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Should the Left Cheer the Dollar's Drop? How to make the bankers scream: Robert Pollin, world's best obituarist of Clintonomics, explains it all for you. Do police states make people feel safer? Vicente Navarro on Franco's Spain, Cockburn on Ireland in the Fifties under the Catholic Hierarchy, Alevtina Rea on growing up in Brezhnev-time. Capitalism's true utopia? St Clair on the Pentagon's no-bid arms contracts. How's the press doing in Iraq? Patrick Cockburn tells all to Omar Waraich. Get the answers you're looking for in the latest subscriber-only edition of CounterPunch... CounterPunch Online is read by millions of viewers each month! But remember, we are funded solely by the subscribers to the print edition of CounterPunch. Please support this website by buying a subscription to our newsletter, which contains fresh material you won't find anywhere else, or by making a donation for the online edition. Remember contributions are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! or write CounterPunch, PO BOX 228, Petrolia, CA 95558 |
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Other Lands Have Dreams: From Baghdad to Pekin Prison by KATHY KELLY ![]() Today's Stories June 3, 2005 Paul
Craig Roberts Joseph
Massad Jeff
Halper Tom
Barry Bruce
K. Gagnon Joshua
Frank Mickey
Z. Gary
Leupp Website
of the Day June 2, 2005 Paul
Craig Roberts Forrest
Hylton Mike
Whitney Brian
Cloughley Mazin
Qumsiyeh Russell
D. Hoffman Norman
Madarasz Norman
Solomon David
Price Website
of the Day
June 1, 2005 James
Petras Justin
Delacour Edward
Jay Epstein Omar
Barghouti / Lisa Taraki Dave
Lindorff Kevin
Zeese Jason
Leopold William
S. Lind
May 31, 2005 Sen.
Mike Gravel David
Krieger Tad
Daley Joshua
Frank Richard
Gott Norman
Solomon Tom
Segev Walter
Brasch Diana
Johnstone
May 28 / 30, 2005 Alexander
Cockburn Richard
Lichtman Sharon
Smith Paul
Craig Roberts Dave
Lindorff Ramzy
Baroud Brian
Cloughley Fred
Gardner Lee
Sustar Joshua
Frank Justin
E.H. Smith Jackie
Corr Michael
Kimaid Toufic
Haddad Justin
Taylor Amir
Butler Ben
Tripp Poets'
Basement May 27, 2005 Gary
Leupp Daniel
Estulin Kevin
Zeese Robert
Fisk Dave
Zirin Website
of the Day
May 26, 2005 Yuki
Tanaka Ray
McGovern Arthur
Mitzman Jack
Random Britt
Bailey and Brian Tokar Rebecca
Rush Jorge
Mariscal Paul
Craig Roberts Website
of the Day
May 25, 2005 Camilo
Mejia Dave
Lindorff William
S. Lind Chris
Floyd Brian
Cloughley Lenni
Brenner Sean
Cain Karl
Shepard John
Ross Website
of the Day
Dave
Zirin Michele
Bollinger Winslow
Wheeler Uri
Avnery Michael
Donnelly Joshua
Frank Stephen
Dunifer Paul
Craig Roberts
May 23, 2005 Esther
Sassaman / Thomas Nagy Mike
Whitney Ramzy
Baroud Michael
Dickinson Walter
Brasch Dick
J. Reavis Maria
Tomchick Norman
Solomon Kevin
Zeese Website
of the Day
May 21 / 22, 2005 David
H. Price Gabriel
García Márquez Oren
Ben-Dor Gary
Leupp Laith
al-Saud Elaine
Cassel Greg
Moses Fred
Gardner Dave
Lindorff Alan
Maass William
Blum Tom
Crumpacker Niranjan
Ramakrishnan Doug
Giebel Evelyn
J. Pringle Carolyn
Baker Chris
Floyd Frederick
B. Hudson Ben
Tripp Poets'
Basement
May 20, 2005 Dave
Lindorff Kevin
Zeese Paul
de Rooij Christopher
Brauchli Mark
Engler Joshua
Frank Robert
Jensen Jeffery
R. Webber
May 19, 2005 Bill
Forman Stan
Goff Neve
Gordon Michael
Dickinson Karyn
Strickler Andrew
Freedman Paul
Craig Roberts
May 18, 2005 Jean
Bricmont Laura
Carlsen Mike
Whitney Joshua
Frank George
Galloway Manuel
Garcia, Jr. Dwight
D. Eisenhower Dave
Lindorff
May 17, 2005 Mickey
Z. Petuuche
Gilbert Paul
Craig Roberts Ramzy
Baroud Robert
Jensen / Pat Youngblood Stan
Cox Dave
Zirin Diana
Barahona Website
of the Day May 16, 2005 Michael
Gillespie Jason
Leopold Jesse
Muldoon Norman
Solomon Robert
Cray Patrick
Cockburn Website
of the Day
May 14 / 15, 2005 Alexander
Cockburn Saul
Landau Gary
Leupp JoAnn
Wypijewski Ben
Tripp Brian
J. Foley Tom
Barry Mitchell
Verter Mike
Ferner Dan
Smith Mark
Scaramella Don
Fitz Diane
Farsetta Michael
Dickinson Ron
Jacobs Fred
Gardner Farrah
Hassen Douglas
Valentine Poets'
Basement Website
of the Weekend May 13, 2005 Tom
Stephens Patrick
Cockburn Mike
Whitney Chris
Floyd Jenna
Orkin Dave
Lindorff Joshua
Frank Website
of the Day
May 12, 2005 Paul
Craig Roberts Uri
Avnery Greg
Moses Carolyn
Baker Pat
Williams William
S. Lind Jack
Random Gary
Leupp
May 11, 2005 Patrick
Cockburn Kevin
Zeese Christopher
Brauchli Zalman
Amit Robert
Shull Mike
Whitney Dr.
Teresa Whitehurst Norman
Solomon
May 10, 2005 Richard
Drayton Dave
Zirin Jackie
Corr Dave
Lindorff Michael
Donnelly Reza
Fiyouzat Scott
Parkin Stephen
Babcock Alan
Farago Michael
Neumann Website
of the Day
May 9, 2005 Louis
Proyect Robert
Fisk Kevin
Zeese Joshua
Frank Sasha
Kramer Andrew
Wimmer Jeffrey
Webber Jeffrey
St. Clair
May 7 / 8, 2005 Alexander
Cockburn Gary
Leupp Saul
Landau Joe
DeRaymond Daniela
Ponce Heather
Williams Gregory
Elich Anis
Memon John
Chuckman Mike
Whitney Ron
Jacobs Colin
Kalmbacher Lance
Selfa Fred
Gardner Ben
Tripp Mickey
Z. Richard
Joseph Dr.
Susan Block Poets'
Basement
May 6, 2005 Patrick
Cockburn Erin
Yoshioka Sam
Husseini Dave
Lindorff Kevin
Zeese Joshua
Frank Dan
Bacher P.
Sainath
May 5, 2005 Carles
Mutaner Carl
G. Estabrook Farrah
Hassen Kevin
Zeese Michael
Leonardi Bennett
Ramberg Ray
McGovern Norman
Solomon Nicole
Colson Brian
Concannon, Jr.
May 4, 2005 Colin
Kalmbacher John
Walsh Greg
Moses Ali
Khan Chris
Floyd Linda
S. Heard Dave
Zirin William
S. Lind Gary
Leupp Website
of the Day
May 3, 2005 Dave
Lindorff Brian
Cloughley Ira
Kurzban Seth
Sandronsky Gilad
Atzmon Michael
Donnelly Alex
Sanchez Peter
Linebaugh
May 2, 2005 Ron
Jacobs Stan
Goff Karyn
Strickler Joshua
Frank Kevin
Zeese Vicente
Navarro
April 30 / May 1, 2005 Alexander
Cockburn Gabriel
Kolko Jennifer
Loewenstein Lee
Sustar Saul
Landau T.W.
Croft Nikolas
Kozloff William
Blum Dave
Lindorff Joshua
Frank Doug
Giebel Steven
Erlanger Fred
Gardner Mike
Whitney Kurt
Nimmo Joe
DeRaymond Michael
Dickinson Mickey
Z. Justin
Taylor Poets
Basement Website
of the Weekend
Hot Stories Alexander Cockburn Subcomandante
Marcos Norman Finkelstein Steve Niva Dardagan,
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Berry CounterPunch
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June 3, 2005 Welcome to a Has-Been CountryThe US Labor Force: One Foot in the Third WorldBy PAUL CRAIG ROBERTS In May the Bush economy eked out a paltry 73,000 private sector jobs: 20,000 jobs in construction (primarily for Mexican immigrants), 21,000 jobs in wholesale and retail trade, and 32,500 jobs in health care and social assistance. Local government added 5,000 for a grand total of 78,000. Not a single one of these jobs produces an exportable good or service. With Americans increasingly divorced from the production of the goods and services that they consume, Americans have no way to pay for their consumption except by handing over to foreigners more of their accumulated stock of wealth. The country continues to eat its seed corn. Only 10 million Americans are classified as "production workers" in the Bureau of Labor Statistics nonfarm payroll tables. Think about that. The US with a population approaching 300 million has only 10 million production workers. That means Americans are consuming the products of other countries labor. In the 21st century the US economy has been unable to create jobs in export and import-competitive industries. US job growth is confined to nontradable domestic services. This movement of the American labor force toward third world occupations in domestic services has dire implications both for US living standards and for America's status as a superpower. Economists and policymakers are in denial while the US economy implodes in front of their noses. The US-China Commission is making a great effort to bring reality to policymakers by holding a series of hearings to explore the depths of American decline. The commissioners got an earful at the May 19 hearings in New York at the Council on Foreign Relations. Ralph Gomory explained that America's naïve belief that offshore outsourcing and globalism are working for America is based on a 200 year old trade theory, the premises of which do not reflect the modern world. Clyde Prestowitz, author of the just published Three Billion New Capitalists: The Great Shift of Wealth and Power to the East, explained that America's prosperity is an illusion. Americans feel prosperous because they are consuming $700 billion annually more than they are producing. Foreigners, principally Asians, are financing US over-consumption, because we are paying them by handing over our markets, our jobs, and our wealth. My former Business Week colleague, Bill Wolman, explained the consequences for US workers of suddenly facing direct labor market competition from hundreds of millions of Chinese and Indian workers. Toward the end of the 20th century three developments came together that are rapidly moving high productivity, high value-added jobs that pay well away from the US to Asia: the collapse of world socialism which vastly increased the supply of labor available to US capital; the rise of the high speed Internet; the extraordinary international mobility of US capital and technology. First world capital is rapidly deserting first world labor in favor of third world labor, which is much cheaper because of its abundance and low cost of living. Formerly, America's high real incomes were protected from cheap foreign labor, because US labor worked with more capital and better technology, which made it more productive. Today, however, US capital and technology move to cheap labor, or cheap labor moves via the Internet to US employment. The reason economic development in China and some Indian cities is so rapid is because it is fueled by the offshore location of first world corporations. Prestowitz is correct that the form that globalism has taken is shifting income and wealth from the first world to the third world. The rise of Asia is coming at the expense of the American worker. Global competition could have developed differently. US capital and technology could have remained at home, protecting US incomes with high productivity. Asia would have had to raise itself up without the inside track of first world offshore producers. Asia's economic development would have been slow and laborious and would have been characterized by a gradual rise of Asian incomes toward US incomes, not by a jarring loss of American jobs and incomes to Asians. Instead, US corporations, driven by the short-sighted and ultimately destructive focus on quarterly profits, chose to drive earnings and managerial bonuses by substituting cheap Asian labor for American labor. American businesses' short-run profit maximization plays directly into the hands of thoughtful Asian governments with long-run strategies. As Prestowitz informed the commissioners, China now has more semiconductor plants than the US. Short-run goals are reducing US corporations to brand names with sales forces marketing foreign made goods and services. By substituting foreign for American workers, US corporations are destroying their American markets. As American jobs in the higher paying manufacturing and professional services are given to Asians, and as American schoolteachers and nurses lose their occupations to foreigners imported under work visa programs, American purchasing power dries up, especially once all the home equity is spent, credit cards are maxed out and the dollar loses value to the Asian currencies. The dollar is receiving a short-term respite as a result of the rejection of the European Union by France and Holland. The fate of the Euro, which rose so rapidly in value against the dollar in recent years, is uncertain, thus possibly cutting off one avenue of escape from the over-produced US dollar. However, nothing is in the works to halt America's decline and to put the economy on a path of true prosperity. In January 2004, I told a televised conference of the Brookings Institution in Washington, DC, that the US would be a third world economy in 20 years. I was projecting the economic outcome of the US labor force being denied first world employment and forced into the low productivity occupations of domestic services. Considering the vast excess supplies of labor in India and China, Asian wages are unlikely to rapidly approach existing US levels. Therefore, the substitution of Asian for US labor in tradable goods and services is likely to continue. As US students seek employments immune from outsourcing, engineering enrollments are declining. The exit of so much manufacturing is destroying the supply chains that make manufacturing possible. The Asians will not give us back our economy once we have lost it. They will not play the "free trade" game and let their labor force be displaced by cheap American labor. Offshore outsourcing is dismantling the ladders of America's fabled upward mobility. The US labor force already has one foot in the third world. By 2024 the US will be a has-been country. Paul Craig Roberts has held a number of academic appointments
and has contributed to numerous scholarly publications. He served
as Assistant Secretary of the Treasury in the Reagan administration.
His graduate economics education was at the University of Virginia,
the University of California at Berkeley, and Oxford University.
He is coauthor of The
Tyranny of Good Intentions.He can be reached at: paulcraigroberts@yahoo.com
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