The world has changed. Regardless of the company size, competition is now global. It does not matter which industry or customer target demographic. The same can be said for the job market.
A lot of companies are now moving their operations overseas. Cheaper rent, electricity, and labor. It is especially hard in the manufacturing sector. It was the lifeblood of U.S. Industry for the past 100 years. It won two world wars and turned the USA into a superpower only 200 years after the country was founded.
But we have to give up manufacturing, even companies like Apple and Ford moved their main production lines overseas. There is no way we can lower US wages enough for the same educational level that other parts of the world are offering.
But the world is changing, it is now a service economy. The largest retail company owns no stores, the largest transport company owns no vehicles, and the largest hospitality provider owns no properties.
Even in Tech, the last commercial sector still under U.S. dominance (The other being military and aerospace) is moving from product delivery to a “Software as a Service” environment.
Corporate Tax Breaks
The government is trying to stimulate jobs creation by offering tax breaks. The logic behind it is if companies have more money to spend, they will hire more people.
The logic is good, the implementation is terrible. Corporate growth ended up with more Indian programmers, Filipino call center agents, and Chinese factory workers. Implementation defeated the purpose.
Government tax breaks should be bracketed based on US-based employees, instead of gross income.
Encourage Small and Medium Enterprise growth
According to Small Business Administration, SME’s are 99.7% US businesses and pay for 48% of all US Jobs. That is a dismal figure. It means the 0.3% of US business employs the plurality of American workers.
Creating more businesses will not change the figure right away. But increasing the number of workers for that 99.7% will have a huge impact. Prioritize corporate tax breaks based on capital holdings will create jobs.
Mobile Work Force and Contracts
Technology is the reason why global collaboration is possible. It is how Indian programmers are talking to US managers. It is stupid and impossible to regulate the technologies that allow this scenario.
The global talent pool includes Americans. There are talented and educated Americans living in areas that prevent them from working their dream positions because the company is located in another state.
But those companies hire English speaking Asians instead. It is because overseas contractors save on taxes and do not require all the bells and whistles that US workers do. Rewrite U.S. Labor contract worker laws to encourage a US-based remote/mobile workforce.
Update the Educational Curriculum
A 6-year old boy made 11 million dollars reviewing toys on youtube. That fact crushes the entire foundation that education is based on. It is not the only example, There are thousands of Americans making millions of dollars providing an online service.
They come from different educational and social backgrounds. While university graduates are working 9-5 jobs that would not be enough to pay for their college loans. It requires knowledge to make money or to keep it. But that knowledge is now available in the palm of our hand. Restructure the entire educational system to adapt to this new reality.
It is Archaic thinking on both the government and the educational system that is holding the US job market hostage. American industry has worked in the past and efforts are being made to return to that past.
The reason why the US is losing jobs overseas is that Americans and its government are living in the 1900’s. When they realize they are wrong, they are making an effort to turn back time. The solution is to live today and prepare for the future our present is creating.