by Charles Hugh Smith from Of Two Minds
Global Reality: Surplus Of Labor, Scarcity Of Paid Work
The industries that are increasing productivity do so by eliminating entire industries and entire job categories.
The global economy is facing a structural surplus of labor and a scarcity of paid work. Here is the critical backdrop for the global recession that is unfolding and the stated desire of central banks and states everywhere for “economic growth”: [...]
Rant of the Day
As of December 2011, there were 95,507 unemployed U.S. Citizens in Kansas, but a coalition of business groups, including the Kansas Chamber of Congress, are proposing that Kansas start a new program to allow illegal immigrants to remain in the state. According to the coalition, illegal immigrant labor is necessary to avoid “labor shortages” in agriculture and other industries, such as landscaping, roofing, construction.
State officials [...]
I think these rather measured articles by Jim Jubak provide a counter-point to the talk of a potential hard landing in China, so I thought it’d be important to share.
China confronts its next growth hurdle
Ending a 110-year run for America as the world’s dominant producer, China has overtaken the United States as the world’s largest manufacturer. According to economics research firm IHS Global Insight, China manufactured 19.9% of the world’s goods in 2010, while the U.S. accounted for 19.4%.
This marks the first time since 1850 that China has held the crown as the world’s largest manufacturer, the latest [...]
The rapid growth in emerging markets accounts for much of this trend. But so too do a number of factors Minton Beddoes says provide a “very, very grim outlook” for the developed world, including:
The scale of the recession and the ensuing deleveraging process: “This is not like the kinds of post-war recessions the U.S. has been used to,” Minton Beddoes says.
The weakness of the recovery: “It’s a matter [...]