December 2011

The Economic Populist's Most Popular Posts of 2011

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fathertimefiredIt's that time of year. As we say goodbye and good riddance to 2011, it is time to review what grabbed the most attention here at The Economic Populist. From ridiculous political tricks to protesting people, 2011 saw more of the same.

As we type out the new year, here at The Economic Populist we're forever grateful to our readers and participants who make the site happen.

China and India Really Are Cheap Labor in Manufacturing

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Everybody has heard the reason manufacturing goes to China and services jobs are offshore outsourced to India is cheap labor. Well, there appears to be more than a grain of truth to this claim. The BLS maintains an international labor comparison statistics site. Manufacturing labor costs in China and India are 4% of the United States for 2009.

manufacturing costs region 2009

At the same time though, European labor costs are much more than the United States and one of the reasons Germany's economy is so strong, is their exports and manufacturing sector. Germany clearly has bucked the trend, yet the below percent change for 2009-2010 in manufacturing unit labor costs graph, shows other nations are lowering wages. The great labor arbitrage race to the bottom looks full on.

Obama Administration Refuses To Call Out China on Currency Manipulation Yet Again

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Once again the Obama administration refuses to label China a currency manipulator. This is when the U.S.-China trade deficit looks on target to hit $300 billion and China just slapped the United States with a unjustified 22% additional tariff on American SUVs.

In the U.S. Treasury's Semi-Annual Report to Congress on International Economic and Exchange Rate Policies, team Geithner and the Obama administration literally refuse to label China a currency manipulator in spite of overwhelming evidence.

The Report highlights the need for greater exchange rate flexibility, most notably by China, but also in other major economies. Based on the ongoing appreciation of the RMB against the dollar since June 2010, the decline in China's current account surplus, and China's official commitments at the G-20, APEC, and the U.S.-China Strategic and Economic Dialogue (S&ED) that it will move more rapidly toward exchange rate flexibility, Treasury has concluded that the standards identified in Section 3004 of the Act during the period covered in this Report have not been met with respect to China. Nonetheless, the movement of the RMB to date is insufficient. Treasury will closely monitor the pace of RMB appreciation and press for policy changes that yield greater exchange rate flexibility, a level playing field, and a sustained shift to domestic demand-led growth.

You Can't Make This Stuff Up Folks - 1% Super Rich Form a Non-Profit To Advocate For Themselves

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fat catThe uber-rich have given us a Christmas gift. Yes, they have formed an organization, the Job Creators Alliance, to run public relations against us imbeciles who point out they are greedy bastards and to shape the national agenda. They even ask for donations on their website so they can pour money into lobbying, and media spin. All of this effort is to advocate for...the super-rich.

Thank you Bloomberg News who alerted us to the wonders of the CEOs, board members and super rich, bestowing their gifts upon us to explain why they should have all the money.

Bloomberg:

If successful businesspeople don’t go public to share their stories and talk about their troubles, “they deserve what they’re going to get,” said Marcus, 82, a founding member of Job Creators Alliance, a Dallas-based nonprofit that develops talking points and op-ed pieces aimed at “shaping the national agenda,” according to the group’s website. He said he isn’t worried that speaking out might make him a target of protesters.

“Who gives a crap about some imbecile?” Marcus said. “Are you kidding me?”

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