The White House Has Been Bragging About Falling Wages - News and Current Events | futures io social day trading
futures io futures trading


The White House Has Been Bragging About Falling Wages
Updated: Views / Replies:287 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

The White House Has Been Bragging About Falling Wages

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

The White House Has Been Bragging About Falling Wages

150 factory workers in China threatened to jump off the roof of an iPhone factory unless they received a raise.

Similar stories are accumulating. Inflation, especially in food and other essentials, has been rampant over the last few years—and to make ends meet, desperate workers sometimes take drastic measures. These anecdotes underscore a major trend in China: skyrocketing cost of labor.

In the US, it’s the opposite. Since 2000, real wages (adjusted for inflation) have declined. The White House even touts this horrid statistic in its paper, Investing in America: Building an Economy That Lasts.

Clearly, the paper is not intended for the rank and file. It outlines how current policies are making America competitive with low-wage countries like China. And one of the principal strategies is ... lowering wages. Graph from the White House paper:

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The paper also touts the administration’s claim of having created 3.2 million jobs over the last 22 months. But these numbers are based on surveys, formulas, and statistical adjustments. The BLS’s Employment Population ratio, which the paper wisely leaves unmentioned, measures the percentage of people age 16 and older who have jobs.

It’s the least corruptible employment number available—and at 58.5%, it's only a fraction above the August level, which, at 58.1%, was the lowest reading since 1983. And it’s far below its peak of 64.7% in April 2000. From the Bureau of Labor Statistics:

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The long decline from 64.7% parallels another statistic mentioned in the paper: from 2001 - 2007, three million manufacturing jobs were lost. Those were the Bush years, obviously. But what happened during the Obama years? Unmentioned, but just as bad. From the White House paper:

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The tiny hook at the bottom is the ballyhooed uptick. But during the next economic downdraft, the line will likely plunge again. And the slack in employment will continue to contribute to the decline in real wages.

The problem for a high-wage country in a globalized economy is that jobs will be globalized as well. The decision whether or not to offshore production comes down to calculating the total cost of doing business overseas.

This includes worker productivity, transportation, supply chain risks, legal and political risks, currency risks, intellectual property risks, expenses for expats, delays, flexibility, taxes, import duties, etc. Hence, for US manufacturing to be competitive, wages don’t need to match Chinese wages, but they need to be closer. That approach in wages has been happening—at a great expense to US workers. And now there are some results.

The paper mentions Ford and Caterpillar as examples of large companies that have announced investments in the US to ‘insource’ jobs from overseas. Those announcements, when they do occur, are made with great political fanfare.

Yet the same companies are still making massive investments in China and other low-wage countries, though no US politician takes credit for that. And there are many others. Merck disclosed from its headquarters in New Jersey that it would build a new facility in Beijing, part of its $1.5 billion investment in China.

Nissan, which has large plants in the US, just announced that it would build a plant in Mexico. And government-subsidized solar panel makers, well, for how they just started a trade war, read... The Trade Debacle with China.
So the net of outsourcing and insourcing among large companies still favors outsourcing. But under certain circumstances, companies might try to insource. And that is a step in the right direction.

Smaller companies face different dynamics. It has always been expensive, difficult, and risky for them to offshore production. Many have done it, lured by cheap wages, only to learn costly lessons. And now anecdotal evidence is piling up that they’re having second thoughts.

The paper lists KEEN, a footwear maker, and Master Lock as examples of companies that have brought back jobs. I personally know one consumer products company that shut down its manufacturing operations in China and relocated production back to the US (though it still operates plants in other parts of the world). And this is a trend that will likely accelerate.

But low-wage countries will continue to draw jobs away from the US. The numbers couldn’t be clearer: in 2011, the trade deficit with China hit another record north of $320 billion. So taking credit for a wave of ‘insourcing’ from China, as the paper does, has an aura of political grandstanding.

Even the US auto industry, which is relatively cost competitive, isn’t immune from China. Practically every car or truck sold in the US today contains Chinese-made components, though Chinese-designed vehicles haven't arrived yet. But it’s a priority of the Chinese government. And it’s through the back door. Read.... The US Auto Industry Drifts Off To China.


Read more: Testosterone Pit - Home - When The White House Touts FallingWages

Reply With Quote

Reply



futures io > > > > The White House Has Been Bragging About Falling Wages

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
House subpoenas White House for Solyndra documents kbit News and Current Events 0 November 3rd, 2011 12:33 PM
White House Tax Plan Would Ask More of US Millionaires Quick Summary News and Current Events 0 September 18th, 2011 09:00 AM
Austan Goolsbee to leave White House kbit News and Current Events 0 June 6th, 2011 10:43 PM
White House: Downgrade of US Debt a 'Political Judgment' Quick Summary News and Current Events 8 April 20th, 2011 10:39 PM
No Sign Foreclosure Problems 'Systemic': White House Quick Summary News and Current Events 0 October 20th, 2010 07:30 PM


All times are GMT -4. The time now is 04:58 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.08 seconds with 19 queries on phoenix via your IP 54.226.132.197