American Middle Class: Endangered Species
By Pete Fisher (02/24/06)
With jobs being outsourced to various parts of the world, and with the current practices of importing cheap foreign labor, and using temporary job services we are seeing a disturbing trend of a dwindling Middle class.
Companies like Motorola and G.E. are notorious for contract labor these days, as well as redefining educational requirements that favor foreign workers over American workers. A friend of mine recently applied to a job with Motorola, after having worked there for over a decade as an engineer with an AA degree before being outsourced a few years ago.
He was told at the interview that his educational requirements were not high enough, and that the position paid him well under the 70k he was making at a rival company. The position he was told paid between 46-52k, and as posted, required at least 3 years experience in the filed he applied for, which he had 10 years. He then found out through a friend there that an edict was passed down by the president that no engineer could be hired with less than a BA degree. Doesn't matter anymore that a person has a long history of solid work performance anymore, a high level of education is required, due mostly I think to the fact that they can more easily hire foreign labor over American workers without the fear of lawsuits.
So I tested this theory of my friend and looked through several job boards such as Monster and Yahoo and checked for myself. I typed in the word “engineer” and saw many postings come up. I also went on corporate websites such as Motorola and G.E. and looked at their requirements. My friend was correct. All the engineering positions required a BA or higher, some a Masters or higher. With some exception, I saw positions that still allowed equivalent experience with an AA or BA background. Those I found on a few smaller companies would still hire with experience and some education, but the pay was also much less.
So now I see why many recent graduates with BA degrees have been loudly complaining that they are having a very hard time finding work. Even with those degrees, many places are expecting at least 3 years experience to go along with that. And the other thing I observed was a requirement from Motorola that any degree had to be accredited by one of 5 agencies here in the States, no technical schools or certificates. Yet, when hiring foreigners, there is no compliance to these same regulations. It looks conspicuously like these jobs are being tailored to cheaper imported labor by making demands on American works that are extremely hard to meet when one hits their 40’s and above. The temp agencies are drooling over this phenomenon because corporations no longer desire to commit to their employees and can toss a temp worker out like trash as soon as a job is finished and never worry about benefits.
So we see in this entire situation a Middle Class that has had to severely tighten their belts, and so we have a trend of spending retirement monies, and higher debt among our Middle Class. Real Estate is rising at such a high rate that taking a state like California, we see only around 15% of the population can actually afford a median priced home. And watching the spending habits of the American population take a dive due to cost of living rising higher than income levels those same corporations who have manipulated the work force are paying a high price. The typical American worker does not feel as safe anymore when outsourcing and lay offs are the trend of the culture. How is anyone expected to take out a mortgage or car payment when all they have been able to find is temporary work? How are they expected to keep up with continuing tax hikes on income and property when they corporations tailor job descriptions so they can import foreign labor at cheaper costs?
With a median home price around 200k in the Chicago area, how many young couples can save up the 25% down payment and still make an estimated mortgage with taxes and insurance of around $1,600.00 per month? How can they go buy a new car and feed their families if professional positions are being down graded to factory worker pay rates, and factory jobs are disappearing at alarming rates to foreign nations?
What will eventually occur is the Middle Class will disappear leaving only the Haves and the Have Nots with the latter being the bulk of the population. What these corporations who continue to outsource jobs and bring in cheaper foreign labor seemingly do not understand is that Americans are the world’s largest consumers. We have seen consumer goods sales declining over the past decade and even after huge layoffs and foreign factories making for higher profits in the short run, many corporations are still wondering why sales have fallen and cannot get up.
The reason is, you are laying off your largest customer base. Those people in China or India, or Vietnam are not buying cell phones that cost them over a half year salary, nor are they watching 60 inch televisions on legal copies of DVDs. It is the American worker who in their heyday would purchase about everything that could be purchased because they felt if they took out a loan for a huge stereo, their jobs would still be there to pay it off in 3 years.
Homes going into foreclosure have hit record highs the past few years; new car sales are lagging to the point where Ford and GM have plant closings in their schedule. And even with low interest rates and discounts, they cannot sell a car as they used to. Fewer people are willing to commit more than a year on most financial purchases because they have no clue if their jobs will be here or not. Though corporate CEO’s are making record salaries, most have their bonuses tied to the bottom line, so when they slash jobs and ruin peoples’ lives, they get paid more. Chairmen sit and look at their tens of millions dwindle to perhaps only 8 million and scream for cutbacks and cheaper labor to keep profits high.
Yet they cannot see that as they continue this trend, people get less committed to make major purchases or buy goods that are deemed as luxury or unnecessary. With the rising cost of living, and higher property taxes, people just cannot keep up anymore. The people who worked for decades to make a company great are treated as dirt and shoved out the back door like a crippled dog, being told to be happy with the 2 months pay they are getting and another month if they sign a document that says they will not sue the company. This act alone should be treated as any other type of racketeering charge as most people fear they will end up with nothing at all and are forced almost at gunpoint to sign.
So for Motorola, GM, G.E., Ford, and all other companies who outsource and import cheaper labor, your days are coming. Because you have crippled the middle Class in America, and you have abused your own best customer. You can only make so much profit and then what? Personally, if I have to buy a foreign made cell phone I may as well just buy a Samsung or a LG phone. They are cheaper and work well, and not having confidence in my job anymore, I need to be thrifty. Why should I pay 400 dollars for a Motorola phone made in China and created by foreign engineers on H1-B visas when I can get one for 40 dollars?
Why should I take a beating on a new car Ford and GM, when I have no clue if my job will be around to finish the payments off in 5 years? I can get a used Toyota for a couple of grand, since Ford is made in Mexico and Canada anyway. So I may as well buy the better foreign car, even used. I will be thrifty on my way down to the bottom, as many people will.
You wanted to make cheap foreign goods, and Asia will beat you at your own game. You wanted cheap labor, so you now have to deal with the spending habits of the imported labor you bring in, which by the way tends more to the Asian market of product and not American.
Bring back our factories, and use American labor. Bring back our job security and we will buy your goods again. Keep us out on the street, and corporations will eventually be the only ones with the money to float social programs and education. If you think your taxes are high now, wait until we are all out of work and in need.
Just remember the phrase “Let them eat cake”. And remember the answer from the masses.
(Printer friendly version) Email: Pete Fisher
