$726 billion. The US deficit in Advanced Technology Products reached a new high. Offshore production for home markets and jobs outsourcing has made the US highly dependent on foreign provided goods and services, while simultaneously reducing the export capability of the US economy. It is possible that there might be no exchange rate at which the US can balance its trade.

Polls indicate that the Bush administration is succeeding in whipping up fear and hysteria about Iran. The secretary of defense is promising Americans decades-long war. Is death in battle Bush’s solution to the job depression? Will Asians finance a decades-long war for a bankrupt country?


Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions. He can be reached at: paulcraigroberts@yahoo.com. This article originally appeared at counterpunch.org and is published in the Baltimore Chronicle with permission of the author.


Copyright © 2006 The Baltimore Chronicle. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

This story was published on February 13, 2006.

 

Public Service Ads: