The 14 Biggest Ideas of the Year

[Vi-Jay 218]

All 14- (Starting with) #14- The Green Revolution is Neither

1. The Rise of the Middle ClassJust Not Ours

Gillian Tett

U.S. managing editor and assistant editor, Financial Times

The past year has seen plenty of hand-wringing about the squeezed middle. Little wonder. Although the U.S. economy might now be rebounding, incomes for most Americansif they are lucky enough to have a job at allare not rising. On the contrary, since 2002, median household income has declined in real terms, as many middle-class jobs have been either destroyed by technological innovation or lost to competition from overseas. For many of the jobs remaining, employers can pay lower wages.

The middle class in America (and Europe) is suffering, but thats only half the tale. In the past decade, income per capita in the so-called BRICs (Brazil, Russia, India, and China) has surged, as the middle classes in those countries have expanded at a striking clip. That is partly because jobs are shifting from the West to the emerging world (just think, for example, of all those Chinese factories and Indian call centers that have sprung up). However, education is also improving in most of these countries, along with infrastructure, as incomes rise and lifestyles improve.

To many Western workersand politiciansthis sounds scary. After all, the addition of millions of well-educated workers in places such as India, China, and Brazil means a lot more competition for Americans and Europeans. However, this cloud has a bright silver lining. Until now, politicians and economists have generally focused on the emerging markets in terms of a supply shock, in the sense that these countries can supply cheaper and better goods than can be produced in the West. Production, after all, is what has enabled those emerging-market economies to boom; again, think of those Chinese factories.

But now the world is on the verge of a crucial shift: precisely because the middle classes in the emerging markets are gaining clout, they are also becoming a truly formidable consumption force. The emerging markets thus no longer represent just a supply shock; they are creating a demand shock too. And that raises big questions: Who or what will meet that demand? Will those new middle-class families who are working at, say, Indian call centers or Chinese factories just buy local products? Or could American companies have an opportunity to serve them? And if so, could that opportunity eventually lead to new American jobs, as those consumers start to travel, read, download appsand plug in to a globalized lifestyle? The full tale of the squeezed middle has yet to be told.

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Free trade and Unions are killing the US middle class. Our gov is sooooo smart. Sometimes, I would really like to kick Nixon in the crotch.

They're turning kids into slaves just to make cheaper sneakers

But what's the real cost? 'cause the sneakers don't seem that much cheaper

Why are we still paying so much for sneakers when you got them made by little slave kids?

What are your overheads?

Edited June 18, 2011 by Vi-Jay

[mawilson 2,133]

I see 1. Where's the other 13? Too lazy to post?

[Vi-Jay 218]

I see 1. Where's the other 13? Too lazy to post?

You wake up in a bad mood?

I provided a link. Too lazy to click?

[Obama 2012 1,714]

Eh, many factors play a role, not just Nixon.

Nixon was perhaps a final nail in a long closed coffin.

While I like to blame the FRA of 1913 for a lot, it's also hard to ignore Bretton Woods either.

While everyone likes the idea of a healthy global economy, etc. Our prosperity relies heavily on someone else not being prosperous in life. It's the way the world goes around.

We can be happy with where we are right now, or we can demand more. If we play this game of enjoying life right now, we'll never see our infrastructure change or grow and we will be on the losing end of things on the global scale.

If we don't want continued success and power as a nation, believe me there are plenty others that do.

[Vi-Jay 218]

I didn't say it was all on Nixon. There are quite a few others that need a swift kick to the groin.

[mawilson 2,133]

You wake up in a bad mood?

I provided a link. Too lazy to click?

Links are transient at best - their content can be altered or removed at a later date.

[Vi-Jay 218]

Links are transient at best - their content can be altered or removed at a later date.

Well, I suggest you hurry up and click.

The entire article is too big to post.

[Mr. Big Dog 10,747]

Free trade and Unions are killing the US middle class.

The decline of the middle class goes hand-in-hand with the decline of unions. Perhaps it's the union-busting that destroys the middle class? Or maybe the unions have little to with the decline of the middle class. To blame the unions is rather questionable. Again, nowhere in the developed world have unions lost as much influence and clout as here. And nowhere in the developed world has the middle class suffered as steep a decline.

[Vi-Jay 218]

The decline of the middle class goes hand-in-hand with the decline of unions. Perhaps it's the union-busting that destroys the middle class? Or maybe the unions have little to with the decline of the middle class. To blame the unions is rather questionable. Again, nowhere in the developed world have unions lost as much influence and clout as here. And nowhere in the developed world has the middle class suffered as steep a decline.

Of course there are other factors but, Free Trade and Unions rank near the top. Our gov opened the door and unions gave 'em the boot.

[Mr. Big Dog 10,747]

Of course there are other factors but, Free Trade and Unions rank near the top. Our gov opened the door and unions gave 'em the boot.

I made the argument in the other thread - there are other industrialized countries where unionization is far higher than in the US and they are doing just fine producing and exporting. I don't buy into this union bashing. Someone would have to make a convincing case showing that there is a correlation between unionization and the demise of the middle class. Thus far, such case has not been made.

[Vi-Jay 218]

Give me a little time and I will present a POV.

Edited June 18, 2011 by Vi-Jay

[Vi-Jay 218]

I know it's a conservative site.

Just comparing stats.

[Mr. Big Dog 10,747]

I know it's a conservative hack site.

Just comparing stats.

If the only case you can find is on sources like AFP - they have an agenda against Unions as you know - then you don't have a case.

[SuperDuper! 230]

Vi-Jay: The problem we have with your post, is that you IMPLY it will give 14 best ideas. We expect to see a countdown list numbered 1-14 of best ideas, not a long, drawn-out article to read. We want ez to read, and no effort points. No time to read multiple pages. More important life tasks to spend time on. I'm going on record as rarely agreeing with ocd, never-wrong members on this......

[Vi-Jay 218]

Vi-Jay: The problem we have with your post, is that you IMPLY it will give 14 best ideas. We expect to see a countdown list numbered 1-14 of best ideas, not a long, drawn-out article to read. We want ez to read, and no effort points. No time to read multiple pages. More important life tasks to spend time on. I'm going on record as rarely agreeing with ocd, never-wrong members on this......

Who is we? Do you see yourself as multiple persons?

If your life is too busy to click and read the whole article, then don't. I didn't ask you too. I listed the 1/14 I wanted to discuss and provided a link to the rest. You're interested, click it. You're not, then don't. I didn't realize I was responsible for your time. I go on the record, I'm not responsible for your time. and, That goes for all the people living inside Boing's head. I hope "we" understands.

(btw...I didn't write the article. Therefore, I didn't choose the title. Do all of Boing understand?)

Edited June 19, 2011 by Vi-Jay