As we look to tomorrow’s unemployment numbers for August 2013, one thing is for sure. This is already old news. While the U.S. has a $16 trillion dollar GDP, it has been sending jobs to places like China and India for over 30 years. As a result, millions of Americans have been removed from the middle class as a result of their jobs being moved offshore and, or being taken by foreign workers. Bottom line, they can spin it all they want, but corporations have managed to gut middle class America.
From Legal Work to Retail
While much has been published on how furniture manufacturing has been moved to places like China, not much has made the news on how legal and accounting firms have been affected. For example, here in New York City I speak to many people who did paralegal work for major law firms. These people who are now in their 40’s and 50’s are working in retail stores making only a fraction of their prior wages. Most of these people have children and are really struggling to get by. They are the collateral damage of downsizing via back office work being moved elsewhere.
The Cloud & Reality
The reality is that hundreds of thousands of IT workers have lost jobs since 2000. Many have gone to places like India and Eastern Europe, along with foreign workers via the H1B route. In a nutshell, U.S. companies got rid of thousands of American IT workers holding well-paying jobs and helped to remove these people from the middle class. As a result, many students entering college have tried to steer away from this employment sector, which is the exact opposite than what is needed for America to be competitive on the global landscape. While Cloud Computing has created jobs for thousands, American companies (e.g., banking, brokerage, pharmaceutical, technology, etc.) have managed to give away hundreds of thousands of well-paying IT jobs to foreign nations like India. All one has to do is see how Indian outsourcers employment ranks have grown over the last decade and where a great part of their revenue comes from. The United States of America.
We Gave Away the Candy Store
Sure, technology is the way to go and we need to focus on creating these jobs in mass over the near-term, but why have we been giving IT jobs away for over a decade? Likewise, why did we send so many manufacturing jobs to China? Because corporations focused on revenues and profits with little regard to the collateral damage being caused by their actions. As a result, we have sucked out well-paying jobs and replaced them with low-paying ones. Not only are millions of older workers in dire straits, but unemployment for the 25 and under is historically high. It is sad, but true, but most of these jobs could have been saved by proper planning and a more functional immigration system.
So the press will make much fanfare over the August 2013 unemployment numbers. 7.4% or 7.5%? 174,000 or 175,000 jobs created? The real deal is that we have been giving away well-paying jobs to foreign nations, and to foreign workers on domestic soil, while firing America workers. Bottom line, you can spin it the way you want, but we have been giving away the candy store for over three decades.