Jun 6, 2009

The Party's OVER... get used to lower expectations!

Posted by "Peter Newman" on 6/6/2009, 11:38 am (from the KC radio board) If you listen to my show very often, you know what leading and lagging indicators are in the money world. Lagging indicators are the last thing to start improving when the economy is headed for a recovery.

You also know that employment, or re-employment is the most-lagging of all indicators. Well, I've got some GREAT news that shows we're headed for the green grass and high tides that Barack-O promised us: Wal-Mart expects to hire 22,000 people in the next six months!!!

True, Wal-Mart jobs only pay $8/hour and the benefits are shit. True, we're still laying off people at GM and Chrysler who were making $30/hour, but things are turning around. We can all work at Wally World and sell each other those fine made-in-China products!!!

Posted by rman on 6/6/2009, 5:27 pm, in reply to "Great Financial News!!!"

Uh, that's not news. That's been predicted since the Free Trade Agreement. For ten years now, many of known that good paying manufacturing jobs will go overseas, that we will suffer an historic deflation in real income because most Americans are overpaid, have vastly impossible medical benefits and a tax load required to make a more perfect union with great highways, mandatory insurance, air bags, aircraft carriers and world police, clean air laws, clean water laws, even down to requiring licensed day care for our kids complete with fire extinguishers and child/caregiver ratios. That all costs money and other countries citizens can and do live on much less. And they have the ten fingers required to build most things just like we do.

Until THEY require nice houses, two cars, expensive militaries and fabulous interchanges and highways, and sidewalks in front of their houses, and handicapped parking and toilets everywhere, they will work for less and our salaries will fall because they are competing with us.

Econ 101. Not political. No parties fault. Just straight economics. And completely inevitable. it's only NEWS to YOU! Your parents told you to study, and you wanted to play. My kids studied. They'll be fine. You can't do what they can do and you never will. People will PAY them to do it. You won't even get an interview!

Chinese struggle because things aren't so good in America. There's plenty of unemployment there too.

(Rueters) "It's not long after the Chinese New Year, so many workers are still busy looking for work. Only if they fail to find work over the next few weeks and months might we see more strain," said Liu Dejun, a labor rights activist based in Shenzhen, bordering Hong Kong.

But in typical Chinese factory towns like Changping, around three hours drive from Hong Kong, the strains are building.

Jobless migrant workers laden with baggage abound, trudging along dusty roads or slumped at kerb sides. Dingy make-shift hostels are sprouting up to accommodate jobless drifters, with large billboards advertising beds for as little as 5 yuan ($0.70) a night.

Ad-hoc job recruiters with small desks are setting up shop on street corners, while large groups of workers seem to appear out of nowhere at factory gates before recruitment drives.

"They offer 770 yuan ($112) a month here, which isn't much, but I'm relying on working overtime to make up for this," said a pig-tailed girl from Sichuan surnamed Xu, who was chasing a handful of jobs at the Global Green Tech Group factory along with dozens of other women. That figure is the minimum wage.

Beijing's Communist Party leadership has issued repeated warnings that legions of idle rural workers could pose a threat to social stability.

China must guard against "hostile forces" within and outside the country working to stir up trouble among its masses of newly unemployed workers, a senior trade union official said in comments published on Wednesday.


While it appears some factories are still hiring, the supply is limited and patchy and wages have come down sharply.

"Factories have job posters but it doesn't mean they need workers. They'll only call us if they have an order," said Li Gang, a jobless migrant from Hunan, who was sitting with a friend on a patch of grass smoking "Double Happiness" brand cigarettes.

For Xiao Tao, a worker from Sichuan who has toiled in factories for nine years with the goal of one day starting his own business, the new reality has been difficult to accept.

"I'm looking for a better job," he said while chatting with a roadside job tout recruiting for a garment factory in Fujian.

"Those jobs paying 1,000 yuan (a month) aren't much use to me. I'm looking for something close to 2,000 yuan," he added. "I think though that eventually I might have to adjust my expectations."

More on this story including a Video Story on life in China for computer workers... from Rueters.

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