Unemployment has been caused by immigration and the loss of manufacturing jobs.

For many years the disparity of income between nations and within nations has forced millions of people to immigrate to the freer more industrialized countries in the search of work and investment opportunities.  The International Organization for Migration’s World Migration Report estimates 214 million migrants in 2010 living abroad and working in the more industrialized countries. In the USA we have naively permitted millions immigrants to join our work force without understanding the consequences. NumbersUSA is a non-profit, non-partisan, public policy organization working to bring legal immigration under control. Their website NumbersUSA.com reports that the fifty million immigrants and their decendents in United States will increase to over two hundred million by the year 2060 if the immigrations laws are not changed.

At the same time we made no effort to protect our manufacturers. The manufacturing companies moved their manufacturing operations from the more industrialized countries to the underdeveloped countries in search for lower wages in order to compete with manufacturers emerging in countries with lower wages. Over 33% of our labor force was in manufacturing. It is now less than 12%. We now import more than we export. The trade deficit in International Goods and Services was thirty-billion in November of 2010.

The combination of these two permissive attitudes about our economy is the primary cause of unemployment. The mismanagement by our government has resulted in our current disastrous condition as the economic success of other countries was given a priority over our economy. The over supply of labor has been building for some time and has driven up the cost of unemployment, health care, welfare and education because the unemployed are unable to pay their share of the taxes and are unable to feed themselves. This has turned into an incredible burden for our governments, both state and federal.

Attempts to belatedly solve the economic crisis by funding more government programs is further evidence that those in power have no understanding what is happening to United States as a result of the lack of protective regulation in the past and how it is now impacting global economies that were given priority.

The combination of these two changes in our economic system also brought to close what has been referred to as the “economic golden era” by the Journal of Economic Literature. During the period from 1924 to 1965 which was a period of low immigration all Americans, including black Americans experienced the greatest increase in real incomes. During the period from 1940 to 1980 for instance black men quadrupled their income. There are now too many workers in United States and other developed countries with too few job opportunities and the buying power of wages has declined. Wages are not keeping pace with inflation.  The percentage of people in our middle income group is much smaller now than when our number of manufacturing jobs was expanding and there were ample job opportunities. This condition is being exacerbated by the reduced global demand for consumer products which are increasing social cost that are straining the national budgets in many nations as a result of increasing unemployment.

The global economic disparity holds billions of people in economic slavery.

I believe that our national and global economic problems are a direct result of the increasing economic disparity between the nations of the world. In the past we have failed in our aid programs to actually establish a means for the people to work and increase their level of prosperity. The average Gross Domestic Product per Capita of the more industrialized nations has grown to the point that it is more that twenty times that of the struggling economies. This disparity in income has created major international shifts in the employment base which are imposing incredible financial burdens on the industrialized countries that are limiting their economic growth.

It all started in the 1940’s when the economic conditions in the very poor economies worldwide began to fall behind and could not keep pace when the economies of the industrializing nations began to expand rapidly for the first time. This created a condition of economic disparity between nations that has become the driving force causing the global economic crisis and our unemployment.

The economic disparity that began seventy years ago has continued to increase.  Today over two billion individuals are trying to survive on less $2.00/day. Of these two billion, one-half, one billion men, women and children try to live on less than $1.00/day. There is another group of people, over two billion, who are also economically enslaved, trapped in economic and political systems that allow them to work but prevents them from enjoying the benefits of Participatory Economics. Is it possible for you to imagine over two billion people living in abject poverty now in the Twenty-first Century when there is so much money languishing because of a lack of investment opportunities?  This creates a great opportunity to begin the process of reducing economic disparity. Those holding the languishing capital have the opportunity to increase employment and create new opportunities both abroad and domestically by encouraging banks to make home loans in emerging economies.

 Participatory Economics define an economy where the people are free to invest in their own economy because they possess protected, private property rights. Even in some countries that permit some form of Participatory Democracy there is little if any Participatory Economics. Our experience here in American has proven that when people have the ability to participate in their own economy as investors it is  possible for the people to become prosperous. The remaining population of approximately two billion people on this earth live in luxury by comparison to the over four billion that are living in poverty. According to the World Institute for Development Economics Research at United Nations University, 1% of all adults account for 85% of the worlds assets. This increasing disparity is what is creating the stress between nations and the unstable global economy. These problems can not be solved without recognizing and understanding what we have allowed to happen to our economy and how it is now interdependent with the global economy.

A global homebuilding industry reduces economic disparity.

I am proposing that a major global homebuilding industry be established for construction and sale of millions of homes to the working and affluent people in emerging economies that are able to qualify for a home mortgage. Many of the prospective homebuyers live in homes of a quality that are far below what they can afford. A major global homebuilding industry constructing millions of homes per year in the emerging economies would create development and construction jobs on a very large scale and begin the process of eradicating severe global poverty. As the funding of home mortgages enters the economy a major increase in the global demand for consumer products by the new home buyers and the newly employed will energize the global economy.

Currently Research and Markets in Dublin is reporting that the Global Homebuilding Industry in the industrialized nations reached a volume 27.9 million homes in 2009 and is expected to reach a volume of 46.3 million units in 2014. This represents a total infusion of capital into these countries of over $5.7 trillion and $14.67 trillion respectively, which is the driving force in those economies today. The proposed economic development strategy is structured to infuse capital into the emerging countries in the same manner. The demand for housing will eventually reach a higher volume as the economic foundation becomes strong.

 Latin American leaders have already stated that they need fifty-four million homes just to meet current demands. It is difficult to imagine how many homes India, Africa, and South East Asia need. It will undoubtedly run into hundreds of millions. The population on the planet is expected to increase from 6.8 billion to almost 10.0 billion in the next thirty to forty years; most will be born in the emerging economies.  The time has come in the Twenty-first Century when it is possible to put an end to severe global poverty. By creating a home building industry in emerging economies we can create jobs for their economy, for the global economy and dramtically reduce economic disparty.

The proposal is directed toward the establishment of a global homebuilding industry for the development and construction of homes in developing nations attempting to increase the liberty and prosperity of their people. A homebuilding industry will establish millions of jobs for the participating countries. The growth in some of these countries is now limited by the number of families forced to immigrate because of the lack of jobs and housing.  Many of those leaving their native countries are experienced and educated creating what has become known as “Brain Drain” which is a serious problem for economies that are in great need of educated and experienced workers.

Reducing economic disparity between nations and within nations will:

1.  REDUCE THE  NEED FOR IMMIGRATION. The increased prosperity in the emerging economies eliminates the need for workers and their families to migrate in the search of jobs.

2.  REVERSE IMMIGRATION AS MIGRANTS  RETURN HOME. The current immigration trend will reverse direction as the newly emerging economies create jobs and become very prosperous. Homes will become available to those employed domestically and the experienced and educated workers returning to their native country.

3.  REDUCE UNEMPLOYMENT IN INDUSTRIALIZED ECONOMIES. The total number of people seeking work in the more industrialized nations will decline as the reverse migration accelerates freeing jobs for natives.

4.   IMPROVE TRADING OPPORTUNITIES. A major reduction in economic disparity over time creates a more viable trading environment among nations  as the disparity in wages is reduced; revitalizing global manufacturing.

5.   IMPROVE USA WAGES.  Industrial jobs that have been moved to other countries will return home as the economies improves, disparity between wages is reduced and tariffs imposed. The manufacturers in the emerging economies would have new domestic consumers.

6.  REDUCE THE NEED FOR ALL FORMS OF AID.  As each nation becomes more prosperous and the governments become financially stable each nation will be  able to provide for the health and welfare of its people and become less dependent on foreign aid.

7.  STRENGTHEN  NATIONAL SOVEREIGNTY. The economic and political stress between nations will decline as each nation strives to increase its prosperity to higher and higher levels and  is able to maintain its own sovereignty and independence because of its ability to manage its economy and create employment.
8.   IMPROVE PROSPECTS FOR PEACE. Once the economies become more prosperous and the national governments are economically strengthened the foundation for global peace will have been laid.