5 April 2005

A country that permits its manufacturing and its technical and scientific professions to wither away is a country on a path to the Third World

Former Reagan administration staffer Paul Craig Roberts takes another monthly view of the Bureau of Labor Statistics (BLS) numbers and it's not good news, at least for the American worker, or for our nation's economic future.
In March the US economy created a paltry 111,000 private sector jobs, half the expected amount. Following a well-established pattern, US job growth was concentrated in domestic services: waitresses and bartenders, construction, administrative and waste services, and health care and social assistance.

In the 21st century the US economy has ceased to create jobs in knowledge industries or information technology (IT). It has been a long time since any jobs were created in export and import-competitive sectors.

The Bureau of Labor Statistics forecasts no change in the new pattern of US payroll job growth. Outsourcing and offshore production have reduced the need for American engineers, scientists, designers, accountants, stock analysts, and other professional skills.  A college degree is no longer a ticket to upward mobility for Americans.

Nandan Nilekani is CEO of Infosys, an Indian software development firm.  In an interview with New Scientist, he noted that outsourcing is causing American students to "stop studying technical subjects. They are already becoming wary of going into a field which will be ‘Bangalored’ tomorrow."



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