Statistics on Decline of U.S. Middle Class – Piggington's Econo-Almanac

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October 18, 2010 at 8:11 AM #18087

jpinpb
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Statistics on Decline of U.S. Middle Class

Excerpts:

So how did the middle class become second class citizens — or, as Smith puts it, “Debt Serfs”? Not surprisingly, the answer is complicated, involving factors like the rising cost of education, the loss of pension funds and affordable health care, falling middle class wages, and the skyrocketing price of housing. Yet one clear answer lies in manufacturing. When looking at the declining American middle class, a good number to start with is 42,400. That’s the total number of factories that the U.S. lost between 2001 and the end of 2009. Put another way, this translates into the outsourcing of 32% of all manufacturing jobs in America.

Other numbers illuminate the impact of this massive job drain. At the end of 2009, 15.7 million people were unemployed, while 12.6 million — 20% fewer — worked in manufacturing. This represented only 9% of the American working populace; at manufacturing’s height in 1960, 29% of Americans were employed in the sector.

This bleeding of American manufacturing represents a massive drop in the products that are made in America: According to one economist, the country currently doesn’t produce any television sets. Computer manufacturing in the U.S. employs about 166,000 people; in 1975, it employed almost 300,000. Meanwhile, Asia’s computer manufacturing sector has about 1.5 million workers and a single tech manufacturer, Foxconn, employs more than 800,000 people.

If the name Foxconn sounds familiar, it’s because the company entered the news earlier this year when twelve of its employees at one factory committed suicide. In the months that followed the suicide cluster, disturbing facts emerged about the facility, which produced Apple iPods. Describing work conditions, factory insiders painted a picture of a profoundly depressed and dispirited workforce slaving around the clock for wages that start at $130 per month. Foxconn employees are often on their feet for eight hours at a time, regularly deal with emotional and psychological attacks, and often suffer workplace injuries.

If the low wages, dangerous workplace conditions and a suicidal workforce sounds familiar, it’s because that describes the conditions in many American factories in the late 1800’s and early 1900’s. This situation was largely remediated by the growing power of organized labor, which successfully pushed for minimum wage, collective bargaining, reasonable work weeks, and many of the other rights that today’s workers enjoy. Yet, in the past few decades, “the unions” have become an all-purpose scapegoat for inflexible work rules and the rising cost of American-made goods, as low-cost overseas labor has led to massive outsourcing. And in recent years, some of that reputation may be deserved. Yet the fact remains that organized labor did much to create the American middle class.

If the middle class is to rise to anything approaching its former power, American manufacturing must rebound. While the U.S. is still in the upper ranks of the world’s largest consumers, its economy is rapidly slipping down on the global list. According to some economists, China’s economy is on track to overtake the U.S. by 2040; ten years later, India will also outstrip America. Economic strength requires a strong manufacturing base, but while Asian countries are building theirs, America has slowly allowed its own base to starve.

October 18, 2010 at 8:13 AM #619423

jpinpb
Participant

I was out looking for muffin baking trays. After sifting through many made in China, I found one made in Europe. So exciting.

I don’t know how many of you look at labels, but it is demoralizing and so little is made here.

October 18, 2010 at 8:13 AM #619506

jpinpb
Participant

I was out looking for muffin baking trays. After sifting through many made in China, I found one made in Europe. So exciting.

I don’t know how many of you look at labels, but it is demoralizing and so little is made here.

October 18, 2010 at 8:13 AM #620058

jpinpb
Participant

I was out looking for muffin baking trays. After sifting through many made in China, I found one made in Europe. So exciting.

I don’t know how many of you look at labels, but it is demoralizing and so little is made here.

October 18, 2010 at 8:13 AM #620179

jpinpb
Participant

I was out looking for muffin baking trays. After sifting through many made in China, I found one made in Europe. So exciting.

I don’t know how many of you look at labels, but it is demoralizing and so little is made here.

October 18, 2010 at 8:13 AM #620494

jpinpb
Participant

I was out looking for muffin baking trays. After sifting through many made in China, I found one made in Europe. So exciting.

I don’t know how many of you look at labels, but it is demoralizing and so little is made here.

October 18, 2010 at 8:15 AM #619428

Coronita
Participant

Yeah. I know.
It’s not just us….
I was looking for a pair of hockey skates.
Can’t find a single one made in canada anymore either.
All of them are made overseas.

October 18, 2010 at 8:15 AM #619511

Coronita
Participant

Yeah. I know.
It’s not just us….
I was looking for a pair of hockey skates.
Can’t find a single one made in canada anymore either.
All of them are made overseas.

October 18, 2010 at 8:15 AM #620063

Coronita
Participant

Yeah. I know.
It’s not just us….
I was looking for a pair of hockey skates.
Can’t find a single one made in canada anymore either.
All of them are made overseas.

October 18, 2010 at 8:15 AM #620184

Coronita
Participant

Yeah. I know.
It’s not just us….
I was looking for a pair of hockey skates.
Can’t find a single one made in canada anymore either.
All of them are made overseas.

October 18, 2010 at 8:15 AM #620499

Coronita
Participant

Yeah. I know.
It’s not just us….
I was looking for a pair of hockey skates.
Can’t find a single one made in canada anymore either.
All of them are made overseas.

October 18, 2010 at 8:39 AM #619463

blahblahblah
Participant

OK everyone I hate to have to keep doing this, but in the interest of maintaining our high productivity rate, I will do it again. Here are the things that will be posted in response to this thread. There’s no need to read any further, they’ll all be right here in handy summarized form. Back to work everyone, that is, if you still have a job!

1) Americans are too dumb to compete in the global marketplace.

2) Unions killed American production. If workers would just work longer hours in more dangerous conditions for less pay and fewer benefits, we might have more jobs here. Or maybe not, see #1.

3) Americans deserve to have their jobs outsourced because they are lazy and greedy.

4) America shouldn’t be concerned with manufacturing things anyway, we are an “idea” economy which provides valuable things like Mortgage Backed Securities, Derivatives, and Health Insurance policies.

5) American manufacturing died because Americans made crappy cars. American cars are crappy, unlike my new Mercedes. By the way, let me tell you all about it…

6) Americans are too stupid to learn the math and science necessary for manufacturing and design. Asians, Europeans, Latin Americans, Canadians, and also many Africans and Australians and Eskimos and Pacific Islanders and those from the Middle East as well as the Uighurs and Turks are much better at math and science so they will do all of our math-ing and science-ing from now on. Except when it comes to creating our unique “idea” products like Mortgage Backed Securities, Derivatives, etc… We’re keeping that expertise “in-house.”

7) Anyone who complains about the loss of American manufacturing is just jealous that they’re not a successful financial planner/day trader/real estate investor/wealth manager like me. By the way, have I told you about the house I’m buying in Rancho Santa Fe? It’s fantastic!

8) CHOOSE ONE BASED ON POLITICAL AFFILIATION:

a] It is all the Democrats fault. Things will be much better when we get more Republicans in office.

b] It is all the Republicans fault. I’m sure that the Democrats will turn things around soon.

October 18, 2010 at 8:39 AM #619546

blahblahblah
Participant

OK everyone I hate to have to keep doing this, but in the interest of maintaining our high productivity rate, I will do it again. Here are the things that will be posted in response to this thread. There’s no need to read any further, they’ll all be right here in handy summarized form. Back to work everyone, that is, if you still have a job!

1) Americans are too dumb to compete in the global marketplace.

2) Unions killed American production. If workers would just work longer hours in more dangerous conditions for less pay and fewer benefits, we might have more jobs here. Or maybe not, see #1.

3) Americans deserve to have their jobs outsourced because they are lazy and greedy.

4) America shouldn’t be concerned with manufacturing things anyway, we are an “idea” economy which provides valuable things like Mortgage Backed Securities, Derivatives, and Health Insurance policies.

5) American manufacturing died because Americans made crappy cars. American cars are crappy, unlike my new Mercedes. By the way, let me tell you all about it…

6) Americans are too stupid to learn the math and science necessary for manufacturing and design. Asians, Europeans, Latin Americans, Canadians, and also many Africans and Australians and Eskimos and Pacific Islanders and those from the Middle East as well as the Uighurs and Turks are much better at math and science so they will do all of our math-ing and science-ing from now on. Except when it comes to creating our unique “idea” products like Mortgage Backed Securities, Derivatives, etc… We’re keeping that expertise “in-house.”

7) Anyone who complains about the loss of American manufacturing is just jealous that they’re not a successful financial planner/day trader/real estate investor/wealth manager like me. By the way, have I told you about the house I’m buying in Rancho Santa Fe? It’s fantastic!

8) CHOOSE ONE BASED ON POLITICAL AFFILIATION:

a] It is all the Democrats fault. Things will be much better when we get more Republicans in office.

b] It is all the Republicans fault. I’m sure that the Democrats will turn things around soon.

October 18, 2010 at 8:39 AM #620098

blahblahblah
Participant

OK everyone I hate to have to keep doing this, but in the interest of maintaining our high productivity rate, I will do it again. Here are the things that will be posted in response to this thread. There’s no need to read any further, they’ll all be right here in handy summarized form. Back to work everyone, that is, if you still have a job!

1) Americans are too dumb to compete in the global marketplace.

2) Unions killed American production. If workers would just work longer hours in more dangerous conditions for less pay and fewer benefits, we might have more jobs here. Or maybe not, see #1.

3) Americans deserve to have their jobs outsourced because they are lazy and greedy.

4) America shouldn’t be concerned with manufacturing things anyway, we are an “idea” economy which provides valuable things like Mortgage Backed Securities, Derivatives, and Health Insurance policies.

5) American manufacturing died because Americans made crappy cars. American cars are crappy, unlike my new Mercedes. By the way, let me tell you all about it…

6) Americans are too stupid to learn the math and science necessary for manufacturing and design. Asians, Europeans, Latin Americans, Canadians, and also many Africans and Australians and Eskimos and Pacific Islanders and those from the Middle East as well as the Uighurs and Turks are much better at math and science so they will do all of our math-ing and science-ing from now on. Except when it comes to creating our unique “idea” products like Mortgage Backed Securities, Derivatives, etc… We’re keeping that expertise “in-house.”

7) Anyone who complains about the loss of American manufacturing is just jealous that they’re not a successful financial planner/day trader/real estate investor/wealth manager like me. By the way, have I told you about the house I’m buying in Rancho Santa Fe? It’s fantastic!

8) CHOOSE ONE BASED ON POLITICAL AFFILIATION:

a] It is all the Democrats fault. Things will be much better when we get more Republicans in office.

b] It is all the Republicans fault. I’m sure that the Democrats will turn things around soon.

October 18, 2010 at 8:39 AM #620219

blahblahblah
Participant

OK everyone I hate to have to keep doing this, but in the interest of maintaining our high productivity rate, I will do it again. Here are the things that will be posted in response to this thread. There’s no need to read any further, they’ll all be right here in handy summarized form. Back to work everyone, that is, if you still have a job!

1) Americans are too dumb to compete in the global marketplace.

2) Unions killed American production. If workers would just work longer hours in more dangerous conditions for less pay and fewer benefits, we might have more jobs here. Or maybe not, see #1.

3) Americans deserve to have their jobs outsourced because they are lazy and greedy.

4) America shouldn’t be concerned with manufacturing things anyway, we are an “idea” economy which provides valuable things like Mortgage Backed Securities, Derivatives, and Health Insurance policies.

5) American manufacturing died because Americans made crappy cars. American cars are crappy, unlike my new Mercedes. By the way, let me tell you all about it…

6) Americans are too stupid to learn the math and science necessary for manufacturing and design. Asians, Europeans, Latin Americans, Canadians, and also many Africans and Australians and Eskimos and Pacific Islanders and those from the Middle East as well as the Uighurs and Turks are much better at math and science so they will do all of our math-ing and science-ing from now on. Except when it comes to creating our unique “idea” products like Mortgage Backed Securities, Derivatives, etc… We’re keeping that expertise “in-house.”

7) Anyone who complains about the loss of American manufacturing is just jealous that they’re not a successful financial planner/day trader/real estate investor/wealth manager like me. By the way, have I told you about the house I’m buying in Rancho Santa Fe? It’s fantastic!

8) CHOOSE ONE BASED ON POLITICAL AFFILIATION:

a] It is all the Democrats fault. Things will be much better when we get more Republicans in office.

b] It is all the Republicans fault. I’m sure that the Democrats will turn things around soon.
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