Thursday, June 30, 2011

Death Of The Middle Class

 
The recession may have just complicated and compounded what was already occurring. Generally, jobs are disappearing where there's been a technological advance — "where a human was doing something, now a technology is doing it" — or a change in the way that organizations function, says Hallock. And not only are old-fashioned assembly line jobs on the decline, several white-collar office positions are also in jeopardy.
"There has been some long-term decline in middle-income jobs," says Harry Holzer, Georgetown University economist and co-author of "Where Are All The Good Jobs Going." "Specifically, it's good-paying production and clerical jobs that are disappearing."

Holzer is quick to say that though there has been "shrinkage," he remains confident that there are many good jobs in the middle — they may just look different.
New technology has gradually cut into many steady jobs that had previously been critical to the market. Clerical occupations are shrinking fast, as companies tighten budgets and easy-to-use software enables workers to do their own administrative tasks. According to data provided by Moody's, nearly 300,000 office and administrative support positions gradually disappeared in the five years before 2009, and the U.S. Bureau of Labor Statistics projects continued contraction throughout the next decade.
Because over 20 million people count on clerical work, the vanishing act is a major blow to the middle, but there are other more niche positions that are also on the chopping block. Internet travel sites have essentially erased the need for travel agents, an occupation which declined by 14% and 12,500 jobs in the last five years for which data is available. Similarly, proofreaders — generally highly skilled workers with a four-year college degree — were once vital to publications and communications departments. These positions shriveled by 31%, likely due to advanced software, Holzer says.
"Having a college diploma doesn't make you immune to the shifts in the labor market," notes Holzer. "It is a testament to the churning in the U.S. market."

[Source]

This shift has been occurring for decades, and nothing has been done to stop it because the losses of the middleclass are the gains of the rich.  Any mention of this is labeled class warfare and dismissed.  Well it's like the saying goes, "it is class warfare, and the rich won."  We're in the middle of a recession and big corporations are making as much money as they ever have.  How is that?  They cut jobs, pay people less money to do twice the work, use cheap labor in other countries, and pay as little to no taxes, all the way to the bank.

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