U.S. Private sector job gains may be illusory – an opinion

http://www.bloomberg.com/news/2011-07-06/u-s-job-gains-in-private-sector-are-illusory-commentary-by-alan-tonelson.html

The writer here looks at some industries, such as health care, as not quite private but subsidized by government, to make his point that we are in worst situation than what we are told.

But that would also be the case of defense industries. These are the companies that make tanks, aircraft, missiles, rifles, etc. Some of them at least would not survive without government contracts and although a few others could be able to transition to the civilian products market, success is much less than guaranteed due to foreign competition. It is there where supply and demand apply. Let’s not forget that China, and perhaps other countries, unabashedly subsidize many of their civilian industries.

My conclusion is that the subject is open to argument and interpretation. The lines between government and private industry in the U.S. are at times blurried. But dissecting a precise separation is not, other than for the purpose of debate, paramount.

Nonetheless, I do not disagree with the writer’s view of “the race to the bottom.”

Advertisements