Job Destroyers II

In a previous post, I wrote that CEO's and takeover specialists like Mitt Romney are the very opposite of job creators: they are job destroyers when they lay off workers, "downsize," pit American workers against foreign workers and "offshore" jobs.

The banks are job destroyers, too, as is the Pentagon.

The banks provide capital to enable CEO's to offshore, for example, and loot industries through the kinds of scams that brought about the derivatives collapse. That particular scam, precipitated by the sub-prime implosion, dried up the booming construction sector, killing many more jobs. Banks also finance the corporate takeovers that cause companies to shed thousands of jobs. They promote these job-killing programs, because they can make handsome profits from them.

The Pentagon is also a job destroyer. That may sound strange, because politicians, especially those with defense industries or military bases within their districts, instantly complain that area jobs will be lost when anyone proposes cuts to defense programs.

The economic principle here is 'opportunity cost.' Numerous studies have found that defense jobs require twice as much capital per worker as non-defense jobs; they are capital intensive. They also don't produce things that enrich the nation; they produce instruments for destruction, mostly for use elsewhere. Incidentally, the move to legalize indefinite detention or assassination of American citizens in the US might mean that the destruction we finance could be our own.

In any case, it costs twice as much to employ a defense worker, or a soldier, as it does to employ a non-defense factory worker and three times as much as employing a teacher or healthcare worker. In some cases, the opportunity cost is much higher: a soldier in Afghanistan costs $1 million a year; it's probable that same million could employ ten teachers. The non-monetary cost is even greater: teachers educate the next generation, soldiers kill people abroad, or terrorize them, or, at best, help foreigners maintain security in their own countries. Meanwhile, children at home are crammed into larger and larger classes, getting less and less of the attention and help they need.

What benefits do we get for sending our military all over the world? Oil is probably cheaper here because of it, but think of what it costs us to accomplish that: three quarters of a trillion dollars a year. Walmart gets its goods mostly from China, where we don't have military influence, but perhaps imported goods would be costlier if there were no global American military presence.

Considering the effect cheap imports have had on our economy and our jobs, I rest my case: the military destroys millions of jobs.

Who benefits? The military brass and the owners of defense industries: the latter are our contemporary Roman Senators, described by the OWS as "the 1%."

Republicans call them "job creators!"