So the collapse of the Soviet Union began the arbitrage of of labor, and it ended up separating Americans from the production of the goods and services that they consume. The economy has been dead in the water ever since, and the Federal Reserve under Alan Greenspan tried to substitute - for the missing growth in consumer income in employment - consumer indebtedness. So we had the rise in consumer indebtedness, the real estate bubble, the various financial frauds, and the ongoing financial crisis.
Rob Kall: You also said about this being caused by the high speed internet. How's that tie in?
Paul Craig Roberts: Right. That's what I'm getting to now.
Rob Kall: OK.
Paul Craig Roberts: The manufacturing goods were produced offshore and sent in. Now. What the high speed internet allowed the corporations to do was to offshore the production of professional services, such as software engineering, information technology; and now, of course, research, design. They could hire people in India to do this work, and they could send it in on the high speed internet, and so we have seen the employment for Americans in rapidly growing fields such as software engineering and information technology simply dry up. The work is now done offshore and sent in on the internet. So the consequence of Soviet collapse was to destroy American manufacturing jobs, and to destroy professional service jobs that had always been the ladder of upward mobility for American university graduates.
Rob Kall: Now I've got to say, when I talk to kids going to college, I say "Don't look for a job that can be outsourced by the internet." Even radiologists are being outsourced.; so if you get an x-ray, they send the results to India to have a radiologist in India do it instead of an American doctor doing it. It's so scary.
Paul Craig Roberts: Yep.
Rob Kall: You wrote in your article When Truth Is Suppressed, Countries Die - the first half of the article is mostly about this topic, about how theorists were saying that we would be transitioning to an information economy, and did the creative approaches and what have you, and what you argued was that you've got to have production; you have to have manufacturing, or if you lose that, you're in big trouble. I wanted your comment, and I just think that it also ties into the space program, which both parties are just throwing away and selling off and getting rid of now, and letting India and China and every other country pick up on.