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The right wing “think tank” Heritage Foundation announced that “America’s economy grew by 3.7 percent in the third quarter [2004], faster than most other developed economies around the globe and faster than the historical U.S. growth rate, since 1970, of 3.2 percent.”[12] This rosy scenario hasn’t affected the American working class in such a positive manner. In fact, ex Assistant Secretary of the Treasury, Paul Craig Roberts [Reagan Administration] recently stated that:[13]
Americans are being sold out on the jobs front. Americans' employment opportunities are declining as a result of corporate outsourcing of US jobs, H-1B visas that import foreigners to displace Americans in their own country, and federal guest worker programs.
President Bush and his Republican majority intend to legalize the aliens who hold down wages for construction companies and cleaning services. In order to stretch budgets, state and local governments bring in lower paid foreign nurses and school teachers. To reduce costs, US corporations outsource jobs abroad and use work visa programs to import foreign engineers and programmers. The American job give away is explained by a "shortage" of Americans to take the jobs.

There are not too many Americans willing to accept the pay and working conditions of migrant farm workers. However, the US is bursting at the seams with unemployed computer engineers and well-educated professionals who are displaced by outsourcing and H-1B visas. During Bush's entire first term, there was a net loss of American private sector jobs. Today there are 760,000 fewer private sector jobs in the US economy than when Bush was first inaugurated in January 2001.

It should be noted that during both the George W. Bush and the Bill Clinton administrations outsourcing was rampant. Remember that the NAFTA agreement was promoted by Bill Clinton which resulted in over 3 million unemployed in the U.S. In “Fast Track to Lost Jobs,” Robert Scott of the Economic Policy Instituted stated that:[14]

The U.S. has experienced steadily growing trade deficits for nearly three decades, and these deficits have accelerated rapidly since the North American Free Trade Agreement took effect in 1994 and the World Trade Organization was created in 1995. The toll on U.S. employment has been heavy: from 1994 to 2000, growing trade deficits eliminated a net total of 3.0 million actual and potential jobs from the U.S. economy.

Scott went on to pinpoint NAFTA’s and the WTO’s results:[15]

When jobs are transferred to other countries, the goods that once were manufactured within the U.S. must now be imported leading to an unfavorable balance of trade. The job loss due this unfavorable balance was depicted by Scott as follows:




A detailed look at the above effect:




Nor has the outlook improved in 2005. Paul Craig Roberts in an article in CounterPunchL[16] on Feb. 7, 2005 states that “The January jobs report from the Bureau of Labor Statistics continues the bad news of the past four years. During President Bush's first term, the US economy had a net loss of three-quarters of a million private sector jobs. Despite three years of economic recovery, fewer Americans are employed in the private sector today than when Bush was first inaugurated four years ago.”[17]

In another article for CounterPunch [2/15/2005], Roberts unvieled the reasons and effects of outsourcing:[18]

Economists give assurances that the dollar's decline and fall will bring jobs and industry back to the US. Once Americans are as poor as Indians and Chinese are today, the process will reverse. Multinational corporations will locate in America to take advantage of cheap labor and unserved markets. By becoming poor, the US can become rich again.

You might want to ask the economists and our "leaders" in Washington why we should put ourselves and our descendants through such a wrenching process.
It should be obvious that the plan is to reduce the wages of American workers to that of Third World Nations thus increasing profit. Along with this trend is the loss of internal buying power. Decreasing wages mean that workers can purchase less of whatever total production is left in the country. This has the unintended effect of leading to overproduction which is the path to capitalism’s periodic economic chaos—depression.

[1] Mussolini, Benito, What is Fascism , 1932, Modern History Sourcebook, Mussolini, Benito, What is Fascism , 1932, Modern History Sourcebook

[2] Britt, Laurence, Fascism Anyone?, Free Inquiry Magazine, Volume 23, Number 2.

[3] Mussolini, Benito, What is Fascism , 1932, Modern History Sourcebook, Mussolini, Benito, What is Fascism , 1932, Modern History Sourcebook


[4] Ibid.

[5]Marx and Engels, The Communist Manifesto, Bourgeois and Proletarians, 1848.

[6] Materialist Conception of History

[7]Engels, Socialism: Utopian and Scientific, Historical Materialism
Engels,Socialism: Utopian and Scientific, Historical Materialism

[8] Luxemberg, Rosa Luxemburg Speaks, “Reform or Revolution”, Pathfinder, 1991 edition, p. 77.

[9] Ibid.

[10] Ibid, p.62.

[11] National Venture Capital Association, National Venture Capital Association,

[12] Heritage Foundation, Heritage Foundation

[13] Robert, Paul Craig, CounterPunch, February 15, 2005, The Bush Shortfall: 8 Million Missing Jobs The Bush Shortfall: 8 Million Missing Jobs

[14] Scott, Robert, “Fast Track to Lost Jobs,” Economic Policy Institute, Robert, “Fast Track to Lost Jobs,” Economic Policy Institute

[15] Ibid.

[16]Roberts, Paul Craig, CounterPunch, “Bush’s Jobless Economy: More Bad News on the Job Front,” February 7, 2005 Bush’s Jobless Economy: More Bad News on the Job Front


[17] Ibid.

[18] Roberts, Paul Craig, CounterPunch, “The Bush Shortfall: 8 Million Missing Jobs,” February 15, 2005 The Bush Shortfall: 8 Million Missing Jobs