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Unfair Advantage Ironically, due to the current economic crisis and technology, many of my classmates who went on to college are the ones in financial trouble. One of the smartest and prettiest girls in my school, a few years younger than I am, a graduate of an elite small college in New England, is now unemployed and lives in the woods of rural Hawaii, almost a hermit. She is waiting to be old enough to collect Social Security and Medicare. Once President Nixon opened trade with China, jobs flowed overseas as our dollars helped China build new factories. As China built massive factories for low-wage workers, highpriced laborers in the United States were no longer needed. Middle-management positions for college graduates also began to disappear. Not only are low-wage jobs flowing overseas, but technology is also eliminating high-paying jobs. Technology is a growing reason for job security to be an oxymoron. In the 1920s, over 2 million Americans worked for the railroads. Today, railroads operate efficiently with fewer than 300,000 workers. Fewer workers mean increased profits for the owners of the railroads, owners like Warren Buffett, who in 2009 paid $34 billion to buy Burlington Northern Santa Fe railroad. Advances in technology eliminated jobs, and the reduced labor costs translated to profits for the owners. Why did Buffett buy a railroad rather than a hot new technology company? The answer is simple: steady cash flow. Jobs will continue to be lost because American workers are paid 40 times more than the lowest-wage workers in the world. This means jobs are not coming back. Even China, once a lowwage country, is in trouble as Chinese workers want higher wages. As Chinese workers earn more, jobs migrate to even lower-wage countries such as the Philippines, North Korea, Kyrgyzstan, and Indonesia. With breakthroughs in technology, it is the owners of businesses who win and the employees who lose. Even in Silicon Valley, where much of the new technology is created, manufacturing 119

Profile for Jamiel Cotman

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Profile for jfcotman
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