is still appropriate and front and center at the root of this countries employment and stability:

http://www.thetrumpet.com/?q=2011.878.0.0

I lived my entire career in manufacturing, participating in both the growth and demise of manufacturing like automotive, machine tools, appliances, steel production....to name only a few.

In the 60's we were looking at Japanese steel for use in appliance manufacturing at GE....for one reason and one reason alone.....cost. Labor content is typically the smallest part of most consumer products; usually 20% or less. Hence material savings were a big opportunity. Then came powdered metals and structural plastics. All aimed at reducing the biggest slice of the manufacturing pie....cost of materials.

The results led to cost reduction and the associated employment with the new efficiencies. Emerging countries like Japan were front and center to capitalize on the American needs.

The next big target became labor. Americans, especially organized labor were the most inefficient and highest paid in the world.

Let me cite one personally experienced example. In the appliance business in Louisville, KY the average labor costs were well over $20 per hour. More like $30 plus per hour with all compensation and benefits....sweepers were over $17 per hour!!! We then proceeded to look for labor reduction opportunities outside the USA but as close as possible to avoid high transportation costs. Enter the Mexican Border Zone manufacturing called the Mequilla. Comparably equipped appliance and component assembly labor costs.......$.39 per hour including benefits. That is thirty nine (39) cents.

Before we would take an assembly offshore, we used to meet with the union to negotiate a reduction in labor costs. Without fail, each and every time the union refused. We gave fair warning we would take those jobs out of Louisville. They still refused to budge. Their philosophy was (and still is) the whole loaf or nothing.

Appliance Park employment in the early 60's = 10,000 plus.
In the early 70's = 22,000 plus.
Late 90's early 2000 = less than 10,000.
Today less than 3000....with 6 major manufacturing buildings moth balled.
A multi million square foot warehouse mostly empty. Some of it leased out to foreign companies.

In recent years the trend has been to out source customer service.

As recently as last week we hear that Dell is closing it's manufacturing here in the USA while opening a new state of the art facility in China!!!!!
GE's new wind energy development and manufacturing is not here in the USA it is in Europe some where.

Yes there have been efficiencies made due to automation and new technologies. Not enough to offset anywhere near the loss example I present above....multiplied by most if not all manufacturing, labor intense consumer products.

This country will not achieve the greatness of the past until such time as it can employ our growing population. That will only happen when we can compete with the rest of the world. That is not likely to happen. HENCE.....
continued unemployment. Continued government hand outs and entitlement programs. Continued increases in government spending. Continued loss of the tax paying base. Continued deficit growth.

By now most have given up as this post is very long. But at least I feel better. Personally.....but not about the direction of the country.

It is all about companies being held to investor returns and providing the very highest earnings. All supported by the lemmings in Washington who are on their payroll in one form or another.

The USA cannot be what it once was by being a minor entity service provider.
The other trend???? The rich do get richer!!!

All the above has transpired and continues regardless who sits in what chairs in Washington!!!!!!!!!!!

btk