Obama’s Jobs and Competitiveness Council was headed by Jeffrey Immelt, head of the outsourcing/tax avoiding company General Electric. The council was to issue a plan to put Americans back to work.
So what is the cause of persistent unemployment? It’s the workers fault for not being retrained. So says the “Jobs Council”. It’s not that we offshore our factories… that’s just an illusion. It’s not that other countries cheat on currency, border taxes, subsidies, etc. to build their broad based economies and our political leadership does nothing while fighting on irrelevant issues.
Immelt continues to harm the U.S. not only through GE offshoring, but also by helping distract political leaders who are in a position to focus on the trade deficit to get the economy going.
Manufacturing and Technology News featured the story on its front page – “President’s Jobs Council Says Workers Are The Reason They’re Jobless.”
The problem is not so much the shortage of jobs, but a shortage of trained workers, engineers and skilled foreign immigrants who could fill the few jobs that might exist, Jobs Council members told President Obama on June 13.
The 17-18% real (U6) unemployment can be fixed by retraining all those people for a “new job”! Those “new jobs” that don’t have people trained for them! Millions of those “new jobs” just waiting to pay good wages and benefits – if only the workers could be retrained by taxpayers – because the U.S. based companies offering those “new jobs” have so much demand for their products that they can’t keep up and need to hire new employees – if only they were properly trained – for those “new jobs.”
Employment demand is derived demand.
The demand for all factors of production (inputs), including labour, is a derived demand ie the demand for factors of production depends on the demand for the products they produce.
This means that the demand for U.S. workers requires demand for the U.S. products produced by U.S. based companies. The jobs lost in the Great Recession were not the result in a sudden employer realization that all those workers needed retraining and should be fired until the U.S. taxpayer retrains them. The jobs were lost because the products made by those companies were not being bought.
But we buy a lot of imported goods, not made by U.S. workers, because our political leaders coddle state managed economies that cheat on trade. If we balanced trade, demand for U.S. goods would be high and demand for U.S. workers would be high.