DAVID BRANCACCIO: Welcome.
I thought I'd heard it all in my long years covering the shifting world economy. But I came across a pair of numbers that stopped me in my tracks the other day.
Way back in the depths of the recession in the early 1980's, how many people were worried about losing their jobs then? A measly 13 percent.
Compare that to 46 percent. That's the number of people who worried about getting laid off at the height of the great 1990s boom when the economy was supposed to be cruising along so well.
This is the great economic shift that we've been training now's cameras on this year: the greater degrees of risk you and I and many American families now live with.
The story of our concerns and fear over our jobs doesn't get much from the media attention.
A fellow named Greg Spotts set out to fix this and decided to go around the country with his own video camera. He talked to people about disappearing jobs. For over six months, he traveled to nineteen burbs from textile towns in North Carolina to aerospace regions in the Northwest. His interviewees: blue collar families, both union and non-union. He also talked to white collar and management types. His question: what happens when the jobs go?
When the journey was done, spots put it together in a documentary called AMERICAN JOBS that he's been showing to communities, campuses, and even some politicians who are taken aback by the sense of betrayal expressed by folks in the film.
Gregg, welcome to NOW.
GREG SPOTTS:
Thanks for having me.
BRANCACCIO:
So, you went out there. You criss-crossed America. But let's get right to it.
You're in Kannapolis, North Carolina where Pillowtex Textile Company has shut its doors. What's it like these days?
GREG SPOTTS:
A lot of people are suffering very quietly in their homes. People are starting to lose their cars. They're starting to worry about being foreclosed.
VIDEO FROM AMERICAN JOBS:
WOMAN: We're facing the ultimate. I don't want to think it, unless he gets a job or me - we're gonna file bankruptcy."
MAN: My mental state right now, sometimes I feel like I just plum lost it. Really. I mean, it's just a mess. It really is, it's just a mess."
END VIDEO
GREG SPOTTS:
And many of them are going around from church to social services group trying to raise money for their next dose of medicine.
VIDEO FROM AMERICAN JOBS:
"What kind of medicine do you take?"
WOMAN: Well, I take blood pressure bill, I'm on Synthroid everyday. I have to have that to live. You know I go beg my doctor in Concord if I'm close enough to Synthroid running out to give me a couple to do me till I can get some or a little sample pack.
WOMAN 2: I have the medical insurance and the bankruptcy coming out. Plus the regular taxes you have to pay out of your paycheck. So after all that's said and done, I probably bring home $50 dollars every two weeks.
END VIDEO
BRANCACCIO:
After talking to factory workers in North Carolina, Greg Spotts flew to Seattle to speak with laid off tech workers who were experiencing the same struggles.
GREG SPOTTS:
Just a few years ago we were being told Americans are going to move up the value chain. We're going to be in computers.
And if some, you know, low end manufacturing jobs go overseas, that's just part of our own migration up. But in fact the low wage countries have targeted every job up and down the value chain. India and China want to develop biotechnology. They want to develop the next Wi-Fi.
They want to develop the next high definition television standards. They're just not trying to pick of sort of the crumbs that we're going to leave behind. And this is a whole new challenge that we really haven't even started to address.
BRANCACCIO:
I mean, you see college educated middle class people seeing these effects. There's a part of your film where you're in the Pacific Northwest. The company is WatchMark. And who do you talk to?
GREG SPOTTS:
Myra Bronstein.
VIDEO FROM AMERICAN JOBS:
MYRA BRONSTEIN: The head of human resources said well the reason you're here today is because, um, there are cutbacks and you are effected by these cutbacks. And the entire QA team is being outsourced to India. We're given you letters in your packets that show a termination date in your future because you are expected to train your replacements. And they will be flying in over the weekend and they will be here on Monday.
END VIDEO
BRANCACCIO:
So, Myra has to train her own replacement?
GREG SPOTTS:
Yeah and this is a knowledge transfer taking know-how that was generated here and sending to a third party company in India. So, we're not just losing those 17 jobs. We're losing the unique competitive advantage that we used to have in that kind of software. And we're transferring it to our future competitors who will develop their own products with that know how.
BRANCACCIO:
Typically in this outsourcing discussion you think of a U.S. based company perhaps hiring a cheaper worker in say India or China. And then they have to fire the person in the United States. But there is a quite a wrinkle on that in your film.
You're in the Orlando area. It's Lake Mary, Florida. And you're talking to some former-- what Siemen's workers?
GREG SPOTTS:
Uh-huh
BRANCACCIO:
And the group has been shocked to find out what?
GREG SPOTTS:
They've been shocked to find out that they've been replaced at their own desks by low wage Indian programmers who have been brought from India to the US.
BEGIN VIDEO:
MAN: They took my job, Pat's job, they took everybody's job and got rid of us but replaced us with this outsourcing firm here in this country. So that's not a lay off or outsourcing, it's basically a job replacement. So we were replaced.
WOMAN: Oh, replaced to the chair. I mean you can call my old telephone number in Lake Mary, Florida and you'll get my replacement. My Indian replacement is here in the United States sitting at my old desk and answering my phone.
END VIDEO
BRANCACCIO:
So, people from other countries come to the United States. And they can stay in those positions?
GREG SPOTTS:
They can stay for quite a while on a non-immigrant path. Opposing these types of visa is not being anti-immigrant. These are guest worker visas designed for people the come in and work. And they're being paid an Indian wage scale sometimes.
BEGIN VIDEO:
"They must gain knowledge transfer and that's where these Visa programs have come into play. They're allowed to come into this country. They're allowed to make Americans train them so they can move this work abroad."
END VIDEO
BRANCACCIO:
Greg. Maybe you're overstating the effects of this outsourcing. That it's essentially a drop in the bucket. I was looking at government figures, Bureau of Labor Statistics, tallied up the figures for 2004, 16,000 jobs. Terrible if you're one of the 16,000 but not much in the grand scheme of the huge American labor pool.
GREG SPOTTS:
Oh, it's more than ten times that.
BRANCACCIO:
You think the government's statistics are wrong?
GREG SPOTTS:
The government actually refuses to compile accurate statistics on service jobs. The statistics were designed for a time to try to figure out all the different kinds of manufacturing when we were a manufacturing-centered economy. So, the Labor Department will count how many jobs have been lost in leather goods versus cotton made goods.
But they have no means at this point to accurately count job movement in services and in high tech services. So, we have to find other ways to count it. For example, you can look at the financial results of the Indian outsourcing companies.
There's a million people in India doing outsourcing work for foreign companies. So, most of that work came from the United States. We don't know if there's a one to one relationship in terms of the jobs lost versus jobs gained.
But that's one indication. Another indication is that the unemployment rate for computer scientists in this country went from less than one percent four years ago, to six percent now. It's higher for computer scientists with engineering degrees than for the general population.
BRANCACCIO:
But of course, that's at the same time as the internet bubble collapsed. So, it's not just that unraveling the great high tech boom coming back down to earth?
GREG SPOTTS:
Well, people who are unemployed programmers tell me that there are no openings for American citizens in the entire tech industry right now. That you can send out 500 resumes. And not-- you can't get one call back.
One of the challenges is that there's so much money to be made in off shoring the production of software that the software industry is working very, very hard to perpetuate this myth that we have a talent shortage and that we need to bring in talent or go over there looking for talent. But if you go to communities like Seattle, like Palo Alto, Orlando, you will see whole gated communities where half the houses are for sale. We do have evidence that there's a huge erosion in that type of job that was just the best job you could have had only a few years ago.
BRANCACCIO:
As we're talking the machinery of Congress is gearing up to actually, I think the term is, liberalize America's trading rules to expand NAFTA, essentially, something called CAFTA. This would be five more countries in Central America plus the Dominican Republic that would also be allowed to engage in free trade with the United States. That has you concerned. You've written a whole book about it, CAFTA and Free Trade.
GREG SPOTTS:
It has me very concerned. When NAFTA was being considered in 1993, it was really a new kind of experiment with a regional trading block that mixed a very affluent country with Mexico, a very poor country. There were differences of opinion on how that might pan out. But we now know that the result was a massive movement of about a million jobs lost here and put in Maquiladoras across the border and Mexico.
BRANCACCIO:
Yeah, the factorIES just south of the border?
GREG SPOTTS:
Yeah and those people are making a dollar an hour. They are not becoming, you know, consumers of American products. We have all this experience.
And yet now we're prepared to push NAFTA five more countries south plus the Dominican Republic. And we haven't made one adjustment based on what we learned about how it works when you integrate these radically different economies. So, I'm concerned about the fact that the gross national product of the five Central American signatories of CAFTA is less than the gross state product of Kansas.
BRANCACCIO:
Of Kansas?
GREG SPOTTS:
There is so little buying power in these countries to buy American made products.
BRANCACCIO:
Do you see globalization as its now constituted as an inevitable process?
GREG SPOTTS:
No, I don't see it as inevitable. I think technology is making the world a smaller place, but global commerce is governed by rules. And there are new rules of the road that were written by politicians and lawyers to benefit large, multi-national companies. And they weren't written to benefit workers. And I think there's different ways those ruled could be written. And I think we need to open a dialogue as to what the alternatives might be.
BRANCACCIO:
Greg Spotts. director of the documentary AMERICAN JOBS and author of the book, CAFTA AND FREE TRADE: WHAT EVERY AMERICAN SHOULD KNOW. Thank you very much.
GREG SPOTTS:
Thank you.
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