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How “Outsourcing” Has Killed the Middle Class

The twin demons destroying the American Middle Class are Offshoring, and “Outsourcing”. They call it the “Gig economy”, and to be honest it is pretty f’cked up for the employees.

Offshoring is responsible for the massive growth of the Chinese economy. Back during Clinton and Bushit American companies off shored all of the computer chip Foundries. This resulted in a massive growth in the Chinese economy, and left America without a foundry on American soil capable of producing the high density chips used in everything from TVs to our most advanced weapons systems. No wonder the Chinese Military has been able to upgrade their weapons systems and  launch Astronauts into space. We gave them the technology, all because of Wall Street greed and corporate avarice.

People work at SITEL, an outsourcing call center provider, in Managua, Nicaragua on July 3, 2012. [AFP]

A sweatshop call center in Nicaragua.

Worse was the loss of American jobs, manufacturing through the movement of factories off shore, and high tech through a combination of H1b Visas enabling companies to bring cheap workers over from India and other countries to displace American Graduates, and second “Outsourcing” where either American jobs were shipped overseas, or to sweat shops on American soil. This is the driver behind Trump, and Sanders, Unfortunately in Trump’s supporter’s case they would rather cling to their racism and blame minorities – than blame who is actually screwing them. Stupid is and Stupid does.

Surge in outsourcing wipes out middle-class jobs

For nearly 20 years Alfredo Molena made a middle-class living repairing bank ATMs in Los Angeles, despite being a high school dropout and immigrant from El Salvador.

By 2000 he was earning about $45,000 a year, enough to support his wife and two children in a spacious apartment and take periodic vacations to El Salvador and Hawaii. He had health insurance, a matching 401(k) plan, and a company-supplied cellphone and vehicle. But it all unraveled in 2005 after his employer, Bank of America, subcontracted the work to Diebold Inc., a firm specializing in servicing ATMs.

Today Molena drives a truck long-haul for about $30,000 a year, putting him in the bottom third of household incomes. He has no medical insurance. “I cannot afford it,” he snapped.

Globalization and the offshoring of U.S. manufacturing jobs to China and other cheap-labor countries are commonly blamed for driving down the wages and living standards of ordinary American workers, but there is another, less-known factor behind the shrinking middle class: domestic outsourcing.

Many jobs have been farmed out by employers over the years. No one knows their total numbers, but rough estimates based on the growth of temporary-help and other business and professional service payrolls suggest that one in six jobs today are subcontracted, or almost 20 million positions, said Lynn Reaser, economist at Point Loma Nazarene University in San Diego.

Separate Labor Department data show that some of these occupations have seen a significant decline in inflation-adjusted, or real, wages over the last decade.

In 2005, there were 138,210 workers nationwide who repaired ATMs, computers and other office machines, earning a mean annual salary of $37,640.

Ten years later, the number of such jobs had shrunk to 106,100, with most of them subcontracted at annual pay of $38,990. But after accounting for inflation, that’s a drop of about 15 percent from 2005.

By contrast, real wages for all occupations rose 1.3 percent between 2005 and 2015 � itself a tiny gain over the last decade, but still significantly more than those hit by domestic outsourcing.

“If a firm wants to save labor costs, outsourcing is just a way of resetting wages and expectations,” said Susan Houseman, a senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo, Mich.

Unlike the effect of offshoring, with its relocation of jobs and plants abroad, economists know relatively little about the extent and effects of decades of subcontracting production and services to third parties in the U.S. But what research has been done suggests the practice has played a significant role in the nation’s troubling trends of stagnating wages and rising inequality.

Rosemary Batt and other researchers at Cornell University found that large employers at subcontracted call centers, for instance, paid their workers about 40 percent less than comparable workers employed in-house at large firms, not including the value of health and retirement benefits…Read the Rest Here

 
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Posted by on July 2, 2016 in American Genocide, American Greed

 

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400 Richest Americans Have More Wealth than black or Hispanic people

Extreme income inequality…

America’s 100 Richest People Control More Wealth Than the Entire Black Population

It’s well known that America’s wealthiest have been getting richer at the expense of the middle class. But the trend looks even starker when you look at the racial aspects. According to a new report from the Institute for Policy Studies, the combined wealth of those on the Forbes 400 list of America’s richest dwarfs that of the nation’s entire black or Latino populations.

The report found that the 100 richest US citizens control about as much wealth as all of the nation’s 42 million African Americans. The total wealth of the nation’s 55 million Latinos stacks up to that of the 186 richest Americans.

 
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Posted by on December 9, 2015 in American Greed, The New Jim Crow

 

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Epidemics in Black and White…The End of the War on Drugs

The “crack epidemic” of the late 80’s and early 90’s is over. One of the key racial hypocrisies of the response to the epidemic was to make sentences for possessing “crack”, used by black folks, about 5 times worse than cocaine, the same drug – used by whites.

Now we have a “heroin epidemic”, but the legal and legislative response is almost invisible. Indeed, you wouldn’t even know this was going on if you watched the evening news.

That’s because about 90% of the new addicts are white, don’t live in the city…And start using heroin as a cheaper substitute to the drugs they have been stealing out of Mommy and Daddy’s bathroom cabinet.

The move now is to “treat” addicts.

Having some experience in dealing with that with a friend – that is one long hard road. I went to some of those meetings in support, about 5 years ago, and was stunned by what I saw. I remember years ago the streets of downtown Baltimore being covered by heroin addicts – mostly black, mostly from the ghetto. Baltimore during the 8070′ through the 90’s had the largest population of addicted in any major city. These folks at the the new meeting were mostly white, mostly the addicts were kids under the age of 25, and we mostly from middle class families. And it is driving ancillary crime in rural and suburban areas to support their habits.

But heaven forbid we fill the jails with white addicts.

The end of the senseless “War on Drugs”, is indeed all about racial politics.

A photo of Courtney Griffin, who died of a heroin overdose in 2014, with her sister Shannon, left, and her mother, Pamela.

In Heroin Crisis, White Families Seek Gentler War on Drugs

When Courtney Griffin was using heroin, she lied, disappeared and stole constantly from her parents to support her $400-a-day habit. Her family paid her debts, never filed a police report and kept her addiction secret — until she was found dead last year of an overdose.

At Courtney’s funeral, they decided to acknowledge the reality that redefined their lives: Their bright, beautiful daughter, just 20, who played the French horn in high school and dreamed of living in Hawaii, had been kicked out of the Marines for drugs. Eventually, she overdosed at her boyfriend’s grandmother’s house, where she died alone.

“When I was a kid, junkies were the worst,” Doug Griffin, 63, Courtney’s father, recalled in their comfortable home here in southeastern New Hampshire. “I used to have an office in New York City. I saw them.”

Noting that “junkies” is a word he would never use now, he said that these days, “they’re working right next to you and you don’t even know it. They’re in my daughter’s bedroom — they are my daughter.”

When the nation’s long-running war against drugs was defined by the crack epidemic and based in poor, predominantly black urban areas, the public response was defined by zero tolerance and stiff prison sentences. But today’s heroin crisis is different. While heroin use has climbed among all demographic groups, it has skyrocketed among whites; nearly 90 percent of those who tried heroin for the first time in the last decade were white.

And the growing army of families of those lost to heroin — many of them in the suburbs and small towns — are now using their influence, anger and grief to cushion the country’s approach to drugs, from altering the language around addiction to prodding government to treat it not as a crime, but as a disease.

“Because the demographic of people affected are more white, more middle class, these are parents who are empowered,” said Michael Botticelli, director of the White House Office of National Drug Control Policy, better known as the nation’s drug czar. “They know how to call a legislator, they know how to get angry with their insurance company, they know how to advocate. They have been so instrumental in changing the conversation.”

Mr. Botticelli, a recovering alcoholic who has been sober for 26 years, speaks to some of these parents regularly.

Their efforts also include lobbying statehouses, holding rallies and starting nonprofit organizations, making these mothers and fathers part of a growing backlash against the harsh tactics of traditional drug enforcement. These days, in rare bipartisan or even nonpartisan agreement, punishment is out and compassion is in.

The presidential candidates of both parties are now talking about the drug epidemic, with Hillary Rodham Clinton hosting forums on the issue as Jeb Bush and Carly Fiorina tell their own stories of loss while calling for more care and empathy.

Families meet at a Counseling Session and pray for their family members and friends who are addicted.

Last week, President Obama traveled to West Virginia, a mostly white state with high levels of overdoses, to discuss his $133 million proposal to expand access for drug treatment and prevention programs. The Justice Department is also preparing to release roughly 6,000 inmates from federal prisons as part of an effort to roll back the severe penalties issued to nonviolent drug dealers in decades past.

And in one of the most striking shifts in this new era, some local police departments have stopped punishing many heroin users. In Gloucester, Mass., those who walk into the police station and ask for help, even if they are carrying drugs or needles, are no longer arrested. Instead, they are diverted to treatment, despite questions about the police departments’ unilateral authority to do so. It is an approach being replicated by three dozen other police departments around the country.

“How these policies evolve in the first place, and the connection with race, seems very stark,” said Marc Mauer, executive director of the Sentencing Project, which examines racial issues in the criminal justice system.

Still, he and other experts said, a broad consensus seems to be emerging: The drug problem will not be solved by arrests alone, but rather by treatment.

Parents like the Griffins say that while they recognize the racial shift in heroin use, politicians and law enforcement are responding in this new way because “they realized what they were doing wasn’t working.”

“They’re paying more attention because people are screaming about it,” Mr. Griffin said. “I work with 100 people every day — parents, people in recovery, addicts — who are invading the statehouse, doing everything we can to make as much noise as we can to try to save these kids.”

An Epidemic’s New Terrain

Heroin’s spread into the suburbs and small towns grew out of an earlier wave of addiction to prescription painkillers; together the two trends are ravaging the country…

Deaths from heroin rose to 8,260 in 2013, quadrupling since 2000 and aggravating what some were already calling the worst drug overdose epidemic in United States history.

Over all, drug overdoses now cause more deaths than car crashes, with opioids like OxyContin and other pain medications killing 44 people a day….Read the Rest Here

 
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Posted by on October 31, 2015 in The Post-Racial Life

 

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Why Obamacare Is Here to Stay

It is really very simple. The essence of which is captured by the following three images…

The post-Raygun destruction of the American Middle Class not only means a loss in ages. Faced with ballooning medical costs driven by private insurers, companies have shifted payment of health coverage off the “benefits” list and onto the shoulders of the employee. Now, even your average college grad is only one illness away from poverty.

 

And then – there is Mom…

The biggest non-criminal racket in the world is care for the elderly in the US. Conservatives would have you believe it is “Death Taxes”, which is a crock designed to fool the stupid into believing that the $10,000 a month it will cost you to put Mom or Dad in a senior center is irrelevant. For most of the middle class anymore, there quite simply isn’t any intergenerational wealth being passed on because of this.

Let’s be very clear. There is going to be a war in America on this come next election cycle. It is going to get ugly, when folks wake up and see these images with their mother, their kids, or brother or sister…

Even Tea Bagger hog calls to racism against the black President doesn’t trump mom dying.

 
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Posted by on October 6, 2013 in Domestic terrorism

 

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If There Were a 1% Debate… MLK vs. Romney

What would MLK do? What would MLK say?

There is very little evidence that MLK would have anything good to say about today’s Republican Party. Indeed – for many folks today’s Republican have gone about as low as you can go.

Here is a mash up of points by MLK and “Willard” Romney…

 

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American Tent Cities

What is the difference between Picture 1 and Picture 2?

But they live here and allowed me inside

Picture 1

 

Picture 2

 

Picture 1 is in America – right here in New Jersey. It, and the “Tent City” it is in, are all some luckless Americans have to live in anymore.  Picture 2 is of a Tent City in Haiti.

They, a poor country to begin with,  suffered a massive earthquake, destroying tens of thousands of homes and villages… These Americans are trying to survive the impact of conservatism in America, where our country’s jobs and manufacturing have been sold to the lowest bidder, and 28% of the Middle Class has fallen into poverty. Millions of Americans have lost their jobs, with no chance of getting them back anytime soon. Millions of Americans have lost their homes due to predatory lending and the bust of the Credit bubble. Millions try and survive without Healthcare.

It is the Second Great Depression.

I see Rick Perry, the Governor of Texas leading in the Republican Primaries bragging on his Texas Economic Miracle…

Except it seems that the Texas Economic Miracle is about as fake as the Texas Education Miracle under the last Texas Governor to run for the Presidency.

Texas ranks 6th in terms of people living in poverty. Some 18.4% of Texans were impoverished in 2010, up from 17.3% a year earlier, according to Census Bureau data released this week. The national average is 15.1%.

And being poor in Texas isn’t easy. The state has one of the lowest rates of spending on its citizens per capita and the highest share of those lacking health insurance. It doesn’t provide a lot of support services to those in need: Relatively few collect food stamps and qualifying for cash assistance is particularly tough.

Lot of folks figured out former Governor, former President Bush was “all hat an no cattle” to borrow a Texas phrase. Seems that Governor Perry doesn’t even have the “hat” part right.

Which is why the Tea Party Republicans are trying so hard to sell racism against the nation’s first black President…

Instead of politics.

 

 

 
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Posted by on September 19, 2011 in Domestic terrorism

 

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Verizon – The Straw That Broke the Camel’s Back?

Can You Hear Me Now?

Been wondering for years when exactly the isht was going to hit the proverbial fan in this country. Workers have been disenfranchised in the millions, their jobs outsourced in an economy where even doing all the right things and punching all the right educational and academic tickets is no assurance of a basic wage…

Well… The strike at Verizon may have finally lit the fuse.

Verizon Strike Update: Company Calls in Hundreds of Non-Union Replacements

Verizon called in hundreds of non-union employees and additional management to fill in for striking workers as the work stoppage by unions enters its tenth day.

The company said the replacements are handling customer service and network operational duties.

“We’ve called up hundreds of additional employees in the last few days,” said Verizon spokesman Rich Young.

“Our plan is to do what we have to do to keep our networks running. By and large, 10 days into the strike, our networks are performing solidly.”

Meanwhile, the Communication Workers of America union said that more than 100,000 people have signed a petition asking the company’s chief executive to start serious negotiations with strikers.

The union claims that Verizon CEO Lowell McAdam is “trying to push Verizon workers out of the middle class.”

Much of the impasse between Verizon and unions, including the International Brotherhood of Electrical Workers, centers on $1 billion in concessions that the strikers claim the company is demanding from them.

Union officials, who say they don’t want to lose their members’ free health care benefits, assert that since Verizon is a very profitable company (and has paid in excess of $258 million over the past four years to five top executives); the workers shouldn’t be forced to make such sacrifices.

“We will never have an economic recovery if profitable companies like Verizon can demand huge concessions from workers,” said CWA Communications Director Candice Johnson.

“You don’t build a middle class by cutting workers’ wages, benefits and standard of living,” she added. “That’s just one reason why Verizon is becoming synonymous with VeryGreedy.”

 
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Posted by on August 16, 2011 in American Genocide, American Greed

 

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