|
|
<< % of Population Employed Falling | Main | Significance of Gore Endorsement >> December 09, 2003China's Job Problem is Our ProblemThis is why any jobs recovery in the US is unlikely to be stable. Our millions of unemployed are competing against hundreds of millions of Chinese unemployed for scarce global jobs: Experts estimate that as many as 200 million farmers and rural workers are either unemployed or underemployed in a country of 1.3 billion people. And one report in the state news media found that only half of college graduates got jobs this year, compared with 95 percent in 1997.Read that last line. China is producing millions of trained university graduates who are on the hunt to underbid even our most skilled jobs. Labor Repression: For years, China has been covering up massive worker discontent, even riots, in the industrial heartland where few foreigners go. Journalists caught covering such stories are often expelled (see this 2002 story): Reporters Without Borders (Reporters sans frontiers) has protested against the arrest and deportation of Canadian journalist Jiang Xueqin, who was covering demonstrations by workers in the north-east of China. "Having prevented foreign and Chinese journalists from covering the AIDS epidemic in Henan, the Beijing authorities are now imposing a news blackout on another sensitive issue. While a number of workers' representatives have recently been put behind bars, it is now a question of silencing all those who try to report on their struggle," stated Robert Mard, Secretary-General of Reporters Without Borders. Other human rights organizations have detailed the brutal repression of Chinese unions demanding that the government address workers concerns. From Amnesty International: Labour unrest in China is widespread. In March and April 2002, protests, strikes, demonstrations and factory occupations by angry workers have been reported nearly every day. Workers are demonstrating against low pay, illegal working conditions, lay-offs, redundancy terms, management corruption and delayed welfare payments.Wages Not Keeping Pace with Productivity: And here's the frightening point for workers globally. Productivity of employed Chinese workers is increasing rapidly, yet wages are stagnant. As The Economist detailed earlier this year: Economic theory says that differences in countries' wage rates should be reflected in differences in their productivity levels, and that any misalignment will be smoothed out over time. The fear is that, in China, that time could be painfully long. Millions of people are moving from the countryside to the cities. At the same time, state enterprises are shedding huge numbers of workers—just one of the four big state-owned banks has laid off 110,000 employees in the past few years. This huge pool of surplus labour helps explain why Chinese wages have been rising less quickly than productivity since 1996.What this means is that these hundreds of millions of Chinese workers are producing more goods without compensurate income to purchase a similar quantity for themselves. End of Fordism: Once upon a time, Henry Ford promoted the idea that higher wages for his employees (and similar industrial workers) would benefit everyone by giving workers the income to drive demand for those same industrial products. But today-- given multinational production outsourcing to a Chinese regime brutally suppressing unions and worker wage demands, you now have a spiral of rising productivity and falling wage growth-- leading to a situation of global insufficiency of consumer demand. Chinese workers can't buy their own products and they sure can't buy most goods produced by US workers, yet their productivity means they can increasingly substitute for US workers in many areas of production. This inexorably pressures US companies to lay off workers here and, where they don't, puts pressures on surviving employees to accept lower wages to keep their jobs. Essentially, Chinese government repression of labor demands is the handmaiden of slashed wages and union busting here in the United States. There is probably no more important issue for US workers than fighting for labor rights for Chinese workers. Their labor conditions are our future, one way or the other. Posted by Nathan at December 9, 2003 05:46 AM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsSadder still the fact that Chinese workers illegally paid less than China's own minimum wage still risk losing their jobs to other countries like Viet Nam where the rate is even lower. Who can sensibly argue that this is NOT a race to the bottom? Posted by: scylla at December 9, 2003 11:05 AM Just read an article in the LAT about Wal-Mart. Wal-Mart apparently is a driving force in the repression of wages and working conditions all over the world. Obviously this hurts all workers. I've been arguing with the people on angrybear about this. Unfettered free trade definitely ISN'T good for workers. Wal-Mart is causing the destruction of it's own shoppers, yet the economists refuse to recognize this fact. Posted by: SteveC at December 9, 2003 12:36 PM Free trade agreements should be repealed now, and replaced with fair trade agreements that require that all workers receive a living wage, safe conditions, and the right to organize, and that reasonable environmental standards are followed. Otherwise, no trade. The alternative is a continued race-to-the-bottom that will only deepen inequality, poverty, and environmental destruction in the developing world, while undermining the standard of living for workers in western countries. The only winners in the free trade game are the Wal-Marts, Nikes, subsidized Western agribusinesses, and their respective investors. The Dems need to make this an issue, by showing how the sluggish employment picture in the US results in significant part from the Bush administration's policies on trade. Posted by: Dan at December 9, 2003 02:10 PM Another reason why the #1 jobs program the world can do is implement economic policies that help the peasant farmer stay viable. Industry will never be able to absorb all of these people being replaced by tractors. Small farmers also take much better care of their land. Posted by: Kevin Block-Schwenk at December 9, 2003 03:30 PM As long as the Fortune 500 remains the dominant force in U.S. politics, and as long as both wings of the U.S. ruling class remain committed to a "protectionism for us, free trade for them" stance (a stance that by all signs a Dean cabinet would hold fast to), well-meaning campaigns for "labor rights" and "independent trade unions" I do feel compelled to mention, however, that were Posted by: John Gulick at December 10, 2003 04:51 PM Post a comment
|
Series-
Social Security
Past Series
Current Weblog
January 04, 2005 January 03, 2005 January 02, 2005 January 01, 2005 ... and Why That's a Good Thing - Judge Richard Posner is guest blogging at Leiter Reports and has a post on why morality has to influence politics... MORE... December 31, 2004 December 30, 2004 December 29, 2004 December 28, 2004 December 24, 2004 December 22, 2004 December 21, 2004 December 20, 2004 December 18, 2004 December 17, 2004 December 16, 2004
Referrers to site
|