Capt Worley PE
Run silent, run deep
Very interesting, but very long article at: _economy_special" target="_blank">http://news.yahoo.com/s/nm/20101216/bs_nm/...economy_special
A few interesting bits:
A few interesting bits:
This is the point of the story where many Americans typically glaze over because they see Michigan as a long-standing financial basket case of a state thanks to the shrinking U.S. auto industry. But the problem is that the broad decline of the manufacturing sector that has been underway in this country for decades now may threaten not just the long-term health of the economy but also the living standards of all but the wealthiest Americans.
"The whole country is now seeing the story that Michigan has been living with for a long time," said Diane Swonk, chief economist at Mesirow Financial. "We have kicked the can so far down the road that now all we have is a cliff to fall off."
"The recession merely revealed a reality that has been with us for a long time. We faced a growing gap in education and skills that we tried to fill with debt and credit, which gave us the illusion of growth."
"The only thing that doesn't get recycled or reused is the people," Clark said. "What do you do with someone who is 50 years old who has been doing the same thing for 30 years? We treat people now like disposable resources and just like that we throw them away."
"America cannot compete when it comes to low-skilled, low-cost labor," he said. "Those jobs are few and far between and the idea that we can bring back those American jobs that have gone is not realistic."
Silvia argues America needs to retrain and retool its unskilled, unemployed workers for jobs of the future.
"The type of workers that are needed in manufacturing has changed dramatically, where workers frequently operate laptops," he said. "The people who run American companies are smart. If we provide workers with skills, the jobs will come."
Gluskin Sheff's Rosenberg says that if he were in charge "I'd have a shovel in the hands of the long-term unemployed from 8am to noon and from 1pm to 5pm I'd have them studying algebra, physics and geometry."