How the Economy Was Lost: The War of the Worlds (Counterpunch) Read Online Free PDF Page A

behind their historical norms as offshore outsourcing displaces the “new economy” jobs in “software programming, engineering, design, and the medical profession, as well as a broad array of professionals in the legal, accounting, actuarial, consulting, and financial services industries.” The real state of the U.S. job market is revealed by a Chicago Sun-Times report on January 26, 2006, that 25,000 people applied for 325 jobs at a new Chicago Wal-Mart.
    According to the BLS payroll jobs data, over the past half-decade (January 2001–January 2006, the data series available at time of writing) the U.S. economy created 1,050,000 net new private sector jobs and 1,009,000 net new government jobs for a total five-year figure of 2,059,000. That is 7 million jobs short of keeping up with population growth, definitely a serious job shortfall.
    The BLS payroll jobs data contradict the hype from business organizations, such as the U.S. Chamber of Commerce, that offshore outsourcing is good for America. Large corporations, which have individually dismissed thousands of their U.S. employees and replaced them with foreigners, claim that jobs outsourcing allows them to save money that can be used to hire more Americans. The corporations and the business organizations are very successful in placing this disinformation in the media. The lie is repeated everywhere and has become a mantra among no-think economists and politicians. However, no sign of these jobs can be found in the payroll jobs data. But there is abundant evidence of the lost American jobs.
    During the past five years (January 01–January 06), the information sector of the U.S. economy lost 644,000 jobs, or 17.4 percent of its work force. Computer systems design and related work lost 105,000 jobs, or 8.5 percent of its work force. Clearly, jobs offshoring is not creating jobs in computers and information technology. Indeed, jobs offshoring is not even creating jobs in related fields.
    U.S. manufacturing lost 2.9 million jobs, almost 17 percent of the manufacturing work force. The wipeout is across the board. Not a single manufacturing payroll classification created a single new job.
    The declines in some manufacturing sectors have more in common with a country undergoing saturation bombing during war than with a “super-economy” that is “the envy of the world.” In five years, communications equipment lost 42 percent of its work force. Semiconductors and electronic components lost 37 percent of its work force. The work force in computers and electronic products declined 30 percent. Electrical equipment and appliances lost 25 percent of its employees. The work force in motor vehicles and parts declined 12 percent. Furniture and related products lost 17 percent of its jobs. Apparel manufacturers lost almost half of the work force. Employment in textile mills declined 43 percent. Paper and paper products lost one-fifth of its jobs. The work force in plastics and rubber products declined by 15 percent.
    For the five-year period, U.S. job growth was limited to four areas: education and health services, state and local government, leisure and hospitality, and financial services. There was no U.S. job growth outside these four areas.
    Oracle, for example, which has been handing out thousands of pink slips, has recently announced 2,000 more jobs being moved to India. How is Oracle’s move of U.S. jobs to India creating American jobs in nontradable services such as waitresses and bartenders, hospital orderlies, state and local government, and credit agencies? Oracle is creating more unemployed Americans to compete for lower paid jobs.
    Engineering jobs in general are in decline, because the manufacturing sectors that employ engineers are in decline. During the last five years, the U.S. work force lost 1.2 million jobs in the manufacture of machinery, computers, electronics, semiconductors, communication equipment, electrical equipment, motor vehicles, and transportation