America in the Midst of an Economic Sea Change
Because this new technology is not unique to America, the loss of manufacturing jobs is an international issue. In the twenty largest economies between 1995 and 2002, 22 million factory jobs disappeared. These jobs were lost to higher productivity. Manufacturing jobs are following the same decline that agricultural jobs faced when the agricultural economy became industrialized.
Where do we go from here? For simplicity sake, the decision makers can be divided into three camps: (1) the academics who need empirical studies before they can make a move, (2) those with their own self-enriching agenda, and (3) those with common sense who have no vested interest in their decisions.
The transition from a manufacturing economy to a service economy is a good thing, not a bad thing. But it is a difficult thing. Following are the facts, logic, and common sense that will emerge from this transition.
- Efficiency as the motivating force creating socioeconomic changes is positive.
- Long-term transitions don’t move in a straight line.
- America is changing from a manufacturing-based economy to a service-based economy.
- New service products are being created.
- The new service products have a positive affect on healthcare and the quality of life.
- The new service products provide more and better information for more informed decisions.
- The new service products offer improvements in education.
- New service jobs are being created.
- Where applicable, manufacturing jobs are being outsourced to other countries.
- Outsourcing creates jobs in other countries.
- Increased jobs in other countries increases their consumer spending.
- Increased consumer spending in other countries increases capital investment.
- Capital investment in other countries creates opportunities for more exports (albeit new service products vs. manufactured products) from America.
- Capital investment in other countries creates more jobs in those countries, increases the possibility for better education, better health care, and an improvement in the quality of life.
- The more people that are employed in other countries, the less hungry they will be and thus the less susceptible they will be to the perceived advantages of terrorism.
- If managed and executed correctly, the fourth socioeconomic taking place in our country will have a far reaching positive affect on the United States and many other countries.
The academics are quoted more often than others. Those with their own agenda usually speak the loudest. Unfortunately, those with common sense but no vested agenda are the last to be heard. But heard they will be, because ultimately the decisions made are those that benefit the most people. Sooner or later, the majority is always heard.
Net Gain’s philosophy is to provide practical, useful information and analysis. Consequently, this report on socioeconomic changes in the United States will be succeeded by a commentary projecting the nearterm, intermediate-term and long-term trends of the different types of income properties.
