No Jobs for the New Economy or the Old
December did not bring Americans any
jobs. To the contrary, the private sector lost 13,000
jobs from the previous month.
If December is a harbinger of the
New Year, it is going to be a bad one. The past year,
hailed by Republican propagandists and "free trade"
economists as proof of globalism`s benefit to Americans,
was dismal. According to the Bureau of Labor Statistics`
nonfarm payroll data, the US "super economy"
created a miserable 1,054,000 net new jobs during 2007.
Job Numbers, January 4, 2008]
This is not enough to keep up with
population growth—even at the rate discouraged
Americans, unable to find jobs, are dropping out of the
work force—thus the rise in the unemployment rate to 5%.
During the past year, US goods
producing industries, continuing a long trend, lost
But making things was the "old
economy." The "new economy" provides
services. Last year 1,428,000 private sector service
jobs were created.
Are the "free trade"
propagandists correct that these service jobs, which are
our future, are high-end jobs in research and
development, innovation, venture capitalism, information
technology, high finance, and science and engineering
where the US allegedly has such a
shortage of scientists and engineers that it must
import them from abroad on
Not according to the official job
What occupations provided the 1.4
million service jobs in 2007?
Waitresses and bartenders accounted
for 304,200, or 21% of the new service jobs last year
and 29% of the net new jobs.
Professional and business services
accounted for 314,000, or 22% of the new service jobs
and 30% of the net new jobs. Are these professional and
business service jobs the high-end jobs of which
"free traders" speak? Decide for yourself. Services
buildings and dwellings account for 53,600 of the
jobs. Accounting and bookkeeping services account for
60,500 of the jobs. Architectural and engineering
services account for 54,700 of the jobs. Computer
systems design and related services account for 70,400
of the jobs. Management consultants account for 88,400
of the jobs.
There were more jobs for hospital
orderlies than for architects and engineers. Waitresses
and bartenders accounted for as many of last year`s new
jobs as the entirety of professional and business
Wholesale and retail trade,
transportation, and utilities accounted for 181,000 of
2007`s new jobs.
Where are the rest of the new jobs?
There are a few scattered among arts, entertainment, and
recreation, repair and maintenance, personal and laundry
services, and membership associations and organizations.
Keep in mind that the loss of
374,000 goods producing jobs must be subtracted from the
1,428,000 new service jobs to arrive at the net job gain
figure. The new service jobs account for more than 100%
of the net new jobs.
Keep in mind, too, that many of the
new jobs are not filled by American citizens. Many of
the engineering and science jobs were filled by
foreigners brought in on work visas.
others from abroad can be hired to work in the US
for one-third less. The engineering and science jobs
that are offshored are paid as little as one-fifth of
the US salary. Even
foreign nurses are brought in on work visas. No one
knows how many of the hospital orderlies are illegals.
What a super new economy Americans
have! US job growth has a distinctly third world flavor.
A very small percentage of 2007`s new jobs required a
college education. Since there are so few jobs for
university graduates, how is "education the answer"?
Where is the benefit to Americans of
offshoring? The answer is that the benefit is confined
to a few highly paid executives who receive
multi-million dollar bonuses for increasing profits by
offshoring jobs. The rest of the big money went to
Wall Street crooks who sold trusting people subprime
"Free traders" will assert that the
benefit is in low Wal-Mart prices. But the prices are
low only because China keeps its currency pegged to the
dollar. Thus, the Chinese currency value falls with the
dollar. The peg will not continue forever. The dollar
has lost 60% of its value against the Euro during the
years of the Bush regime. Already China is having to
adjust the peg. When the peg goes, Wal-Mart shoppers
will think they are in Neiman Marcus.
Just as Americans have been betrayed
by "their" leaders in government at all levels,
they have been betrayed by business "leaders" on
Wall Street and in the corporations. US government and
business elites have proven themselves to be Americans`
CREATORS SYNDICATE, INC.
Paul Craig Roberts
him] was Assistant
Secretary of the Treasury in the Reagan Administration.
He is the author of
Supply-Side Revolution : An Insider`s Account of
Policymaking in Washington;
and the Soviet Economy and
Meltdown: Inside the Soviet Economy,
and is the co-author with Lawrence M. Stratton of
The Tyranny of Good Intentions : How Prosecutors and
Bureaucrats Are Trampling the Constitution in the Name
of Justice. Click
here for Peter
Brimelow`s Forbes Magazine interview with Roberts
about the recent epidemic of prosecutorial misconduct.