What’s worse, sending a man’s $50,000 job to China, or cutting off his $1,600 per year food stamp card? Offshoring his job is obviously the much-larger financial blow.
Today, we are witnessing perfectly good jobs being sent to China for no other reason than to increase the profits of companies like Bain Capital. Perfectly good factories, making record profits, are sent out of the country (example: Sensata).
There is no other way to explain that than the austerity is being imposed upon the American workers in order to redistribute their income to management.
So, what people like Paul Ryan want to do is not the austerity part of the plan. Rather, it is the next phase: the mopping-up of the vast impoverished class that globalization-fueled austerity has already created. The suicides that we see as a result of European austerity are not taken as a cautionary tale here. They are taken as inspiration.
President Obama needs to reverse this entire process. And that can’t be done with any sort of compromise on a “Grand Bargain.”