Loss of good jobs through ‘free’ trade is at heart of foreclosure epidemicBy Mark Anderson
With the mortgage crisis reaching critical mass, it’s time for Americans to see past the media reports that are keeping them in the dark. Take Shaker Heights, a suburb of Cleveland. Foreclosures have emptied most of the houses. This town was “ravaged by the subprime mortgage crisis roiling the United States,” stated a typical mainstream news report.
Many former residents were “evicted for non-payment of their mortgages,” some left in search of new jobs “after the factories shut down.”
This report represents the usual shallow, worn-out “explanation” of the crisis. If people were not given so much worthless information, they might understand what is happening. The media blathers about careless lenders that gave mortgages to risky recipients who didn’t keep up their payments. But the real story is that the destruction of middle-class jobs, especially in the manufacturing realm, is destroying the ability of Americans to earn, save, invest, pay taxes, reduce personal debts etc.
Gainfully employed people earn money and can buy homes; people with money can make large down payments to obtain smaller mortgage payments; people with money can pay cash for their car so they don’t have vehicle payments; people with money can avoid too much or any borrowing in the first place.
Unless one is born into wealth, one must work. And the types of jobs people need to be secure homeowners are disappearing. These jobs left the nation aboard the “free trade express.”