Monday, April 13, 2009

Case in Point

"I'm not gonna spend the rest of my life working my ass off and getting nowhere just because I followed rules that I had nothing to do with setting up, okay?"
--Tess McGill (Working Girl)

As a bit of a self-test on the previous post, I flipped on the 10 am segment of the Diane Rehm show while heading to work. The general theme was the current state (little s) of unemployment and what the State (big S) should do about it.

Those seeking a good example of media punditry upon which to practice their critical reasoning skills need look no further than this discussion.
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4 comments:

OSR said...

All three of her guests seemed to be right on the money with respect to current and projected trends in the US workplace. We're already seeing an acceleration of employer takebacks, such as reduced wages and 401(k) match eliminations, and we're likely only 1/3 of the way through this. I expect that when recovery begins, the American worker will have been relegated to a permanent standard of living reduction.

As they pointed out, an economy based on 70% consumer spending is unsustainable. In my opinion, credit was substituted for real growth over the last 15 years. Combined with disastrous, if not treacherous, trade agreements, we tried to build the second story with timbers from the first, with predictable results.

I don't agree with makework stimulus plans, but I believe that the manufacturing base must be restored for any type of true growth to occur. I disagree that we are lacking a National Industrial Plan. We've had one for 15 years; the systematic exploitation of international poverty for profit.

Ironically, the only ones who seem to recognize the potential of the unions, in this crisis, are the ones who are trying to harm them. This could be their time, if they weren't so shortsighted and easily manipulated.

April 13, 2009 at 11:00 PM
fordmw said...

Rising unemployment in the US seems unavoidable absent some unforeseen domestic innovation that puts many to work creating real value.

Over time, US mfg will return as wages fall more in line w/ world market rates.

Any interventions (e.g., fixing wage rates artificially above mkt via unions, funding certain sectors via gov't 'industrial policy,' protectionism) are likely to prolong the agony of rebalancing.

I believe there are private industry markets to be made in addressing poverty if governments would get out of the way. Currently, however, their involvement reflects a monopoly where new entry is discouraged. No entry, no innovation.

April 14, 2009 at 7:47 AM
OSR said...

I believe that privatization may well be the next bubble, but I don't think it will be only be beneficial for Wall Street. In MD, we've had electric deregulation which turned into a license to steal.

As far as free trade goes, it has to be all or nothing, not the handwaving that we've seen to date. Companies only want competition where there costs are concerned, not the whole enchilada. If they buy the ticket, like GM, they should have to take the ride.

April 15, 2009 at 4:52 AM
fordmw said...

Am with you. Am paraphrasing here, but I believe a quote from one of the Founding Fathers goes something like, "Free trade with all, alliances with none."

April 15, 2009 at 9:59 AM

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