Disney and other large U.S. employers have been replacing Americans with cheaper, foreign-born workers for a while. Inevitable, now that competition is world wide. Wage rates must average out world wide too. But no politician seeking reelection dares say that where U.S. workers can hear. Better to support increases in the minimum wage instead.
But forget the politicians for a moment to examine reality. American born workers lost 698,000 jobs in August. (see chart above). Foreign born workers did rather better, as the chart show. It also shows what has been happening: In the U.s. cheaper foreign workers have been replacing Americans.
Why is this happening? Simple economics: A high cost producer in a low cost world cannot last; the competition will replace it. How long do you continue patronizing a high cost super market when a local discounter has the same goods, cheaper?
But that’s a hard sell for an aspiring politician. So they find ways to bring it about without admitting what they are doing. We’ve mentioned it before. Watch what they do, not what they say. ‘Recovery’ is tossed around but the reality is a declining standard of living. For doubters: compare the numbers of middle class housewives in the 1970’s to those today …
Now, we are facing the coup de grace, economically speaking. Erstwhile Federal Reserve Chairman (and patron of cheap money) Arthur Greenspan has just announced in an interview that:
” Greenspan: “Debt, deficits and entitlement programs are coming to a head in a few months, all over the world.”
Those that have ears to hear, let them hear …
And don’t say afterwards that we didn’t warn you. But who listens to warnings from such as we in the face of the U.S. President and Congress? We cry into the wind … (But we don’t spit into the wind, which is what we see our government doing, financially speaking.)