The Hard Truths About Today’s Labor Market

Jerry Haar

Unemployed coal miners want their jobs back. So do manufacturing plant workers whose employment has been outsourced to lower-wage countries. Add to those young people, including scores of college graduates, whose job prospects are grim, forcing them into underemployment and requiring them to live at home rather than on their own.

This litany of complaints (and outrage) has fueled, in part, the resurgence of populism not only in the United States but in Europe, as well. And while these grievances are understandable, it is time for real truths–not alternative truths–about labor markets. These are:

Dying industries cannot be resuscitated. Typewriters, pay phones, folding maps, beepers, Kodak film, and cassette players are obsolete, their product life cycles have run their course and their replacements/substitutes superior in every way. Coalmining employed nearly 130,000 workers when Obama was elected president. By 2015 that figure had dropped to 98,000. Competition from cheap, shale gas; fracking; renewables; and technology was and will continue to be the reasons for the continual fall. Other declining industries include knitting and apparel, hardware manufacturing, communications, equipment, and glass manufacturing. Here, too, technology will boost productivity while decreasing labor input.

Most offshored jobs will not be re-shored. Although some will be coming back, the vast majority will not. Outsourcing, whether transferred in-company to an outside supplier, from a union state to a right- to-work state, or to a foreign country like China or Mexico is intended to reduce costs to allow a company to sell to consumers at a lower price. The negative impact on a firm’s employees will be the same. Reducing costs allow the company to offer consumers a lower price. When Delta moved 1,000 jobs to India it reduced costs by $25 million and used the money saved to fund 1,200 new reservations and sales positions in the U.S. The intent of market capitalism is to serve the consumer, not the producer’s employees.

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THE STORM THAT WASN’T

imrsHere in Washington D.C., the nation’s capital, we were drilled over the past few days to expect the snowstorm of the century. A minimum of 12 inches of snow were forecast and major anticipatory adjustments were taken. For example my health care office called to let me know about their closure – since the commute would be unbearable. Schools were closed (or on a ‘contingency’ basis), and even the visit of German Chancellor Merkel was postponed due to concerns about the plane and its landing.

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Exciting News: Professor Czinkota has been cited more than 10,000 times!

breaking news

On 12th February 2017, according to google scholar, professor Czinkota has been mentioned more then 10,000 times in other author’s works. Among current business school faculty members, this score places him in the second place after professor Brad Jensen from Georgetown University. Professor Czinkota’s citation rankings on a global basis also reached a new record, ranking number one in Export Management and Export Promotion and number two in Trade Policy.

In academic fields, citation tracking has become increasingly recognized as a way to assess the impact of scholars. Google scholar, as one of the most influential citation tracking tools, tracks the number of times research work is cited and makes comparative analyses.

Foreword of My New Book “AS I SEE IT” By Claudia Fritsche

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Illustration by the cartoonist David Clark

H.E. Claudia Fritsche

Ambassador extraordinary and plenipotentiary

Washington D.C.

When I met Prof. Michael Czinkota in 2003, it had been less than 2 years since I had the privilege to establish the Liechtenstein Embassy in Washington. He immediately was very generous in offering to share his knowledge and experience. Since the field of economics is not my expertise, I was immensely grateful for his support in not only raising the profile of the Embassy but also helping me become acquainted with the many nuances and layers of the U.S. economy and its global impact. Since Prof. Czinkota was born and raised in Germany and was partly educated in an Austrian school very close to Liechtenstein, he is familiar with my country, with its history, its economic system as well as the trans-Atlantic cultural differences, therefore able to understand how the U.S. economy is viewed even from the perspective of a small country. Professor Czinkota further broadened his engagement with my country by teaching at the University of Liechtenstein.

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Beyond Commodities: Argentina’s dynamic biotech industry

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Source: feelgrafix

By Jerry Haar and Krystal Rodriguez

The dictionary definition of crucible is “an extremely difficult experience or situation; a severe test or trial”. This is precisely where most of Latin America finds itself with its excessive dependence on commodities as the linchpin of its economy. In good times governments spend commodity windfalls on projects or programs to garner support for the political party in power. In bad times, politicians engage in handwringing and scapegoating, and the governing party borrows excessively to make up the shortfall in revenue from commodity sales.

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