I read a book authored by Alan Tonelson The Race to the Bottom that was published in August 2002. At the time the threat to US manufacturing was China and other Asian countries. Mr. Tonelson's prophecy has come true now as the new reality in the US is lower living standards that we are now experiencing in 2016. You wonder why our economy does not grow read further please.
Yesterday I read a interesting article from Forbes on Twitter from David Kiley who discussed the findings from UC Berkley please read this article below.
Why U.S. Manufacturing Workers Are On Food Stamps And Medicaid
Providing insights and news about the global auto business.
Opinions expressed by Forbes Contributors are their own.
A new study conducted by researchers at the University of California, Berkeley shows that over one-third of manufacturing workers in the U.S. are on some form of public assistance. The percentage shoots up to 50% when temporary manufacturers are factored in.
The results of the study follow similar ones that show a high percentage of fast-food and retail workers on public assistance such as food stamps and Medicaid. But the findings on manufacturing workers are eye-opening because those jobs are so often extolled as being the highest-quality jobs available for non-college-educated workers.
“Manufacturing has long been thought of as providing high-paying, middle-class work, but the reality is the production jobs are increasingly coming to resemble fast-food or Walmart jobs, especially for those workers employed through temporary staffing agencies,” said Ken Jacobs, chair of the Labor Center and co-author of the report.
Not only do politicians frequently talk about the importance of strengthening manufacturing in industrial states like Michigan, Ohio, Indiana, Pennsylvania and Wisconsin, but state governments typically come up with huge incentive packages to companies for locating a new manufacturing facility in their state. But the University notes that manufacturing jobs are costing tax-payers $10.2 billion.
The report analyzed utilization rates and costs in the five largest means-tested public benefit programs for which data is available: Medicaid, the Children’s Health Insurance Program (CHIP), the Federal Earned Income Tax Credit (EITC), food stamps (the Supplemental Nutrition Assistance Program, or SNAP), and basic household income assistance (Temporary Assistance for Needy Families, or TANF).
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These kinds of revelations have been fueling the movement to a higher federal minimum wage, and is often cited for helping to drive the Presidential candidacy of Senator Bernie Sanders, whose primary platform plank is income inequality between white collar and blue-collar workers.
The UC-Berkeley researchers report that the largest classification of temporary manufacturing production workers—assemblers and fabricators—earn a median wage of $10.88 an hour, while those hired directly by the companies make an average of $15.03.
I found these findings amazing as we have two factors here lower wages and higher costs to live the USA. The results more food insecurity, poverty, government assistance and charities like Blessings in a Pack Back, who provide food over the weekend for children who are experiencing food insecurity. Why is the media not exposing the true facts on what is going on today?