Balance of trade, globalization, and unemployment

I agree to disagree. There is no solution anywhere, until you solve for capitalism's, poverty inducing, natural rate of unemployment and the deleterious effect it has on income.

 

You can't solve poverty unless you radically overhaul pre-welfare inequalities...

 

not at all; unemployment compensation simply for being unemployed, is a simple and market friendly solution; and, most of the infrastructure is already in place.

 

There is no means for unemployment benefit to eliminate poverty. There is also of course no means for it to eliminate working poverty.

 

GOVERNMENT SUBSIDIZED TERTIARY EDUCATION

Oh, yeah - the economic ceiling is crumbling and coming down upon our heads! Run for cover!

I'm not blocking anything. I'm insisting on a pragmatic way-forward. Which was adopted in Europe whilst America was asleep with its own unmerited laurels because it had "defeated communism!".

The trends are clear, but mind-sets like yours are stuck in the last century. I have no fear that today's children will make the right decisions - but those at the bottom and the middle-class need financial help to do so.

Tertiary-education in the US is too effing expensive! We must give our children a cheaper alternative to obtain post-secondary credentials.

It's hindsight that counts in this Turn of Ages. When the 18th century brought us the Industrial Revolution, people came off the farms and were taught to work on product manufacturing lines. Did the American food-industry hit a rock and sink? Nope. Tractors and combines based upon the internal combustion engine replaced warm-blooded workers. We humans are Very Inventive, especially in a bind.

Moreover, at the turn of the century (19th to 20th) we understood that a secondary-school education was essential for economic growth. So, the US started creating one uniformly across the country.

Besides, we are almost already at full employment except that the E-to-p Ratio needs another 3/4% growth to arrive at the 2008 level. But the jobs going are not the same as they were a decade ago! Where is Uncle Sam going to get the level of manpower needed in our "Information Age"? There are not that many jobs for that 3/4% of people who have no post-secondary skills/training/education.

I keep repeating the same damn solution, which the EU had embarked upon fifty-years ago. Government Subsidized Tertiary Education! Government Subsidized Tertiary Education! Government Subsidized Tertiary Education!

Just as secondary-schooling was enough for the Industrial Age, Tertiary-education will work the same magic for the Information Age ...

 

Actually for many americans, that economic ceiling has been crumbling for years, dropping people from the middle into the working poor class.

Low wage service sector part time jobs replacing living wage manuf. and service sector jobs along with a real unemployment rate of 21.5 percent for last month is the reality of that crumbling economic ceiling with no end in sight. In fact, AI and robotics is going to also be affecting what we are seeing now when it comes to jobs and income. It will worsen.

Open borders slave labor neoliberal globalism is taking away the ability of americans, so many of them, to live anywhere but on the edge of poverty. This economic model will create future social unrest like not seen since the great depression. It is inevitable, just by the way it is designed.

 

Yes, we must switch to the conservative model from the current liberal model:

1) 30 million liberal illegals taking our jobs
2) highest liberal taxes in world driving jobs off shore
3) huge liberal regulations driving jobs off shore
4) massive liberal entitlement/welfare programs discouraging people from working
5) liberal war on family, religion, and schools rendering millions of Americans unfit for work

 

Yes, it can. Social services cost around fourteen dollars an hour in the US; unemployment compensation for that amount would be simpler and more cost effective. A fifteen dollar an hour minimum wage would provide, "rational choice theory" based incentive to seek employment, when ready and able.

 

those illegals may be taking Your job, they are not taking, my job. it is simply another reason for a fifteen dollar an hour minimum wage.

we don't have the highest taxes; y'all just got a tax break. stop whining.

it isn't huge liberal regulations but a lack of a, "employ or die" ethic for Employers, like there is for Labor.

employment is at-will; not poverty wages so the rich can get rich faster, and ask the government to subsidize their labor; so, the right wing can whine about and try to reduce social services as well.

it isn't a liberal war, at all; the right wing simply doesn't believe in the general power to provide for the general welfare.

 

Don't worry Republicans and Trump want to close the border. They are racists for wanting to save Americans their jobs, according to liberals anyway.

 

You've already been informed how the research shows that the minimum wage is an ineffective poverty alleviation device. The clue is in the application of equivalence scales at household level.

 

Quite right, but not because of its economic-system. The reason for the Great Recession was the rabid manner in which banksters sold mortgages to people who could not afford them.

THAT problem is more one of lack of due "market-oversight" (by the Fed) than economic parameters.

With unemployment down to less than 5%, the economy is heading for an iceberg?

Emotional bullshat ...

Neoliberal, me arse. You're stuck in a low-paying job without credentials that would get your out of it.

Go back to school!

Over and out ...

 

A SAD POST-WW2 STORY

You chose Mexico as an example, but your conclusion applies to International Trade as well. Cheaper products made abroad make for a lack-of-employment (not necessarily unemployment) in the US.

What does that mean for the US? I never tire of repeating exactly the same message: The US must go up-market in its skills-set, because those skills necessary for the Industrial Age are no longer required in the Information Age.

My experience: I grew up in a small town in Central Massachusetts where the plastics industry blossomed from the get-go in post-war America. They provided jobs to my parents and for the longest time. Right up to the 1980s, when all hell broke loose. The job-level pay in Central Massachusetts became too expensive as regards imports from both Europe and the Far East.

So, what happened as a consequence? First the jobs went south to those parts of the US that had cheaper manpower input-costs. Then, when that was not good enough to manufacture competitively, the jobs went to Mexico. And when even that proved not good-enough as well - from the 1990s on the plastics industry migrated to China when its Bamboo Curtain crashed and the country became a major economic player internationally with extremely low production costs.

But the story does not end there. Today, China is seeing what it did to the US happening to itself. Cheaper manufacturing costs are to be found in India, Thailand, and Vietnam. Which are increasing their share of produce made for international markets.

This same history has been played out now for two centuries, ever since the first Industrial Age innovations took place in the UK. The steam engine replaced horses, and trains moved goods faster, and sail-ship cargo-boats were replaced with the motorized propeller-driven variety. Etc., etc., etc. Inevitably, the US adopted these technologies and produced products with which even Britain and Germany could not compete.

Anyone who has a sense of history understands well that what we are seeing today happening to the US happened to Britain in the mid-19th century!

I'll bet they never taught you THAT sad fact in high-school! But it is a central truth of modern economies that are opening up to the world entirely and have been since the end of Communism in both Russia and China.

And there is nothing that Donald Dork is going to do about it, which is why his backward presidency will turn sour. Four years wasted because of an election that went all wrong, all wrong, all wrong.

AND WHY?

Because Hillary won the election and then lost the presidency! That's not a democracy. It is an outcome produced by a country that has lost any sense whatsoever of democracy - where the popular vote (and not a outdated device like the Electoral College) should decide the nation's political Chief Executive.

We have a chance in the US to recuperate employment-levels naturally. That is, we educate our children with the right qualifications necessary to our new Services Industry economy. And, you know what? We needn't be necessarily afraid of China's (or any Far-East country) competition - because America's Services-Industries are mostly English-language dependent ... !

 

To say our current economic model has nothing to do with what has happened to working people and our middle class is just being blind to reality, IMO. To maintain that slave labor globalism has not hurt working and middle class americans is just utter nonsense.

I have a reality check that you need to indulge in. People stuck in low paying jobs are there because only a certain percentage of americans have the intellectual abilities to go back to school and learn a field that demands higher intellects. A very inconvenient fact, for you. Yet this is reality and it has always been reality. For there is indeed a correlation between IQ and success, in the current economic model. Whereas in the past the lower IQs, the average IQ people could prosper simply by their hard work, in our old economic model.

This disconnected from reality view that all americans could have living wage jobs if only they would leave their part time low wage service sector jobs, go and get a degree in a high tech field,or become a doctor, a wall street banker, and so on, has destroyed your ability to recognize basic reality. It sounds like the way anyone disconnected from reality would sound. Nonsensical.

 

The minimum wage is only ineffective "on its own", Because, it is Only part of the solution.

Unemployed labor needs an income. Unemployment compensation solves that.

 

It wouldn't matter if you twinned minimum wages with a basic income guarantee. Without pre-welfare transformation into the income distribution, poverty cannot be solved.

 

Unemployment compensation would not be welfare; but a basic income for currently unemployed Labor.

Welfare would be reserved for those for whom, solving for a simple poverty of money, may not be enough.

Efficiencies must occur with that "level of simplicity".

 

That's still welfare. You've just pretended a different term (and its derived, by definition, through a basic income guarantee)

You haven't solved poverty. You can't unless the income distribution is radically changed.

Meaningless sentence.

 

In the US, it would mean a different funding source than say, for example, "regular welfare".

One of the efficiencies could come from a general tax on Firms, for unemployment compensation instead of our current regime.

Yes, simple poverty is solved, simply through recourse to an income that meets or beats our current poverty guidelines. Compensation for Capitalism's natural rate of unemployment, can accomplish that simple market activity under our form of Capitalism. In this case, the equivalent to fourteen dollars an hour. With, a fifteen dollar an hour minimum wage.

Simply establishing that new equilibrium, will increase the tax base and the amount of tax revenue.

 

You're playing with words. End result is the same: no solution to poverty.

You don't get efficiencies through tax on firms (unless its Pigovian). Try crafting a coherent argument out of that!

Back to your 'simple poverty is simply solved' head burying tactic. Without a pre-welfare overhaul in the income distribution you have no chance.

 

Compensation for Capitalism's natural rate of unemployment, is the overhaul of welfare via recourse to a basic income on an at-will basis in our at-will employment States, guaranteed.

gaining market share from traditional forms of welfare is the goal; cost efficiencies should follow.

everyone on unemployment compensation will be circulating capital and paying taxes.

everyone receiving a minimum wage will also be spending money; and the multiplier effect should be greater for working Labor.

 

There's no compensation for NRU. There is simply an illusionary vertical Phillips Curve spawned by right wing economics.

Meaningless.

Sounds like you don't even know how the basic income guarantee works. The unemploted, by definition, pay no tax.

A minimum wage has some macroeconomic effect. Still doesn't solve poverty! You made that up.

 

thanks for not finding any fallacies. nothing but solutions instead of excuses, is what the federal doctrine, is all about.

 

Another meaningless response. Why don't you consider the obvious? Methods to reduce pre-welfare inequalities...

 

Too much socialism on a national basis? The right wing likes to complain about Every Thing.

Poverty is usually the underlying condition to that problem. Solving for the inequality of a lack of capital under Any form of Capitalism, is reducing "pre-welfare inequalities". And, capitalism is not about equality, but function.

Why do you believe any person would have more problems rather than less problems, with recourse to an income, simply for being unemployed? This is where may gains from efficiencies, can be had. Traffic congestion, for one. Less people needing to commute at the same time, would yield that efficiency for those who do have to commute regularly.

Most means testing inefficiencies could be ended in favor of simpler capitalism.

And, in what manner would any Merchant in Commerce be worse off, if all adult customers should have recourse to an income?

Greater demand for products and services should result. Along with greater efficiencies in our markets due to more fluid transaction possibilities. Liquidity, is a "holy grail", under Capitalism.