The US will soon be stealing jobs from China – not bringing them back

December 6, 2012

It is a popular political pass time in America to bash China for stealing jobs from US workers.

However, Bree Fowler and Peter Svensson of the Associated Press reported, Apple to produce line of Macs in the US next year.

Apple’s CEO, Tim Cook said in his interview with NBC that companies like Apple chose to produce their products in places like China, not because of the lower costs associated with it, but because the manufacturing skills required just aren’t present in the U.S. anymore.

“He added that the consumer electronics world has never really had a big production presence in the U.S. As a result, it’s really more about starting production in the U.S. than bringing it back.”

Reading that AP piece reminded me of an in-service I attended in the early 1990s when I was still teaching. We were told that America’s children, supported by their parents, were not interested in the sort of education that would have led to the type of jobs Tim Cook is talking about.

For one example, we were told about a GM bumper factory that once employed 500 workers but now employed two who maintained the computers and robots that were still making bumpers in that same factory. Those 498 jobs were lost to robots—not to China.

When one of the two workers was getting ready to retire, GM, by law, had to advertise and spend time attempting to find an American worker skilled enough to replace the one who was leaving. After several months and thousands of dollars spent to advertise the position, none of the applicants had the necessary job entry skills. Only then was GM free to look outside the US and hired a recent high school graduate in Germany to take the job that came with a $90,000 annual salary in addition to the benefits of health care and a retirement plan.

Today, many of America’s high school graduates are too busy chasing frivolous dreams of fame and wealth while standing in line to audition for programs such as American Idol or the X-Factor where sixty thousand from each show are rejected annually before the final ten or twelve are chosen to compete on live TV. In fact, Hollywood still attracts thousands of starry eyed teens each year.  That is a 99.98% failure rate but that hasn’t stopped many American children from chasing dreams and being encouraged by parents.

I remember one student of mine that dreamed of becoming a super model and possibly working for Victoria’s Secret. Her mother was even paying for private modeling lessons, and the student was only fourteen and no way did this girl look like the super models that Victoria’s Secret hires. To achieve that would have required serious weight loss and some plastic surgery.

Then there were the kids that never did the class work or homework because they were going to earn millions in baseball, basketball, football or golf, so why read?  After all, it was no fun to read.

Next there were the parents obsessed with the child’s self esteem and always feel good attitude. Heaven forbid that a parent should say no to his or her child or sit down and tell the child the reality of dreaming to become a super star in sports or entertainment or become the next Steve Jobs.

In fact, “The perception among some Americans is that immigrant labor and off shoring of jobs are the major causes of unemployment. Indeed, American corporations choose to utilize migrant labor and off shoring to India and China in order to pay out lower wages. Yet, studies have estimated that off shoring accounts for 10 percent of unemployment and would only affect two percent of employed Americans.” Source: Smirking Chimp.com

Does that mean that 90% of jobs lost in America were to robots and computers?

However, no matter the facts, if someone is out of work, it is easier to blame it on China or Japan or India or South Korea, or Bangladesh, for example, than on some machine probably made in America by another machine that caused the loss of 99.6% of the high paying jobs with benefits in that GM bumper factory back in the 20th century.

And if it comes to education, then the public (mostly parents that refuse to take the blame for how they raised their children) will need another scapegoat and turn, once again, on the US public education system, its teachers and teacher unions.

What were American companies supposed to do, go out of business because the children didn’t want to learn the skills necessary to work in those industries?

Discover Greed is Universal – a human trait

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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China, the Power of Government and Eminent Domain

December 2, 2012

Gillian Wong of the Associated Press reported on a lone, rural Chinese farmer that had resisted selling his house to the local government so a new road could be completed.  The photo shows a house sitting in the middle of an almost finished road with pavement surrounding it.

If that had been in the US, the house would have been gone long before the road was build—something Wong fails to mention is that this sort of thing happens in the US all the time and it started during the decades that the roads and highways spread across the US like a spider web.

In fact, local US governments do not need to wait for the owner of a house to agree to sell. It can force the owner to sell and then use the police/marshals to move him or her out using force if necessary.

I still remember reading about one incident in The Los Angeles Times that happened in Southern California during the craze to build freeways there.

The home owner was a combat veteran from World War II, Korea or Vietnam (I do not remember which war).  This vet refused to move out of his house even after the local government forced him to sell it.  He claimed he wasn’t being paid what he had invested in the house in improvements.

This American vet filled sandbags and stacked them against the walls of his house; he stocked up on canned foods, bullets, rifles and a gas mask along with a bullet-proof vest. No one was going to take his house away from him.

A swat team had to be called in, tear gas was used and the swat team broke into his house and swarmed him before he could shoot anyone. Then off to jail and court he went to be judged by a jury of his peers. I never did find out what the outcome of that trial was.

In the US, as states, cities and towns expand and improve roadways, sewer and power lines, communications and other system, local governments often secure or acquire access to private land. Without the government’s power to do so, the size and capability or public infrastructure would become inadequate to serve the needs of society (the people) and often in the US the estimated value of a property does not match, because the government uses a different method to determine value not based on what the owner spent on the property but based on the value of other properties in the same community based on an average.  To the government, the value of the property is an estimated value. To the owner, it may be every penny he or she invested in the property.  Source: Find Law.com

In the US, this has been called legalized theft and it has been debated for decades. The following source is one example of that debate: Fee.org

The law is called Eminent Domain and it gives a government the power to buy private property for public use, usually with compensation to the owner.

Britannica Concise Encyclopedia says: “Government power to take private property for public use without the owner’s consent. Constitutional provisions in most countries, including the U.S. (in the 5th Amendment to the Constitution), require the payment of just compensation to the owner. As a power peculiar to sovereign authority and coupled with a duty to pay compensation, the concept was developed by such 17th-century natural-law jurists as Hugo Grotius and Samuel Pufendorf.”

Therefore, why is this incident in China worthy of media attention in the US, and I wonder if China’s media ever reported on similar incidents in America?

After all, they happen all the time and are often ignored by the American media because they are so common. If you doubt what I say, watch the three-part PBS program embedded in this post.

Discover Dr. Li’s illusive Memoires

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Scapegoating China and Manipulating the Opinions of Americans – Part 4/4

November 8, 2012

In conclusion, how many ignorant adult voters are there in America that a presidential candidate can fool to gain votes? I think the answer may be found from the number of adult Americans that do not read books and watch too much reality TV.

According to Mental Floss, Where Knowledge Junkies Get Their Fix, in the United States:

1. One-third of high school graduates never read another book for the rest of their lives.

2. Forty-Two percent of college graduates never read another book after college.

3. Eighty percent of U.S. families did not buy or read a book last year.

4. Seventy percent of U.S., adults have not been in a bookstore in the last five years.

5. Children who watch four or more hours of TV per day spend less time on school work, have poorer reading skills, play less with friends, and have fewer hobbies than children who watch less TV. Source for #5: Reading.org

However, according to A. C. Nielsen Co., the average American watches more than 4 hours of TV each day, and the number of hours per day that TV is on in an average U.S. home: 6 hours, 47 minutes. Source: csun.edu

No matter what we hear from an American politician running for election, the Bureau of Labor Statistics proves that education/literacy pays, because the unemployment rate for adult Americans with less than a high school diploma is 14.1% (medium weekly earnings in 2011 was $451) while unemployment for workers with a college BA degree is 4.9% (medium weekly earnings in 2011 was $1,053).

In fact, about 39% of voters ages 18 and older that do not have a high school degree vote, while 77% of college graduates vote. In addition, you may suspect that low-income voters would vote Democratic, but the top sixteen states with very high or high level of persons living below poverty (43% of adults with low literacy skills live in poverty), twelve  of these states vote solidly Republican. Source: Election 2012 Factors: Poverty Level Households by State

Answer this question: If you cannot read or understand what you read, where do you get information to help decide how to vote or what to think about China?

A. talk radio (dominated by conservative talk shows such as Rush Limbaugh)

B. television

C. reading informative Blogs such as this one

D. reading newspaper, books, and magazines to become better informed

E. other sources – for example, the barber shop or a bar

I think that Abraham Lincoln should have also said, “It is easier to fool someone that is uneducated and does not read than someone that is educated and reads.”

Note: If you want to learn about the impact of watching too much TV, I suggest you read TV Turns Kids Into Zombies, Retards Development, and eventually, these children grow up to be adults that vote.

Return to Scapegoating China … Part 3 or start with Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Scapegoating China and Manipulating the Opinions of Americans – Part 3/4

November 7, 2012

In Part 2, we discovered that China’s unemployment rate among rural Chinese working in manufacturing reached 16.4% in early 2009 (while unemployment in the United States was only 9.3%), and from Forbes on October 18, 2012 we learn: Manufacturing jobs stand poised for a rebound as jobs get reshored from China — creating 2.5 million to 5 million U.S. jobs in manufacturing and support jobs. Worries about a severe job skills gap are largely misreported according to results from a Boston Consulting Group (BCG) analysis – part of the firm’s ongoing series entitled Made in America, Again.” 

In comparison, unemployment in the United States stands at 7.8% today. In another comparison, during 2007 – 2009 while China lost 23 million manufacturing jobs, the United States lost only 2 million in that job sector. Source: bls.gov

With numbers like these, would someone explain how China is stealing manufacturing jobs from the US?

In addition, the average credit card debt per household in the US (I’m not talking about the Federal national debt) is about $16,000 while total U.S. Consumer debt was $2.43 trillion as of May 2011.


The History of Economic Booms and Busts

US Mortgage Debt is more than $14 trillion and 40% of Americans have no retirement savings while 25% have no personal savings. In fact, 38% of American adults have no emergency funds to fall back on.

However, in China the average household saves almost 30% of its annual income. The average business saves about 45% of net profits and the government has a surplus savings rate of more than 50% of tax revenues instead of the US that has a national debt more than 100% of GDP–more than $16 trillion. The US has been spending more than a trillion dollars a year that it doesn’t have while China saves half of its tax revenues and invests in infrastructure and in other countries such as the US. Source: VoxEU.org

Does that sound as if China is a threat to the US and is stealing manufacturing jobs from America? Many in the US are self centered and do not consider that China trades with the world–not just America. In 2011, China exported about $1.6 trillion in goods to other countries while importing about $1.4 trillion. At the same time, China bought about $104 billion in goods from the US. Source: US-China.org

In addition, outside the US, the world sees China differently. The Pew Global Attitudes Project surveys thousands of people in 59 countries. For 2012 China had a 94% favorable rating while the United States had 40%.


The Hidden History of the Financial Crisis

Back to Abraham Lincoln, who said, “You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.”

We will discover what that means today in the last post in this series.

Continued on November 1, 2012 in Scapegoating China … Part 4 or return to Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Scapegoating China and Manipulating the Opinions of Americans – Part 2/4

November 6, 2012

Once we discover how many times the United States has had one financial disaster after another, we start to understand why China must be used as a scapegoat to distract many Americans and give them a victim to blame for lost jobs and low pay.

In another example, Business Pundit.com mentions the 10 Most Bizarre Economic Bubbles in History.  One example was US Dot-com Bubble that burst on March 10, 2000 resulting in a mild but long-felt recession, and the stock market crash of 2000-2002 caused the loss of $5 trillion in the market value of US companies from March 2000 to October 2002.

I’ve left out many other global financial disasters such as those taking place in Israel (1983), Sweden (1990s), Japan (1990), Mexico (1994), Russia (1998), Turkey (2001), Argentina (2001), Iceland (2008), etc.

Then there is the global financial disaster of 2007 – 2008. Total losses are estimated in trillions of U.S. dollars globally. Between January and October of 2008, owners of stocks in U.S. corporations suffered about $8 trillion in losses while losses in other countries averaged about 40%.


Financial Crisis History Lesson – Part 2

Global Issues.org says, “While the Western mainstream media has often hyped up a threat posed by a growing China, the World Bank’s chief economist, (Lin Yifu, a well respected Chinese academic) notes ‘Relatively speaking, China is a country with scarce capital funds and it is hardly the time for us to export these funds and pour them into a country profuse with capital like the U.S.'”

I think what Lin Yifu is talking about is not the US National Federal Debt but the fact that US corporate profits just hit an all-time high … Source: Business Insider.com

During the second 2012 Presidential Debate, Romney mentioned China seven times. He blamed China’s currency manipulation for the loss of manufacturing jobs in the US, and promised to “crack down on China when they cheat.” Source: The New Republic.com

However, what Mitt Romney did not say is the number of jobs lost in China due to the 2007 US financial crisis that swept the globe. “After August 2008, the number of orders filled by many export oriented enterprises dropped precipitously, and thousands of factories in the coastal region, especially in the Pearl River Delta, were closed. The impact was most serious on the rural migrant labor force. … In absolute terms, it corresponds to a loss of 23 million jobs. Rural migrant labor dropped from 140 million to 117 million with an unemployment rate of 16.4% in early 2009.” Source: The Global Economic Crisis and Unemployment in China

Continued on October 31, 2012 in Scapegoating China … Part 3 or return to Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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