Are We a Third World Country?

The Washington Times is a conservative newspaper. But even they are asking whether we have the "job profile of a Third World economy." These are some of the arguments that make the case:

• "The U.S. economy no longer creates jobs in export or export-competitive sectors. "
• "From January 2001 to January 2006, the U.S. economy lost 2.9 million manufacturing jobs."
• "High-tech knowledge jobs are also being outsourced abroad."
• "Economist Alan Blinder estimates that as many as 56 million American jobs are susceptible to offshore outsourcing. That would be about half of the U.S. work force."
• "To cover the trade deficit, the United States has to turn over to foreigners ownership of its accumulated wealth."
• "Offshoring [outsourcing] turns U.S. production into imports. Much of the U.S. trade deficit results from offshoring, not from traditional trade competition."
• "Most economists are confused about offshoring. They mistakenly think offshoring is an example of free trade bringing mutual benefit through comparative advantage. It is not."
• 'Average hourly compensation of Chinese manufacturing workers is only 3 percent to 4 percent of levels in the United States, 10 percent of the pay rate of Asia's newly industrialized economies, and 25 percent of levels in Mexico and Brazil.'
• America has the largest foreign debt in the history of mankind. That is compounded by a massive budget deficit.
• We have a negative savings rate so we can't pay our bills. We depend on the Chinese to pay them for us.
• The gap between rich and poor in the U.S. is very similar to Third World nations.
• America is on the verge of bankruptcy!