“For the global economy to rebalance, the pay between Americans and the rest of the world must shrink.”
“U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed.”
Translation: American workers should take a large pay cut so corporations can rack up even more profits. The authors of this article from breakingviews.com. a pro-corporate publication, blame American workers for our “big U.S. deficit.” Basically, we can’t compete against cheap foreign labor thus corporations can’t get the huge profits they deserve. Ruling elites across the world agree that there should be a global wage convergence in order to bring the poorest workers closer to those in the developed world. That means Americans would have to endure a pay cut. This process has been in play in the U.S. for the better part of the last two decades with the passage of NAFTA, the North American Free Trade Agreement.
According to the authors:
“The global wage gap has been narrowing, but recent U.S. labor market statistics suggest the adjustment has not gone far enough.
“One indicator is unemployment, which has risen unexpectedly in this downturn. The 7.3 million jobs lost are more than treble the next post-war recession, in 1980-82. Some of that huge increase reflects the turbulence of an unusually sharp decline in GDP, but there could be another factor: the recession has revealed many workers are paid more than they are worth.
“Another possible sign is the huge surge in reported productivity, which has begun while output was still declining. This suggests that some production is being outsourced altogether, often to lower paid workers.
“The big U.S. trade deficit-cut in half but still at alarmingly high levels-is another sign of excessive pay for Americans. One explanation for the attractive prices of imported goods is that U.S. workers are paid too much, relative to their foreign peers.”
“Global wage convergence is great for the poor but tough on the overpaid rich (American workers). It’s possible to run the numbers to show that U.S. manufacturing workers should take average real wage cuts of as much as 20% to get into global balance.”
The reason unemployment is high in the U.S. is because corporations shipped many good paying jobs to third world countries. Three million jobs were lost due to overseas labor. The big blow came after NAFTA was passed by Congress through the efforts of Bill Clinton, who responded to offers he couldn’t refuse from the corporations in 1993.
Now, in the middle of an economic collapse, American companies, General Motors, for example, continue to move their factories and operations to China. GM has over 400 Buick dealerships in that nation and plans to build cars there and ship them back to the U.S., taking more jobs away from American workers after their taxes were used to help the auto maker recover from the recession.
And the reason GDP has been down is, again, because many U.S. factories and services have moved overseas-to China, in particular. So we don’t produce as many goods and services since the corporate assault on American workers increased. Wal-Mart led the exodus, causing unemployment to climb as suppliers relocated to cheap Chinese labor. Americans were forced to work part time or hold multiple jobs to stay afloat. This corporate flight is worldwide but none so robust as in America, with CEOs declaring their freedom from allegiance to any particular nation. Their loyalty is to their company and employees, wherever they may be located.
The term “global wage convergence” is a goal of corporations and globalist ruling elites in governments everywhere. They are dedicated to bringing about a global wage scale. The wages of the poorest workers will be raised (some) and those workers in the developed nations (America) will be lowered, as you can see in the article on overpaid American workers above.
Success would be an educated global temporary workforce (with various labor skills) that could be accessed by corporations anywhere in the world to complete contracts and then be sent back home. There is no need for benefits and with a global workforce to choose from, wages will remain low. See ‘CEOs use Global Workforce to replace American workers, lower Wages’, archives, this blog, May 12, 2008, posted in NAFTA/NorthAmerican Union category.
In case you haven’t been paying attention, that is happening now. From the Wall Street Journal, June 18, 2007:
“At all levels, the hunt is on for the supernational worker. Those with ‘highly global, mobile skills’ will be in demand…some will be highly specialized technicians, and those with language skills (India) will get moved around, while those without may work from afar.” But they work even cheaper.
There is a ruling class and those who are ruled:
“That the global economy is developing a ruling class should come as no shock. All markets generate economic class differences. In stable, self-contained economies, where capital and labor need each other, political bargaining produces a social contract that allows enough wealth to trickle down from the top to keep the majority loyal. ‘What’s good for General Motors is good for America,’ “Dwight Eisenhower’s Defense Secretary famously said in the 1950s…”
“But as domestic markets became global, investors increasingly find workers, customers and business partners almost anywhere. Not surprisingly, they have come to share more economic interests with their peers in other countries than with people who simply have the same nationality. They also share a common interest in escaping the restrictions of their domestic social contracts.”
“In the absence of global democracy, the forces that act as counterweights to the power of the investor class in national economies-labor, civil society…are too weak and unorganized to create a global social contract…It is therefore no surprise that the constitution of the world economy protects just one class of global citizen-the corporate investor.
“Given the influence of American elites, the model for this constitution is the North American Free Trade Agreement, conceived under Ronald Reagan, nurtured by George H.W. Bush and delivered by Bill Clinton. Among other things, NAFTA’s 1,000-plus pages give international investors extraordinary rights to override government protections of workers and the environment. It sets up secret panels (trade tribunals), rife with conflicts of interest, to judge disputes from which there is no appeal. (These appointed tribunals, in their area of competence, can review U.S. Supreme Court decisions and reach a different decision, in effect, overruling it.)
“It makes virtually all nonmilitary government services subject to privatization and systematically undercuts the public sector’s ability to regulate business. Jorge Castaneda, later Mexico’s foreign secretary, observed that NAFTA was ‘an agreement for the rich and powerful in the United States, Mexico and Canada, an agreement effectively excluding ordinary people in all three societies.'”
So if any of you feel that your government is looking out for your best interests and those of your nation, well, you would be wrong. The banksters and corporations are still pursuing the reckless behavior that brought about our economic collapse. Corporations are still leaving America for more profits elsewhere.
Think about it. China owns America and the capitalist pigs (including Goldman Sachs). have a close relationship with Chinese officals. And American search engines, all of them, are now censoring the internet and turning in dissidents to the proper Chinese authorities.
I thought democracy was supposed to win.
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