Tag Archives: unemployment

Why progress always ‘puts people out of work’

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation, Adjunct Professor(ret.), Ross School of Business, University of Michigan.


Let’s refine our definition of “the employment problem” by understanding that the biggest, most labor-intensive companies—the kind that absorbed all those farm laborers and created the 20th-Century middle-class—were inevitably destined to become not “centers of employment,” but centers of unemployment.

Here we begin by recounting my Grand Rapids speech and go on to explain the Vector One and Vector Two phenomenon, the entire phenomenon of ever-more-efficient companies and organizations (or entire sectors, like our friends the farmers) becoming smaller and smaller in terms of employment. Meanwhile, new technologies and new products and new market forces breed “job creation” elsewhere in the economy. A company or even an entire sector must do things better and more efficiently, or die. They eventually will die anyway unless they reinvent themselves as producers of new goods and services rather than inevitably obsolete goods and services.

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Forget planned obsolescence; it will happen, planned or not

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation, Adjunct Professor(ret.), Ross School of Business, University of Michigan.

Millions of American “smokestack” jobs no longer exist. Millions of other American jobs, from nearly every sector, have been exported. Tens of millions of Americans are now sustained only by the “safety net,” or by working multiple part-time jobs at low wages with no benefits. More than one-quarter of working Americans lack enough resources to sustain themselves three months if laid off, a number that no doubt has risen since it was last compiled. This is a very, very bad time to be an unskilled worker with no prospects of being retrained in a way that will land a job. A human being whose skills are obsolete is among the saddest of stories. Some of these Americans, especially older workers, are going to be left behind. Millions more will never earn the kind of living they once did. This states one hellacious problem; but it does not define the problem in any useful way for a problem-solver.

In getting one’s arms around what might seem like an unprecedented catastrophe, it’s good to start by realizing that today’s displaced workers are not alone in the American experience. Our workforce is undergoing massive transition, a tectonic shift, really, in the way Americans earn their livelihood. But it is not unprecedented.

Continue reading Forget planned obsolescence; it will happen, planned or not

Globalization isn’t killing factory jobs. Trade is actually why manufacturing is up 40%.

By Daniel Griswold, Los Angeles Times

This Op-Ed article was published by the Los Angeles Times on August 1, 2016. To visit the article in the L.A. Times click on the link below:

http://www.latimes.com/opinion/op-ed/la-oe-griswold-globalization-and-trade-help-manufacturing-20160801-snap-story.html

See also “The Technology Imperative: What Jobs, Jobs, Jobs, Really Means in the 21st Century”, By John Psarouthakis, Gavdos Press, 2012

Foreign trade took a beating at both major party conventions, with speakers blaming free-trade agreements for all but wiping out U.S. manufacturing and eliminating millions of middle-class jobs. Both Donald Trump and Hillary Clinton have promised to renegotiate or abandon trade agreements with key U.S. trading partners such as Mexico and Canada. That would be a colossal mistake.

The number of manufacturing jobs in the United States has indeed been in a long decline since the late 1970s, but that disguises the true story of American manufacturing. Nostalgia for a bygone era blinds politicians and voters alike to the reality of a revitalized sector of the American economy that is thriving in a global market.

Continue reading Globalization isn’t killing factory jobs. Trade is actually why manufacturing is up 40%.