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Hello Chinese exports, good-bye U.S. jobs
CNN Money ^ | 06/09/2010 | CNN Money

Posted on 06/09/2010 9:27:54 PM PDT by The Magical Mischief Tour

NEW YORK (CNNMoney.com) -- For millions of unemployed Americans, the news about China's surging export market isn't necessarily cause for celebration, even if it might be a harbinger for global recovery.

Chinese exports surged 50% in May from a year earlier, easily trouncing expectations for a 32% increase, according to a Reuters report citing a leaked statement from a Chinese official.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Government
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To: Myrddin

I got to see the tape room for one Hughes Aircraft facility in the early 80’s.

Imagine a wall that is 30 feet high, covered with three stories of IBM vacuum column 9-tracks. Each row of tape drives had, I dunno, 10 drives. This whole thing was underground in SoCal.

Along one wall, there was a HUGE light board with numbers set up in columns and rows. The “runners” would look up on the board to see what tape number to pull - and off to the stacks they’d run. Some jobs were asking for multiple tapes, and the runners who were smart (so I was told) would wait to see all the volume numbers for a job go up on the board before they’d take off. Woe unto the runner who would mount only some of the tapes needed by a job. The operators wanted all the tapes for a job to be hung at once - ie, to not get into a situation where one tape for a three-tape job was hung, and there were no available drives to hang the other two until other jobs completed.

I guess they had about two dozen runners to make sure that tapes were pulled, hung and put back into the racks with sufficient dispatch. That’s all these kids did - pass a security clearance and run 9-track tapes up and down the aisles and stairs. They didn’t do much else other than run, really. Since the place ran 7x24, there were something like four shifts of these runners - three shifts and spares for holidays, weekends and sick days.

Then there were operators on consoles who would direct the OS to mount/unmount the tapes, let the user’s job proceed, etc. I guess there were about six of those guys, all sitting on chairs with wheels, whizzing up and down a row of console 3270’s tied into the multiple mainframes. Again, three shifts’ worth of people were needed.

I never did get a straight answer from the HAC people as to how many computers tied into this tape room. “You don’t need to know,” was their answer. I’d never seen a larger computing installation before, and I’ve never seen a similar one since. All those people are likely gone now, replaced by systems like the robotic tape library you detailed. It was a most impressive installation, and trying to describe it to younger people in computing now just gets a puzzled look. Trying to describe what it was like to submit a job that required operators mount drives/tapes/etc for you — kids today just have no concept that you could submit a job and get results hours or even a day later.


21 posted on 06/10/2010 2:44:25 AM PDT by NVDave
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To: wac3rd
"Just think, if unions hadn’t driven up the price of labor so much and if the enviro-wackos hadn’t crushed the energy, mining and manufacturing sectors (factories), we could compete..."

Sure, at Chinese manufacturing wages and Chinese levels of pollution - $134 a month, and environmental-related health cost above 10% of GDP.

Reducing US wages and environmental protections to anything remotely resembling Chinese standards is not a practical solution to the problem of international manufacturing competitiveness.

22 posted on 06/10/2010 5:52:17 AM PDT by M. Dodge Thomas
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To: PugetSoundSoldier

Excellent post. And the flip side of that is that even if protectionist measures increased the cost of domestically produced textiles (for example) the point where employers could pay textile workers even the minimum wage, most such textiles would be produced in highly automated factories providing only a fraction of the jobs of their predecessors, and most of those would be semi/ highly skilled jobs for which displaced American textile workers are not qualified.


23 posted on 06/10/2010 5:58:48 AM PDT by M. Dodge Thomas
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To: M. Dodge Thomas

My wife is a mid-level manager at a “US” F100 company which has been rapidly outsourcing increasingly skilled work for a decade. Increasingly, she communicates internationally with other managers in her area at approximately her level of responsibility via teleconferencing and similar techniques, and they in turn are increasingly “managed” by the same methods.

It’s very clear to people at her level that as the company becomes increasing international the next step is to start outsourcing the work of the next two layers of management above her - basically, the people who been directing the outsourcing efforts!

These people - who are at the lowest level of the corporate hierarchy were you start to receive really lavish rewards - are just starting to wake up to the fact that *they* in turn are subject to having their functions outsourced to highly competent executives (mostly Indian, in this case) who work for perhaps 25% were 30% of the total compensation packages of their US counterparts.

I’m pretty cynical about the extent to which our elected representatives and the people who are their major contributors care about the current loss of jobs to outsourcing - but the consensus seems to be that the majority of upper-middle-class jobs in this country are outsourceable over the next 20 years, and I’ve seen estimates that it may be as high as 70%.

And when *those* people start losing their jobs in large numbers, politicians are going to have to start paying attention.


24 posted on 06/10/2010 6:22:12 AM PDT by M. Dodge Thomas
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To: wjcsux
As soon as there becomes an average chinese citizen then we will have to find another learning class to manufacture tomorrows trash for us. When was the last time you had something that worked for more than 6 weeks? I did the calculations for something that I love to do. BBQ. Over a course of 3 years I bought 4 weed eaters that I thought would give me the right cut. Massive fail. Here is why, I believe. They are made overseas in factories that use to buy our equipment for manufacturing the weed eaters. Our tool and die, to greater extent our engineering made the equipment that made the equipment. Now that they are growing in size of middle class they want to cut costs by creating their own tool and die but lack the technology of precision. I learned my lesson. Made in the USA means a lot more than made in the USA, it means conceptualized, designed and tooled to perfection by something that was conceptualized, designed and tooled to perfection... the average United States citizen. The cost of 4 chinese weed eaters = 2/3 the cost of an US weed eater made in Japan but my dad still has his after 10 years. One repair... the hoses and filter after they started putting ethanol in the gas. Designed failure.
25 posted on 06/10/2010 6:37:00 AM PDT by Skin Flintonian
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To: NVDave

My facility in San Diego has 5 floors with 110,000 square feet of
raised computer floor. What I described earlier was
the tape library supporting one of about 50 systems
supporting the business systems for PacBell in southern
CA. There is a similar facility in Hayward for the
northern half.
The original 9-track setup for just the small Amdahl
shop looked like an orchestra pit. The tape drives
were arrayed in a semi-circle with 6 levels. Each
tape drive had an electronic display for the tape
volume number needed. The operator consoles
were located where they could see all the drives.
The tape runners had to go to an adjacent room
to fetch the tapes. There were often 6 to 10
runners on duty depending on the schedule of
jobs to run.

It was time to automate that process. Thanks for
sharing your observation. That was a pretty large
facility.


26 posted on 06/10/2010 8:17:19 AM PDT by Myrddin
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To: Skin Flintonian

You are absolutely right! My sweetie had a hair dryer that was made by Sunbeam, someplace in Ohio if I remember correctly. It recently died. She bought it in 1987. The Chinese-made piece of crap that replaced it is not nearly as good. I hear about it all the time...


27 posted on 06/10/2010 9:05:16 PM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
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