HELP WANTED.....The Demise of the Middle Class (NYT Magazine)

THE WAY WE LIVE NOW

Help Wanted
By WALTER KIRN

A couple of weeks ago the secretaries of commerce, labor and the treasury took a two-day bus trip through the Midwest to talk up their boss's economic policies and confront, as sensitively as possible, the festering unemployment issue that may prove decisive in choosing the next president. Given that the current jobless rate hovers a little above 6 percent (a good 2 points higher than when Bush took office), the cabinet members' choice of transportation was a thoughtful touch. If the jobless rate were much higher -- say, 8 or 9 percent -- old bicycles would have been more appropriate, or maybe even a walking tour, but as things stand motor coaches were just right, evoking a nation that's still on the move but just not quite as quickly as it might be.

Like the Democratic presidential hopefuls who've also been talking nonstop about unemployment, the road-tripping cabinet members all agreed about the solution to joblessness: more jobs. Much as happiness is the solution to depression and tallness the remedy for shortness, this answer makes sense on the surface, if not beneath it. The only dispute among the politicians is over how to get these extra jobs: through plucky, old-fashioned economic growth (the Republican way) or by fetching the jobs back from China and India, where American industry has been sending them (the populist Democratic way). Both methods promise the same result, of course: a drop in the jobless rate of a couple points or so to a level we needn't fret so much about -- never mind that for people out of work, unemployment is always 100 percent, while for people who do have work it's zero, even if only three of them remain.

This talk about jobs as the be-all and end-all of American economic welfare has a fundamental limitation, though: except for certain hardcore puritans, it isn't jobs that people want; it's money. In the summer of 1978, when I was 16 and starting my working life, my goal was not to find a job at all, but to own a tricked-out Camaro with custom chrome wheels. Short of devising a surefire blackjack system, the only practical way to reach this dream was to take paid employment. The job I landed, pumping gas, was not only tedious, it turned out, but also, as self-service stations have proved, unnecessary in the scheme of things.

I hate to seem cold, but as far as I'm concerned, there are plenty of jobs that foreigners can have. Assembling Happy Meal toys, for starters. Filling snow globes with whatever that clear liquid is. For a while, that was the major type of work they did over there, and no one I know appeared to miss it much -- if it ever even existed in America. Cheap overseas labor has created products that costly labor would never have bothered with -- those flexible phosphorescent light sticks, say. Those jobs weren't stolen but invented.

But when Asians start doing our good jobs, it's another story.....MORE >>

http://www.nytimes.com/2003/08/17/magazine/17WWLN.html

From what I read about Howard Dean is that he wants to promote small businesses. Well that sounds nice but small business just doesnt provide the higher paying jobs that big companies can. Think about it. Compare the wages at an auto plant to that of a small service business like a restaurant, hotel, or general store (sounds like most small towns in Vermont).

The trouble is we are seeing all of our good factory jobs going overseas. For instance Ertl toys once had their manufacturing plant in Dyersberg Iowa. Now that "plant" is a distribution center. The actual toys are made in China. In fact most toy companies have moved outside the country. There are also no domestically made tv sets anymore. And think how few shoes are made here anymore (listening Nike?).

So its not just jobs. The growing service sector has created loads of them. But you arent seeing the good paying jobs anymore.

>>but small business just doesnt provide the higher paying jobs that big companies can. Think about it. Compare the wages at an auto plant to that of a small service business like a restaurant, hotel, or general store (sounds like most small towns in Vermont).

Really? Compare the average wage of McDonalds (huge company) with the average wage in a 10 partner law office? Who has the higher wages? Size of the company has nothing to do with the wages paid. You need to look at the industry, the competition, the skills required etc.

you're comparing apples and oranges.

Compare the wage of the McDonald's employee against that of the Bob's Greasy Spoon employee.

Odds are, the McD employee has a better wage/benefit package.

And comparing autoplants to restaurants isn't?

shameless kick

"I hate to seem cold, but as far as I'm concerned, there are plenty of jobs that foreigners can have. Assembling Happy Meal toys, for starters. Filling snow globes with whatever that clear liquid is. For a while, that was the major type of work they did over there, and no one I know appeared to miss it much "

This stinks of elitism...the author may not care that tens of thousands of low skill, low paying jobs were sent overseas, but my guess is there are plenty of low-skill workers in the USA that would be happy to perform the jobs the author claims are somehow beneath him/her....apparentely its only the high wage earners that the author cares about...

or a 7-11 to the wages at an electrical contractor, or auto-repair garage, or an event videography/photography outfit.

Also, one doesn't need to be as large as GE to provide good factory jobs. The large corps get many more tax breaks though.

picture, and not get tunnel vision about immediate short term issues.

What IS the globalization plan? Are they all the same or are there
different ideas/plans about how to bring about this transition?
What do they foresee happening to the American middle class as a result? ETC.