The Next Twenty Years

by Dwayne Edwards in Future, December 9, 2009

This is a conceptual article about the world economy in the future.

In the last twenty years North America had a strong foot hold on manufacturing and industrial output but because of corporate greed and political lobbying, in the future North America will be delegated to the back of the bus. This is why. job outsourcing of the following information technology, human resources, facilities, manufacturing, real estate, telemarketing and accounting, this is having a detrimental effect on people who are facing job disruption and unemployment. With a worldwide work force of three billion people we are truly in a global economy with the United States at 10% unemployment and 740,000 displaced workers, the PPP at 15.56 trillion dollars and a population of 529 million people. In walks Asia with a population of four billion, a PPP of 18.07 trillion and the cheapest labour force in the world, China was the largest and most advanced economy on earth in recorded history if China was to form an economic union with Japan, Korea and India they would dominate the global economy and squeeze out the North American economy currently the largest in the world, this would leave Europe as their major trade partner. The following data is from the Bureau of Labour Statistics over a ten year period from 1999 to 2009.

Unemployment level, 16 years and over: November 1999, 5716 unemployed to November 2009, 15375 unemployed.
Unemployment rate, 16 years and over: November 1999, 3.5% to November 2009, 9.3%.
Unemployment rate less than high school diploma: November 1999, 6.4% to November 2009 15%.
Unemployment rate High school graduates, no college: November 1999, 3.2% to November 2009, 10.4%
Unemployment rate less than a bachelor’s degree: November 1999, 2.7% to November 2009, 9%.
Unemployment rate college graduates: November 1999, 1.7% to November 2009, 4.9%.
Unemployed, number of weeks: November 1999, 12.9 weeks to November 2009, 28.5 weeks.

Most of these increases in unemployment were in the last two years when the auto industries collapsed, competing with foreign manufacturers with out union constraints. Then there was the higher bank rate called the sub prime rate which applied to the home loan market, which is referred to as the sub prime home loan market. The sub prime borrowers were left in the cold by floating rates with their poor credit ratings they defaulted on the loans, payment to institutional investors stopped leading to the following losses.

Citigroup $18 billion.
UBS $13.5 billion.
Morgan Stanley 9.4 billion.
Merrill Lynch $8 billion.
HSBC $3.4 billion.
Bear Stearns $3.2 billion.
Deusche Bank $3.2 billion.
Bank of America $3 billion.
Barclays $2.6 billion.
Royal Bank of Scotland 2.6 billion.
IKB $2.6 billion.
Societe Generale $2 billion.
Freddie Mac $2 billion.
Wachovia $1.1 billion.
Credit Suisse $1 billion.