WHY MIDDLE-CLASS IS VANISHING FROM OUR LIVES??

On the last post, we stated that CRISIS equals DUALITY; thus it has both a dark side and a positive side.

In this post, we are going to talk, first, about the dark side; simply because, we are more used to negative news thanks to media (good news does not sell)

Experts say that MIDDLE-CLASS is vanishing gradually, because of 8 main reasons:

1.Globalization & Outsourcing

2. Merges & Aquisitions

3. Re-engineerings

4. Franchises & Big Distribution Companies

5. The emerging role of China & India

6. Industrial Automatizations

7. The socio-economic role Colleges & Universities play

8. Social Insurance and Retirement Plans

Let see one by one  the concepts written above for our better understanding:

GLOBALIZATION & OUTSOURCING

If you have the chance, I thoroughly recommend you buy and read 2 great books: "Earth is Flat"  by Thomas L. Friedman and  "Why we want you to be Rich" by Donald Trump & Robert T. Kiyosaki

GLOBALIZATION  is now part of our day-to-day language and its consequence goes everywhere from your job to businesses and homes

GLOBALIZATION have had, mainly 3 stages:

Stage A) From 1492 to 1800, when exchange of goods, services, products and ideas were made only among countries and government executives

Stage B) From 1800 to 2000, when corporate power appeared, and exchange of goods, services, products and ideas were made only among MNE's (MultiNational Enterprises)

Stage C) From 2000 till today, globalization turned around to INDIVIDUALS from all kinds of races, creeds and nationalities. Now, any single person "globalize" by him/herself.

And what about Outsourcing??. Well, for those who does not know, Outsourcing comes from two words in english OUT + SOURCE. It is an economic term used to designate the act of hire and contract companies or employees from out of our enterprise, town or country.

Here are some examples of Outsourcing:

The case of INDIA

• In 2006, there were 245,000 indians working in Call Centers. 700 apply on a daily basis but only 6% is hired. What about the other 94%??? They are hired by other foreign companies.

• American citizen's TAX return forms, done by indian accountants located in India, are raising:

2003—25,000 persons     

2004---100,000 persons   

2005---400,000 persons

• Talking of indian accountants: 70,000 accountants graduate from universities annually, and their salary is USD $100 A MONTH!!!. Now, you start figuring out why indian accountants are more hired than others elsewhere??

The case of the PHILLIPINES

Every year, more Latinamerican companies migrate to this country, because they can hire 5 employees that speak spanish for the price of 1 in their own country.

There are some examples of Outsourcing in the USA, too. Do you know McDonald's Auto-Mac? I'm sure you do. Well, there is the case of one McDonald's Auto-Mac located in Girardeau, Missouri; where, by the time you are placing your order, the person behind the microphone is located OUT of the USA, in China, and from there, he/she makes your transaction from your credit/debit card...... can you imagine??!!! This phenomena is a direct threaten to job positions.

There are also examples around restaurant's booking procedures: you know a restaurant in your town area, you dial locally, but someone answers in Panama, the Phillipines, India, etc.. and they have a screen where they locate exactly where your table is and the area for your reservation...... incredible!!!, isn't it?? Who do you think they will hire to do this kind of work?

• We have also the famous E-learning: Electronic Distance Learning. Nowadays, you can learn without even attend phisically to the campus of any University or College worldwide!!! Just think, what will happened to the traditional education system?

• Thanks to both Globalization and Outsourcing, now you can find legal and medical advisory trough internet half-price from any place in the whole world!!!. What do you think would happen to the lawyer or doctor, in your town, who still works in his office?

The best sample of the effects of both Globalization and Outsourcing, is the computer your using to read this. Do you really know how this computer came to your hands??

You are using technology developed by Bill Gates,

with taiwanese chips and a monitor made in Korea,

Assambled by bangladeshi workers in a factory in Singapore.

Landed by indian drivers,

Aired by indonesian pilots,

Downloaded in port by sicilians,

And taken to the store by illegal mexicans...........That's GLOBALIZATION and OUTSOURCING!!!!

Nowadays, think and be GLOBAL, is not a matter of election but survival

Looking forward for your comments

On the next post, we will see more of the threatens from the Dark side.......