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Ikea Joins the Race to the Bottom

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Posted on Apr 14, 2011

By David Sirota

When it comes to ubiquitous symbols of mass American culture, the 1999 movie “Fight Club” aptly reminded us that bland Ikea furniture is now on par with mom and apple pie.

The film, of course, was lamenting more the ennui of homogenization than Ikea’s particular business model, because Ikea’s market saturation was always considered somewhat laudable thanks to the company’s seemingly special ethos. Based in Sweden, the blue-and-yellow behemoth was known to consumers as one of the few courageous anti-Wal-Marts in the big-box world—a firm whose Scandinavian-socialist flavor appeared to assure us that it was probably treating its workers better than most multinationals, thus giving America a rare haven of guilt-free shopping.

Or so it seemed, until the Los Angeles Times this week published a damning story about Ikea’s manufacturing plant in Danville, Va.

The piece looks at racial discrimination charges against the company, airs employees’ complaints of workplace mistreatment, and examines Ikea’s Walton-like efforts to bust union-organizing drives. Taken together, the allegations undermine one of Ikea’s unique selling propositions and, in the process, lay bare a disturbing new economic dynamic—one that now ensnares even the companies we think are the most socially conscious of all.

Buried in the Times report is the troubling story of why Ikea opened a plant in the United States in the first place. No, the decision wasn’t made to take advantage of superior workforce skills or productivity—positive attributes that once drove our manufacturing sector and built our middle class. Instead, it was made to exploit our decreasing wage levels and weak worker protections.

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Though company factories in Sweden produce the same bookcases as the plant in Virginia, the Times notes that “the big difference is that the Europeans enjoy a minimum wage of about $19 an hour and a government-mandated five weeks of paid vacation [while] full-time employees in Danville start at $8 an hour with 12 vacation days”—and that doesn’t count the one-third of Danville workers who are paid even less because they are deliberately subcontracted through temp agencies.

Ikea’s exploitation motive evokes memories of General Electric’s Jack Welch. He famously said that in an era without strong international unions and with standards-free trade pacts, profit-maximizing companies would end up putting “every plant you own on a barge” and trolling the world for the lowest wages and workplace conditions, knowing they would no longer face tariff costs.

That’s what so many formerly American manufacturers did when they picked up and left the United States after NAFTA and the China trade deal reduced tariffs, and what more will likely do if the Obama administration’s new Colombia free-trade pact passes Congress. That’s what companies are doing by leaving China for the even lower wages of Vietnam and North Korea. And that’s what Ikea did in moving Swedish production facilities to Virginia (and probably somewhere else if Danville workers dare demand some respect).

Sure, Danville has seen new jobs in this particular situation—but those jobs replaced the city’s higher-paying manufacturing jobs that were previously eliminated by the same dynamic. That means workers in Danville have lost ground in the overall transaction—just as workers in the rest of America and around the world are losing ground in what has become a destructive wage-cutting race to the bottom.

When even the seemingly benevolent holdouts like Ikea join that competition, it’s a sign that workers in all countries need something different from simply more “free” trade.

David Sirota is a best-selling author of the new book “Back to Our Future: How the 1980s Explain the World We Live in Now.” He hosts the morning show on AM760 in Colorado. Email him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com.

© 2011 CREATORS.COM


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Go Right Young Man's avatar

By Go Right Young Man, April 20, 2011 at 4:14 pm Link to this comment

berniem,

I see.  So all people from VA. are the same.

How “Enlightened” of you.

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Anarcissie's avatar

By Anarcissie, April 20, 2011 at 2:39 pm Link to this comment

Leefeller—I don’t know what goes on in Mexico.  Given Mexico’s resources, location and history it should be a comparatively rich country.  I suspect some combination of racism and classism is in operation to explain the destruction or disappearance of potential wealth.  But, as I say, I don’t know.

Once you understand that the state is an extension of government, and that corporations are creatures of the state, you can see that ‘privatization’ is not making government smaller but moving a community function from one part of the state to another, usually one less available to public observation and control—a traditional corporation.

‘Homeland Security’ certainly has a fascistic ring to it, but before we can correctly attribute fascism to a group or party, I think we need to look at the essential principles of fascism:

1.  Some people are intrinsically better than other people.

2.  The better people should rule the rest.

3.  The better people have the right and duty to use any means necessary to achieve the power to rule.

4.  There should be no exceptions or exemptions—as Mussolini said, ‘Everything within the state, nothing outside of the state, nothing against the state.’

Many, many people believe in (1) and (2), including a good many of those who call themselves ‘progressives’, although they may disagree as to who the good people are.  But most do not go on to (3) and (4).  Those who do are genuine fascists.

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Leefeller's avatar

By Leefeller, April 20, 2011 at 12:50 pm Link to this comment

Anaccisie, comment;

“Of course the working-class people are betrayed in the outcome, but that’s part of the deal with power.”

I usually do not use absolutisms, ....but always seems to fit here, Mexico would be a prime example of power coming to the top like turds in a cesspool,.... after how many revolutions? In a way, I empathize with the fantasy concept of anarchism!

The name Homeland Security seems to come right out of the Fascist’s play book, I see many things going on in the Republican states which seems like a closed society, a fascist direction, of taking peoples rights away from them, especially in Michigan where municipalities can be taken over by the state with autocratic or fascists logic, this seems just one more form of opportunism, which I see as fascist!

To me, it seems even more hypocritical when the Republicans say they want smaller government, and they are taking over municipalities? I suppose privatizing is not really bigger government and neither is cronyism?

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By berniem, April 20, 2011 at 12:17 pm Link to this comment

grym: They may be a large part of this society but are a far cry from contemporary especially in terms of intellect and social conscience, much like yourself! You may call my “rant” an expression of hate or bigotry but it is no more so than any citizen’s disdain for the forces of greed and intolerance that have overtaken other nations in the past. The fact that such a large group of people subcribe to the dogma of unquestioned authority and and acceptance of convenient untruths reflects the willingness of this segment of the population to allow like-thinking demagogues to validate their prejudice and unreasoned hatreds irrespective of the obvious detriment to their own self-interests. After all who can argue with the bible or deny that the south shall rise again? So grym, after having read many of your mindless diatribes(do you also go by Rico?), I find it most amusing to be crticized by such an “enlightened” soul! FREE BRADLEY MANNING!!!!!

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Go Right Young Man's avatar

By Go Right Young Man, April 20, 2011 at 6:41 am Link to this comment

berniem,

It’s both sad and fascinating to watch someone go off on a hate-filled rant directed toward a large segment of contemporary American society while, simultaneously, slapping the label of bigot onto others.

Hate much?

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By berniem, April 18, 2011 at 7:24 pm Link to this comment

Gee, isn’t Va. one of those success-story “right-to-work” states that the confederacy are oh, so happy to try to foist off as the answer and cure for organized labor thuggery? Sorry, but if those ignorant and bigotted crackers are getting hosed not only by Ikea but by the reactionary neo-fascists that they love to elect then its just too bad for them and their smarmy, self-righteous swamp mates down in America’s version of the 3rd world!

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RAE's avatar

By RAE, April 18, 2011 at 7:07 pm Link to this comment

Ikea’s management has always operated on the principle that the ends justify the means. They are marketing geniuses in their ability to masquerade as wonderful, warm-hearted, community-minded, philathropic, low-cost, high-quality purveyors of home furnishings to the general public while simultaneously fleecing their suppliers big time.

Many years ago I was in charge of several non-profit “workshops” where mentally handicapped people were cared for and otherwise occupied during the daytime. I was always on the prowl for contracts that were both within the technical capabilities of the staff and clients and that would at least break even financially.

Ikea approached us with what, on the surface, looked like REAL WORK for a REPUTABLE COMPANY that would earn us MONEY. I can’t remember exactly what it was that were to “manufacture” - something made of wood. Ikea would deliver the wood free of charge and we would produce the product. Sounds good, eh?

Until the day when a huge truckload of lumber that most builders would haul to the dump arrived - twisted, wet, broken, full of knots and other defects, etc., etc. By the time we culled enough useful material to make anything we were already losing money. No apologies or compensation from Ikea.

I cancelled the contract. Never dealt with them again and have never shopped at one of their stores since.

It is such an extraordinary pleasure to encounter an HONEST, FAIR retailer, tradesman or business person these days whose integrity is beyond question. But such people are few and far between. It’s almost a guarantee that you and I will be taken advantage of at every opportunity unless we are very, VERY careful. It is truly unfortunate we must at least begin every relationship with a healthy dose of mistrust and wariness. Very sad.

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By TheHandyman, April 17, 2011 at 7:50 pm Link to this comment

What is so ironic is that a lot of what IKEA is doing in the US is illegal under US law but the Republiwon’ts and the Dimocan’ts have made sure they aren’t enforced. All of it is illegal in Sweden and IKEA would be brought to heel in nothing flat. And Americans have exactly the situation they deserve because they have allowed the right to defund education so we now have two generations of fools who were taught what to believe rather than how to think for themselves. There are people in the world who don’t know anything whereas America seems to be now made up of a substantial number of people who don’t even suspect anything!

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kerryrose's avatar

By kerryrose, April 17, 2011 at 3:42 pm Link to this comment

Odd sox

A third world country is where first world countries go to take advantage of cheap labor (ie no unions- no recourse).

American corporatists are trying to make the US work force competitive with Chinese and Indian labor and corporate politicians are complicit.

Why do you think there is a demonizing of unions?  Do you honestly believe that working people need to ‘sacrifice’ more or is it in the best interest of business to break labor unions and now they have politicans in their pocket to help.

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Anarcissie's avatar

By Anarcissie, April 17, 2011 at 2:39 pm Link to this comment

Tesla—there is plenty of poverty in the U.S.  Katrina ripped of some off the façade for a moment and we observed scenes that could have come from Bangladesh.  As the rich get richer and the poor get poorer that poverty is increasing.

Leefeller—Britt again?  ‘Labor power’ is an extremely ambiguous concept.  Fascist parties have often operated with strong working-class components and appeal, for example the Nazis, Peronistas, and, I would say, the Bolsheviks.  Of course the working-class people are betrayed in the outcome, but that’s part of the deal with power.

However, it’s correct to observe that rightists will attack democratic unions—because they don’t control them.  They will attack anything they don’t control.  Hence so-called ‘Right To Work’ laws, which violate the fundamental rights of expression, association, assembly and contract.

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Orbis Unum's avatar

By Orbis Unum, April 17, 2011 at 2:34 pm Link to this comment

Re: bpawk, April 17 at 5:23 pm.

You State: “First, these are allegations so there’s no merit to them until proven. Second, Americans caused their own decreasing wage levels and weak worker protections by not complaining about jobs leaving the country many years back. Third, you should have used Ralph Nader et al as your ‘left wing’ to keep the Dems in check with such loss of jobs and workers rights, not to mention consumer protection etc.

Americans only have themselves to blame!”

Response: Haven’t you noticed most of the posters herein, aren’t interested in personal introspection appertaining the their incessant complaints about their failure to challenge their own freely chosen demise?

In support of our statements, let us state beyond a reasonable doubt, that what the former comedian “George Carlin” (just type in Youtube.com’s search bar “The America Dream” or “The Owners of America,” etc.) stated on many occasions’ throughout his illustrious career, concerning the absolute ignorance and stupidity of people, is without question a proven fact by us!

Even so, as I’ve said on many occasions, whether you appreciate our efforts we continue to proffer via the “Science of Right Reason” for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.

Or, does anyone have the cerebral guts to contradict these facts, via any posting empirical data to support such, which we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise? We have by Proffering such evidence via the web site earlier aforementioned!

We graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By bpawk, April 17, 2011 at 1:23 pm Link to this comment

Pertaining to sections in this article, particularly:
“The piece looks at racial discrimination charges against the company, airs employees’ complaints of workplace mistreatment, and examines Ikea’s Walton-like efforts to bust union-organizing drives…the allegations ...  the troubling story of why Ikea opened a plant in the United States ... was made to exploit our decreasing wage levels and weak worker protections.”

First, these are allegations so there’s no merit to them until proven. Second, Americans caused their own decreasing wage levels and weak worker protections by not complaining about jobs leaving the country many years back. Third, you should have used Ralph Nader et al as your ‘left wing’ to keep the Dems in check with such loss of jobs and workers rights, not to mention consumer protection etc.
Americans only have themselves to blame!

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Leefeller's avatar

By Leefeller, April 17, 2011 at 12:45 pm Link to this comment

Taking advantage of no regulations and anti unionism seems to be the grand plan, maybe IKEA can move the plant to Wisconson where people may work for even $7.00 dollars an hour and tax breakes for big businesses,  or even better IKEA can move to, which state was eliminating child labor laws, some place in the south?

Number 10 of Britts 14 points of Fascisim;

“10. Labor Power is Suppressed. Because the organizing power of labor is the only real threat to a fascist government, labor unions are either eliminated entirely, or are severely suppressed.”

If it walks like a duck!

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Orbis Unum's avatar

By Orbis Unum, April 17, 2011 at 12:25 pm Link to this comment

Re: Tesla, April 17 at 3:47 pm.

You State: “Already wasted too much time on such a silly stance as you have.”

Response: Once again we find ourselves responding to commentary, which may have been stated from a position of misunderstanding appertaining to our positions and commentary related thereto!

More specifically, such commentary presented by posters herein, which seemingly view our commentary supporting or denying, whether we hold the belief that the U.S. may be compared to any ideological expression commonly referred to as a 3rd World State/Nation.

As we have said previously. We do not accept such ideological expressions from the standpoint that such terminology is misleading. Given that such terminology has been developed by perpetrators of systemic fraud to mislead and entice others toward a sense of security or misplaced via pride to foster support for systems of governance orchestrating the enslavement of Mankind! 

If such commentary respective to any comprehensiveness as has occurred, by such misstatements respective thereto, we request further reflection and correction if reasonably acceptable. If not, may you return to your master licking the hands that feed you, while kissing the boots that are kicking your ass into oblivion! For we ask not what is reasonably deduced any supportable evidence of the Science of Right Reason!

In support of our statements, let us state beyond a reasonable doubt, that what the former comedian “George Carlin” (just type in Youtube.com’s search bar “The America Dream” or “The Owners of America,” etc.) stated on many occasions’ throughout his illustrious career, concerning the absolute ignorance and stupidity of people, is without question a proven fact by us!

Even so, as I’ve said on many occasions, whether you appreciate our efforts we continue to proffer via the “Science of Right Reason” for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.

Or, does anyone have the cerebral guts to contradict these facts, via any posting empirical data to support such, which we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise? We have by Proffering such evidence via the web site earlier aforementioned!

To all seeking the just rewards and dignity in the service of truth above all, by any honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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Anarcissie's avatar

By Anarcissie, April 17, 2011 at 11:59 am Link to this comment

oddsox, April 16 at 3:44 pm:

‘By what criterion is the US now a third-world country?’

At present:

Economic reliance on the sale of agricultural products, natural resources, and, now, cheap labor.  Loss of ability in research, engineering and manufacture of finished products.

Predominance of the military.

Extensive system of regular police, secret police, surveillance, and prisons.

Massive state debt.

Political control mostly in the hands of kleptocrats; resultant lack of political choices in elections.

Homelessness.

Environmental destruction.

Inability to maintain material infrastructure.

Absence or deterioration of social safety net.

Religious fanaticism.

Coming soon:

Inflated money, hunger, civil disorder, fascistic politics.

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Tesla's avatar

By Tesla, April 17, 2011 at 11:47 am Link to this comment

Orbis Unum:
But let’s look further:  Under the following
criteria, the US DOES NOT qualifyas 3rd World:
Really? Are you kidding?
—Press Freedom
See 2008 Republican convention below. Non corporate media press members were sought out and assaulted by police, coverage was skewed and misrepresented during the entire event. Not once did in MSM offer a counter “powers that be” perspective.
Non-embedded press members in the Middle East
theaters of war have very short life spans. FOX
presents “news” in such a manner as to embarrass
Soviet era PRAVDA http://crooksandliars.com/david-
neiwert/kurtz-calls-out-hannity-his-deceptiv
—Political Rights
No one can take this seriously when you consider post 9/11 law enforcement and governmental actions. The “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act” was and is the wedge that is separating us from of rights and human dignity. Free speech zones under the Bush Administration and the suppression of non-Republican attendees at public events. Examples include; the 2003 demonstration in Oakland, CA where jack-booted, helmeted riot police assaulted a peaceful demonstration using inappropriate force;  the 2004 Republican convention in New York where protestors were preemptively rounded up and corralled in fenced areas at Pier 57 for days; the 2008 Republican convention in St. Paul
when they took preemptive arrests to a new level; The list is very long and I’m sure you have the skills to find other blatant examples of abuses by the kleptocracy that is our government.

—Poverty
True, by third world standards Americans really don’t know poverty. But by first world standards we are unarguably at the bottom of the heap.

—Civil Liberties
The TSA has made this a joke. Aggressive pat-downs
and full body scans applied universally in order to fly commercial airlines is without a doubt
unconstitutional. Travel to Canada and Mexico now
require passports or special government issued ID to permit re-entry to the U.S. (say papers please now). The recently minted material-support law bars not only contributions of cash, weapons and other tangible aid but also “training,” “personnel” “service” and “expert advice or assistance.” This law is clearly designed to prevent a non-violent and non-military solution to terrorism from even beginning.

—Gross National Income (GNI)
GNI = Gross Domestic Product + Net property income
from abroad. U.S. multi-nationals have outsourced the jobs which would add domestic economic activity and meaning to this number. So simply put, the number is bogus and does indicate the economic health of the American work force and consumer. Wealth at the top is meaningless to an economy that is powered to the tune of 70% by consumer spending.

—Human Development
Already wasted too much time on such a silly stance as you have.

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Virginia777's avatar

By Virginia777, April 17, 2011 at 2:23 am Link to this comment

ZincerIron: “Good article.”

only if you care more about futons more than whats going on in our Country.

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Orbis Unum's avatar

By Orbis Unum, April 16, 2011 at 11:20 pm Link to this comment

Re: Inherit The Wind, April 17 at 2:54 am.

You State: “We already are something like 41st in infant mortality, equal to Cuba…..”

Response: According to the data given infra, the picture respective to Infant Mortality, supports you emphasis in general.

We’ve presented the information to give supporting circular evidence in respect thereto. Hopefully this is beneficial to those reading your concerns.

Link: http://en.wikipedia.org/wiki/List_of_countries_by_infant_mortality_rate

Link: http://www.geographyiq.com/ranking/ranking_Infant_Mortality_Rate_aall.htm

In respect to your further reflections, concerning the use of 3rd World ideologies or comparative circumstantial commentary, it only provides further explanation which is greatly appreciated. But is sad to hear!!! Or even read!!!! But in fact very real!!!

The Queen of our heart, is a OB Director with her BSN, MSN, and working toward her doctoral in Healthcare Admin. And I’ve heard her consistently remark about such similar disparities, which shouldn’t exist as shes says in such a presumably advance society as we purport to have!

In support of our statements, let us state beyond a reasonable doubt, that what the former comedian “George Carlin” (just type in Youtube.com’s search bar “The America Dream” or “The Owners of America,” etc.) stated on many occasions’ throughout his illustrious career, concerning the absolute ignorance and stupidity of people, is without question a proven fact by us!

Even so, as I’ve said on many occasions, whether you appreciate our efforts we continue to proffer via the “Science of Right Reason” for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.

Or, does anyone have the cerebral guts to contradict these facts, via any posting empirical data to support such, which we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise? We have by Proffering such evidence via the web site earlier aforementioned!
To all seeking the just rewards and dignity in the service of truth above all, by an honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By Inherit The Wind, April 16, 2011 at 10:54 pm Link to this comment

The only difference between the US and a 3rd World nation is they never had “it”, but we did, and cast “it” away.  Now WE are a source of “cheap labor” for foreign corporations. At least that’s a plus for the people who get jobs, but it’s a red flag of something gone terribly, terribly wrong.

Our freedom of speech, assembly, of (and from) religion, of legal counsel, of habeas corpus, of protection from cruel and unusual punishment, of non-self-incrimination, are ALL being diluted and erased in the name of “security”.  Vice-President Cheney even suggested exploring “post-poning” the 2004 Presidential election.

Corruption is wildly out of control.  Not the simple palm greasing the world has known, but far more sophisticated and unstoppable by mega-banks and mega-Wall Street firms.  One even used the recent crisis to destroy a long time rival. Of course, I mean Goldman,Sachs and its reps in Bush’s government who at its behest, destroyed Lehman Bros.  Also, at Goldman’s behest, AIG was protected when it should have been opened up like the rotten can of worms it is, but THAT would have sunk Goldman.  So AIG was bailed out by the subjects, formerly called citizens.

Then there’s the revolving door that keeps politicians and high-ranking admin officials from going after the corps and lobbies—that’s their future promise of insane wealth.

Do you realize the Canadians and Northern Europeans are internationally adopting unwanted American kids?  Just like my wife and I did for our younger child, born in Central America.

The out-and-out attack on education to turn it into a profit-center regardless of such preliminary efforts being utter disasters.  3rd World Nations don’t have adequate general education…soon we won’t either.

We can’t compete in commercial ship-building, in high-tech industries, in electronics, in computers, even in railroads.  Our edge in air craft is nearly gone.  Only in military gear are we able to compete.

3rd world? When you see the average stature of American-born adults shrinking, (a function of malnutrition) you’ll know the transition is complete.  We already are something like 41st in infant mortality, equal to Cuba…..

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Orbis Unum's avatar

By Orbis Unum, April 16, 2011 at 10:13 pm Link to this comment

Re: oddsox, April 17 at 1:42 am.

You State: “But let’s look further:  Under the following criteria, the US DOES NOT qualify as 3rd World:

—Press Freedom
—Political Rights
—Poverty
—Civil Liberties
—Gross National Income (GNI)
—Human Development

Below, you can see lists of countries that are 3rd World under the above criteria and (in most cases) how they compare to the US. http://www.nationsonline.org/oneworld/third_world.htm”

Response: We appreciate your commentary and efforts to give source material for reflections thereto. And of course, bow to your retractions most humbly and with great respect, after your further introspection pertaining to our commentary!

Even though much of this source material comes from the IMF and the CIA World Fact Book! Sources you must know, at least in our respect unquestionably suspect!!! We wish you would give the same careful consideration infra, to the facts raised therein!

As you know, at least from our voluminous commentary and supporting source material related to such sources or commentary, didactically disagree in no uncertain terms! Not in respect to any terminology related to 3rd World context, when in respect to technological development but solely in respect to any listed criteria applicable to Press Freedom, presumed Political Rights, Poverty, Civil Liberties, Gross National Income (GNI), so-called Human Development, or Civil Liberties.

In support of our statements, let us state beyond a reasonable doubt, that what the former comedian “George Carlin” (just type in Youtube.com’s search bar “The America Dream” or “The Owners of America,” etc.) stated on many occasions’ throughout his illustrious career, concerning the absolute ignorance and stupidity of people, is without question a proven fact by us!

Even so, as I’ve said only many occasions, whether you appreciate our efforts we continue to proffer via the “Science of Right Reason” for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.

Or, do you have the guts to contradict these facts, via any posting data to support such, which we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise? We have by Proffering such evidence via the web site earlier aforementioned!

To all seeking the just rewards and dignity in the service of truth above all, by an honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By oddsox, April 16, 2011 at 9:51 pm Link to this comment

BTW, ITW, our friends at Volkswagen are opening a new plant in Chatanooga.  3000 new jobs there, don’t know if they’ll be union.
But the GM plant in Flint MI is UAW and they’re adding a 3rd shift.
Still a chance for a double-dip, but things are starting to improve some now—nothing like the “race to the bottom” Sirota describes.

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By oddsox, April 16, 2011 at 9:42 pm Link to this comment

Inherit the Wind:
You answered thus to my query on what criterion qualifies the US as a 3rd World Country:

“Among other things, the increasing level of ignorance of its citizens about such basic things as what makes a 3rd world country.”

Well, no.  Of course not.  And even discounting the specious logic, could you show something to support the claim?  That US citizens are increasingly ignorant of what makes a 3rd World country?

But let’s look further:  Under the following criteria, the US DOES NOT qualify as 3rd World:

—Press Freedom
—Political Rights
—Poverty
—Civil Liberties
—Gross National Income (GNI)
—Human Development

Below, you can see lists of countries that are 3rd World under the above criteria and (in most cases) how they compare to the US.
http://www.nationsonline.org/oneworld/third_world.htm

In addition, the US is, by definition, a 1st World country under the original cold war military description. 

The point of my question, is, of course, to assert that, no, we’re NOT a 3rd World nation.
Not by ANY reasonable definition.

Orbis Unum, I beg your forgiveness, I see that you didn’t endorse the “3rd World” portion of Anarcissie’s post.

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By Orbis Unum, April 16, 2011 at 2:35 pm Link to this comment

Re: Inherit The Wind, April 16 at 6:22 pm.

You Quote: “oddsox, April 16 at 3:44 pm Link to this comment:

Anarcissie, Inherit the Wind, Orbis Unum:

By what criterion is the US now a third-world country?”

You State: “Among other things, the increasing level of ignorance of its citizens about such basic things as what makes a 3rd world country.”

Response: We have already directly answered this query! Per: our comments herein, “April 16 at 5:10 pm.”

But on another note so to speak. The point being made appertaining to ignorance or the claim of citizenship respective to the idea of such egalitarian comments respecting the alleged condition of what a 3rd world county is or is not, I think one would seek to avoid such engagements, to be considered inclusive respective thereto! Don’t you? I mean, really!!

To all seeking the just rewards and dignity in the service of truth above all, by an honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By Inherit The Wind, April 16, 2011 at 2:22 pm Link to this comment

oddsox, April 16 at 3:44 pm Link to this comment

Anarcissie, Inherit the Wind, Orbis Unum:

By what criterion is the US now a third-world country?
***************

Among other things, the increasing level of ignorance of its citizens about such basic things as what makes a 3rd world country.

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By Orbis Unum, April 16, 2011 at 1:25 pm Link to this comment

Re: rjg1971, April 16 at 4:39 pm.

You State: “Welcome to the United States of Ameristan. The U.S. used to have the highest paid workforce in the world, and it still should given its enormous wealth. Of course, we “don’t need unions” anymore. I am so tired of that old line, as if the bosses will be fair without any worker organization to keep their power in check. “

Response: Very well stated. Sad it’s the truth!!!

To all seeking the just rewards and dignity in the service of truth above all, by an honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By Orbis Unum, April 16, 2011 at 1:22 pm Link to this comment

Re: TDoff, April 16 at 4:25 pm.

You State: “The way things are going, pretty soon China and Taiwan will move their American flag-making factories to the US to take advantage of the low cost of labor. Come to think of it, they’ll save a lot on shipping, too, but only if US citizens keep buying American flags.”

Response: This is a hoot!!! Thanks I needed a little jocularity this morning!!!

But in respect to such thoughts, it would be a sad day for any banner/flag of whatever social compact made by some sweat-shop for paltry pittance and pretend to fly such colors in the name and defense of “Justice for All!” That unless you comprehend the fact of another meaning appertaining to use or phraseology thereof, “Just-US!!!!” And the rest of the phraseology, “for All!!! Meaning, no other freedom of expression or ideology allowed!!!

To all seeking the just rewards and dignity in the service of truth above all, by an honorable willingness to test all things, even though sometimes it’s hard to face such truth through the eyes of false programming, designed to blind you into unknowing acceptance of subjugation, we graciously extend our most precious personal regards to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By Orbis Unum, April 16, 2011 at 1:10 pm Link to this comment

Re: oddsox, April 16 at 3:44 pm.

You State: “Anarcissie, Inherit the Wind, Orbis Unum:

By what criterion is the US now a third-world country?”

Response: For clarification purposes only, when we quote the statements of others (Re: Anarcissie, April 15 at 1:34 pm.), does not necessarily mean we support or deny such commentary. Unless specifically referenced therein, respective to any statement thereto!

But more specifically related to your query, we do not believe or assert such in respect to the U.S.

Since for all intents and purposes, based on empirical evidences to support our Standing, that the U.S.A. and/or the U.S. is nothing more than a Corporation only! Whether some believe Grand or otherwise!!! No matter what one teaches or is willing to believe without further reflection or study!

For example, the evidence we’ve proffered via the “Science of Right Reason” for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.

Even though we are aware some herein, have reviewed the evidence we’ve proffered, they have failed to present any empirical evidence in contradiction thereof, via any posting data to support such, we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise. Proffered via the web site earlier aforementioned!

My best to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By rjg1971, April 16, 2011 at 12:39 pm Link to this comment

Welcome to the United States of Ameristan. The U.S.
used to have the highest paid workforce in the world,
and it still should given its enormous wealth. Of
course, we “don’t need unions” anymore. I am so tired
of that old line, as if the bosses will be fair
without any worker organization to keep their power
in check.

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By TDoff, April 16, 2011 at 12:25 pm Link to this comment

The way things are going, pretty soon China and Taiwan will move their American flag-making factories to the US to take advantage of the low cost of labor. Come to think of it, they’ll save a lot on shipping, too, but only if US citizens keep buying American flags.

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By oddsox, April 16, 2011 at 11:44 am Link to this comment

Anarcissie, Inherit the Wind, Orbis Unum:

By what criterion is the US now a third-world country?

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By Anarcissie, April 16, 2011 at 9:27 am Link to this comment

At one time I argued with libertarians that it would not be unlibertarian to exclude goods which had been made under conditions of servitude, for example, in countries which had anti-union laws.  Needless to say, they found this hard to understand, although it’s perfectly logical.

As for stuff costing more, if you buy stolen goods they can be very cheap, until it’s your goods that get stolen.

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By Inherit The Wind, April 16, 2011 at 12:58 am Link to this comment

In other words, there’s nothing new going on in Danville, except the valuable revelation that the United States has become a Third-World country.
**************

Ain’t that the truth! Japan figured that out when Honda, Nissan and Toyota opened assembly plants FAR from Detroit and Milwaukee (Harley-Davidson) where the UAW was to the “one-a-them day-um yoon-yuns”.

People blame Clinton for NAFTA, but it was Ronald Reagan signing a tax break for businesses “helping” 3rd world nations by opening factories there that killed manufacturing jobs in the USA.

It gets really stupid when we need train cars, Detroit’s in trouble, and we import them from Italy, rather than building them here.

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By MeHere, April 16, 2011 at 12:23 am Link to this comment

The sad reality is that Ikea is one among thousands of companies that conduct
business that way.  Many Western countries that have good labor laws for their
citizens also outsource manufacturing and services to areas of the world with
unprotected and underpaid laborers. The practice is so widespread that,
aside from the factor of increased profitability, some companies can’t expect to exist, never mind compete, unless they use similar production methods.

It is now common for US corporations to “outsource” certain work within our own
country. In this way, companies can often keep a good image as employers but
they distance themselves from the labor conditions the contractors use.

A while ago, there was an article in The New Yorker written by a reporter who
investigated the labor situation in some orange groves in Florida.  The fruit
went to a big orange juice company.  The harvesting was done by migrant
workers who were held in abominable camps under armed guard all the time -
-once the workers were hired, they were not allowed to leave. There were one or more deaths due to these conditions and the local investigations were murky to say the least.

The reporter questioned the big orange juice corporation about it. The
response he got was that they were not aware of this problem and that it was a
matter that concerned their contractor.

There are plenty of other well-known cases such as this which involve migrant as well as non-migrant workers. We don’t have substantial and far-reaching labor laws in the US but, at the same time, workers are expected not to burden social services and educate their children.

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By rick, April 15, 2011 at 9:59 pm Link to this comment
(Unregistered commenter)

Wake up America. It’ time…

“THE REVOLUTION HAS STARTED”
Read “Common Sense 3.1” at ( http://www.revolu­tion2.osix­s.org )

FIGHT THE CAUSE - NOT THE SYMPTOM
“Spread the News”

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By question, April 15, 2011 at 5:22 pm Link to this comment
(Unregistered commenter)

I’m glad you wrote this article.  I live very near Danville & most readers can’t (apparently) understand the desperation of this area of VA.  The unemployment rate was over 15% when I moved here over 5 years ago.  I’m sorry to know that IKEA has joined the globalization movement that finds it not only acceptable, but mandatory to exploit desperate workers wherever they find them.

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By expat, April 15, 2011 at 2:24 pm Link to this comment
(Unregistered commenter)

Well, there is light at the end of the tunnel.

At least History has a great sense of Irony
and a power to right the best set crooked plans
when it is allowing Japan to nuke the US back
(with GE “we bring good things to life technology” !)
to the point that everyone in US will have some kind
of cancer within 3 years
and will die off within 5 to 10.

Once the empire in destroyed from within,
a new beginning will emerge.

Aquarius is coming, but there will first be enormous travails.

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By purplewolf, April 15, 2011 at 1:14 pm Link to this comment

P.W.Walker: Are you certain that the people, the working middle and poor of America will not be forced to subsides these mega corps owned and run by the elite? We still subsides big oil for finding, retrieving crude and still get to clean up their environmental messes they make due to greed and carelessness and still have to pay high prices for the gas we need to go to our less than living wages for many workers and we can thank trader speculation for the high cost of that gasoline.

When no one will be able to earn enough money to pay for the bare necessities, who do these corporations think is going to buy their over priced items? Certainly not their workers they pay slave wages to.

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By Malloc, April 15, 2011 at 12:55 pm Link to this comment
(Unregistered commenter)

Consumers want cheap goods. It all comes down to that. If it was entirely made and assembled in the US or in Europe how much do you think your fancy Ipad would cost? Cheap goods cannot be made where manifacture costs are expensive (BTW minimum wages are high but so are taxes, of course in europe & esp. Sweden state provides for everything). The alternative really is to produce here only high end & expensive goods but also those are moving out since they are getting better & better at producing quality stuff.

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By Orbis Unum, April 15, 2011 at 11:10 am Link to this comment

Re: Anarcissie, April 15 at 1:34 pm.

You State: “Apparently David Sirota is unaware that Ikea started out by exploiting low-wage labor in Poland.  That was back when Poland was a satellite of the Soviet Union, run by the Communist Party, and real unions weren’t allowed.  In other words, there’s nothing new going on in Danville, except the valuable revelation that the United States has become a Third-World country.”

Response: For what is worth, since our insight respective to any columnists articles and/or posters comments applicable thereto, matter little to those failing to see the overall picture, e.g., “YouTube.com: George Carlin ~ The American Dream http://www.youtube.comwatch?v=acLW1vFO-2Q ”, we commend “Anarcissie” for his due diligence, while providing real data related to IKEA’s corporate global mindset.

Instead of being led astray by a columnist’s myopic insight leaving out facts, for which I believe as well as others may, are just outright journalistic misdirection, away from earlier mentioned oriented paradigms designed to bring solutions, which could alter the face of the working forces of humanity, too one of Standing equality to State a Claim for which Relief could be granted, whenever or wherever, conditions of un-equality should rear its ugly head, to rape and pillage those less fortunate, while living in any Social Compact, they have little means to voice their outrage, foisted upon them by blood sucking bean counters, only interested in a pirates mentality, e.g., “Take all you can keep and give nothing back!”

They just don’t get it! Or do they?!

But their sure willing to take 30 pieces of silver, from the U.S. Congressional Military Complex minion (oh, excuse me…wampum worthless debtor NOTES!), to sell your children and themselves into abject slavery for some immediate fix like a drug addict, as subject matter fodder for the “Complex” and their minions aren’t they?!

They didn’t form the social compact, for which they quintessentially complain about! There is no lawful evidence, which they can legally proffer to prove beyond a reasonable doubt that their a party too it!
Therefore, they don’t have any say in its political thrust! No matter what they were taught or teach!
Nor, do they have standing to State a Claim for which relief can be granted! Ever! Without variation by agreement!

But will this occur knowing their condition and unwilling nature, to face their natural duty to create solution oriented paradigms, to preserve their inherent rights respective thereto?!

For those truly concerned, we once again, proffer for your sanity, honor, and educational advancement towards freely chosen self-determination, the evidenced of those who have sacrificed for years to peel away programming of illusionist misrepresentation by social Role Models exposed, by offering the truth of the matter via the “4” declarations espoused by the S.E.A., published via the web links: http://seagov.info/index.html, available for those honestly looking for researching the truth, in the interest of Good Will with All Walks of Life seeking Universal Peace and solution oriented paradigms to the problems of local, national, and international systemic fraud via both Centers of Governance, Education, and Religion.
Even though we are aware some have review the evidence we’ve proffered and have failed to present any empirical evidence in contradiction thereof, via any posting data to support such, we continually await honorably any actual and provable evidence to prove the premises presented in-particular to the established facts raised with the declaration dealing with the Four Freedoms on pages 13-15 to prove otherwise. Proffered via the web site earlier aforementioned!

My best to all who post herein, for the purpose of proposing hopeful enlightenment or garnering enlightenment, while proffering Good Will in the interest of seeking Universal Peace with All Walks of Life!

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By P.W. Walker, April 15, 2011 at 10:44 am Link to this comment

Peak oil and the looming environmental crisis will wipe out these transnationals. 
The elites that run them will not be able to cope with rising energy costs to
maintain their little scams.

Just be patient.

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By Anarcissie, April 15, 2011 at 9:34 am Link to this comment

Apparently David Sirota is unaware that Ikea started out by exploiting low-wage labor in Poland.  That was back when Poland was a satellite of the Soviet Union, run by the Communist Party, and real unions weren’t allowed.  In other words, there’s nothing new going on in Danville, except the valuable revelation that the United States has become a Third-World country.

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By Rudi Pawlitschko, April 15, 2011 at 8:59 am Link to this comment
(Unregistered commenter)

My Dear American Friends,
I’m not sure I understand what you’re complaining about. WE in Europe tend to elect politicians who take care of us (in general). That’s why we have 5 weeks of paid vacation, decent minimum wages and universal health insurance. YOU in the US - speaking generally - elect politicians who don’t give a damn about this stuff. YOU - in general - are proud to have no European style “nanny state”, applaud the outsourcing of system critical functions to private enterprises and praise yourself for the “small government” (well, if you don’t count in the military) that you have.

Don’t blame IKEA if they treat the US like any other seat-shop country in Asia. That’s what YOU want and they just take you by your word.

Of course, I don’t know who you on the idea… For us government is not an evil entity that must be reduced to it’s bare minimum. Example: My daughter will graduate from a government-run university debt-free with a decent education. My personal expenses will be a fraction of yours - if you’re in the same situation. What a competitive advantage that my daughter has compared to yours. And competing they will in this global economy.

Don’t blame IKEA. YOU, THE PEOPLE lie in the bed you made.

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By Lafayette, April 15, 2011 at 7:57 am Link to this comment

DS: Ikea’s exploitation motive evokes memories of General Electric’s Jack Welch. He famously said that in an era without strong international unions and with standards-free trade pacts, profit-maximizing companies would end up putting “every plant you own on a barge” and trolling the world for the lowest wages and workplace conditions, knowing they would no longer face tariff costs.

Yes, this is the Intellectual Framework of Corporate America. It’s idiotically simplistic: “High wages diminish profits, profits determine stock-options and bonuses”. Nice, tidy and myopic. Why myopic?

GOIN’ SOUTH

Because by lowering wages or finding their least-common-denominator has been going on for at least since the Industrial Age embarked upon our shores (from England, in the latter half of the 19th century). Here’s a short history of how:
*First New England textile mills, benefiting from Water-Wheel energy to automated the knitting machines went south to find lower wages.
*Then on this stop on the route of Textile Technology it spend two or three decades there before decamping to Mexico’s “Maquilladores” again seeking lowest wages possible.
*From Mexico they left about a decade ago for China.

Ditto plastics, which I know well since I am from Central Massachusetts. My parents worked in the plastics factories, which left for places south in the 1980s - the buildings left are all boarded and the towns look derelict. Except for the Wall-Marts all around selling the area - yes, you guessed it - Chinese textiles and plastic everything.

FRANKLY

Is this the way of the world? Frankly, yes, so let’s face it. We could have set high tariff-barriers “protecting” American jobs. Would that have made a difference? No, not much at all.

Trade wars always hurt those countries that indulge in them. Set-up import tariff-barriers and your trading partners will do the same. This diminishes overall trade and therefore, domestically, employment. We are all worse off.

So what is the solution? It’s not a pretty one and is called, imho, the race up the skills ladder. About 70% of the American GDP is produced by Service Industries. The manufacturing or construction or agricultural industries that consist of the remainder are those that are not “dislocatable” - and these diminish daily, as the higher skills necessary are taught and mastered abroad.

And the Chinese and Indians and Europeans are all on that same escalator as we are. It’s a crowded place.

THE INFORMATION AGE

We are transiting into the Information Age, personified by the Service Industries that deal more with information than concrete goods. That skilled personnel are a necessary part of our economic equation. We need better and higher skilled workers.

Which is why I keep harping about Education (meaning from primary to secondary to tertiary levels). And well-rounded education and particularly skills-oriented in the latter years just before entering the labor-force become absolute musts.

MY POINT 1

So, why is having a postsecondary school diploma so costly? Why have the means to invest in Production Capital (abroad) but not Human Capital at home?

Parents do not start saving to send their child inevitably to university in Europe. All three levels of education are either free or nearly free.

We don’t have money in the national budget for Education where it counts most, that is, at the tertiary level. Then Uncle Sam is shooting himself in the foot - and his youth as well.

MY POINT 2

If we want to move Top Management away from its myopic view that wages are be-all and end-all of business, we need to de-incentivize upper level salaries. That means higher-level marginal taxation. Why?

Because then management will focus on pursuing the quest of quality-production for a reasonable cost - rather than dislocating high labor-input production to the Far East.

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By Virginia777, April 15, 2011 at 2:19 am Link to this comment

oh gosh, David Sirota, I am so aghast to learn about Ikea.

*hands on both sides of face*

But I must admit, I am grateful, you are not bashing Obama as usual, with your Obamabot trolling.

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