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When Nixon opened China to communication and trade with the USA, businesses fell all over themselves to have access to cheap labor and a potential 1 billion new customers. They wanted that so bad they agreed to any terms the Chinese put on trade. If we want to sell stuff in China, we have to build stuff in China, and business wants very badly to sell stuff in China. So we build stuff there, which drives down prices here when we manufacture using Asian wages, but it's wiping out the middle class in the USA.
Investors are doing well because the cheap labor boosts profits, but replacing manufacturing jobs with service industry jobs has been the pattern, and that's driving poverty rates up in the states, resulting in government assistance to more people who don't earn enough to pay their rent. Until we find a way to create more jobs with higher wages, those in low-paying jobs are stuck. Even if they work hard, learn new skills, etc., unless there is demand for employees in higher-paying jobs, all that person achieves is some student debt and no change in earnings.
Investors are doing well because the cheap labor boosts profits, but replacing manufacturing jobs with service industry jobs has been the pattern, and that's driving poverty rates up in the states, resulting in government assistance to more people who don't earn enough to pay their rent. Until we find a way to create more jobs with higher wages, those in low-paying jobs are stuck. Even if they work hard, learn new skills, etc., unless there is demand for employees in higher-paying jobs, all that person achieves is some student debt and no change in earnings.
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