Gee, anyone else see a long developing trend, followed by a step off the precipice here?
Image via Chart Of The Day
When people begin to wonder why the rest of the world is catching up to the U.S, and why our middle class is shrinking, you must remember that the majority of the companies in the S&P 500 are shifting their skilled and unskilled labor needs abroad under the auspices of “cost savings”.
To drive this idea home, here are a few mind blowing statistics from the Economic Collapse Blog:
What people in the board rooms fail to realize is that the primary consumer of their products are purchased in the very nation where disposable income is becoming less disposable and a basic low to middle income jobs are becoming more difficult to find.
Of course, that’s probably too forward thinking in a world where short term balance sheet metrics trump long term sustainability.
Not to dwell on the negative too much, I suppose one can find a few positives in this trend of outsourcing. So to play Devil’s Advocate a bit, the hidden benefits could be:
Nevertheless, the tipping point of American companies bringing jobs back to American soil may be close at hand if unemployment numbers remain in the high single digits for a long enough period of time.