First of all, I am not an economist but an engineer with a long history of being associated with corporate decision making.I believe that in the coming years we will see an unbelievable level of profitability for many of our corporations combined with deepening crisis for individuals.These twin outcomes are the natural outgrowth of improved productivity through the extensive uses of automation and the remorseless movement of capital and technology to China, India and other countries.
Brace yourself as you see many products and services associated with American corporations will flow out of the factories of China or the large IT service firms of India, not to mention the medical services, banking, accounting and legal firms and support services sprouting in India. The pain we will feel will spread from what was essentially a blue collar phenomenon to the vast middle class encompassing professionals.I am even of the opinion that our universities will not remain unscathed because there are now fine universities overseas where one can get a first rate education at the undergraduate and graduate levels at a fraction of our costs.
The distress of our carmakers reminds me of the time when US Steel’s inexorable decline began in the 70’s and by the mid 80’s it was a shadow of its former self. GM, Ford and their supply chains may be headed in the same direction.
When the pain hits the professional classes, as it is bound to, is when we will see people questioning the entire premise of the Republican mindset.They have the belief that the Republicans do not owe anything to the American taxpayers.That each of us is on our own and no community or national economic interests can be allowed to trump ideological purity.
