Because so many notable business pundits appear to be bemused by America’s most recent economic vexation, specifically the collapse of the mortgage markets; I thought I’d take a crack at edifying your readers, to the extent I’m capable, as to its true nature and causes.
To begin with one must remember that all the statistics kept on our economy are bogus. They are contrived in such a manner, compiled explicitly for casual regurgitation, so as to never display anything less than full employment, wage growth and a serendipitous lack of inflation.
With that as a foundation, what’s actually occurring in this economy is the globalization of assets and wealth. That is to say, because the value of American labor is falling so precipitously, (due to the utilization of cheap foreign labor around the world), the value of the assets held by them is falling in direct correlation with their declining wages. It must.
A worker formerly employed in a lost economic sector, (manufacturing for example), earned between $50 – 60,000 annually. That job gets outsourced. Now that worker takes a job paying $20 – $25,000 annually. All the tax cuts, cheap foreign goods, and low paying jobs being created by President Bush and globalization aren’t going to restore this worker’s former standard of living.
Presently, someone trying to pay down a debt service based on their former “un-globalized” salary, and prior level of affluence, just can’t do it. The fact is, now that America’s been globalized, that worker – along with all others of the same economic rank – can’t afford the assets they’ve purchased and are trying to hold on to.
Just as wages within their economic sector are being deflated; so must the value of their assets be deflated. This has to occur so that new members of their socioeconomic group, those just entering America’s global workforce, can afford to participate; including those living and working here illegally.
What we’re seeing now is just the beginning of a global revaluation; a downward harmonization of American worker’s livelihoods with the livelihoods of the world’s other working people. Furthermore, this state of affairs isn’t going to end any time soon; not until the descending worth (wages and assets) of America’s working classes, meets the ascending worth (wages and assets) of the labor they compete with globally.
Taking a Closer Look at the Stories Ignored by the Mainstream Media