A Great Disappearing Act

It's hard to imagine, but the United States could be on the brink of losing everything that makes it the land of opportunity. Some of what makes this country such an opportunistic place is in the hands of the ever so growing foreign trade deficit. Globalization has become the dominant force for society and the world is becoming tinier and smaller with every new device that allows for people all over to become even more tightly entwined with each other. In the midst of globalization's prime, the United States seems almost dependent on foreign trade with China and other "cheap producer" countries that allow for big businesses at home to sell at rock bottom prices. Companies such as Wal-Mart have become the pioneers of this competition. They have set the rules that other businesses in the U.S. must now learn to follow if they want to compete. Supporters claim that this move towards increased offshore manufacturing could in turn allow for Middle America to spend more in other markets. This increase in spending would help our markets flourish, create new jobs, and overall boost the economy. However, what if the exact opposite were true? What if this increase in offshore manufacturing was actually hurting the very heart of the American dream and hurting U.S. employment?

During a report from the PBS program, that delved into the issue of offshore manufacturing, "Is Wal-mart good for America?" Economist Brink Lindsey from the Cato Institute states that, "Trade policy, or trade flows, one way or another, don't have an effect on overall employment numbers. They affect the kinds of jobs we have." This could mean that the kinds of jobs Americans are going to be applying for tomorrow will be very different from what they would have been trying to apply for in the past few decades. How will they be different? What kind of qualifications will be needed for these jobs? If we are eliminating blue collar jobs, that majority of Middle America has been relying on for the last three generations then what kind of jobs will take their place? The jobs that are being eliminated amidst this "trade flow" are the traditional factory and manufacturing kinds of jobs that middle class small towns thrive on. What will become of those "small towners" who do not go to college and aren't able to compete for these new kinds of jobs? What about the high school graduates who don't go off to school, where will they be working?

An alarming answer to that question is, that Middle Class or "Blue Collar" workforce might have to be forced to drop down to poverty status in the United States. These people who once worked in jobs that are now being replaced with foreign cheap labor, will have to find jobs that might not live up to their means of living before. These jobs could include, ironically, working at Wal-mart or other retail giants who aggressively promote foreign labor and production. These jobs also significantly pay less than what most middle class Americans are used to seeing in their paychecks.

However, many predicted that lower prices, now available because of offshore labor, will actually be the best thing that ever happened to the lower and middle classes. According to W. Michael Cox, chief economist of the Federal Reserve Bank of Dallas in an article by the New York Times ''They can stretch their dollars and afford things they otherwise couldn't.'' There is no doubt that with price decreases many Americans flock to these big retailers to save a couple extra bucks. However, when one is forced to work for lower wages, this saving will be nothing compared to what they lose in their paychecks. These retailers in the end may actually be hurting the lower and middle class because they are forcing their jobs out of business due to cheap labor overseas.

So the question now is where will the Middle class go? How will they fend if their jobs are continually on the brink of being cut? They could either float up to the top or sink to the bottom. This ever increasing financial gap could have a huge impact on the American lifestyle. Even more so now than before with the financial crisis at hand, will the lower middle class have trouble staying in that bracket. People don't want to spend their money because of the financial instability in the markets. This stalemate of spending could freeze up the economy even more, therefore reassuring a deep recession.

This situation also impacts an ideal that serves as the main foundation of the American people: "The American Dream." There was one point in history where everyone flocked to the United States because it was a vessel of opportunity. One extremely important factor about this country is that you could basically start out with nothing and end up becoming a millionaire. This "rags to riches" kind of opportunity could soon be threatened with the idea of a shrinking middle class. If the gap between the rich and poor steadily increases, then the poor will have nowhere to run. They will have no opportunity to climb up the financial ladder because the essential second step will not be there. The poor will have to push farther and harder in order to reach economic status only dreamt of. Realities such as these exist in countries that the United States considers itself much more advanced. These are countries in which terrorism, and political uprisings are not a far cry from home. It is hard to believe that the U.S. might well be in this kind of predicament in the near future. A predicament where the poor have no opportunity and the rich dominate seems absurd.

How can we prevent such an event taking place? How can the U.S. stop the shrinking middle class, the very important peace maker between the rich and the poor? Some would suggest decreasing the huge trade deficit created by free trade with cheap labor countries such as China. One way is to stop foreign labor efforts and to produce more "home-made" products. However, this is sharply against the needs of big businesses that want to increase their profits, spend less on labor, and compete against other big businesses that are doing the same. Perhaps stricter government regulations could be the answer.

Even if we do not see a decrease in the middle class anytime soon, there still is the possibility of there being none at all. That rises up many questions that will have to be answered by the next generation or perhaps the next president and this is a topic that should not be ignored.