[NYTr] Big Betrayal: No Jobs for New Economy or Old

[All the News That Doesn't Fit]

Counterpunch - Jan 8, 2008
http://www.counterpunch.org/roberts01082008.html


The Big Betrayal

No Jobs for the New Economy (or the Old)

By PAUL CRAIG ROBERTS

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.

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 374,000 jobs.

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
work visas?

Not according to the official job statistics.

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.

Health care and social assistance accounted for 478,400, or 33% of the
new service jobs and 45% of the net new jobs. Ambulatory health care
and hospitals accounted for the lion's share of these 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 to 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 services.

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.

That's it.

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. Indians and 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 derivatives.

"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' worst enemies.


[Paul Craig Roberts was Assistant Secretary of the Treasury in the
Reagan administration. He was Associate Editor of the Wall Street
Journal editorial page and Contributing Editor of National Review. He
is coauthor of The Tyranny of Good Intentions.He can be reached at:
PaulCraigRoberts at yahoo.com .]