Why Obama’s “Job Creation” Plan Is Doomed to Failure

President Barack Obama’s much-touted “job creation” plan is a cruel hoax which can never work because of a number of fundamental flaws in the globalization ideology.

Globalization is the process through which, in theory, economies have become “integrated” through a global network of transportation, and trade.

The theory behind this process has always been “free trade” and economic stimulation. However, this theory has been skewed because of the clear and obvious racial differences in different parts of the globe which has enabled certain regions — mainly the Far East — to dominate manufacturing.

For example, it simply costs less to produce an item in China because that nation does not have the stringent environmental controls which Europe or America has, primarily because there is a lessened degree and understanding of social responsibility in that nation.

This has led to the situation, as reported by an international environmental agency in 2007, that only 1 percent of China’s 560 million city inhabitants breathe air deemed safe by the European Union.

Environmental — or rather the lack of — concerns are not the only reason for the imbalance in globalization. The other stark reality is that the massive number of workers available in the Far East means that the cost of labor is dramatically lower.

It is impossible for an American worker with a mortgage, a family, kids at college, a car and so on, who is earning $20 an hour, to to be able to compete with a Chinese worker in a factory earning $1 an hour. Under such circumstances, it is inevitable that unfettered market forces will swing in favour of the Chinese worker.

This is not just theory, but practical reality. For example, the increasing U.S. trade deficit with China has cost 2.4 million American jobs between 2001 and 2008, according to a study by the Economic Policy Institute (EPI).

A total of 3.2 million, or one in six U.S. factory jobs, have disappeared between 2000 and 2007 directly as a result of this imbalance, the EPI said.

Most recently, news has emerged that one of America’s last GE lightbulb factories in Winchester, VA, is closing down with the loss of 200 jobs.

The reason for the closure is that federally mandated energy-saving compact fluorescent light (CFL) bulbs are “cheaper” to manufacture in China.

Not even the much-vaunted “high-tech” IT industry is exempt from the effects of globalization. Apple, for example, does employ a large number of people — but the vast majority are contractors in China.

Official figures also show that employment in IT fields such as data processing and software publishing has declined and that the reason is simple: offshoring and outsourcing to countries such as India that offer lower wages but comparable skills.

Globalization is rapidly gutting America’s manufacturing base and unless this process is halted, the entire country will be turned into an industrial ghost town.

The only way to protect and create jobs is to protect and nurture the manufacturing and industrial sector by ensuring that it once again becomes competitive in the domestic and foreign markets.

And yes, that means protecting American industry. Before anyone objects in the name of “free trade,” they should first consider the alternative, which is the complete economic collapse of our nation.

Tags: , , , , , ,

Category: Establishment News

Comments (1)

Trackback URL | Comments RSS Feed

  1. robert jones says:

    We Europeans can never hope to compete against a Third World labor force which refers to a mud or bamboo shanty as home, and is willing to do a long and hard day’s work just to acquire minimal sustenance, perhaps a cup of potable water and a small ball of rice.

    Nor should it be expected that we, the rightful heirs to the fruits of technological modernity, be required to demean ourselves in such a fashion to earn our keep in this world. Are we, the true children of ancient Europe, to be sacrificed wholesale on the altar of laissez faire Capitalism in a vain effort to mollify our vile enemy’s insatiable appetite, for both vengeance and profit?