Alas Bebida... another idea pushed by trump turns out to be wrong..

This is to long to post all of it.. so only part.. still long and painful for you , but medicine is good for you. Follow the link and read it all..

https://www.businessinsider.com/what-happened-to-american-jobs-in-the-80s-2017-7

The problem didn't start in the 1990s, it started in the 1980s, when Ronald Reagan — a hero of the Trump administration — was president, and neoliberal economics were first making their mark on policy. Reagan and his ilk distrusted government and believed that the private sector could make the best decisions when left on its own. You've heard about this — it's called laissez faire economics.

This ideology ultimately led to the financialization of the US corporation — the process of putting shareholders first, often at the expense of workers and consumers — and its emergence as an actor that takes resources from the economy rather than creating them. This, combined with a government zeal for lowering taxes rather than spending, means no one — not the government, and not the private sector — is investing enough in America to keep the economy strong across social classes.

In short: Government cuts and changes in how corporations operate mean American workers are getting screwed by their own government and their own employers.

But I'm jumping ahead — let's go back to the Reagan era. That was also the time Japanese manufacturers had developed a superior management style to their American rivals and, frankly, started eating our lunch.

Instead of keeping a wall between management and workers, Japanese manufacturers adopted “organizational integration,” which put technical specialists and shop-floor workers together. The result was better products made faster in Japan, and jobs lost permanently in the United States.

"From 1980 to 1985 employment in the US economy increased from 104.5 million to 107.2 million workers, or by 2.6 percent. But employment of operators, fabricators, and laborers fell from 20.0 million to 16.8 million, a decline of 15.9 percent (US Department of Commerce 1983, 416; and 1986, 386)."

All of this was happening amid a wave of deregulation in the US.

For example, in 1982 he made it legal for companies to repurchase their shares on the open market pretty much whenever they wanted. Previously, the SEC had considered this a form of stock price manipulation.

Employees lost their status.

Reagan's mission was to cut the budget — which meant not spending money investing in the future of these workers. In the decades after this process started, manufacturing workers would find their numbers diminishing as corporations sought ways to please shareholders, and the government sought ways to lower taxes and deregulate the private sector.

No one had their backs.

When corporations borrow money, one would think that money would go into investment in the firm. But according to the Roosevelt Institute, a left-leaning Washington think tank, since the 1980s, companies have invested less than 10 cents of each borrowed dollar. They've put far more effort into buying back stock which, thanks to the way executive compensation works, makes the C-suite richer and richer.

The world didn't take America's jobs, America let the world have them without investing in a path to new ones because politicians were more interested in tax cuts, and corporate America was more interested in short term gains.

That's the part of this sad story you won't hear from the Trump administration.

You say """ But I'm jumping ahead — let's go back to the Reagan era. That was also the time Japanese manufacturers had developed a superior management style to their American rivals and, frankly, started eating our lunch. '''

What you don't know= a lot! The Japanese system was taught to them by an American economist.
He went there to prove his system because he could not do it here in America because of UNIONS and the c****e left. Since you went to a government school they would never teach you that, so now you know why
you are so uninformed.

Bit of a cretin aren't you.. gravity set to high today??

the answer was very clear in my post. the greatest reason was that corporations did not use money for investment but rather for stock buy back. An act enabled by a law passed under Reagan..

No investment equals business gone.. farm out the production as cheap as can be, sell at high price to existing US customers.. now maybe drying up, but the same buy back s**m used with the trump gift made many of the rich even richer. check things out,, all you do is make remarks..

If you had ever worked for an hourly wage, you would know the need for Unions and your h**e for them would be seen as self distructive...

The world didn't take America's jobs, America let the world have them without investing in a path to new ones because politicians were more interested in tax cuts, and corporate America was more interested in short term gains.

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NYT Archive: The Reagan Boom - Greatest Ever

Almost everyone knows that the greatest depression the U.S. ever had was in the 1930's. It was known as the Great Depression, and its infamy merits a separate section in economics textbooks. But what was its counterpart? When did our greatest economic expansion occur?

We just had it. And it is still expanding, setting new records with each passing month.

We don't know whether historians will call it the Great Expansion of the 1980's or Reagan's Great Expansion, but we do know from official economic statistics that the seven year period from 1982 to 1989 was the greatest, consistent burst of economic activity ever seen in the U.S. In fact, it was the greatest economic expansion the world has ever seen - in any country, at any time.

The two key measures that mark a depression or expansion are jobs and production. Let's look at the records that were set. Creation of jobs. From November 1982, when President Ronald Reagan's new economic program was beginning to take effect, to November 1989, 18.7 million new jobs were created. It was a world record: Never before had so many jobs been created during a comparable time period. The new jobs covered the entire spectrum of work, and more than half of them paid more than $20,000 a year. As total employment grew to 119.5 million, the rate of unemployment fell to slightly over 5 percent, the lowest level in 15 years. Creation of wealth.

The amount of wealth produced during this seven year period was stupendous - some $30 trillion worth of goods and services. Again, it was a world record. Never before had so much wealth been produced during a comparable period. According to a recent study, net asset values - including stocks, bonds and real estate - went up by more than $5 trillion between 1982 and 1989, an increase of roughly 50 percent.

There are other important measures. Steady economic growth. As we begin the decade of the 1990's, we are in our 86th straight month of economic growth - a new record for peacetime, five months longer than the wartime growth of World War II and only 23 months short of the wartime record set during the Vietnam War in the 1960's. Most experts now predict that it will last right through 1990, and perhaps beyond.

Income tax rates, interest rates and inflation.

Under President Reagan, top personal income tax rates were lowered dramatically, from 70 percent to 28 percent. This policy change was the prime force behind the record breaking economic expansion. Interest rates and inflation also fell sharply and, so far, have stayed comfortably low - a further indication of the power and pervasiveness of Mr. Reagan's economic policies. The stock market. Perhaps the key indicator of an economy's booms and busts is the stock market, the bottom line economic report card. And here the record has been striking. During the period from 1970 to 1982, the stock market barely moved. The Standard & Poor's index of 500 stocks inched up about 35 percent during that entire period. But starting in late 1982, just as Reaganomics began to work, the stock market took off like a giant skyrocket. Since then, the Standard & Poor's index has soared, reaching a record high of 360, almost triple what it was in 1982.

There were other consequences of the expansion. Annual Federal spending on public housing and welfare, and on Social Security, Medicare and health all increased by billions of dollars. The poverty rate has fallen steadily since 1983.

When you add up the record of the Reagan years, and the first year of President Bush - during which he has faithfully continued Mr. Reagan's economic policies - the conclusion is clear, inescapable and stunning. We have just witnessed America's Great Expansion.

The Reagan economic expansion was not perfect and we will never have one that is. The Federal budget deficits were too high and still are, too many Federal regulations lay unreformed and the trade deficit is worrisome.

In fact, the Reagan expansion may not have been the best economic expansion in history, for every economic expansion must be judged by many criteria. But if we look at the sheer size and immensity of it, at its scope and power, then it cannot be denied that it was the greatest.

The full impact of the powerful economic recovery that President Reagan launched during the 1980s is still unfolding.

Mr. Reagan's expansion provided the financial resources to allow the U.S. to build up the combat capability of its defense forces and to begin blazing the new trail for a protective missile system. This, in turn, convinced the Soviet rulers they could never defeat the U.S., and today the Soviet Union and the U.S. are busily engaged in nuclear disarmament as peace breaks out in country after country throughout the world.

Equally important, it proved beyond doubt to all (except perhaps for a handful of left-wing faculty members in our best universities) that capitalism is superior to Socialism and C*******m. Our economy is the guiding beacon for all those countries that are ripping apart the ruthless collectivist regimes that ruined the lives of their people for so long.

One thing the Marxists got right: Economics is a powerful determining factor of history. But Marxists never dreamed it would be the economics of Ronald Reagan and all those capitalists that would prevail in the end.