Reich introduces to us the three boats that sail within the American economy. There is a boat that contains routine producers, a boat that contains in-person servers, and the "vessel" containing symbolic analysts. There was a time when everyone was on the same boat but because the "American corporation sold its goods and services all over the world, the purchasing power of Americans workers became far less relevant to its economic survival". The boat that is in more danger of sinking is the boat that carries routine producers. Reich analyzes that the reason this boat is sinking is because American companies are constructing factories in developing nations. They are hiring the citizens that reside in the developing nations and are paying them only a fraction of what they would pay Americans. Companies are replacing human employees with robot employees because they are more efficient. The boat containing in-person servers is also sinking but at a slower rate than the boat containing routine producers. According to Reich, the reason for this is because " In-person servers are sheltered from the direct effects of global competition." That doesn't mean that In-person servers are sheltered from other dangers. As production workers are unable to find jobs, they make an attempt to board the ship that is carrying In-person servers. Immigration, high school graduates, and labor saving machinery also pose a threat to In-person servers. Reich explains that "The vessel containing Americas symbolic analysts is rising" because of the demand the world has created for them. Symbolic analysts make large sums of money because they sell their knowledge to those who want to make a fortune "by moving large amounts of money." Symbolic analysts are not dealing with low or middle class customers. Their customers consist of the elite. Reich has made us realize that the American economy no longer depends on the American people. When America occupied only one boat, everyone was doing well. Executives could not lower the wages of low-level-production workers too much because if they did there would be "insufficient purchasing power in the economy."
Personally I think that the economy downfall has a lot to do with the inventions of labor saving machinery. Machinery are not consumers and they are taking away someone's employment. What do you think is the cause of a deteriorating economy? Why do you think the link between top executives and the American worker faded?
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I believe that the downfall of the US economy is the loss of routine production jobs. The jobs are being replaced by machinery and corporations have moved jobs oversea. Giant corporations which employed millions here, now pay cheap labor to foreign workers across the globe. This takes away from our middle class which are the majority in contributing to our economy. For example Reich states that " Modern factories and state of the are machinery can be installed anywhere around the globe...thousands of people around the globe will happily work for a small fraction of the wages of routine workers in America(para#4). A perfect example is China. Millions of jobs now belong to china for cheap labor. As a result of this, China's Economy sky rocketed. Entrepreneurs have also flocked to China to take advantage of the cheap labor and opportunity make money. The link between top executives and American workers faded because of MONEY. Top executives get paid a lot of money and bonuses running companies in foreign land. Reich writes about Executives who overlook and distribute for the best interests of corporations. In return they receive bonuses(para34). Until American jobs stop being sent oversee, we'll always have to deal with a deteriorating economy.
ReplyDeleteI would agree with the both of you. I believe that the reasons that America's economy is deteriorating because people have been pushed out of jobs because of modern technology(machinery) has come along and replaced them in their positions. I also believe that because many companies in the US have outsourced jobs this also effects the economy by increasing the competition in the workforce. This trend can also be a benefit as Reich explains "...everyone around the world who can now obtain high-volume, standardized products....more cheaply than before"(para.11).
ReplyDeleteI enjoyed reading Reich's essay. He really got me thinking about how Americans are in different economic boats, and how each one plays a important role in our economy.
The cause of the deterioration because of the modern technology that is replacing physical labor by the people. The more technology they have they would have a higher volume in products. Instead of producing in the US and paying a higher wage, they could go to foreign country and have cheaper labors. "..move to where labor is cheapest and most accessible around the world"(para5).
ReplyDeleteI believe as we push our idead towards countries that want to earn big money while spend big money will only lead us to less and less of a standard of living even though we are spending more so in other words there is no high rates of economic expansion.I do think its great how other countries want to pursue a more capitalistic economy so they can create jobs and promote jobs and be within the global market as a whole.
ReplyDeleteI would agree with you, the American economy will only improve by stopping the out sourcing, because by out sourcing, not only people will loose job but in return who will buy those expensive items sold in US. People will always find jobs but not with same dollar amount as they used to make. These large companies executive people get larger shares compared to regular workers. The labor market has already suffered a graeter loss in the replacement of machines with hands. And now another big loss is by out sourcing the jobs to other countries out from US.
ReplyDeleteI need to readdd thissss!
ReplyDeletewho is this about again??
Deletepeople need to wake up the rich control the politicians that's why they are rich .enough is enough its time to take back this country throw them all out.
ReplyDeleteHonestly, we need to stop using technology and globalization. Technology replace human labor, and globalization sends all jobs to overseas where people are more than happy to work with a fraction needs to pay american worker. And all top level managers need to stop taking whole fraction of profit. they need to share profits with workers. Worker needs purchase power.
ReplyDeletewhere was this originally published?
ReplyDelete