The Collapse of the Middle-Class Job

Paul Buchheit | May 08 2016 | Common Dreams

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‘Evidence shows that living-wage, family-sustaining positions,’ writes Buchheit, ‘are quickly being replaced by lower-wage and less secure forms of employment.’ (Photo: Chris Devers/flickr/cc)

Our middle-income jobs are disappearing. That fact may be disappearing by free-market advocates, who want to believe Barack Obama when he gushes, “We’re in the middle of the longest streak of private sector job creation in history.”

But the evidence shows that living-wage, family-sustaining positions are quickly being replaced by lower-wage and less secure forms of employment. These plentiful low-level jobs have padded the unemployment figures, leaving much of America believing in an overhyped recovery.

The Incredible Shrinking Job

New research is beginning to confirm the permanent nature of middle-income job loss. Based on analysis that one reviewer calls “some of the most important work done by economists in the last twenty years,” a National Bureau of Economic Research study found that national employment levels have fallen in U.S. industries that are vulnerable to import competition, without offsetting job gains in other industries. Even the Wall Street Journal admits that “many middle-wage occupations, those with average earnings between $32,000 and $53,000, have collapsed.”

Productive Workers, but Less of Them

High-salaried jobs in technology still exist, but they’re available to fewer people as machines become smarter. Netflix, for example, serves 57 million customers with less than 2,200 employees, who have a median salary of $180,000. Google is worth $370 billion but employs only about 55,000 workers (50 years ago AT&T was worth less in today’s dollars but employed about 750,000 workers). Facebook’s messaging application WhatsApp has 55 employees serving 450 million customers.

As jobs are downsized, profits are maximized. Apple makes over $500,000 per employee; Facebook and Google are both over $300,000; Exxon and Phillips 66 are both well over $250,000; Merck and Allergan and Pfizer are all significantly over $100,000. Just 25 years ago GM, Ford, and Chrysler generated a combined $36 billion in revenue while employing over 1,000,000 workers. Today Apple, Facebook, and Google generate over a trillion dollars in revenue with 137,000 workers.

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Despite Obama’s claims, the Korea-US free trade agreement has cost American jobs

Geoffrey Cain | August 08 2013 | Global Post

SEOUL, South Korea — Although the Korea-US Free Trade Agreement (KORUS FTA) has been in effect for little more than a year, it is already drawing vehement condemnation from both sides of the Pacific.

It wasn’t supposed to be this way.

The Obama administration feted KORUS as a veritable job-creation machine, a remedy for the tepid post-crisis recovery. When the US Congress voted in favor of the deal in October 2011, the president called it “a major win for American workers and businesses.” Some proclaimed that KORUS was the most significant trade agreement since NAFTA in 1994.

The US forecast an additional 70,000 American jobs from exports alone. The International Trade Commission estimated the pact would kick-start some $10 billion in US exports to Korea, improving the trade balance by a net $4 billion or more, a boon to the economy.

But already, it’s not clear that the agreement is living up to its promise.

In the US, critics claim that KORUS, which went into force in April 2012, is costing American jobs.

Continue reading Despite Obama’s claims, the Korea-US free trade agreement has cost American jobs

April 2016 Job Cuts Job Cuts Jump to 65K

Challenger Gray and Christmas | May 05 2016

The pace of downsizing increased in April, as US-based employers announced workforce reductions totaling 65,141 during the month

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The April figure represents a 35 percent increase over March, when employers announced 48,207 planned layoffs. Last month’s job cuts were 5.8 percent higher than the 61,582 recorded in April 2015.

Continue reading April 2016 Job Cuts Job Cuts Jump to 65K

US job cuts hit highest level since 2009 according to new study

Sam Thielman in New York  | May 07 2016 | The Guardian

61,582 people lost their jobs between 1 and 30 April – a worrying sign of a slowdown in the pace of the jobs market’s recovery

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April was marked by major cuts from Intel, which slashed its employee ranks by 12,000. Photograph: Mauritz Antin/EPA

Job cuts are at their highest level since 2009 according to a new study from outplacement firm Challenger, Gray & Christmas, up 35% in April against figures from March and 5% from the same time the year previous.

Some 61,582 people lost their jobs between 1 April and 30 April, according to employer announcements of staff reductions polled by analysts.

For the first third of the year, cuts are at more than 250,000, a level not reached since the recession hit the job market in earnest in early 2009 and cost nearly 700,000 people their jobs.

The news comes amid worrying signs of a slowdown in the pace of the jobs market’s recovery. This week payroll processor ADP said the US had added only 156,000 jobs in April, gains that were down against the previous month and offset by increasingly grim news from energy and tech sectors.

Continue reading US job cuts hit highest level since 2009 according to new study

New Data Show U.S. Trade Deficit Doubled, More Jobs Lost Under Obama Trade Deal That Was Template for the TPP

Lori Wallach | May 05 2016 | Trade Watch

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New report dissects U.S. – Korea Free Trade Agreement losing 106,000 American jobs

Today’s alarming fourth-year trade data on President Obama’s U.S.-Korea Free Trade Agreement (FTA) arrived just as the Obama administration has started its hard sell to pass the Trans-Pacific Partnership (TPP). And that is a real problem for the White House.

The Korea deal served as the U.S. template for the TPP, with significant TPP text literally cut and pasted from the Korea agreement. And the Obama administration sold the Korea deal with the same “more exports, more jobs” promises now being employed to sell TPP.

And since then, our trade deficit with Korea more than doubled as imports surged and exports declined. The increase in the U.S. trade deficit with Korea equates to the loss of more than 106,000 American jobs in the first four years of the Korea FTA, counting both exports and imports, according to the trade-jobs ratio that the Obama administration used to promise at least 70,000 job gains from the deal.

Today’s Census Bureau trade numbers provide the grim data fueling the nationwide bipartisan trade revolt now underway as public opposition to more-of-the-same trade policies surges and presidential and congressional candidates spotlight the problems with the TPP and the failure of U.S. trade policies.

And the Korea trade debacle shuts down Obama’s oft-repeated mantra that TPP opponents are somehow stuck in a past fight over the North American Free Trade Agreement (NAFTA). Today’s job-killing trade data are the result of a 2011 trade agreement pushed passionately by Obama himself, which he sold as “fixing” NAFTA.

If you review the Obama administration sales pitch for the Korea pact, you will hear the same exact claims now being made for the TPP.

Continue reading New Data Show U.S. Trade Deficit Doubled, More Jobs Lost Under Obama Trade Deal That Was Template for the TPP

How the Kleptocrats’ $12 Trillion Heist Helps Keep Most of the World Impoverished

David Cay Johnston | May 02 2016 | The Daily Beast

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An investigative economist has crunched 45 years of official statistics to discover just how much kleptocrats have plundered from 150 mostly poor nations

For the first time we have a reliable estimate of how much money thieving dictators and others have looted from 150 mostly poor nations and hidden offshore: $12.1 trillion.

That huge figure equals a nickel on each dollar of global wealth and yet it excludes the wealthiest regions of the planet: America, Canada, Europe, Japan, Australia, and New Zealand.

That so much money is missing from these poorer nations explains why vast numbers of people live in abject poverty even in countries where economic activity per capita is above the world average. In Equatorial Guinea, for example, the national economy’s output per person comes to 60 cents for each dollar Americans enjoy, measured using what economists call purchasing power equivalents, yet living standards remain abysmal.

The $12.1 trillion estimate—which amounts to two-thirds of America’s annual GDP being taken out of the economies of much poorer nations—is for flight wealth built up since 1970.

Continue reading How the Kleptocrats’ $12 Trillion Heist Helps Keep Most of the World Impoverished

The Selling of Obama: The inside story of how a great communicator lost the narrative.

Michael Grunwald | May-June 2016 | Politico

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Illustration by Peter Strain

President Barack Obama insists he does not obsess about “the narrative,” the everyday media play-by-play of political Washington. He urges his team to tune out “the noise,” “the echo chamber,” the Beltway obsession with who’s up and who’s down. But in the fall of 2014, he got sick of the narrative of gloom hovering over his White House. Unemployment was dropping and troops were coming home, yet only one in four Americans thought the nation was on the right track—and Democrats worried about the midterm elections were sprinting away from him. He wanted to break through the noise.

Obama’s strategists, led by his longtime political guru David Axelrod, had always warned him against “dancing in the end zone.” Their polling suggested that gloating about the recovery would backfire when so many Americans were still hurting. But Obama thought it was time to spike the football, and in a speech at Northwestern University, he tried to reshape his narrative. If the presidential bully pulpit couldn’t drown out the echo chamber, he figured nothing could.

“Sometimes the noise clutters and, I think, confuses the nature of the reality out there,” Obama said. “Here are the facts.”

The facts were that America had put more people back to work than the rest of the world’s advanced economies combined. High school graduation rates were at an all-time high, while oil imports, the deficit, and the uninsured rate had plunged. The professor-turned-president was even more insistent than usual that he was merely relying on “logic and reason and facts and data,” challenging his critics to do the same. “Those are the facts. It’s not conjecture. It’s not opinion. It’s not partisan rhetoric. I laid out facts.”

The Northwestern speech did reshape the narrative, but not in the way Obama intended. The only line that made news came near the end of his 54-minute address, an observation that while he wouldn’t be on the ballot in the fall midterms, “these policies are on the ballot—every single one of them.” When Obama boarded Air Force One after his speech, his speechwriter, Cody Keenan, told him the Internet had already flagged that line as an idiotic political gaffe.

Continue reading The Selling of Obama: The inside story of how a great communicator lost the narrative.

Pew Research Center: More Americans Disapprove Than Approve of Health Care Law

Pew Research Center | April 27, 2016

Democrats increasingly say law has had a positive impact on U.S.

Modest-changes-in-publics-overall-view-of-ACA-since-its-passage-in-2010The public’s views of the Affordable Care Act, which were evenly divided following the Supreme Court’s ruling last summer upholding a key section of the law, are again more negative than positive. Currently, 44% approve of the 2010 health care law, compared with 54% who disapprove of the law.

In July 2015, after the Supreme Court upheld the federal government’s ability to provide insurance subsidies through federal exchanges, nearly equal shares approved (48%) as disapproved of the law (49%). Over the prior two years, somewhat more disapproved than approved of the law.

However, the balance of opinion about the law’s impact on the country has grown less negative over the past three years, even as slightly more continue to see the impact as negative than positive. Currently, 44% say the law’s impact on the country has been mostly negative, 39% say it has been mostly positive and 13% say it has not had much of an effect. In December 2013, amid the flawed rollout of the health exchanges, opinions about the law’s impact on the country were much more negative than positive: 49% saw its impact as largely negative while fewer than half as many (23%) said it had had a positive effect on the country as a whole (22% said it hadn’t had much of an effect).

Since that point, positive views of the law’s impact on the country have increased 16 percentage points (from 23% to 39%), while there has been a modest decrease in negative views (49% then, 44% today).

Continue reading Pew Research Center: More Americans Disapprove Than Approve of Health Care Law