I have been talking about the “new” American job market to some of my colleagues for a while, and I’ve again and again stressed the fact that old jobs may actually work their way back into the American economy.
Everyone seemingly has been awaiting the “new” type of work for the people of our nation; but what those people have forgotten is that the American production levels are among the highest in the world, and the only reason that many of those old jobs ever left is because our high wages drove many of them away.
We’re seeing now that wages are not growing like they once did. In fact family net worth seems to have taken a dive in this country, and immediate reaction has been a lot of hooting and hollering.
But what people aren’t discussing is the fact that a slight wage reduction may allow “old” jobs to return to our great country; and in many cases people are more interested in being employed than not, even at reduced wages.
This story about Starbucks opting to have its mugs made in Ohio instead of China suggests that manufacturing (an old job that this country was essentially built upon) may work its way back into the equation here in the US.
Is Manufacturing a Viable Source of Jobs?
This is the question that many ask when I bring up the idea of old jobs returning. Many people don’t see manufacturing jobs paying for $700,000 Calabasas homes. And the truth is that the lower end positions likely won’t afford individuals the chance to live in a neighborhood where the median income level is what it is in Calabasas.
But the truth is that a stable job market is exactly what this country needs in order to establish a bottom in the asset markets. And once we form that bottom, we’ll be able to create the turnaround in consumer confidence that will once again drive opportunity.