Uncle Sam’s Problems

One of the big problems inflicting America is unemployment hovering 9-10%. Obama turns left embracing Keynesian solution relying on government spending. Nowadays he is appealing the Congress to approve his second $447 stimulus through jobs bill. But, many cast doubt. Will it work after the failure of first $825bn stimulus?

Of course there is no silver bullet in this recent crisis. Keynesian did work in the past, but different era brings different problems and asks for different solution.

There are 2 matters ruling the possibility of the success of Obama’s jobs bill. First, technological progress kills jobs, and second, globalization spreads the jobs.

Technological Progress

I don’t know why most American people abandon Jeremy Rifkin, American thinker, who gives clear messages on the end of work. The culprit of disappearing jobs is clearly the brainchild of human progress: technology. Finally it rears its ugly head in this era. Production becomes easier and much more productive, but the downside is that all are done with fewer workers!

Some people blame China for the America’s jobless. As matter of fact it’s not the case. Even in China many jobs disappeared forever. Yes, forever. They are taken over by robots (or computers). It’s true some robot’s future jobs still exist in developing country, but it’s only a matter of time, those will vanish forever.

So, the next jobs market will be entrepreneur with new ideas, engineers who design robots and unique, human services those robot and computers can’t do (barber shop!).

Some Americans lost in this new era because not all of Americans are as good as Steve Jobs or Bill Gates. Some of them are ordinary people with standard skills, just like us :D, and eventually they are conquered by their own robots and computers.

Globalization

Globalization is the next culprit of the lost of American jobs. Thanks to information and communication technology progress, most of goods and services can be assembled and provided anywhere.

As described by Thomas Friedman in The World is Flat, in globalization era, if you are an accountant and live in America, then you are in trouble. Since America and India is highly connected, America’s companies can easily hire Indian workers to do accounting jobs with less money. Even Indian doctors can replace those of America. What an irony, Americans invented internet to kill jobs in America and give them to India.

Not to mention that Apple designs its gadgets in America with relatively few workers, but produces them massively in China with huge number of workers.

Globalization also brings justice in terms of salary. If American unemployment still wants the jobs those can be produced and assembled in China or India, they have to be paid on par with others. So, in the future the American living standard will be lowered, unless all of them invent something like Apple, Google or Microsoft.

Well, we live in the different world now and Uncle Sam should adapt with the new world and realize that it can no longer rule the world by bombs, guns or … veto!.

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