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Blogs by Lawrance G Lux
Trade Deficit and Job Growth 2/21/2004 9:24:01 AM
The rising Trade Deficit and stagnant Job growth has led to Economists reading and rereading the numbers. They are trying to find joy in gloom, and succeeding poorly.
The 2004 Economic Report to the President uses the increase in temporary employment to perdict increased long-run permanent job gains. They specifically ignore the growing trend for Business to switch to temporary labor services, and the temporary employment increases simply reflect this movement. The Economic forecasters for the President are wrong!
Greenspan claims Globization causes loss of Jobs, but Employment must be raised by training Workers. He does not comment upon the intellectual inefficiencies of most Labor cadres in the attempt to achieve this increased technological efficiency, and does not exterpolate the Cost of such training which is beyond the financial means of both Unemployed and Government programs.
Politicians have been calling for Protectionist measures, thinking to force American manufacture. A uniform low tariff would make American manufacture more profitable, Protectionist measures would make it less profitable. Economists and Politicians will not admit foreign products must be made more expensive to American Consumers. It is the only way to guarantee American jobs.
All Economists perdict a slowly growing Job market. This Author perdicts a slow, steady decline of Job numbers of around 30-40,000 per month, until measures are taken to make foreign products more expensive. The uniform low tariff is best, but there are other measures. Employers can be forced to pay SS taxes on all labor performed, both foreign and domestic. Employers can be made to pay for health coverage and Pension benefits for all Workers--especially Retail labor who market foreign products. Employers can be made to pay an administrative tax for every Lay-off they perform, something equal to one year's SS tax for said Laborer--paid to the Umemployment Insurance Fund. lgl
