Fiscal Cliff concern is a Hoax! The Real Problem is Foreign Outsourcing

[WhipperSnapper]

Economist Paul Craig Roberts just released a blog post explaining why the Fiscal Cliff is merely a symptom of the real disease. It's a great article that explains why our economy is as cocked up as it currently is and why we really can't remedy the Fiscal Cliff problem.

Our Collapsing Economy and Currency

Is the “fiscal cliff” real or just another hoax? The answer is that the fiscal cliff is real, but it is a result, not a cause. The hoax is the way the fiscal cliff is being used.

The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues

he US economy has two serious diseases, and neither one is too much welfare spending.

One disease is the offshoring of US middle class jobs, both manufacturing jobs and professional service jobs such as engineering, research, design, and information technology, jobs that formerly were filled by US university graduates, but which today are sent abroad or are filled by foreigners brought in on H-1B work visas at two-thirds of the salary.


The other disease is the deregulation, especially the financial deregulation, that caused the ongoing financial crisis and created banks too big to fail, which has prevented capitalism from working and closing down insolvent corporations.

 

[LegendKiller]

As Wal Mart (and most other) shoppers clamor for cheap goods from foreign countries they pay little thought to the actual cost of those goods in public "entitlement" costs.

Once you include everything we have to do (or haven't done) to help the same people who would be taking those jobs we are net losers on outsourcing.

The only winners are the investor classes who reap 99% of the benefit from increased profits. Then they balk at paying any more taxes to help out the lower classes, using proxies to avoid them.

This is why the wealth disparity has increased. They have beggared an entire class of people.

Class warfare. Hah!

 

[Pr0d1gy]

Thanks for posting that Whipper. I put a link on my Facebook page for everyone to read. Very well written and 100% accurate. That article is a must read for anyone in this country.

 

[Ausm]

Excellent post and a MUST read for any Rightist in here.

 

[nehalem256]

Excellent post and a MUST read for any Rightist in here.

And what have leftists been doing for the last 4 decades to combat outsourcing?

 

[Ausm]

And what have leftists been doing for the last 4 decades to combat outsourcing?

Nothing but continuing Rightwing Policy.

 

[ElFenix]

"offshoring"

 

[Atreus21]

Uh, before you lefties sing this guy's praises, you may be interested to know that he was a major architect of reaganomics...

 

[Matt1970]

I agree, but offshoring is also just a symptom of the problem. Stop buying foreign crap. Remember we started having trade deficits well before we started offshoring all out jobs. You can bring all the jobs and manufacturing back to the US but if we won’t shell out a couple extra dollars for US made products, it’s all for not as our products will do just what they have done all along and sit on store shelves.

In 2006 we had a nearly $800 Billion trade deficit. We are never going to climb out of the hole at that rate.

 

[Yreka]

All good points..

I was just having this conversation with my wife over the last holiday, albeit for a different reason. She was dreading going out for "Black Friday" shopping. My logic was can't we just do without the 1 or 2 pieces of crap the savings will provide ? The kids are going to unwrap, play with once, and throw into a pile never to be played with again anyway.

I feel the same way about this topic. I'm ready to spend a little more, and get a little less (quantity). I don't even need everything made in the USA, but should have similar (or better) conditions for the people making it.

 

[Pr0d1gy]

Uh, before you lefties sing this guy's praises, you may be interested to know that he was a major architect of reaganomics...

Some people learn from their mistakes, others post in P&N on behalf of Fox Newspublicans.

 

[Engineer]

I have not read but I agree with the title of the OP and always have. You can read my posts in P&N and understand that. Our entire collection of problems stem from this. The foundation....(middle class and good jobs)...is what's crumbling and will let the big building (US) fall if not fixed. Only those with parachutes and helicopters (rich) will be able to get out. The rest of us will scurry around in the rubble below.