The
Obama Administration has tried its best to convince the
people that economic recovery is beginning to show. It
might be slow, but it’s coming.
Others,
notably many observers on Wall Street, are telling the people
that, if there is a recovery coming, it had better be based
on something more than additional jobs in the old sectors
of the American economy, because in some of the most important
parts of the economy, the jobs are not coming back soon.
Two
views of the economy and the prospects for recovery, yet,
many of the players have a foot in both camps—or, at least
they did. Many of Obama’s economic advisors came directly
out of a Wall Street environment. Their views are colored
by their experiences as the shapers of the national economy,
with a sharp eye on how they were shaping the global economy.
As
far as wage working Americans go, none of these experts
have the experience necessary to make the decisions that
will help the millions of families who are desperately trying
to lift themselves out of a terrible situation.
According
to the U.S. Bureau of Labor Statistics, there were 14.8
million Americans unemployed in September, a 9.6 percent
unemployment rate. Those numbers were unchanged from the
previous month. Longtime observers of the economy and the
job market have estimated the numbers to be much higher,
since the unemployed are not counted, once they stop looking
for work.
The
past 30 years has been a time of rapid transfer of manufacturing
and heavy industry out of the country. With those sectors
went millions of the best-paying jobs the country had ever
seen, so it is small wonder that there is less money in
the American pot. Less money means less business and less
buying and, in a consumer society, less buying means a sharply
diminished economy. Thus, the spiral began.
Now,
wage-working Americans are being told that the recovery
may be slow, but it’s on its way. Can we blame them if
they just don’t see it? Can they be blamed if they’re angry
about the state of their nation and their lives? They are
angry, but they don’t really know who is at fault. How
are those jobs going to be brought back from wherever they
went so long ago?
In
early September, one assessment was this, from 24/7 Wall
St.: “It has become clear that jobs in some industries
may never come back or if they do it will take years or
decades for a recovery. 24/7 Wall St. examined the Bureau
of Labor Statistics’ ‘Employment Situation Summary’ and
a number of sources that show layoffs by company and sector.
The weakness in these sectors will make it harder for the
private industry, even aided by the government, to bring
down total unemployment from 9.6% and replace the 8.3
million jobs lost during the recession. The losses in these
industries have to be offset by growth in others before
there can be any net increase in American employment.”
The
list of job categories that will not see much of a recovery—at
least, according to 24/7 Wall St.—includes state and local
government jobs; construction; installation, maintenance,
and repair; automotive manufacturing; pharmaceuticals; big
telecom; newspapers; airlines; realtors, and bank tellers.
There
have been “jobless recoveries” before, but this one promises
to be unique. How can it be called a recovery? It depends
on how you look at it and on who is looking at it. Management
of firms that have shifted their production to other countries
and look toward other countries for their start-up money,
as well as goods, will see recovery at a pretty good rate,
because they’re doing well. But, they make up only a small
percentage of the American people—1 to 5 percent.
The
other 95 percent is made up of the Americans who are losing
their homes, seeing their manufacturing plants closing,
scrambling to add another job to the family income, and
standing in line—so to speak—to get one of the jobs that
they and four other unemployed persons are trying to nail
down. For them, recovery seems but an illusion.
As
has been pointed out by many, over the years, this problem
has been decades in the making, with American corporations
looking to get the goods made by the cheapest labor—and
that’s not in the U.S., where the government, in effect,
subsidized the “outsourcing” of jobs to the lowest-wage
countries.
This
has been called “free trade,” but it only has been free
for transnational corporations. It has never been free
for workers of any country. This so-called free trade,
indeed, has been a race to the bottom, as was predicted,
even as corporate propagandists convinced a majority of
Americans that it was good for them. It’s a good thing
that, with modern technology, the unemployed can file for
their benefits on the phone or on line. Otherwise, the
size of the lines at unemployment offices would be frighteningly
reminiscent of the lines of the Great Depression. As it
is, we just have a “Great Recession.”
Average
Americans, workers, listened to the free traders in both
parties, never looking ahead to where a global economy might
take them in 10 or 20 years. The end of those years is
here, and the predicted catastrophic results have come to
pass. Yet, there are those who threaten further devastation,
if the U.S. does not rid itself of its “protectionist” impulses.
Just
this week, a right-of-center pundit, David Harsanyi, called
out Republicans who voted with Democrats on a trade bill
that he sees as “protectionist.” He wrote: “No matter
how many times history proves the protectionists wrong,
they come back and scaremonger and demagogue us into believing
trade is harmful. And admittedly, there are few more abstract
and politically problematic positions to defend.”
As
with those of his political bent, Harsanyi has set up a
straw man, saying that opponents of the “free trade,” global
economy believe “trade is harmful.” He doesn’t quote by
name (or quote anyone at all) any progressive who has said
trade is harmful, because it’s not likely that he can find
one.
The
world always has had trade. No one could stop that, least
of all governments. People who had a horse, camel, or boat
were going to trade, no matter what. They did and they
continue to do so. But the terms of trade have always been
set by the powerful—The terms of trade are set by him what’s
got the biggest guns—and that’s what we’ve seen in this
global economy for at least three decades. The benefits
never trickled down to the workers, peasants, or indigenous
people, anywhere, including the U.S., and they never will
under the current system of “free trade.” The powerful,
those for whom Harsanyi speaks, will benefit, as they always
have.
This
week, President Obama announced a $60 billion program to
improve roads, the airline system, and railroads, infrastructure
work that will provide jobs. However many new jobs are
created has yet to be determined, but it’s possible that
this program, like so many before it, will be launched without
regard to other large problems the nation faces, namely
the deteriorating environment, dependence on fossil fuels
and the increasing cost of oil, and the social disruption
that, to a great extent, is causing political gridlock at
the state and national levels of government.
It
makes us feel good that we might be able to create jobs
through the infrastructure improvement program, but what
America needs is to bring back (whether they were sent to
other countries or just disappeared right here at home)
a volume of manufacturing and industrial jobs that will
truly set American families on the road to recovery. Without
producing necessities here at home—as opposed to desires
created by our massive advertising and public relations
“industries”—there never will be true recovery for the people.
The status quo will simply further enrich the few.
BlackCommentator.com Columnist, John Funiciello, is a labor organizer and former union organizer. His union
work started when he became a local president of The Newspaper
Guild in the early 1970s. He was a reporter for 14 years
for newspapers in New York State. In addition to labor work, he is organizing family
farmers as they struggle to stay on the land under enormous
pressure from factory food producers and land developers.
Click here to contact Mr. Funiciello.
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