Combine that with a sinking dollar and you have got the perfect opportunity for companies around the world the hire highly educated Americans at very low prices.
As the dollar continues to make new lows against ALL major currencies, the cost to pay someone’s wage in dollars is at an all time low. The dollar is already compromising many outsourcing contracts by many American high tech companies because the cost to outsource is rising as foreign currencies increase against the dollar.
Asia has become the savers and producers of the world, which is the essense of creating wealth. America has become the largest debtor and consumer of the world. Asia has borrowed trillions to the U.S. over the last decade and the U.S. five year budget projection is asking Asia for another 10-20 trillion.
The U.S. already has more debt than we can pay back but the politicians are looking at a different set of data and still think that we have money to burn.
At some point in the near future, America will be unofficially bankrupt and our lenders (mostly Asia) will ask us to liquidate our assets to pay them back. We will be forced to sell many of our companies, farm land, houses, cars and anything else that has value.
Then after everything is sold and we still cannot meet our credit obligations, we will have to go to work for our creditors. We will not be able to afford to buy anything because the value of our money will make foreign goods very expensive. America will have no choice be to start producing things against, both for our own consumption and to export to the wealthy nations of the world.
The new jobs will be related to production and distribution, and will need to be funded by savings. But these jobs will not pay very high compared to the wages that Americans' have been used to in the last decade. The higher paying jobs will come from the wealthy Asia nations where companies will outsource to educated Americans who don’t have jobs and can be paid in dollars.
As the dollar continues to decline it will soon become apparent that the costs of imported consumer products will be increasing, and the low demand for consumer products in America will not allow American companies to increases prices or wages or add jobs. Therefore, jobs will continue to be hard to find and unemployment will remain high.
But the rest of the world, Asia particularly, will continue to see a major increase in consumer demand because they have savings to spend and production to continue to generate more income. Their companies will be hiring and looking for ways to increase profits by outsourcing to cheaper educated Americans looking for work.
America will finally be on the other side of the global outsourcing equation and the worker in Asia will be the one’s complaining about their jobs being lost to cheap labor in America.
Based on this business trend that is likely to result from the declining dollar, now would be a good time to start a consulting service that specializes in recruiting Americans to work for international companies.