How China Killed America’s Middle Class - And How Trump’s Tariffs Will Bring Jobs Back to the U.S.
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Summary
Two decisions we made in the last 50 years have destroyed our manufacturing jobs in the U.S. Fast forward to 2001, China enters the World Trade Organization, and within 8 years, 6 million more manufacturing jobs were lost in China.
Transcript
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Two decisions we made in the last 50 years that destroyed our manufacturing jobs in the U.S.
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Imagine in 1970, if you worked in China, do you know what the average employee made in China minimum wage?
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They made 50 wands per month, which is roughly $20.33 per month, which is roughly 8 cents an hour.
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So imagine Nixon is sitting there saying, let's open it up so we can start doing business in China.
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We do, they call it the ping pong diplomacy because now we can send our jobs and manufacturers over there.
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And this was the first time ever a U.S. president visited China.
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25 years, there was no communication between U.S. and China at all during that period.
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Fast forward, gradually jobs are moving, jobs are moving, jobs are moving.
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Then in 2001, December 11th, China enters the World Trade Organization within a span of 8 years later, 6 million manufacturing jobs goes over there.
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The rich got richer because they're like, listen, if labor to us is going to cost 50 cents an hour in China, it's costing us a bunch of money here.
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Remember how we talked about 1970, the ping pong, you know, and then they go in 2001, China come on in, World Trade Organization.
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In 1970, the average minimum wage in China is roughly, I told you, 8 cents.
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U.S. is $1.60, which means we're 13 times more expensive to hire people in America in 1970 than China.
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In China, you're like, man, we're saving 13 times salary.
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Then they go to 2001, World Trade Organization.
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You can look at the same, say, a couple of different things.
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China's getting hammered because their cost has gone so up that now it's like, how are we going to make up with all this?
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Or you could say, why is our income not growing so fast in America?
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Well, because we shipped off all that labor over there and we don't have it here.
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Let me give you a couple examples of what's happened.
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So, if you look at this chart on this website, this shows the percentage of countries manufacturing share output.
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This shows the top 10 countries by share of world manufacturing output from 1970 to 2018.
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In 1970, if you go look at the numbers on where U.S. was at, we had 29% of all manufacturing jobs.
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If you let this play out and you see where it goes to, by 2001, you know what you'll notice in 2001?
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China goes from 3% to 8.2, nearly 3X-ing from 70 till today.
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But if you keep playing it and see where it goes to today, it's this chart that I have in front of me.
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And it's projecting that by 2030, manufacturing jobs, you know how many is going to be China?
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And by 2030, you know what U.S. is going to be?
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This goes from having 18.6 million manufacturing jobs in 2000 in the U.S.
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Fast forward eight years later, nine years later, that 18.6 drops to 11.4 million.
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If you look at this chart, you go focus on 2001.
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Now, keep in mind, Michigan back in the days got decimated because of what happened when China opened and they came in.
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The 1980s, when they call it the Detroit auto industry collapse, between 1970 and 2010, Detroit lost over 50% of its population.
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Unemployment in some neighborhoods hit 30% to 40%.
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It's cheaper to build the same thing in a different country.
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When you go and look at some Ohio stories, what do you hear about?
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September 19, 1977, a day known as Black Monday, the Youngstown Sheet and Tube Company abruptly closes.
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Campbell Works and Campbell Works Mill in Youngstown, Ohio, immediately laying off approximately 5,000 workers.
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This is where the whole concept of Rust Belt comes out.
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Initial closed led to cascading effect, resulting in the loss of over 50,000 jobs and a Mahoning Valley within the next five years.
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Youngstown population goes from 150 when it peaked in the mid-20th century to 65,000.
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Then when you go to Indiana, Indiana, the impact, Gary's population, this is the steels, Gary Works, was one of the largest steel mill in the world starting in the late 70s.
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Production cuts on layoffs gutted the workforce from 175,000 people in 1960 to 70,000 people today.
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Look at Pennsylvania, how it drops from 2001, boom, to where it's at today.
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Pennsylvania, Bethlehem Steel Collapse in 1995.
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This was another one of those companies that employed thousands of employees, thousands of lost jobs.
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The company officially declared bankruptcy in 2000 and what?
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They have to go, why, after 2001, if you're going to open it up and you're going to have China coming in,
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The investors, we're going to go do this business in China.
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That's the day that, you know, Nixon allowed China to come and do all the trades that they were doing.
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North Carolina, if you go to Carolina from 2001, look at the drop that Carolina has.
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2001, China joins the World Trade Organization.
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L.A. County alone lost 200,000 aerospace jobs in the 90s.
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Entire communities like Lancaster and Palm that once thrived around Lockheed and Northrop suffered mass layoffs.
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All the way on the other side is a country called China.
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Policy seemed good short term, but it destroyed a lot of low and middle income people's lives in America.
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So, Asberg, you may say, Pat, this is too dramatic.
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You cannot be talking about this kind of stuff.
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Outsourcing viewed as the top threat to U.S. jobs.
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So, they scored it, right, on what they thought it was going to be.
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So, number one, increase outsourcing of jobs to other countries was their number one fear is what they were most worried about.
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Number two, more foreign-made products being sold in the U.S.
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So, it's benefiting you, but it's being sold here.
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Why are we not making it here and selling it here?
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Number three, increased use of contract or temp employees.
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Growing number of immigrant workers in the U.S.
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At the top, dwarf does low- and middle-income households.
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It's looking really, really good for the top 1%.
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So you're in the top 20 percentile, let's just say.
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But the bottom 20%, because the welfare state outgrew the next 19% of workers.
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If you watch my content, you're somebody that wants to improve your life, do better.
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You're running a business, small business owner, salesperson.
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Why are we helping the bottom 20% more than we are those that are actually, they don't
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Why are we not rewarding them a little bit more?
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And in the middle 60, you know what the middle 60 is?
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You can find a way to improve your valuation in a marketplace with different skill sets that
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But sometimes bad policies affect the people you were hoping to help.
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All of a sudden, you're fired up about this because everybody's talking about tariffs,
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Well, tariff kind of got Apple to say, we're going to invest $500 billion in the U.S.
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Is it like I'm going to put it in a mutual fund?
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We're going to bring some of our jobs that's in Mexico, Canada, and China.
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Because these tariffs are kind of going to be cheaper to produce the stuff here than to
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An idea from Clinton's and some of the other guys.
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And the way they're now creating the reciprocal tariffs and the fear being imposed on all these
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And by the way, on a side note, U.S. getting control of the two ports in Panama Canal.
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That was one of their biggest leverage points that they had.
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You, if you live in America, jobs are coming here.
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You get to sit there and say, I just want people to get jobs here.
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If people make more money, they get to take care of their families.
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They get to have dignity where they can look in front of their wives and feel like they're
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They can look in front of their kids, feel like they're a father doing their job.
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If crime goes down, communities do well because people felt safe and secure because they're
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But if jobs are going elsewhere, money's going elsewhere, your cities are going to be more
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Crime is going to go up and we don't want that.
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That's why to the people that understand business, sit there and say, look, this is kind of a
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good idea, but it's going to be painful for a couple of years.
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We're about to find out what the pain tolerance of us American citizens are going to be while
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Anyways, if you got value out of this video, give it a thumbs up and subscribe to the channel.
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And if you've not watched the video on what just happened with Panama Canal and the Black
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Rock deal, taking it away from CK Hutchinson, if you've not seen it yet, whatever you do,