The US middle class and unions are often blamed by the Republicans for jobs being shipped overseas, claiming that Americans demanded too much pay.
The GOP also blames the middle class for wanting too much in life. They preach that the majority of Americans don't have extra cash because they enjoy luxuries like cell phones and lap top computers.
But isn't that a ridiculous argument for a country that is supposed to be among the wealthiest countries in the world?
The fact is, most corporations that moved their manufacturing production to China, India, etc. were making a decent profit while operating in the USA. But the corporate executives were motivated by greed, they wanted even more profit.
Middle Class Stagnates While Top 1% Soars
In the United States, the median family income for a family of four is around $50,000. Health care costs are ridiculously high, college costs are breaking the back of young Americans, food prices are soaring, and more. All explains why the median family income does not go far in today’s economy.
Yet executive pay has exploded with compensations that amount to thousands of dollars per hour based on a 40-hour work week, while average American workers are forced to squeeze every dime in order to just get by.
The majority of the US population is the US middle class. The corporate CEOs and executives make up around 1% of the US population, yet they have most of the money.
Because the top one percent is allowed to keep most of the corporate profits, the middle class does not have much spending money.
When the majority of any population does not have much cash to spare, the entire economy weakens due to lack of spending. Also demand for products and services decreases, which leads to more jobs disappearing. Click here for a short video.
Some Hard Facts
As of August 14, 2013, one US dollar equals 61 rupees. A rupee is a dollar in the country of India. If an American were making $8USD hourly in the country of India, that person would be earning 488 rupees per hour. Click here for the current exchange rate.
488 rupees per hour will create a weekly pay check of 19,520 rupees weekly, based on a 40 hour work week. This equals to roughly 1,000,000 rupees annually.
A person paid such wages in India would be extremely wealthy, because the median per capita annual income in the country of India for the year 2010 - 2011 was 53,331 rupees.
Because the cost of living is much lower in India, compared to the United States, a person in India can live reasonably well on 53,331 rupees annually. That income is equal to $870 US dollars annually.
A Stupid Argument
With the above facts in mind, it becomes pointless for people to argue that middle class jobs have gone to third world countries because Americans demanded too much pay. Plus the cost of living in the United States is substantially higher compared to the cost of living in India.
US middle class workers were not getting wealthy from manufacturing jobs, but the pay allowed these hard workers to live comfortably. Before most US manufacturing moved overseas, American workers were paid enough to buy a small home, maybe purchase a new car every few years, and modestly enjoy the fruits of their labor.
Today Americans are driving old cars at record numbers because they cannot afford to purchase a new car. Today more Americans are renting rather than buying homes, because they can't afford the cost of buying a home.
Helping Third World Countries Move Up
On a positive note, the corporations that moved their manufacturing overseas are improving the standard of living in third world countries where the cost of living is quite low compared to the United States.
The wages paid in these countries are far lower compared to the USA. But in a third world country, one US dollar goes substantially further in purchasing power. A win for the people of that country and a win for the corporation that moves their production to a third world country. But the United States is losing.
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