Not sure why this is supposed to be a great post. The facts about the natural gas market are probably correct but the conclusions about a decline in the US manufacturing base are pure nonsense. The US is earning plenty of money with manufacturing. It just happens to make rather high priced goods like computer chips which simply do not require as much energy to make as steel. If you look at your cell phone, the largest earnings from that product come from the DSP and RF chips which are made in USA (or by US companies in Taiwan etc.), then are shipped to China where they mold a piece of plastics around it that is worth a few cents. Actually... I correct myself. The largest earnings on that product come from your cell phone bill, i.e. the service to keep the infrastructure (base stations, call centers) running.

Is there a decline in jobs that require pure manpower as in "lifting" and "forging"? Yes. Do we suffer collectively from that decline? No.

We do have a growing number of poorly educated people who are being made obsolete in the changing workforce of the 21st century. That is a problem of education, though, not one that is driven by limited and declining natural gas resources. If you want to keep the US ahead of the world, take care of better schools for everyone instead of sending hundreds of billions of dollars into a war that should not have been fought in the first place. And if you need to employ millions of people in jobs that require relatively low levels of education, have them install solar panels on your roof. Everyone who can climb a ladder can do that kind of work AND it solves the energy problems of the future.

Education and skill in general are really important as you say.  Although the only jobs that are safe (won't go somewhere else) are those that require you to physically be here.  Like surgeon, gardener or exotic dancer.  Much of our software and tech design work and support is being sent to India and eventually China where they work hard (in school and after) and for a lot less.  Point being that its not just 'lifting' and 'forging'.  Learn to climb a ladder is good advice.  
In today's world jobs move around and sometime people have to follow them. In the US some 40% of all engineers and scientists are Europeans and Asians. If you go to Singapore, Honkong, Shanghai, you can find growing communities of British, German and American expats. Soon you will find them in Beijing and Bangalore...

I agree... the only jobs that will definitely stay here are those which require physical presence. And the people doing them will be the only ones without any means to ever leave their communities. Everyone else in the future will be able to choose where they want to work... on snowy planes or in buzzing Asian cities or on tropical islands.

If I wanted to, I could go to Singapore tomorrow. Or Australia. Or back to Europe. All I have to do is to apply for a job in any of these places or to open a business of my own. Granted, not everyone has the desire to move and to live on foreign shores. But those who have, usually value the experience. And often they come back to home and bring what they have learned with them.

What I am trying to say is that a world open to everyone who has set their mind to exploring it (quite literally) is not a bad thing.

Ummm... you make it sound like more than a small percentage of the worlds population has the options you refer to, you don't really belive that do you?
You are probably asking the wrong person... my Dad is a professional musician and so we HAD to move around more than we wanted to. It was not by choice but by necessity.

And I would also think that among the tens of millions of Mexican immigrants in the US there are many who are homesick and who would rather like to live with their families rather than spend their lives on the run from one minimum wage job to the other or one farmer's field to the other.

I met a guy from the Philippines who works in the US to support his kids. He gets to see them once every year, at most. Do you think he is doing it because he has a choice? The man's heart brakes every time he talks about his kids and how he is afraid that his brother's family where they live is not treating them like their own. On the upside: his janitor's salary allows him to send his son to college to become a white collar worker... and the son will probably send his son to university to become a doctor or let his daughter be an attorney...

If you go to Singapore, you will see thousands of laborers from Malaysia work on construction sites...

I could go on. The short version is that people move to where the work is. Desperate people move further and endure more hardships than fat people with homes and social security checks. I don't mean that in a derogatory way, it is simply the result of the survival pressure that people are under. Hunger is a cruel mistress. When she talks, you listen.

I move to where I like because I can and because it is fun. I have made myself a home on three continents and maybe I will make that four by the time I retire... No, I do not think that the reasons I move for are typical. But I do think that moving is essential part of humanity. We were nomads and we can always be nomads if we have to.

One of the problems with moving to "where the jobs are" (when the jobs have moved to an area because of lower wages) is that you will have to take the lower wages yourself. While you can make a nice life on the wages in such areas (due to low cost of living), good luck if you want to go home again someday.

Of course, we're not talking about moving among First World nations where the populations all have comparable incomes. But then that's not where the jobs are being outsourced to anyway.

You can look at this as an equilibrium phenomenon on a constantly rising background slope. While wealth is being shared, the richest and most advanced nations keep getting richer and more advanced. They shed the industries that are not compatible with their average wealth any longer and these  are being picked up by less wealthy nations that can support them. The now relatively small earnings of these industries make little of an effect on the richest of nation's GDPs but can greatly enhance that of the poor.

There is abolutely nothing wrong with this picture, unless your economic credo is that you can only profit if someone else starves. I think the world as a whole has reduced such 18th century thinking to rubble. We all profit from China and India taking over the industries that we can't run profitably any longer.

Infinite: We all profit. We are the world. We are the children. We are all in this together. The only difference between a billionaire in Manhattan (or Palm Beach) and a chronically underemployed 20 something in Cleveland or Buffalo is the size of the bank account. We are all one.
The difference between a billionaire anywhere and an unemployed 20 something in Cleveland or Buffalo is first of all smarts. If you take a person with the potential of a billionaire and let him or her start out unemployed, he or she will probably have a hundred bucks by end of day one. By end of the week they will have a bank account, a cell phone and three employees. They will recruit the smartest of the unemployed 20 somethings and make them work 24/7 for next to nothing... until they are billionaires, again...

Now, I take it from your post that you are probably not a billionaire...?

Infinite:It is relatively subtle, but I assume you are implying that your sycophant posturing makes it clear that you have been more financially successful than anyone who would dare to question such nonsense. Don't bet on it.
What do you mean by financially succesful? I would call myself lower middle class. I have (to have) a dayjob and I have to financially support my parents who have limited retirement income. I can assure you that I do not represent any of the people who have profited greatly from the president's tax cuts.

I also represent a growing fraction of the world's population that understands the necessity to move around. My point was that there are many reasons to be mobile. Being part of the jetset is the unlikeliest one, though. It is much more likely that either you are starving or that your level of education is needed somewhere else. In my case it is the latter. In the case of my parents it was the former. We did not make the world this way, we just adapted to it.

Jesus Christ you are on a high horse... I guess that makes two of us!

Infinite, I do see your points as being valueable, but I think you've read one too many Thomas Friedman articles on the wonders of cinnabons. I guess you have a positive outlook on "globalization", you seem to have a romantic vision of efficiency, profit and order for all... Whereas I see globalization simply as labor arbitrage and squeezing the last few bucks out of an industrial system that is bound to collapse (in any form, whether run by global capitalism or so called "marxist socialism".)

First off, sure, you have to be smart to be a billionaire (at least a self made one, if you look at the Forbe 400 list you will find that although many are self made, there are quite a few that inherited.) On the other hand, becoming filthy rich is way less a function of "smarts", than it is of hard work, taking advantage of every opportunity and, of course, greed. I would put way more stress on greed than "smarts"... In fact, I would bet that you could be a total fucktard and still become a billionaire simply by pure greed (of course, I'm not saying a greedy mentally deficient individual could achieve such a feat--there is obviously a nominal base of intelligence to make money). My point is simply that I think you're wrong to stress "smarts", since there are millions upon millions of people that are way more smart then the vast majority of billionaires. In fact, billionaires usually employ people that are far moer intelligent than them.

You misunderstood BrianT. Perhaps you need to get down from the saddle and actually discuss things as opposed to stating your opinions as facts from high atop hi-ho silver. My understanding of what BrianT was saying is that we are all on the same boat. We are all homo sapiens, we are all related and we all live on "spaceship earth". Our space ship may be easy to get around right now, and may have enough resources for everyone to plow around in military vechicles in urban environments, but eventually this free for all will end. Just because people have been crying wolf since whale oil, doesn't mean that resources are infinite and that prognosticators will forever be wrong.  In case you didn't notice, this blog's focus is energy depletion and our "future".

BrianT's point was that once TSHTF billionaires and the unemployed will both have problems, albeit different ones. For instance, billionaires will be concerned with having even tighter security, contingents of body guards and militarized homes then they already do... They will be afraid of the masses of enraged Americans who were told by Reagan in the 80s that it was Morning in America... When people find out it is actually Dusk in America, the public will want to eat the upper class alive.

Perhaps you disagree with my perspective on this, since you obviously seem joyfully optimistic about our future (despite massive, never before experienced challenges for our species on the very near horizon...) To go down the list briefly with no depth:

  1. spiraling wars in the middle east (already in progress)

  2. global oil production depletion (no one knows--not a good thing)

  3. global warming (again, no one knows--not a good thing)

  4. unprecendent debt levels (growing rapidly monthly)

  5. overpopulation (approaching 7 billion--more people have been alive in the last 200 years than cumultively in all of human history)

  6. mass extinction

  7. ecological degradation (rainforests all around the world be burned and chopped down, coral reefs dying, etc.)

I could go on but you get the jist of it.

While you seem to enjoy doing the "hey look how stupid feckless unemployed 20 somethings are compared to our brilliant billionaires!" I would rather side with BrianT and simply agree that we are products of only two things... Our environments and genetic dispositions. (Not to mention millions of years of natural selection.)

"potential of a billionaire"?????

So I assume you are saying that essentially there is a billionaire gene? Or there must be a rearing technique to enhance the "billionaire potential"?

Those are rhetorical questions, because obviously both have to be true. In order to get a billionaire you need A) the disposition to become one B) the environmental know how to function in the world to impress people, network, makes deals, etc with all the other BS required. Plus, the obvious desire to do so...

Again, I'm just writing this to make it known to all that I agree with BrianT, and think your arrogance is now apparent to anyone to see.

BrianT tries to say we're all in this together and you go out and write that he must not be a billionaire and that billionaires are smart? Wow.

hrmm...

Yes, indeed. You might add that various accidents of birth and timing, location, also contribute mightily to wealth.
Who is Thomas Friedman?

"Whereas I see globalization simply as labor arbitrage and squeezing the last few bucks out of an industrial system that is bound to collapse (in any form, whether run by global capitalism or so called "marxist socialism".)"

Labor arbitrage existed everywhere at all times. It is not limited to moving jobs across borders in the late 20th century. Labor intense industries always moved to where the cheapest labor was and they always created high concentrations of low earners. What seems misguided to me is that some people in these posts complained that they can't be the low earners. I always ask myself why someone who has reasonable chances to move up to the middle class would want to hang on to the bottom of the system kinds of jobs. The Chinese who are taking these will certainly encourage their children NOT to follow Mom and Dad to the factory but go to school, then college and become an engineer or better.

As for the collapse of the system... I have yet to see any signs of that. Capitalism is happily producing one record result after the other everywhere in the world. One can argue that some of it is ecologically not sustainable. I would agree with that, but then, there is no law of physics that I know (and I am a physicist) which states that similar gains can not be had with less waste of energy and resources. America is 50% less efficient than Europe and Europe is probably 50% less efficient than it could be according to the laws of physics. We have plenty of solar radiation to satisfy our children's and grandchildren's hunger for energy. Real limits exist, but we aren't even close, yet.

My billionaire story was meant to be hyperbole... apologies that people misunderstood my sense of humor. Since I don't dine with billionaires, I know nothing about them first hand. But the fact that they are billionaires and most people are not kind of leads me to believe that they are doing something differently... :-)

Don't forget luck.  Everyone who makes it likes to think they did it all on their own, but anyone who is honest will see that luck played a part as well.  
why the hell does a billionaire need a cellphone ?
To call mom ?
The difference between a billionaire and someone who is only modestly successful has a lot to do with luck.  Your average billionaire is not a super genius who could find himself lost in the wilds of Africa and build an airplane out of leaves in order to fly himself to civilization and start an industrial empire.  I wouldn't go so far as to say billionaires get where they do based only on luck, but it's a lot more luck than skill.  They are lucky to be in the right place, at the right time, with the right idea.  Others who are equally qualified just don't end up in the right place at the right time to get the big break.  
please a pound of whatever your smoking.
The stuff is called "reality", costs next to nothing and is not restricted by either federal or state drug laws.

:-)

surgery is being outsourced.  Expect to see more and more insurance companies requiring their insureds to travel to places like India where first class heart surgery and hip replacements and the like can be done for a fraction of the cost of the USA
Yeah, I'm sure that round-trip plane ticket will really help the margins.
Plane tickets are a lot cheaper than what they charge for medical procedures in the USA (and other industrialized countries) these days.  There already are many such "tour and cure" packages being sold.
couldnt you just check yourself in to the local veterary hospital ?
appologies to the spelling police academy
Per "Outsourcing Surgery" TomPeters!
http://www.tompeters.com/entries.php?note=009333.php

Medical Tourism World Wide
Discover a world of care, safely and affordably.
http://www.planethospital.com/

I'm aware of many people doing this on their own, but I'm not aware of ANY insurance companies requiring or even promoting this.

Are you aware of any examples of insurance companies getting involved with this?

The industrial production that is moving offshore is the energy intense version, eg fertilizer and plastic precursor production.  US manufacturers can't compete with overseas competitors with access to $3/mcf ng.
Hadn't thought about job prospects for exotic dancers in this era of globalization! Now if you're talking about watching you are wrong - plenty available on the internet. If you are talking about lap dances you are correct!
"We do have a growing number of poorly educated people who are being made obsolete in the changing workforce of the 21st century"

In fact we have a growing number of EDUCATED people who are also being made obsolete.

Good posting although I disagree with your assesment about education.  I took and eventually passed the CPA exam in the early eighties and we were allowed 2 sheets of paper and one pencil that were collected before you could leave. Now you are allowed a calculator and unlimited supplies.

Nowdays with all the accounting and technical software any "idiot" can replace jobs that took greater understandings and education.

We need more technical programs like I had, in public schools. Technical arts from grade 6 through 12 gave me my welding and foundry abilities, and now pay me almost as much as being a CPA, with less hours of work.

People making less in this economy are forced to pay higher gas prices they can ill afford.

"In fact we have a growing number of EDUCATED people who are also being made obsolete."

I would like to disagree. We sometimes have an oversupply of people with the wrong skills. Educated people can compensate for that by changing professions, albeit it is very rare that a PhD chemist or physicists has to change fields. He or she might have to move somewhere else to find work, though.

Obviously CPA jobs can be outsourced, but a friend of ours who is a physical chemist who joined a bank, got a CPA on the job and specialized on market analysis (because of her mathematical skills in stochastics) and is now a high-earner in a large European Bank. Her job is not only safe but will probably take her soon to New York, Tokio or anywhere else she wants to go. All she has to do is to ask...

Congrats about you decision to go into welding and foundry work. Especially if you can do specialty welds (UHV) or artistic pieces, that sounds like a safe job to me. It is safe because it is specialized and if you add the experience, you are hard to replace.

That is a general statement about job security: if you can do something that only a few thousand people in the world can do, your job is usually safe. If you sell hamburger... well, then you can be replaced rather easily, if necessary with a machine.  

Always fun to read the idiocies of a dyed-in-the-wool dreamer.  They provide such a laugh.  In fact, to get a job overseas requires skills and youth, or exceptional skills, as host governments don't want the health care burdens of older workers, nor the fewer years of contribution to the treasury.  Several youngsters I knew have moved to Britain, Australia, etc., where they can get jobs, but I'm too old for jobs in anything but my profession, according to these governments.  Besides, how do you know that North Americans can get jobs overseas?  One example, a woman at that, doesn't prove a thing!
"In fact, to get a job overseas requires skills and youth, or exceptional skills"

Skills and even "exceptional skills" can be had easily. All they require is supportive parents, good teachers and ten years of continuous learning in college and university. The easier way to get into the US, Europe and most other countries, though, is by doing the janitorial jobs that the locals are not willing to do. Generations of foreign workers everywhere can tell tales. And because they had to do all these awfull jobs they tend to save their money and send their kids to schools of higher education to spare them the dirt. That is, at least, what my parents did...

"Besides, how do you know that North Americans can get jobs overseas?"

Singapore, for one thing, is inviting and supporting foreign researchers with grants. They have tons of foreign companies set shop up there and bring their employees over. They do get their construction site laborers from Malaysia, though. I doubt you want one of those jobs, anyway.

It is by no means "easy" to get into the US. Getting a greencard is a major hassle. In return the Europeans make it really hard for US citizens to get in, too. But just because something is hard does not mean it is impossible. You just have to want it and do the things it takes to get there, not all of which are pleasant.  

"The easier way to get into the US, Europe and most other countries, though, is by doing the janitorial jobs that the locals are not willing to do."

Can you give me a link to where I could read about the US giving preferential treatment to immigration applicants who say they are willing to be janitors?

They don't actually give you a green card. You have to buy them on the corner of San Antonio and Middlefield. It's 25$ each.
That's to be a janitor. Now if you are like the two mothers of my nephew and niece (long, complicated story, but interesting), you can't get a middle class job paying decent wages and have to move back to Sweden. Plenty of janitor jobs, fast food jobs, street labor jobs, but nothing that will buy a house or even pay for more than a cot in a garage without a documented history, and that costs far more than 25$.
Unless you are willing to indenture yourself to a company and make half what you would make in Sweden, or marry an American and wait a year or so for your work permit to kick in, you can't get a middle class job in America as a legal or illegal immigrant. In my lifetime we let in thirty million unskilled immigrants and maybe three million skilled (which means college diploma bearing) immigrants.
This has made most Americans better off, on average. It's just the poor people who get it in the shorts.
"In my lifetime we let in thirty million unskilled immigrants and maybe three million skilled (which means college diploma bearing) immigrants.
This has made most Americans better off, on average. It's just the poor people who get it in the shorts."

30 million more people hits everyone in the shorts. Their is almost no problem in our society that is not made worse by 30 million more people.

It is rare when a PhD physicist is actually employed as a physicist. Almost none of my employment since graduate school has had much of anything to do with my studies. My impression is that most of the people in my program are in a similar situation.
That is also true in my case. But because I can cope with experimental physics, do the job of a EE and are a reasonable software developer for embedded systems, I have a lot of opportunities that other people do not have. I think this is true for physics PhDs in general. Many physicists I know are generalists. And many of the life scientists among my friends  are now working on the business side and in management positions. A really capable mathematician I used to know went into banking and had a really good time because his creativity got instantaneously translated into a great salary. I am not sure any of us would be any more happy had we stayed in pure science.  
""In fact we have a growing number of EDUCATED people who are also being made obsolete."

I would like to disagree. We sometimes have an oversupply of people with the wrong skills. Educated people can compensate for that by changing professions, albeit it is very rare that a PhD chemist or physicists has to change fields. He or she might have to move somewhere else to find work, though.
"

Saying that a PhD chemist or physicist will never be without a job does absolutely nothing to refute the statement that "a growing number of EDUCATED people who are also being made obsolete". In fact, it appears to support it. You named only two fields of study and limited study to the PhD level.

"That is a general statement about job security: if you can do something that only a few thousand people in the world can do, your job is usually safe."

Are you being sarcastic with this?  Making a case that a growing number of educated people aren't being made obsolete by talking about people with highly specialized skills?

"Obviously CPA jobs can be outsourced, but a friend of ours who is a physical chemist who joined a bank, got a CPA on the job and specialized on market analysis (because of her mathematical skills in stochastics) and is now a high-earner in a large European Bank. Her job is not only safe but will probably take her soon to New York, Tokio or anywhere else she wants to go. All she has to do is to ask.."

Well there is a good example of a person who's job cannot be off-shored. Oh wait, you just said she could work anywhere she wants.

Well, it's clear what the guy is talking about when he says EDUCATED is a PhD level education.  That's a bit more educated than your average person, that's a highly specialized degree.  And yet at the same time he admits that many people he knows aren't even employed in the field they studied, which calls into question just how much practical value their studies actually had.  When you're a chemist and end up working at a bank, that is not a sign of an extremely efficient system.  

In my opinion the most important thing to consider is this: it used to be that a high school diploma meant you were decently educated, and a bachelors degree meant you were well educated, if not a specialist.  Today a high school diploma has no value greater than toilet paper.  A bachelors degree is the new high school diploma-- so many people have them now that they mean almost nothing, and rather are expected.  

How long until master's degrees are nothing special?  How long until PhDs are a dime a dozen?  What we're seeing is degree inflation.  We're spending a lot more time and money training people in stuff that they're not going to use, rather than the skills they actually need.  In the end, an Indian or Chinese person with the same degree will still do the job for a much lower salary.  

We have a problem in this country and it's not one that can easily be solved by more education.  

Your argument is incorrect. Even though a lot of US manufacturing companies still make a lot of money the actual manufacturing (the big user of gas) is moving offshore (computer chips is a perfect example). This is what effects gas usage not a bunch of paper pushers/CAD operators in head offices in the US.
The point is that the US economy still leads the world, despite all the alleged problems. And if, as you say, energy is going to be the restricting factor (which it won't), is it not logical for an economy to shed the energy demanding jobs and to replace them with more profitable white collar industries?

Just a thought...

Parents are well advised to teach their children the skills that will be required in the future and not the ones they were taught by their own parents.

the US economy still leads the world

Leads the world to what ends?
LOL

How does that solve anything?  Just because we "shed" manufacturing doesn't mean it magically takes no energy to create the goods we need.  It still takes energy, just over in China instead of here.  When the price of energy goes up, the cost of those goods is going to go up too.  In fact, the cost of transporting them halfway across the globe means they may be more expensive than ever.  Just because they're not made here anymore doesn't mean we don't still need those goods!  

Allowing all our manufacturing to leave this country has not really solved any of our problems, if anything it has potentially put us in a more difficult situation.  

dont forger all those "manufacturing" jobs in fast food   and dont forget burger king  flame broils their burgers    that will burn off a lot of gas   our manufacturing jobs havent gone overseas you're just not looking hard enough    and the media is not reporting the good news and tony snow said something today about "stay the course" just didnt reflect the dynamasism of what is happening ( and i said something about what an unmitigated pile of horseshit)  and on and on  balh blah blah
With all the hot air around here, maybe we should consider revitalizing our zepplin industry!