In
This Great Republic
In
this great republic of the United States of America, conditions
throughout the 20th century have been favorable due to large demand,
high wages and good profits, by reason of protective tariffs against
imports. The tendency has been for the monies of the world to
come here for investment, because of better profits. Foreign labor
and skill also came here for the sake of better pay than could
be obtained at home. These were but the operations of the same
Law of Supply and Demand. For decades, America has been the most
remarkable and prosperous country of the world due to the billions
of dollars for investment in capital, the growth in new housing
starts and the great demand for new products to improve the conditions
of life. But the height of this prosperity is passing, and we
are now on the downward slope. Nothing can hinder it except it
be war or other calamities in the other civilized nations, which
would throw the business of the world for a time to the nations
at peace. Nothing could be more shortsighted than the protest
against further expenditure for military spending in the United
States since such expenditures help to keep labor employed. Opposed
as Americans are to war, Americans are no less opposed to having
people starve for want of employment; and would risk the increased
danger of war. Let the debts of the world turn into bonds. Bonds
will be just as good as gold and silver in the great time of trouble
approaching (that is worthless!). `Ezek. 7:19`; `Zeph. 1:18`
Many
can see that global competition is the danger to the U.S.: consequently
laws have been passed that, not only stop the immigration of millions,
but provided for the expulsion from this country of all who do
not become citizens. Many see that under the law of supply and
demand labor will soon be on a common level the world over, and
they desire to prevent as much as possible, and as long as possible,
the degradation of labor in the United States, to levels in China
or India. Others are seeking to legislate a remedy-- one such
remedy is that manufacturers shall pay large wages and sell their
products at a small margin above cost. They forget that Capital
will go elsewhere to build, employ and manufacture--where conditions
are favorable, where wages are lower or prices more profitable.
But the outlook for the immediate future under present conditions
appears yet darker, when we take a still wider view of the subject.
The Law of Supply and Demand governs Capital as well as Labor.
Capital is as alert as Labor to seek profitable employment. But
Capital and Labor follow opposite routes and are governed by opposite
conditions. Skilled Labor seeks the localities where wages are
highest; Capital seeks the regions where wages are lowest, that
thus it may secure the larger profits. Machinery and technology
has served Capital graciously, and still serves faithfully; but
as Capital increases and machinery multiplies "overproduction"
follows; that is, more is produced than can be sold at a profit;
and competition, lower prices and smaller profits follow. This
naturally leads to committees for maintaining prices and profits,
called Trusts; but it is doubtful if these can long be maintained
except in connection with patented articles, or commodities whose
supply is very limited, or fostered by legislation which sooner
or later will be corrected.
But
just at this juncture a new field for enterprise and Capital,
but not for Labor, opens up. China and India are awakening to
Western civilization from a sleep of centuries --to an appreciation
of capitalism. We should remember that China's population is almost
five times that of the United States. Let us remember, too, that
many of these people are not uneducated, but people who generally
can read and write their own language; and that their civilization,
although different, is far older than that of Europe--that they
were civilized, manufacturers of china wares and silk goods when
a majority of Great Britain's population was still uneducated.
We should not be surprised, therefore, to learn that Capital is
seeking engagement in China to utilize the skill, energy, low
cost labor, patience and submissiveness of those millions accustomed
to toil and frugality.
Capital
sees large rewards in a land where labor can be had from eleven
to fifty-seven cents per hour for each employee-- accepted without
a complaint, and with thanks. Considerable capital has already
gone to China, and more awaits concession in India. Who cannot
see that it will require but the short space of a very few years
to bring the whole business world into competition with these
millions of already skillful and apt-to-learn peoples? If present
wages in Europe are found insufficient; and if because of previous
over inflated wages in the United States and the (as compared
with Asia) extravagant ideas and habits cultivated here, we consider
present wages "starvation wages" (although they are
many times what is paid in Asia), what would be the deplorable
condition of labor throughout the civilized world after thirty
more years; and after all the labor of the world has been brought
into close competition with the cheap labor of the far East? It
would mean not only fifty-seven cents an hour as pay, but in addition
six people for every job at even that pittance. The press years
ago noted the removal of labor intensive manufacturing jobs from
the US to China and India, and since then other manufacturers
have gone there, in order to secure a field of cheaper labor and
of consequently larger profits.
According to USA Today, "The decline in manufacturing jobs
has swiftly accelerated since the beginning of 2000. Since then,
more than 1.9 million factory jobs have been cut — about
10% of the sector's workforce. During the same period, the number
of jobs outside manufacturing has risen close to 2%. Many of the
factory jobs are being cut as companies respond to a sharp rise
in global competition. Unable to raise prices — and often
forced to cut them — companies must find any way they can
to reduce costs and hang onto profits.
Jobs
are increasingly being moved abroad as companies take advantage
of lower labor costs and position themselves to sell products
to a growing — and promising — market abroad. Economy.com,
an economic consulting firm in West Chester, Pa., estimates 1.3
million manufacturing jobs have been moved abroad since the beginning
of 1992 — the bulk coming in the last three years. Most
of those jobs have gone to Mexico and East Asia. "1
"As
the U.S. economy slides inexorably toward recession, China continues
to boom. A major reason for this stunning divergence in fortunes
is the ongoing transfer of millions of American manufacturing
jobs to China."2
"...,
Chinese workers remain among the lowest paid in the world. The
average total labor compensation for a Chinese manufacturing worker
is 57 cents per hour, with many making far less than that, benefits
included."3
"An
average Chinese wage of $0.57 per hour -- or $104 per month --
is about 3 percent of the average U.S. manufacturing worker's
wage, according to data collected by Banister. "Equally as
striking, regional competitors in the newly industrialized economies
of Asia had, on average, manufacturing labor costs more than 10
times those for China's manufacturing workers, and Mexico and
Brazil had manufacturing labor costs about four times those for
China's manufacturing employees."3
The
average hourly wage for a worker in a rural setting was $0.41
per hour, and migrant workers are making even less than that."3
Many
years ago, a German Emperor evidently saw this "commercial
war" approaching; he symbolically represented it in the celebrated
picture drawn by an artist under his guidance and presented to
the Czar of Russia. The picture represents the nations of Europe
by female figures clad in armor standing in the light shining
from a cross in the sky above them, and at the direction of an
angelic figure representing Michael looking to a black cloud arising
from China and floating toward them, from which hideous forms
and faces are developed by the flashing lightning. Under the picture
are the words: "Nations of Europe! Join in the defense of
your Faith and your Homes."
The
significance of this bringing together of the ends of the earth
is that British, American, German and French have as competitors
people who were excellent customers; competitors whose superior
facilities have not only driven them out of foreign markets, but
have invaded their own home markets; competitors who thus take
labor out of the hands of their workmen, and deprive them of luxuries,
and even take the bread out of their mouths by reason of wage
competition. No wonder, in view of this, that the German Emperor
pictured the nations of Europe appalled by a specter rising in
the Orient and threatening the destruction of civilization.
But
it cannot be checked. It is a part of the inevitable, for it operates
under the law of Supply and Demand which says, Buy the best you
can obtain at the lowest possible price--labor as well as merchandise.
The only thing that can and will cut short and stop the pressure
now begun, and which must grow more severe so long as the law
of selfishness continues, is the remedy which God has provided--the
Kingdom of God with its new law and complete reorganization of
society on the basis of love and equity.
We
see then from man’s perspective the present outlook is dark
and gloomy, even hopeless. But mans extremity will be God’s
opportunity. He will establish his kingdom upon the ruins of this
present world and its failed political, economic and religious
systems. In that day; "the desire of all nations shall come."
"In the last days it shall come to pass that the mountain
of the house of the Lord shall be established in the top of the
mountains."
"At
that time they shall call Jerusalem The Throne of the Lord; and
all the nations shall be gathered unto it, to the name of the
Lord, to Jerusalem: neither shall they walk any more after the
stubbornness of their evil heart." `Hag. 2:7`; `Micah 4:1,2`;
`Jer. 3:17`
The
Kingdom of God is to be established, by which all the families
of the earth are to be blessed, and a new and permanent and far
better order of things set up, instead of the admittedly faulty
one of the present and past. If the dread events of the near future
are already casting their shadows before them and causing fear
and trepidation in the world, those who look from "the secret
place of the Most High," see a silver lining to the clouds
of trouble which may well cause them to look up and lift up their
heads and rejoice that their deliverance draws nigh, and also
relief for all bought with the precious blood, when "the
Sun of righteousness shall arise with healing in his beams."
`Mal. 4:2`
The
prophets foresaw God’s kingdom as a kingdom of health, with
harmony between man and his fellow. They foresaw a kingdom of
peace, with total economic security. Isaiah spoke of all these
promises: They shall not hurt nor destroy in all my holy mountain
(11:6-9); they shall beat their swords into plowshares (2:4);
mine elect shall long enjoy the work of their hands (65:21, 22).
The
prophets foresaw a kingdom with harmony between man and animal;
natural enemies of the earth will dwell together in complete peace
and harmony; and formerly harmful creatures will no longer be
hurtful or dangerous.
The
wolf also shall dwell with the lamb, and the leopard shall lie
down with the kid; and the calf and the young lion and the fatling
together; and a little child shall lead them. And the cow and
the bear shall feed; their young ones shall lie down together:
and the lion shall eat straw like the ox. And the sucking child
shall play on the hole of the asp, and the weaned child shall
put his hand on the cockatrice’ den. They shall not hurt
nor destroy in all my holy mountain: for the earth shall be full
of the knowledge of the LORD, as the waters cover the sea (Isa
11:6-9).
They
foresaw a kingdom of peace with harmony amongst men and no more
war: And he shall judge among the nations, and shall rebuke many
people: and they shall beat their swords into plowshares, and
their spears into pruning hooks: nation shall not lift up sword
against nation, neither shall they learn war any more (Isa 2:4).
They
foresaw a kingdom of total economic security; mankind will reap
the rewards of their labor and live in security without fear of
loss: they shall build houses, and inhabit them; and they shall
plant vineyards, and eat the fruit of them.... mine elect shall
long enjoy the work of their hands (Isa 65:21-22).
The
prophet Micah (Micah 4:1-5) reveals the same truth concerning
God’s promised blessings that will come upon mankind after
this day of trouble. It will be a day of health and restitution
for all men who will walk in the paths that God directs. Under
Messiah's Kingdom wars will cease forever. In this blessed day
there will be no more landlordism, instead everyone will own there
own homes and rejoice to eat of the fruit of their own planting.
The
most momentous event of earth’s history is the establishment
of God’s Kingdom among men, in the hands of our Lord Jesus
and his selected joint-heirs, the overcomers of the Gospel Church.
God’s panacea for the sin and misery and dying of the groaning
creation is this Kingdom. All who trust implicitly for the fulfillment
of the prayer our Lord himself taught us to offer - ’Thy
Kingdom come, Thy will be done on earth as it is done in heaven’—must
feel the liveliest interest in the fulfillment of their request--
if they prayed from the heart; Thy Kingdom Come.
1.
U.S. Manufacturing Jobs Fading Away Fast By Barbara Hagenbaugh,
USA TODAY December 12, 2002
2.
Fix Economy with Manufacturing Jobs By Peter Navarro Detroit Free
Press, January 16, 2008
3.
Good Luck Competing Against Chinese Labor Costs By Richard McCormack,
Manufacturing & Technology News, May 2, 2006, Volume 13, No.
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