Sunday, February 26, 2017

Robots are Taking American Jobs and No Wall will Help

Politics always clouds reality. This is especially true with economics and specifically jobs in the U.S. The latest flurry of soundbites is the spouted theory that encouraging corporations to move their factories back to American shores will be a jobs creation bonanza. This scenario is sheer fantasy that sounds good, especially to one particular politician's fan base.

I just purchased the book "Rise of the Robots-Technology and the Threat of a Jobless Future". I am only a few pages into the book as I write this post. The main premise early in the book is Americans and our friends up north in Canada have been moving away from labor intensive jobs for a very long time and technology is moving forwards, not backwards. For decades mechanization has reduced labor hours on manufacturing lines. Cars are built with a fraction of the number of workers as machines have taken over specific tasks like placing windshields in cars and then rapidly being able to retool themselves to place seats in cars. Each one of these and many other actions reduce the number of employees in car factories.

The automobile industry is just one example. Amazon uses robots in their warehouses to quickly move down an isle, find the product needed and send it down a conveyor line for workers to package and send on it's way to shipping. As robotics improve to the point where they can see two dimensional (which is already happening) the need for humans to package the products will be eliminated too.

The service industry is about to be dramatically impacted by robots and high technology. Already we see automation in supermarkets where self checkout isles reduce the number of workers needed. It's anticipated the fast food industry will see robots reducing the need for many entry level jobs which young and first time job seekers have traditionally depended. Robots in the near future could be molding and making the perfect McDonalds hamburger and sending down an assembly line to self check out counters. Innovation will also reduce the need for first line supervisors.

America has been known for innovation since the birth of our nation. Agriculture was the bulk of jobs in the 19th century and everyone knows how machines changed the way food was planted and harvested replacing millions of jobs in farm labor.

Politicians who claim a great number of jobs will be created by bringing companies back to American shores are blowing political smoke and not talking economic reality. No doubt jobs will be created by repatriating jobs, but they will be technical positions maintaining and improving robots.

We need to start seriously thinking about a society that receives an income that is not based on working a traditional work week. Our society is based on consumption and if the masses don't have an income to buy then we will see a lack of purchasing power, less production and a less need for workers. Owners of capital and share holders will see drastic drops in profits. I am amazed at the number of people who think a minimum livable wage kills jobs. Workers who are paid more spend more and the argument that it kills jobs is bogus. More jobs are lost by technology improvements including robotics than workers invading our shores or workers obtaining higher wages for entry level work.

It's also time to put politics aside and figure out a way for all workers to benefit from increased productivity that has been a mainstay in the economy. Since the 1970's the pie has been sliced thiner for workers while owners of capital and share holders have enjoyed a greater and greater portion. It is NOT socialism to share some of the pie with those who will spend 90% plus of their incomes on the products and services being produced. In the long term everyone will benefit including owners of capital and share holders. No one benefits by continuing the insanity of stagnate incomes.

The next time a politician blames job loses on immigrants or minimum wage proponents or other scary scenarios remember that is  all political mumbojumbo  and has nothing to do with economics and the great innovative American job scene.

Monday, February 13, 2017

Oroville Dam and U.S. Infrastructure

Northern Californians have their eyes on the Oroville Dam as the situation seems to change by the hour. The Dam itself is fine, but the gateways leading water out of the dam have been damaged. This damage came at a point when the lake behind the dam reached capacity due to a series of storms. Northern California is currently experiencing several days of sunny weather giving water managers time to plan for the storms coming.

California like most of the nation is not alone in it's need to update major infrastructure. The Oroville Dam was completed in 1968. Older infrastructure obviously needs to be maintained with more rigor than newer structures. Are we putting the resources needed into maintaining bridges, water systems, electrical grids, transportations systems like train tracks and airports?

This blogger thinks we are failing. New projects like speed-rail become so political it takes forever to get from the drawing-board to implementation. The same goes for building and maintaining new bridges and maintaining the ones already in place. Airports almost across the board need to be upgraded. Only airports built recently have the ability to meet demand. The same goes for electrical grids and water storage.

I hope President Trump is serious about building up the nations infrastructure. Republicans and Democrats believe it's important. Coming up with the $$$ is always the main issue. We need to stop talking and make it happen.

I  hope a crisis in Northern California can be averted. When the emergency passes and it comes time to make repairs the facts will most likely point to Oroville Dam as being one more piece of infrastructure that did not receive the funding and upgrades needed to keep it in A+ shape. The policy of doing only what is necessary needs to change dramatically. Our economy is tied directly to a working infrastructure. It's time to build, build, build and maintain, maintain, maintain. If this happens we will see our economy grow faster than it has over the last 20 years.


Wednesday, February 8, 2017

U.S. Economy, Jobs, Infrastructure, Taxation and...

The President of the U.S. and all other politicians are not talking about things this blogger is interested in. People in Washington have their political blinders on and are only thinking and talking about push-button issues like the travel ban. No doubt this issue is crucial and it should be discussed in great detail. I want to hear about other things too.

What's happening on the job front? Are plans being drawn up to get infrastructure projects going? Are funds going to become available for states and localities to get things going while interest rates are low and to take advantage of workers who are available? I am one American who does not believe the job market is very strong. Unemployment is low, but those statistics don't take into account part-time workers who would like to work full time, older people who have departed from the workforce before they wanted, young people who are underemployed. These factors are part of the reason incomes have not climbed much over the 30 years. Fixing American infrastructure and creating good jobs while doing so should be a top priority. Washington and both parties are more interested in political agendas and instilling fear.

What about tax reform? Americans from both parties have wanted to simplify the taxes structure for a long time. How about getting it done! Everyone agrees tax codes are way too complicated. Most Americans should be able to do their taxes on a one page form. Make it happen! Both parties need to work together to close loopholes and make it clear how much corporations are paying. Fair taxation for corporations and citizens should not be a partisan issue. This message has been made clear over and over again by the American people. It's time for Washington to listen and take concrete action.

Washington, please put away the hateful partisan politics. Fear will not grow the economy or protect Americans from terrorists. Act with some courage on behalf of All Americans and focus on the work that needs to be done. Everyone will benefit if we spend and build wisely and flush all the hate for people who look different and/or act differently down the toilet.

Citizens who want better jobs, rising incomes, strong defense against real enemies, infrastructure as strong as our defense and peaceful communities are tired of the divide and hate that some politicians are peddling.

The time for positive action is Now!!!


These pictures are of my dog Willie over the years. I have not blogged in several years and now I plan to return to it. We don't have an...