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Monday, June 6. 2011Breadwinner jobs vs. service jobs
From a commenter at Mead's The Death of the American Dream II:
It's an interesting distinction, but I am not sure how well it holds up. In the failing old towns that I have seen, the main breadwinner (ie importer of $) is via government in all of its redistributive efforts, such as Social Security, Medicare, welfare, government jobs, government job programs, etc.
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You are correct about the other kinds of $ import sources. there are other importers such as; regional medical centers, tourism, local government borrowing for construction. However, the breadwinner income tends to be higher with more disposalable income. Also, a factor in a community's cash flow is the drain of federal -state taxes, loans-mortgages and insurance on families' income. (Half of my income goes for these three items.) A growing community is one where
$ imports are greater than $ exports. Blick I tend to go all vitriolic on this stuff, sorry.
Define community. You? You and your wife? Them plus friends? Plus neighbors? The hamlet,village, town? Why not the state, or the country or the continent? My point is that these comments are just another impossible attempt to analyze and "plan" (God I hate that word and concept) the economy. Next "American prosperity completely depends on the health of our breadwinner businesses, and policymakers should be focusing solely on policies that will help those businesses succeed." here's my take. "American prosperity completely depends on the business health of the individual, and policymakers should all FO & D and individuals should hunt policymakers down, tattoo them pink and deport them to ANWR, naked." Sorry, I forgot to mention...
After tattooing "policymakers" pink and expelling them to the Arctic naked, they should be sterilized, their property seized and the Germanic concept of Sippenhaft applied and their immediate families treated the same way for the obvious reasons that their genes are defective. And all of them should be forever banned from ever receiving government money in any form ever again. I can run with Fred most days. But I confess it took a minute to figure out "FO & D."
But Blick is correct. The community, no matter how large or small, has to operate in the black in order for there to be prosperity. It is only by making a profit do you produce more than you use. We have the absolute worst political class. They really have no faith in their citizens at all. We, the people would do just fine if we were allowed to. The author has made a very distinct point which should be debated. But Professor Mead does not deal in elaborate, specific plans. He broad brushes to illuminate threads and currents in our society.
This is akin to the Harvard history professor dinging Palin for not delivering an explanation during a pass by sound bite the way it would be required on a research paper. Ah nits! They are a scourge, but don't worry. There are plenty of nitpickers around. "I wouldn't say that town was poor. But if you could buy a Greyhound bus ticket with a food stamp it'd be empty." Tim Sample
Hi AVI,
I posted a comment on your recent post about sports psychology. Haven't seen any responses. For you folks who haven't met AVI I commend you to his blog. Not very prolific, but thought provoking. Exactly why I haunt you kind and knowledgeable people who hang around here. Regards, Roy I think this is a great distinction. As for BD's comment, "In the failing old towns that I have seen, the main breadwinner (ie importer of $) is via government in all of its redistributive efforts, such as Social Security, Medicare, welfare, government jobs, government job programs, etc."
That's true. It's also true that those towns are dying. Redistribution efforts may slow the bleeding, but it doesn't stop it. Those towns will be ghost towns, or as often happens in the midwest, they will reach a new equilibrium, a lower population that the "breadwinner" (often agriculture) can support. I lived in the Midwest in the 70's in a town where the bread winner jobs of GM were disappearing. At the same time there was a large printing company in town, they printed many of the magazine we all know and read and other things too. Their facilities were in poor condition and they needed to upgrade. But the local printers unions were squeezing then to death with average pay for a printer at about $23 and hour (in 1978!!). They asked for some guarantees if they agreed to build a new modern facility that the unions would agree to not strangle them out of business. The union members were adamant that they wouldn't compromise. So the company moved to South Carolina. All this while huge old GM factories were being razed to the ground and the largest large appliance manufacturer in the U.S. moved their facilities from this town to another country. The unions made those ghost towns.
I've read of this distinction/categorization since childhood and it has always seemed one that is too fuzzy to be of much use.
It is clearer on isolated resource-oriented communities such as mining or farming towns. Yet, in the real world, every economic actor serves or is served by a web of other economic actors. As noted about, profit is the more fundamental criterion - if you make a profit you're creating wealth that you can invest or consume. A geographic area can have a net profit or a net loss. Add government transfers as taxes and subsidies and entitlement payments and you leave economics and enter politics. "Small businesses in general are service businesses" Never come across a single handed farmer, tool maker, carpenter or bricklayer?
And if you have never heard of the City of London or maybe even the New York Stcok Exchange then I guess you will never understand how much goddam cash "service" businesses can generate. Utter toss not worthy of this web site. Eco-Dunce! |