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Wed Jun 27, 2012, 08:24 AM

And the reason is simply because we don't make (manufacture) things (goods in the U.S.) anymore.

http://www.cbsnews.com/8301-505263_162-57461537/economists-say-stockton-calif-wont-be-last-u.s-city-to-go-bankrupt/

June 27, 2012 7:54 AM

Economists say Stockton, Calif. won't be last U.S. city to go bankrupt

(CBS News) STOCKTON, Calif. - Stockton, Calif. could become the largest American city ever to file for bankruptcy on Wednesday.

And economists warn other large U.S. cities could be next. snip

Peter Navarro, a professor of economics at the University of California - Irvine, says there is, "a long queue out there of cities like Stockton that are going to be doing the same thing."

Navarro points to cities such as Vallejo, Calif. and Central Falls, Rhode Island, which also went bankrupt, largely because of unfunded pensions. Jefferson County, Ala. filed for Chapter 9 protection, sinking in $3 billion dollars worth of debt.

"This is not a story about Stockton," Navarro stressed. "It's a story about the failure of our national economy. And the reason is simply because we don't make (manufacture) things (goods in the U.S.) anymore."

----------------------------------------

Coming to a city near you.

27 replies, 2214 views

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Reply And the reason is simply because we don't make (manufacture) things (goods in the U.S.) anymore. (Original post)
NNN0LHI Jun 2012 OP
el_bryanto Jun 2012 #1
Iggy Jun 2012 #2
el_bryanto Jun 2012 #10
Wounded Bear Jun 2012 #14
el_bryanto Jun 2012 #17
Iggy Jun 2012 #27
JHB Jun 2012 #12
hack89 Jun 2012 #3
NNN0LHI Jun 2012 #5
hack89 Jun 2012 #6
laundry_queen Jun 2012 #20
hack89 Jun 2012 #21
byeya Jun 2012 #22
hack89 Jun 2012 #24
4th law of robotics Jun 2012 #26
dmallind Jun 2012 #9
leveymg Jun 2012 #13
hack89 Jun 2012 #18
4th law of robotics Jun 2012 #16
Blue_Tires Jun 2012 #4
antigop Jun 2012 #7
antigop Jun 2012 #8
Ganja Ninja Jun 2012 #11
4th law of robotics Jun 2012 #15
nc4bo Jun 2012 #19
Initech Jun 2012 #23
Bake Jun 2012 #25

Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 08:28 AM

1. That's part of the reason

Another part is that in the years when credit was easy and you could borrow all the money you wanted, Cities, Counties, Local Government Entities, States, and the Federal Government all borrowed lots and lots. Now that the money has dried up a bit, the Federal Government is shifting as many duties and burdens to the states, and the states are shifting as many duties and burdens down to the local governments (cities, counties and so on). The Local Governments will try to shift these burdens to their citizens in the form of reduced services and increased fees/fines, but there's only so much they can do (without getting voted out). So they will have tough times.

Bryant

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Response to el_bryanto (Reply #1)

Wed Jun 27, 2012, 08:53 AM

2. Correct, and I'm Waiting

 

given clownservatives constantly attempt to ignore the poor by stating "well, they choose to be poor",
I'm waiting for them to cast their all-knowing lens on these bankrupt cities.

are they now going to say, "well, they chose to be financially stupid and make wrong assumptions"?

doubtful.

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Response to Iggy (Reply #2)

Wed Jun 27, 2012, 10:05 AM

10. Yes that's exactly what they are saying

The governments of those communities chose to be fiscally irresponsible and make promises to their communties they couldn't keep. Spending money on frivolous things like community centers, parks, libraries has created undue hardships on many communties. You can't just borrow and spend forever.

They will ignore, of course, how much of the burden is state wide because they assume the voters will ignore it as well.

Bryant

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Response to el_bryanto (Reply #10)

Wed Jun 27, 2012, 11:11 AM

14. " frivolous things like community centers, parks, libraries "

There are many around here that don't consider those things frivolous.

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Response to Wounded Bear (Reply #14)

Wed Jun 27, 2012, 11:19 AM

17. I don't consider them frivolous either; but many conservatives do. n/t

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Response to el_bryanto (Reply #17)

Thu Jun 28, 2012, 06:23 PM

27. Fortunately... as Clownservatives

 

continue to adopt Teh Crazy and move farther to the extreme right/bogus land.. they are losing
credibility and voters.

they are hilariously off track.

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Response to el_bryanto (Reply #1)

Wed Jun 27, 2012, 10:12 AM

12. And to make the circle perfect...

...people angry about rising state and local taxes hear the anti-tax gong rung by FOX/teabaggers/billionaire-funded astroturf orgs and are encouraged to point their anger at Obama and "tax and spend" Democrats in Congress -- even though their Federal taxes nearly always went down.

All to support policies guaranteed (and shown by multiple experience) to produce more of the same.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 09:14 AM

3. Depends on how you look at manufacturing

Manufacturing as a part of our GDP is growing but American manufacturing is concentrated in high end capital goods and not consumer goods so it is not obvious to the average American. The big negative is that US factories are now highly automated and therefore there has been a big loss in jobs.

1. Still the champion.

Inspired by a column in Sunday's Boston Globe, Mark Perry put together this graph as a testament to America's global manufacturing strength. (It includes mining and utilities because it draws from a UN database that bundles together data for manufacturing, mining and utilities).

2. A shrinking footprint

Even though U.S. manufacturing has grown in absolute terms, other sectors of the economy have grown much faster. As a result, manufacturing represents a much smaller share of our economy than it did a few generations ago. This graph from Global Macro Monitor compares manufacturing's share of U.S. GDP to the share held by finance, insurance and real estate.

3. Millions of lost jobs

Manufacturing jobs are disappearing, even though the manufacturing sector is making more money. In other words, we have lots of really high-tech factories churning out fancy, complex stuff. But those factories just don't need that many employees. More than five million manufacturing jobs disappeared in the 10 years through December of last year — and most were already gone by the time the financial crisis hit.



http://www.npr.org/blogs/money/2011/02/07/133561265/3-ways-of-looking-at-manufacturing-in-america

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Response to hack89 (Reply #3)

Wed Jun 27, 2012, 09:25 AM

5. The Bush administration said building a Big Mac is a manufacturing job in 2004

http://articles.nydailynews.com/2004-02-21/news/18260239_1_fast-food-jobs-manufacturing-job-democrats-accused-president-bush

BY CORKY SIEMASZKO DAILY NEWS STAFF WRITER
Saturday, February 21, 2004

A White House wonk says building a Big Mac is a manufacturing job.

Fast-food jobs should not be considered service sector work because it actually is "combining inputs to manufacture a product" - and should be reclassified as manufacturing work, Gregory Mankiw wrote in the Bush administration's annual economic report.

Democrats accused President Bush's chief economist of trying to mask the fact that 2.2 million high-wage jobs have been lost since Bush took office.

"Unable to stop the hemorrhaging of American manufacturing jobs, the Bush administration is offering up some world-class job creation sleight of hand: Change the definition of what constitutes a manufacturing job," griped Rep. George Miller (D-Calif.).

-----------------------------------------

So there you go.

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Response to NNN0LHI (Reply #5)

Wed Jun 27, 2012, 09:33 AM

6. The loss of manufacturing jobs is due to the loss of low tech manufacturing

labor intensive manufacturing will never return to America as long as American's want low cost consumer goods.

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Response to hack89 (Reply #6)

Wed Jun 27, 2012, 12:25 PM

20. Let's just get one thing straight

most people don't WANT low cost goods. I don't know one person who would rather have a $6 hand mixer that lasts 6 months vs a $100 mixer that lasts 30 years. Or a $5 shovel that falls apart with the first snowfall vs a $30 shovel that lasts 20 winters. People know in the long run this doesn't benefit them. The problem is with the lack of wage increases, people NEED to buy low cost items in order to maintain their standard of living. It's not easy to see your standard of living slip every year. Most people will do what is necessary to try to maintain that standard of living, including buying cheap China made crap, in the face of slipping wages.

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Response to laundry_queen (Reply #20)

Wed Jun 27, 2012, 12:35 PM

21. I challenge you to find a single study or marketing survey that supports that notion.

business understands exactly what motivates consumers to buy what they buy. It is not because they want to buy more expensive things.

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Response to hack89 (Reply #21)

Wed Jun 27, 2012, 12:42 PM

22. Business knows how to manipulate peoples' actions through advertising

 

and by freezing out information that doesn't support their profiit margins.

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Response to byeya (Reply #22)

Wed Jun 27, 2012, 12:45 PM

24. Can't question logic like that. It's literally impossible. nt

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Response to laundry_queen (Reply #20)

Wed Jun 27, 2012, 02:43 PM

26. Most people do want low cost goods

 

hence Walmarts success.

People know in the long run this doesn't benefit them.


Some people do. Some don't. Long term planning has never been our strong suit. We're a live in the moment kind of species.

Also if you absolutely must have a shovel today but only have 5 bucks in your pocket what are you going to do? You might realize it's a bad investment in the long term but you have a hole that needs digging now and you can't afford a better one.

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Response to NNN0LHI (Reply #5)

Wed Jun 27, 2012, 09:46 AM

9. ...which did bugger all to change UN industry codes.

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Response to hack89 (Reply #3)

Wed Jun 27, 2012, 10:59 AM

13. Making more stuff for export w/fewer people = profits for 1%= immiseration of the rest.

It finally appears that Marx has been proven right about how "advanced capitalism" would turn out.

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Response to leveymg (Reply #13)

Wed Jun 27, 2012, 11:55 AM

18. High end capital goods manufacturing

is not like making widgets like TVs and computers. You make a lot fewer of them but each one is highly profitable. You also need a smaller but much more highly educated and skilled workforce.

The underlying issue is that the economy has fundamentally changed but the way we educate and train workers has not.

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Response to hack89 (Reply #3)

Wed Jun 27, 2012, 11:17 AM

16. I should have read your post first

 

before responding.

I said the same thing but you put it better.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 09:21 AM

4. Each one of these stories needs to link to this piece:

http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620

At least then more people will know the bigger picture as more cities become insolvent...

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Response to Blue_Tires (Reply #4)

Wed Jun 27, 2012, 09:41 AM

8. Also this one ---state taxes going to corporations

http://www.goodjobsfirst.org/sites/default/files/docs/pdf/taxestotheboss_prrel.pdf
2012—Nearly $700 million a year in state income taxes withheld from worker paychecks in 16 states is being used to provide lavish subsidies to corporations rather than paying for vital public services. These diversions have gone to more than 2,700 companies, including major firms such as Sears, Goldman Sachs and General Electric. Few if any of the affected workers are aware, because no state requires they be informed on their pay stubs.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 10:07 AM

11. I remember back when I was working for General Motors.

Some people use to ask "Don't you think autoworkers are overpaid?" Everyone was jealous.

See what happens when you get rid of those well paying jobs? People who use to have money to retire to the south don't now. If they can't sell the homes they lived in up north, they can't buy new homes down south. So much for the Florida economy.

The moral is if you want to buy goods from people who work under sweatshop conditions then you'll end up living like someone that works in a sweatshop.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 11:16 AM

15. The US is the leading manufacturing nation in the world

 

it's just that A) we don't make all those things you see commonly (so you see the "made in" sticker on a new pair of shoes, but not on the train that brought them to your town) and B) it is becoming extremely efficient so very few people are employed in that area.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 12:02 PM

19. 2 cities went bankrupt due to unfunded pensions.........

I know this must play a part but not necessarily a huge portion.

I'm referring to the state of the USPS, which has a pre-funded (hope I said that right) pension system and it's because of that the USPS is in danger of being eliminated and a privatized system put into place. The 1%ers and GOP have been licking their chops at our postal system for several years now and won't stop until it is gone and replaced. They'd more than likely repeat the same mantra if pensions were paid in advance in city budgets too.

The majority of the entire problem stems from the simple fact we don't make much here anymore thanks to the 1%ers. Even the equipment used to promote our warmongering agenda isn't the big manufacturing machine it was in the past when larges portions of the population worked to build military equipment.

In the new age of global economy, I don't see us returning to a manufacturing mecca ever again.

So what do we do?

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 12:43 PM

23. The 1% leeches have been siphoning money from our governments for decades now.

And if we don't stop, grow a pair - and start taxing the ever loving shit out of these pieces of crap - expect this to escalate further. Stockton won't be the first but they won't be the last. Hey - here's another source of tax revenue - churches! It's way past time to end the free ride there! Let's bring in revenue instead of cutting spending - that's how you balance the budget Republicans.

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Response to NNN0LHI (Original post)

Wed Jun 27, 2012, 01:32 PM

25. And corporate America can't see past next quarter's earnings reports.

They're killing the economy, because in the long run, who's going to buy their stuff when nobody has decent jobs anymore? China? I doubt it.

Earnings myopia, if you ask me.

Bake

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