Introducing The We R Screwed Indicator


Those who have read my work for a while know that I strongly support environmental and wage-parity tariffs.  I do not consider this “protectionism”, but rather leveling the playing field for those nations that corporations intentionally exploit through both near-slave labor conditions and the ability to dump pollutants into the air and water (not to mention poisoning their workers) as a means of “competing” with US workers and manufacturing.  They then export their products back here and claim to be geniuses.

This is the evidence for my position.

This chart shows the annualized (that is, seasonality removed) change in employment adjusted for population change.

One must always look at employment ex population changes.  If you add 1 million people of working age to the population then you must subtract them out of the employed figures to figure out whether your workforce, as a percentage of the total working-age population, is growing or shrinking.  This is essential since those who are not working but of working age are a huge net drain on the government and economy.

The claims that we are “net beneficiaries” of off-shoring, that H1B Visas make us “more competitive” in our corporations, and that we’re “doing ok” in regard to our employment situation when one ignores the recession we just went through are proved utterly fallacious by this chart.

In point of fact even during the “boom times” of the most-recent recovery – from 2003-2007 – we managed to barely improve actual employment, and even then, only on a sporadic basis!

This came despite the allegedly-strong economy.

In short, there was no “strong economy” in point of fact.  The claims were false.  They were predicated on a lie – that expanding credit in fact is expanding wealth. 

It isn’t.

The employment base, when one looks at it ex-population, never expanded to any material degree at all even in 2000, which was the top of the market.  It also never recovered any material number of jobs from 2003-2007.  

We cannot recover until we address this.  And we cannot address this so long as we continue to allow corporations to offshore jobs and import cheap workers on the H1B program.

We must impose tariffs that level the playing field for American production and shut off importing foreign workers who come here with subsidized educations while our graduates are coming into the workforce with six-figure debts, requiring salaries $18,000/year and more in excess of what that foreign worker can do the same job for.

If we don’t stop this, right now, we’re not going to recover.

We cannot force another credit-driven expansion.  It will not work.

The numbers are what they are.

If we do not act now when the folly of the intended credit-driven expansion becomes realized both the stock market and government funding capacity will collapse, and the 2007-2008 downturn will look like a cakewalk.

The Market-Ticker