For those of you who aren’t familiar with English History and social and political science, Luddite’s lived in a community of the same name. They fought against the mechanization of the weaving industry that produced cloth for England’s clothing industry. They lost and now it is hard to find the town on a map. Not only did mechanization end their weaving jobs, the work moved overseas.
Very little weaving is done in the U.K. now because the machine that consolidated so many jobs into one were exported to where that one job was cheaper. With it went the clothing industry that had employed tens of thousands more.
Why is that important today? I remember President Clinton saying we will lose some manufacturing jobs with NAFTA but we will become a service and technology country. To make it more appetizing to the masses, who were about to lose their jobs, he said the products we buy will become cheaper. He was right. Canadian jobs that had just moved to the U.S. continued into Mexico along with American jobs, just as Ross Perot predicted with his famous sucking sound.
As for the new service and tech industry, when was the last time you bought an electronic device made in the U.S. Look at the car you bought. It may have been driven off the ship or assembled here with parts made in Mexico or another country.
Now we come to 2015 and the Trans-Pacific Trade Pact with Australia, Japan, and all those cheap little Asian counties that are causing China, yes China, to lose jobs. When China can’t compete, how will the millions of people who have exportable jobs compete? But the junk we buy will be cheaper. However, we can’t afford it with our unemployment and welfare checks.
I used to say lots of jobs can’t be lost to another country, but now exporting jobs has to compete with losses to robotics. Facetiously, I always said a garbage man and truck driving jobs will always be safe. In the past year I have seen those jobs will be replaced by robots. Soon robots will build other robots leaving humans lots of spare time for recreation.
Now you should be thinking about an iconic movie called The Terminator.