Robert Borosage, president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future, has the key to my heart. In his recent piece on reinventing our economy, he puts his money on manufacturing and goods-producing as a route to building a strong middle class.
Since 2000, we’ve lost more than 5 million manufacturing jobs. Instead of making things here, we borrow $2 billion a day to cover our trade deficits.
I recently drove to Michigan City from Chicago, a route that takes me through Gary, Hammond, and other rusting cities and towns. It’s a depressing sight. The grocery stores, car dealerships, banks and churches are long closed, replaced by Costco-sized “adult entertainment” warehouses, junkyards, and liquor stores. The $50 an hour job (with benefits) has been replaced by the $10 an hour job at the Majestic Star or Horseshoe casino. Sure, some of this transformation was inevitable. But some of it was hastened by government and Wall Street policies.
Borosage for one thinks this loss is not an inevitable product of globalization. He thinks our choice to let manufacturing go elsewhere is a matter of ideology (free markets rule) and Panglossian policy (free markets will fix all). This market “fundamentalism” got us into a lot of hot water, and unfortunately, young adults are paying the price and feeling the brunt of it right now.
The recession is the last nail in a coffin of a long string of changes that have affected young adults just starting out in the workforce. For years these changes–declining wages as casinos replaced steel mills, declining opportunities as low-skilled jobs were outsourced overseas — were felt largely by those with the least education. But now, even college grads are out of work, and facing the prospect of lower wages over their life time.
We’re facing a lost generation if we don’t begin investing in our future in more than just platitudes. Young adult unemployment is at an all-time high, and without some policies to restore well-paid jobs here in the US, we’re going to see some of the so-called pathologies afflicting our poorest communities seeping up the line into more working-class and middle-class communities. In many respects, it’s already happening, and this latest deep recession is only speeding up the process.
As Ron Peck says in his March Atlantic Monthly article,
“If it persists much longer, this era of high joblessness will likely change the life course and character of a generation of young adults—and quite possibly those of the children behind them as well. It will leave an indelible imprint on many blue-collar white men—and on white culture. It could change the nature of modern marriage, and also cripple marriage as an institution in many communities. It may already be plunging many inner cities into a kind of despair and dysfunction not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years.”
Take marriage, for example. Kathy Edin and Maria Kefalas in their book “Promises I Can Keep,” have documented what happens to marriage when men can no longer provide for a family, as many urban black men no longer can. In these cases, women have instituted a “pay to stay” rule, and many men cannot pay, so they don’t stay. This trend of growing single-mother families is creeping into higher-income and white society as well. As Edin told the Atlantic reporter:
“We already have low marriage rates in low-income communities, including white communities. And where it‘s really hitting now is in working-class urban and rural communities, where you‘re just seeing astonishing growth in the rates of nonmarital childbearing. And that would all be fine and good, except these parents don‘t stay together. This may be one of the most devastating impacts of the recession.”
W. Bradford Wilcox of the National Marriage Project at Rutgers agrees. “We could be headed in a direction where, …for substantial portions of society, life is more matriarchal… The marginalization of working-class men in family life has far-reaching consequences.”
In Japan, which experienced its own lost decade in the 1990s as its economy collapsed and refused to revive, workers who began their careers amid that slump are and are now in their 30s , make up 60% of the cases of depression, stress, and work-related mental disabilities reported by employers, according to the Japan Productivity Center for Socio-Economic Development.
Borosage places his bets on green technology as the new way out of this decline. But, as he says, competition is already fierce, and we need some support for this fledgling savior, including “U.S. renewable energy standards that ensure a growing market for alternative energy, aggressive use of government procurement to help domestic producers, tax credits and other subsidies to help start-ups, expanded investment in science and technology and, finally, setting a price on carbon emissions.”
“This forward-looking manufacturing strategy is vital to rebuilding a broad middle class — as other nations have demonstrated. Germany, for example, maintains a large manufacturing trade surplus that is now fueling its recovery, even as its workers receive higher pay and better benefits and work far fewer hours than Americans.”
All I can say is, we’d better hurry up. We have an entire generation at stake.

