Why is our economy going to hell?

Question

I have so many friends and family members who have been laid off work in the past three months. Why is this happening? It just seems like it will never end.

Answer 1

I sympathize with your current situation. The movement of jobs, factories and industries to foreign countries under the banner of free trade and globalism is the chief cause of job loss in the USA. Chances are the jobs can be replaced, but the majority of new jobs in our country do not offer a living wage. This has been happening for awhile, and no end appears in sight. Our standard of living continues to decline while our multi-national corporations are making record profits.

In a nutshell, we are called upon to compete with the low wages of foreigners on the global front. At home, our only wage competition for many of the replacement jobs are the millions of illegal immigrants who are delighted with minimium wage jobs. Good luck to you and your family.

Answer 2

I am sorry to here about that, but I have an uncle who constantly is being layed off. The main reason is actually supply and demand. While the economy is doing better than it ever has in its entire history all economies have minor problems. If there are too many people who are trained in a certain area, people will either be payed less to do the work, or some of those people will be fired. If you go back to school (college) or get new job training then finding jobs in many areas will be a lot easier than trying to find jobs in one single area whereas they would be limited.

Answer 3

You are making sweeping generalizations about a 300 million-person economy based on your microscopic little personal experience. Your personal, anecdotal experience is not representative, because you know so few people. If you were capable of looking up and understanding the large array of economic statistics that are regularly released, you'd know that overall, the economy is booming and your experience is unusual. (You live in Detroit or something? Move to Texas.)

I can play that game too BTW. And in my anecdotal experience, I and many other people have been desperately looking to hire ANYone, and unemployed people are simply not available. We run help-wanted ads in the paper, on the internet, networking with friends, and we get virtually no resumes even sent to us. It's amazing.

Answer 4

Lay off's are occurring because of greedy corporations who're manipulating the "Global" growth through:

1) Law & Ethic Manipulations
2) Enviroment Manipulations
3) Labor Law Manipulations.
4) Tax Manipulations.

With all of these, corporations are finding "Cheep" ways of doing business and pooping on ethics as a result. In my opinion I would like to see a law enacted that levels the global playing field.

How would this happen? An example would be if Corp XYZ makes soda-pop cans. The USA would have stricter import laws that evaluates if the production, labor laws meet or exceeded USA standards. This would then stop companies like “Ford” from “Reorganizing” to steel pension money. Also, many companies are drooling to go to China because they can continue to use “Coal” and this would hinder any efforts the USA makes toward a clean environment.

Answer 5

Sorry to hear about your family, but our economy is going great guns!! What are their areas of expertise? Is that market oversaturated? What is their level of education? Do they have a trade in demand? Are they willing to go back to school or learn a new trade or does the job market have to bend to their skill?

I retired 4 years ago and turn down jobs about once a month, good paying jobs.

The only unemployed people I know are my kids!!

Answer 6

No it fairly is not. that's straightforward and thoroughly comprehensible to experience scared appropriate to the economic equipment. even however, too oftentimes cynics and media (anchors, journalists) use words of doom and worry and reason many human beings to be worried appropriate to the economic equipment. sure that's undesirable and likely human beings could be concerned, yet not overly afraid and worried. The economic equipment will come again and get extra useful. :] I heard that the economic equipment might advance (get well some) on the tip of the three hundred and sixty 5 days. besides, that's non-odd for a economic equipment to bypass into recession or on the brink of one, that's typical for economies to bypass via recessions or slow situations..

Answer 7

you are not representative of the US economy, supposing you are from the USA ...
THe economy goes to hell right now because :

too much debt is too much :
The rest of the world is getting tired lending to the USA
Consumers are getting tired of increased bills
bankers don t trust consumer anymore etc.

TOo low wages for too long spells inability to buy all the stuff produced in the world without increased credit, and since there already too much debt ... Then crisis is ahead

TOo much speculation on house prices and asset prices leads to desillusion.

Too much globalisation and deregulation leads to monopolies, rising pollution and infrastructure costs ...

etc.
Don t worry it ll end in some 15 years

Answer 8

Economy not going to grinder. Job lossses in manufacturing are occuring because China sell goods below production cost. Ask, how can you sell a good below cost? Easy, subisidize the production with tax cuts, or subisidies to export. Chinese also manipulate the Yuan to keep it low to act as a sealth traiffs to reduce importation of goods. Laid off workers should get better safety net period, but closing off free trade is wrong answer to the problem because the people that pay the price with higher trade barriers are the cosumer.

Therefore, a policy to help workers be better safety net for laid off workers. Solutions, more job retraining, Univseral healthcare, wage insurance to pay for wokers who lose more than 25% of thier hourly wage from the pervious job up to $40,000 a year. Wage insurance would work like this worker A at pervious job was making $20.00 an hour, but is not likely to take a new job if it pays $12.00, so to entice the worker to take the lower paying job offer a wage insurance of $4 an hour at bring the wage up to $16.00 an hour, but its set up provide a floor on greater wage loses from pervious jobs. Wage insurance of $4.00 an hour tapers off slowly over time when the wages reach $16.00. Its provide a incentive to work lower wage jobs, but also realistic that you cant replace a wage laid off job unless you get more education. Its realstic idea to counter the wage losses through trade, and globalziation.

Yet, it would not be used on workers making over 40k a year because this is setup for lower income manfacturing workers jobs lost thru outsoucring or other means.

Look at Danish workforce safetynet for a guide for some ideas to help the workers out, but also provide the flexible labor market to keep America competitve.

Populist solutions will not work here, but realistic solutions to help out displaced workers, but also maintain American competite edge in the world economy. Trade barriers always leads producers to create crap products for the comsumer, and we pay higher costs with traiffs. Were not gonna stop China cheating here, and free trade helps workers out in the longer term than does populist traiff solutions.

Answer 9

Whats bad about it? Complacency allows that kind of thing to happen. If you don't stay connected, and remain at the top of your field, you will get left behind. Hope their luck improves.

Answer 10

Because this is a strategic way to institute Martial Law, and convince people to allow mandatory chip implants.

Sad...but true.