The auto bailout died in the Senate after representatives wanted to see wage concessions from workers.
During these endless hearings on the auto bailout, I heard a speaker say that a worker in China is paid $2 a day to assemble a vehicle and a good engineer can be had in India for $10K a year.
The idea of globalization was always marketed as creating new markets for American goods, but realistically for a whole segment of the population it always meant ultimately lower wages and an erosion of their accustomed standard of living for an immediate promise of higher profit for those with the capital to run a company.
For workers, it meant cheaper goods to buy more with less. I can remember Wal-Mart's huge patriot colored banners that said "Made in U.S.A". I can remember then they quietly disappeared.
What's happening now is that people who make less, have less to spend, dragging down the entire economy. It's been a slow process that hit warp speed with the realization that credit needs to be payed back.
Our balloon of wealth has popped, and the balancing act of the free market is re-proportioning the wealth. Resources should now be placed on raising the standard of living and demands by developing nations to come in line with U.S. expectations.
When an auto worker in China makes $14 an hour, there will be no economic reason to outsource a U.S. job.
Flinchbaugh Engineering Inc., in Hellam Township, is thriving in the current economy combining the close proximity of the production process, a local secure site to preserve intellectual property, and an Employee Stock Ownership Plan that gives employees stake in their future.
Flinchbaugh is on the receiving end of the outsourcing equation.
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