America: The Third World

As a college student, it is not uncommon to hear fellow classmates, and even friends and family, to make offhand comments about how hard it will be for the new generation of college graduates to find a job. What is happening in America? It is like the country is regressing from its previously developed status. How America is Turning into a 3^rd World Country in 4 Easy Steps, by Thom Hartmann and Same Sacks, Why the Minimum Wage Shrinks, by Steve Breyman, and Why More Engineers are Loosing Jobs, by Janet Babin provide some insight as to why America is failing its labor force.

There used to be more protection for American labor, but most of that has been repealed at this point, which has destroyed America’s manufacturing base. America used to be protected by high tariffs on imports and strong government support, but the Reagan administration stripped away protective systems like Alexander Hamilton’s 11-point plan for American Manufactures and entered the United States into free-trade agreements as globalization spread (Hartmann & Sacks, 2012). Free trade agreements and cheap labor have significantly damaged America’s manufacturing base. American jobs have been outsourced to other countries with cheaper labor so that currently “only one-in-ten Americans work in manufacturing.” (Hartmann & Sacks, 2012). According to Hartmann and Sacks, “Over the last decade, 50,000 manufacturing plants in the United States have closed down and five million manufacturing jobs have been lost” (2012). Free trade agreements, private equity firms, and inflation have crippled wages in the last few years (Hartmann & Sacks, 2012). Minimum wage is an issue because inflation is making it shrink thanks to poor oversight from congress and employer’s unwillingness to raise wages (Breyman, 2012). Steve Breyman argues that a free trade system has no hope of solving this issue because there is no incentive for the market to do so. America has also switched to becoming the world’s largest importer of manufactured goods, when in the past it was the largest exporter of American goods (Hartmann & Sacks, 2012). This has lead to huge trade deficits. Now that the US is no longer a net exporter of manufactured goods, minimum wage is low, and labor protection has been significantly reduced. America is now a source of cheap labor that other countries can use. This is why Hartmann and Sacks feel they can say America is reverting to a third world country. The re-colonization of America with large foreign companies whose countries have higher minimum wages than the United States is becoming more and more common because outsourcing is cheaper for foreign investors than it is for United States manufacturers (Hartmann & Sacks, 2012). This will provide new jobs but they will be low paying jobs. Hartman and sacks blame Republican policy for these problems because “generations of labor law that produced minimum wage, a forty-hour work week, workplace safety laws, and child labor laws are all under attack by republicans in congress” (2012). All of these factors are steadily allowing the United States to become like the third world countries it exploits.

Rensselaer Polytechnic Institute is primarily an engineering school and unfortunately for the students here, engineers (as well as many other specialized labor sectors) aren’t guaranteed a job in the way previous generations were more apt to. It used to be that in times of recession engineers could generally still count on a job when others couldn’t, but know, according to an industry trade group known as IEEE, “engineers of all stripes are losing their jobs at a faster rate than other professionals” (Babin, 2009). This is primarily due to the factors that Hartmann and Sacks outlined, that are lightly summarized in Why More Engineers are Loosing Jobs. When the economy dips the first thing to go is often research and development, which happens to employ a lot of engineers. Recessions are yet another driver of the United State’s regression toward third world status, because it is so much easier for the remaining American companies to outsource labor. 

This is not an issue that will be cleared up with a very satisfactory level of expediency, especially since a lot of companies have already come to take advantage of America’s cheap labor. The only solution seems to be to strengthen regulations within the United States to protect its people. Unfortunately, the United States has made so many foreign agreements that it will not be able to protect its workers in the same way it once could because of free trade (and other related factors). America has a cheap source of skilled labor and RPI and its students will likely feel the effects of this as graduates enter the workplace. It is with this understanding that it would be wise for students to diversify and become as interdisciplinary as possible so that jobs skills don’t fall entirely into one department of employment that may be the first to go when times are tough.

References

Babin, J. (2009). Why more engineers are losing jobs. Marketplace.org. Retrieved November 15, 2012, from http://www.marketplace.org/topics/business/fallout-financial-crisis/why-more-engineers-are-losing-jobs

Breyman, S. (2012). OpEdNews Article: Article: Why the Minimum Wage Shrinks. OpEdNews. Retrieved November 15, 2012, from http://www.opednews.com/articles/Why-the-Minimum-Wage-Shrin-by-Steve-Breyman-120921-436.html

Hartmann, T., & Sacks, S. (2012). How America Is Turning into a 3rd World Nation in 4 Easy Steps. AlterNet. Retrieved from http://www.alternet.org/economy/how-america-turning-3rd-world-nation-4-easy-steps?page=0%2C3&akid=9674.29753.lrx_-y&rd=1&src=newsletter742846&t=9

Waiting to Switch

Time and time again there is a common idea bandy about by people while in discussions on the future of energy. Inevitably, some one (usually some one who wants business to continue as usual for as long as possible) always points out that the world will not just wake up one morning and all of the petroleum will be gone; they always point out how gradual the ride down will be on the peak oil slide. It just as common for you to see these same people religiously committing to the doctrine that petroleum production must continue so that there is fuel for the future transition to alternative (not necessarily renewable) energies. These two statements harbor an adequate level of truth to have a place in energy debate, but unfortunately they are also half-truths. Nothing in life is done without consequences; whether they are good or bad. A consequence to believing there is time to address these issues later happens to be the much debated fact of climate change. Such a topic deserves a moment of silence for our battered-but-unbroken, trusted brethren: science. Those who were actually truly qualified to comment (the professional scientists) were forced to debate the common citizens hooked to their intravenous links to denying political and economic media systems. The point is, just as the world’s stock of oil is in terminal decline, the use of it is fueling climate change. This is now a well-established fact. Will humans adapt in time? Michael Klare’s The Race for What’s Left: The Global Scramble for the World’s Last Resources, and Bill McKibben’s Global Warming’s Terrifying New Math look ahead and examine the coming transition.

The goal of global competitive capitalism is perpetual, unchecked growth. The nature of this race is defined by time, location, and available reserves. The only way win in a model like this is to ignore the long-term consequences of extraction in favor of short-term gains. In order to do this, it is in these petroleum centered thinkers best interest to keep everyone dependent on fossil fuels. This is the starting gun signaling the start of the race to extract the rest of the world’s petroleum reserves. Inevitably, everyone on the planet looses in some way, shape, or form if any group of people reach that finish line, but just before the finish line there will always be some level of profit incentive. The companies that are large enough to absorb others companies and take the most hits will continue to win until they get to the finish line (Klare, 2012). Luckily, this race is being at least partially redefined for a number of groups around the world by a “race to adapt” which rewards any group of people that adapts before everyone else (Klare, 2012). Despite this admirable and important new race, any net benefit that would be achieved is destroyed by even the smallest race for what’s left by any group. This is an all or nothing type of problem and solution. If even one entity continues business as usual, everyone eventually pays the price. In this way the race to adapt is impossible to win unless everyone enters the race to adapt and if they do it before time runs out. This is going to have to be dependent on overall social change, because there are no systems in place to prevent business as usual in this industry. The planet just does not care what type of economic policy maximizes monetary gain in a competitive capitalist system.

Bill McKibben puts all of this in perspective when he identifies three numbers that won’t add up in the planets favor (and by association, humans’ favor). The first of these numbers is 2 degrees Celsius (McKibben, 2012). This is the agreed upon amount that the atmosphere’s temperature can rise to without irrevocable harm being done. The second number of 565 gigatons, is the best estimate for how much carbon dioxide can be pumped into the atmosphere before atmospheric temperatures rise by more than 2 degrees Celsius (McKibben, 2012). The third number is 2,795 gigatons and represents the best guess of how much carbon dioxide could be pulled out of the earth in the form of finite fossil fuel reserves (McKibben, 2012). The last two numbers stress the importance of not waiting until the finish line to switch. At that point it will be way to late in terms of climate change to recover without damages. The most important point is that all of these numbers are not definite limits imposed by planetary rules; they are our scientist’s best guesses. So far climate change has done more harm at a faster pace than currently projected (McKibben, 2012).

            It is definitely no longer a question of “if”, but a question of “when.” What is worse is that there are currently no world agreements that commit all parties to a race to adapt or to cease the current race for what’s left. One country’s savings is another’s continued addiction. Where there is the possibility of some marginal gain, however short-term, there will always be fossil fuel extraction within the current system. How do you stop a race for what’s left? Looking far ahead is definitely a promising start, but there are no systems in place that encourage that foresight enough. What’s more important – the well being and continued survival of our species or a capitalist economy of perpetual growth? Of course the people who do not believe (believe being the important word to focus on) that climate change is occurring let themselves off the hook by choosing risk over precaution. For those who feel this way there are plenty of other negative impacts on humans to using fossil fuels without climate change. This addiction requires extensive rehab. This is not up to individual governments; this is up to the world. It is not too late yet, but it most certainly almost is.

References

Klare, M. T. (2012). The Race for What’s Left: The Global Scramble for the World’s Last Resources (First ed.). Metropolitan Books.

McKibben, B. (2012). Global Warming’s Terrifying New Math | Politics News | Rolling Stone. rollingstone.com. Retrieved from http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

Klare’s Conclusions

Michael Klare’s The Race For What’s Left: The Global Scramble for the World’s Last Resources raises a number of current and crucial issues that should not be downplayed or ignored. While the finish line is not quite in sight enough for industry and government to fully commit to defined, unencumbered change, Klare does a reasonably good job of showing his readers what is just around the corner. This was well described through out the book and Klare’s use of current events allowed for grim understanding that most readers could likely identify with as he highlights a number of things that are in the daily news. While this book has merit, I found it more informational than game changing. If this book was printed online without its hardcover and binding, I am not sure if it could be distinguished from any other news article out there accept for its length. If you did not watch any news the last few years this is the book I would recommend to catch anyone up on the world’s state of affairs towards resources. After reading Klare’s Blood and Oil: The Dangers and Consequences of America’s Growing Dependency on Imported Petroleum it is entirely possible to walk away with the impression that The Race For What’s Left: The Global Scramble for the World’s Last Resources is just an update of what has happened since 2005. It is not too forward to assume this because when comparing the two texts you very nearly get the impression that the two expand on each other. With this understanding this paper will examine Klare’s The Race For What’s Left: The Global Scramble for the World’s Last Resources in order to assess the value of the conclusion provided.

There are a number of similarities between the two books conclusions. Both Blood and oil and The Race for what’s left call for renewable high efficiency energy systems, say that tension over resources has the potential for war, and acknowledge that the resources discussed will run out eventually so a switch is inevitable. Both texts are also written with an exhaustive writing style that is helpful for memorization, but much less charming if the reader does not like repetition. The last significant similarity is that both books say that world social change will be required at some point in the future in order to be truly successful.

The primary difference between the two books is that The Race for What’s Left deals with more resources with more updated material. The information on rare earth elements and food production are arguable the most important additions because their exploitation is more to blame than their application. The Race for What’s Left cites a “race to adapt” (Klare, 2012, p. 227) that will ultimately determine who is left with the best standing in the world, but this is hardly a new idea or solution, and as Klare points out, it is already happening. Klare does not go into how countries can adapt as he did in Blood and Oil so people reading for solutions should go back and read Blood and Oil. There is no talk of “autonomy and integrity” (Klare, 2005) and not really any change made because all Klare does is redefine what people are racing towards. Blood and Oil also seemed more confident that the problems discussed could result in all out war. The Race for What’s left ends by refuting that when Klare’s last sentence of the book reads “it [the race to adapt] is not likely to end in war, widespread starvation, or massive environmental catastrophe – the probable results of persisting with the race for what’s left” (Klare, 2012, p. 234).

Both books have some level of value separately, but ultimately it would benefit readers most to read these two books together because the overall topic really is not that different. Updated information is definitely a valuable addition but it could be more effective with stronger calls for change and possible solutions that have not been thought of. The Race for What’s Left is much more informative than it is eye opening. Instead of calling for change it simply states that change is happening and who ever wins the race gets the most spoils.

References

Klare, M. T. (2005). Blood and Oil: The Dangers and Consequences of America’s Growing Dependency on Imported Petroleum. Holt Paperbacks.

Klare, M. T. (2012). The Race for What’s Left: The Global Scramble for the World’s Last Resources (First ed.). Metropolitan Books.

Peak Soil

            How long is it going to take for every item in the world to become a peak commodity? With excess population growth comes scarcity, so it is not surprising that a number of resources are being over depleted. Maybe the most important distinction at this point in human history is the newly adopted term “Peak” that was once only applicable to finite resources. Renewable systems that have the ability to operate indefinitely now have an expiration date because of over extraction do to various pressures placed on the earth by the human species. Due to these circumstances, cropland is now yet another resource the world is running out of. Is There Such a thing as Agro- Imperialism?, by Andrew Rice, African Farmers Displaced as Investors Move In, by Neil MacFarquhar, and The Race For What’s Left: The Global Scramble for the World’s Last Resources, by Michael Klare discuss how diminishing cropland has lead to such an intensely valued agricultural land frenzy.

            Food shortages are steadily becoming a larger issue for some countries due to the reduction in the amount of arable land from urbanization, desertification, population growth, topsoil erosion, and industrial expansion (Klare, 2012). All of this contributes to higher food costs and a race for the most arable area’s that are not exhausted. Many countries don’t have large enough arable lands to feed their populations like Saudi Arabia (Klare, 2012). Countries that do have arable lands like India and China are still looking for food producing land in other countries because there demand is greater than they are able to supply with their current holdings (Klare, 2012). The only two ways to increase food supplies are two create higher yielding crops or plant more (Rice, 2009).  Many advances have been made in yield, but more fields still need to be planted to keep up with the demand. In general, the most arable lands remaining tend to be in developing countries like South America and Africa (Klare, 2012). The leaders of those counties want business brought to them so a huge amount of land is leased by developing countries in exchange for money, infrastructure, and the promise of work (Rice, 2009). There are also two sectors attracted to this kind of business, either countries do not have enough arable land for planting and rent some abroad or private companies come in because they know it will be a lucrative business because everyone needs food (Klare, 2012). In both cases, there are a number of problems that could hurt the developing countries leasing the land.

            A lot of developing countries are loosely united because they are still growing and be structured so government definitions and local definitions do not always line up. Neil MacFarquhar says that “Despite their ageless traditions, stunned villagers are discovering that African governments typically own their land and have been leasing it, often at bargain prices, to private investors and foreign governments for decades to come” (2010). In many cases people are being pushed off their lands and very little of labor goes to the local workers who need it (Klare, 2012). A lot of the arable land is also being dried up by global warming so reserves are shrinking relatively quickly (Rice, 2009). Very little of the food developed in the developing countries will be consumed there so as populations continue to rise there is no guarantee that those leasing the land will benefit from the agreement in the long run. Developing countries are some of the fasting growing economies in the world so when they loan out their land there is much less for the increase in croplands they themselves need. The biggest conflicts around this issue currently are the resistance to locals being moved off their land (Klare, 2012). There is a pretty good chance situations like this will end in fighting.

            As with a number of natural resources available world wide, developed countries are constantly leaching off developing ones claiming that they can be more efficient because of their advances in technology. Unfortunately, there will be no one for developing countries to leach off of but their closest and generally poor neighbors. The situation will only get worse and worse as countries exceed the limits of their boarders to feed the growing giant within. This is where the idea of perpetual never-ending growth has to face brutal reality. Growth cannot continue forever especially at the speed it is currently doing so now. The world economy needs to be revamped and slowed down to protect the long-term functions necessary for continued human survival. Countries developing and “developed” should create security by looking inward instead of outward. It may seem promising to solve the problems cheaply abroad, but this type of system stretches the security of any nation that chooses it and will only end with the same protective global stabilization requirements that the United States has attempted to use to keep oil flowing in the middle east. Producing developing countries arable lands has the potential to make prices fluctuate on scales independent of any one nation or group of nations control. This is not acceptable when so many peoples lives are at stake.

References

Klare, M. T. (2012). The Race for What’s Left: The Global Scramble for the World’s Last Resources (First ed.). Metropolitan Books.

Macfarquhar, N. (2010, December 21). African Farmers Losing Land to Investors. The New York Times. Retrieved from http://www.nytimes.com/2010/12/22/world/africa/22mali.html

Rice, A. (2009, November 22). Is There Such a Thing as Agro-Imperialism? The New York Times. Retrieved from http://www.nytimes.com/2009/11/22/magazine/22land-t.html