Saturday, June 24, 2017

I'm Going to Bring the Jobs Back

There are many mysteries about the present US administration but one that intrigues me in particular came when POTUS claimed "I'm going to bring the jobs back". Which jobs, I asked US Consul General James W. Boje Hermann considering that unemployment in the States is below 5 %, i.e., there is full employment.

Friederike Schulte, Director of Freiburg's Carl-Schurz-Haus,
introducing US Consul General James W. Boje Hermann.
On Thursday night Consul Hermann spoke about and discussed The State of Transatlantic Business Relations Today in Freiburg. With respect to jobs I told him that on the box of my latest iPad I read Assembled in China. In the following discussion the consul agreed that bringing 20,000 miners back into their jobs will not change the statistics. In addition it is a fact that industry does not want any coal.

POTUS too must have realized that he cannot revive outdated jobs and so on June 15 he signed the executive order, as the Daily Mail reported, Apprenticeship and Workforce of Tomorrow  that aims to create a new channel of approval for apprenticeships. He is calling on Congress to commit $100 million in new money to the initiative, and expand the allowable uses of student financial aid so students can use the support for "earn while you learn" programs.

POTUS smiles having signed the executive order
Apprenticeship and Workforce of Tomorrow
In fact, workers in the States with their high salaries will never compete with those people in both Chinas making baseball caps.

 If "old" jobs cannot be brought back the US must instead create other, new and "better" ones. Those new jobs are becoming available in more complex technologies where learning by doing is no longer sufficient.

Ivanka and Angela at a round table in Washington (©AP)
Here Ivanka Tump has influenced her father positively. She was sitting with our chancellor during Angela Merkel's spring visit to the States discussing the German system of dual education. This system is nearly as old as Red Baron who recalls that following high school during a practical year in a shipbuilding firm in Bremen he went to Berufsschule (vocational school) once a week to learn the "theoretical" background of his practical work. To make a long story short: later as a physicist I knew how to drill a hole into aluminum (not easy!) and could operate a turning lathe.

On the one hand POTUS has on the quiet adopted one of Obama's favorite projects while on the other hand he is trying hard to replace Obamacare. Here another look at Germany would have shown him that replacing an existing health system with a better and cheaper one is impossible.

In the history of the Federal Republic we have had at least five major reforms of our public health system aimed at making it less costly and more efficient. We always failed for in the end any reform resulted in more bureaucracy and higher costs.

The entropy law of health systems goes like this: As hard as you may try, any existing or modified health system will become less efficient and more expensive with time.

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