The Hollowing Out Of Private-Sector Employment

A different way of thinking, about the War of Northern Aggression, unaffectionately known as the Civil War.

The North was aggressively industrializing. The rate of immigration was not enough to keep pace with the need for more labor. The wage rate was rising, which was like a tax on profits, and was driving inflation higher.

The South had labor in abundance. But, infrastructure and manufacturing capabilities were lacking. The rails on the railroads were of a non-standard gauge and made with low quality steel.

What is the easy way to lower the cost of labor?
Market debasements? Mass immigrations? War?

The media fabricates Uncle Tom, the poor suffering slave who was beaten daily. The industrialists pressed the appropriate politicians and tensions rose. Then there was war.

The industrialist produced war material, for a profit. The bankers funded both sides, for a profit. Lincoln provided the Emancipation Proclamation, which was a diversion from the real objective.

Yankee labor then had to compete with cheap labor. The Yankee armies had cheap soldiers, which were conscripted for the push into the deep South. Along the way, they built roads and infrastructure to support their “supply lines”. Taxes were increased to cover the rising cost of the war. The lower wages and higher taxes translated to profits.

After the war was officially over, the North had not suffered much in the way of damage, as it had largely been left alone. Large numbers of working class whites were killed and replaced by cheaper, emancipated slaves. The US government had built the needed infrastructure for northern carpetbaggers to drive into the south and start the building of gins, factories and ports.

This lasted for around 20 years, then the resources began to dwindle.
What was needed was new resources. New land. New mineral wealth. A new ‘afghanistan’, if you will.

And again, you look west, towards the “savage hordes”.
Nothing ever really changes except for the way the story is told.

Now think about the recent elections, the fraud and big dollar government projects.  Then, follow the connections between people… Software patches on the right systems…
high speed rail, wind energy, oil, ect.
There is also the aspect of transferring technology.

Ignore the headlines and look for real story. If it causes a big “bang”, takes up massive pages of media coverage and entices with a daily drivel of salaciousness, its probably a distraction.

Thanks to an anonymous source,, for a new-to-me perspective on the way the world really works.


This Cold War-era cartoon (from 1948.) uses humor to tout the dangers of Communism and the benefits of capitalism.  It reportedly gets good at the 8 minute mark, as I haven’t reviewed it, prior to posting.

It is a description of union laborers, politicians and farmers giving their rights away, in favor of communism, as they succumb to a slick talking salesman.   This is followed by the article referenced in the title.

Make Mine Freedom (1948)



The Hollowing Out Of Private-Sector Employment

by Charles Hugh-Smith of OfTwoMinds blog


The financial and political Aristocracy will continue to do more of what’s failed because they have no alternative model that leaves their power and wealth intact.

Frequent contributor B.C. has provided five charts that reflect the hollowing out of the private-sector employment. This has profound implications for education, taxes, housing and inequality.

Many people point to offshoring/global wage arbitrage as the key driver of stagnant wages and employment in the U.S., and this is certainly a factor. But we would be remiss not to note the other equally important drivers:

1. A system in which inefficient quasi-monopolies/cartels (defense, healthcare, education) are protected by a debt-based, expansionist Central State.

2. The exhaustion of the consumption/debt-based economic model.

What no one dares admit is that the U.S. economy is burdened by overcapacity (too many malls, restaurants, MRI machines, etc.) and too much debt, much of which was taken on to fund mal-investments (McMansions in the middle of nowhere, duplicate medical tests, costly weapons systems the Pentagon doesn’t even want, etc.)

Consider this thought experiment. Suppose the offshoring of jobs was suddenly banned; only U.S. workers could be hired (setting aside that this is impossible in an economy where 50%-60% of U.S. corporate sales, profits and labor are non-U.S.; how are corporations supposed to compete in markets that generate 60% of their sales/profits if they can’t hire local workers?)

Please click the link to see the complete article.

About ace5ace

60, roaming the Ozarks.
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