Friday, September 17, 2010

Why American Jobs are being outsourced

America once the epitome of the free enterprise system and capitalism has over the years fallen from grace, in fact over the past 10 years the fall has been substantial.

How did we decline so far so fast?

The beginning of the end really began as a part and parcel of Reaganomics, building an American empire, and the capitalist version of it. The idea was that business could prosper better in third world environments where laws were lax, and child labor protection was non existent, In short America prior to 1938.

During the early part of the 20th century states attempted to pass laws protecting children, however as we are finding today, the Supreme Court was out of step with the times. In each instance, the case brought before the Supreme Court was ruled against the state interest and the interest of the children. It wasn’t until 1941 that an act of the US congress passed in 1938 was found to be constitutional “The Fair Labor Standards Act”

For the next 40 years, manufacturers were required to hire children only over age of 16, and they were limited in the number of hours, and type of jobs they were allowed to work.

In addition environmental laws made it too expensive to operate some businesses in the States. So under Reagan a plan was developed which promoted outsourcing of American jobs, they went first to South America . Under Reagan more than 2200 businesses representing several million workers were displaced

Today in developing countries 250 million children age 5 to 14 are working without child labor law protections, and they are producing almost every product we purchase. With capitalism, there is a tremendous advantage and reason to move to these countries, it’s called profits!

As manufacturers began to move out of the United States there developed a worker backlash. Detroit began with its concept of planned obsolescence, as early as the 1920’s, to produce a product that would last for only a short time, then requiring new purchases.

This manufacture model allowed Japan to gain a real foothold on the American consumer and the auto industry began a decline in earnest in the 1960’s and 1970’s.

Planned obsolescence was a concept that came about in the US as early as the 1920’s, and 30’s the real and secret logic behind it was to conceal the real cost of the object, by giving the consumer a product that had a limited life expectancy.

By the 1960’s and 1970’s American consumers were turning to Japanese automobiles which offered a longer life product use, and a cheaper price tag.

Today consumers still have no idea they are being abused by capitalist theories of profits. Just what it will take to wake us up is the all time question?