The document describes a new economic model proposed by James M. Marshall. The model aims to address declining manufacturing jobs and the shrinking middle class in the US. It proposes bringing manufacturing jobs back to the US and employing all willing and capable workers at a living wage. Goods would be produced to meet consumer needs. The government would print money needed to support this self-sustaining economy and high employment, eliminating the need to borrow from other countries. The goal is for the US to become self-sufficient and put its citizens and society first.

1. A New Economic Model – by James M. Marshall July 21, 2011
I was born in 1949. My father, based on his high school education and military experience was able to
grow and support our middle class family by forging a career in manufacturing. His employer took his
willingness to learn and hardworking traits and trained him accordingly for any position attained. This
factory job and his earnings allowed me to pursue a college degree. I decided to follow my dad’s path
and pursue a career in manufacturing. Using this college education, coupled with my growing work
experience in manufacturing, I was able to build a career in manufacturing, growing a nice nest egg to
support future plans.
What is key or important in the above statements, as well as current events developing over the past
decade or so, we see the following:
1. The US economy has moved from a manufacturing based economy to a service based economy.
a. Many that used to work in manufacturing are looking for equivalent paying jobs, to no
avail.
b. Service industry jobs are not paying wages seen by the prior manufacturing jobs.
c. Many service related jobs do not pay a living wage.
2. Our middle class is shrinking quickly, being replaced with high unemployment, low paying
service related jobs and high income jobs (medical, corporate management or government
based, etc.). We are seeing the growth of two classes – high paying and all others at the low end
of the scale, with a growing divide between them. Where many used to fit into manufacturing
jobs which helped grow the middle class ranks, this is no longer available for the masses of high
school educated graduates or many college graduates.
a. In many areas, governments (federal & local) are now paying higher wages than the
private sector.
b. Government employee benefits are no longer competitive and are crippling local
budgets. Legacy benefit costs cannot be absorbed by local government budgets and
revenue streams.
3. Manufacturing supported taking a high school education, allowing an individual to be trained on
the job, growing a middle class family and standard of living.
4. The current economy has limited the amount of these manufacturing related positions
rendering many in the US with high school educations to low paying service jobs.
5. College education requirements keep growing and now are required for positions that
previously did not require a college education. This is seen by the advertised requirement for an
MBA, but at former BS/BA wages. Many of these positions were performed well in the past by
incumbents who possessed a high school education coupled with job experience.
6. Student loans are growing and jobs for recent graduates, hard to find. Due to the inability to find
a meaningful job, some take on an MBA degree program or go to law school, further building
student loan liabilities . Many of these same graduates have moved back home, cannot find a
good paying job in their chosen degreed field and are not making a living wage if they do land
‘any paying’ job just to pay the bills. Job opportunity options are very limited for many college
graduates.
Copyright Pending © 2011 by James M. Marshall
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2. 7. How do the world economies move from recession to prosperity and growth? Who starts this
ball rolling first? The US? Quantitative easing? China? Asia? Europe? All of us together ‘on
the count of three’?
8. Civilizations and nations have to borrow to support their life styles due to financial constraints.
These constraints are created by a poor economic model and the perception that the world
must keep everyone in check and balance out wealth, currency value and equity. An example of
this would be Greece. If Greece would remove themselves from the rest of the European Union,
they can then revert back to their own currency, print what they need to support their society
and eliminate the problem they have today. So what if their currency falls in value when
compared to other, world currencies. This only means something if they have to buy something
that they cannot make on their own or wish to export a surplus of something.
As we step back from this, we need to analyze where we went wrong. Rather than bashing companies
that shed US jobs by moving these positions off shore, as well as waiting for the economy to go positive
by itself, we have to digest several factors.
US companies and their management are judged by growing shareholder wealth over time (the
company stock increases and dividends are paid). If a company is not profitable, shareholders will
demand a leadership change. The investment industry then will not accept the company trashing the
stock value and shareholder wealth. As a manufacturing company, it becomes too easy to make a
financial decision and move the jobs off shore. The company remains US based, profitability goes up for
example, growing shareholder wealth. The problem we now have is what happens to those whose job
was eliminated as a result of moving off shore?
The second important factor that we have with this move of jobs off shore is that we, the US
manufacturing companies are now developing the third world nation or country that we outsourced the
work to. In other words, those that were laid off allowed their ability to earn an income to be used to
develop this third world nation. The US company doing the outsourcing will do everything possible to
make sure that the third world country performing the work does not miss any step in quality and
supply. In fact, in many cases, the US worker being laid off was offered a short term job to train the
recipient of his/her work. Once trained, the US person is now out of work.
Our unemployment has grown significantly, with a remote chance that an equivalent paying job is
available. No end to this unemployment issue is in sight. US companies have grown stronger financially,
but at the demise of the US work force. At this time, there is no incentive for a US company to hire those
that are unemployed. Many unemployed are stuck chasing the few jobs that are available, further
damaging our economy and state of wellbeing.
Another factor that we have encountered is what we can export.
We export food and innovation, although this really does not support high levels of employment. We
export natural resources. We export manufacturing goods, which had a track record of employing many.
On the flip side of this, I am not aware of many services that we export, such as being an attorney,
banker, stock broker, insurance salesperson, fast food window attendant, health care worker, etc. We
might have a few examples where a foreigner comes to the US for medical care, but our medical care is
Copyright Pending © 2011 by James M. Marshall
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recording, or other electronic or mechanical methods, without the prior written permission of the author.

3. high priced. In fact, many US citizens go to other countries for operations on the basis of similar care,
but at a much lower price.
If manufacturing continues to shrink, we are killing our middle class, killing the opportunity for large
chunks of our population to earn a living wage and rendering our country to a major trade imbalance –
buy more offshore than we export to other countries. US wealth is flowing in one direction – out. On
this basis, we are developing these third world countries at our demise. Unemployment will continue to
grow with many no longer able to find any good paying job, even when our economy strengthens.
We are evolving into an economy that cannot survive. We no longer value supporting ourselves first
above all other goals, objectives and strategies. We celebrate when our stock holdings grow in value,
but this growth might have put many of us out of work.
IPOs are not the answer, as many of us do not have these ‘ideas of innovation’ that can be grown
employing the masses of good, average workers. We need a replacement for manufacturing that can
employ the masses with good paying jobs.
As we look around the world, we see economic problems all around Europe, Asia and most other
countries except possibly China & Saudi Arabia. China has and is our recipient of economic and society
development based on our outsource of manufacturing and goods to be produced (sold at Wal-Mart,
Home Depot, etc.), and Saudi Arabia pumps oil from the ground and sells it to us at a high price. We can
continue to fight this ‘never ending’ battle of jobs versus development of third world countries and
make versus buy decisions, with resultant unemployment rising or we can change the economic model.
I vote for changing the economic model which can apply to almost any nation that is willing and capable
of employing their citizens.
My theorem is as follows:
We find and identify all that are willing and capable of working. We match these capabilities to jobs in
the US. If we outsourced a manufacturing job that is needed by our US citizens, we bring the job back
to the US. We pay our US citizens a living wage for all jobs performed, using proper guidelines for pay
versus skills and proper progression of risk, skills versus pay, etc. We raise the price of the resultant
goods produced by US labor to allow the company manufacturing the goods to make a profit. Once
employed, we now have the money to buy goods that we need and desire. This high employment of
our workforce feeds the economy. We then shift production of goods against growing inventories and
consumer needs so as not to overproduce what we do not wish to purchase and consume. We have
now built a self-sustaining economy.
The result of this new economic model is very high employment. By employing many up to the
maximum employment level, our wealth generation grows significantly. We then are paying taxes at
higher levels than we are today. In essence, if we build this model correctly, we no longer need to
borrow from anyone else. If we need more than what we are generating by paying taxes, the US
government under levels of control, prints the money needed to support US wealth, support US
standards of living and support perpetuation of our economy and world standing.
Copyright Pending © 2011 by James M. Marshall
All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods, without the prior written permission of the author.

4. So what if the world lowers the value of our currency. We really do not need the rest of the world and
now have an economy that feeds on itself, taking care of our citizens first.
If we cannot supply something that we need and must buy it from another country, then we negotiate
the price of this required trade. We might even agree to swap goods instead of measuring the gain or
shortfall in exports vs. imports based on currency trades or value trades.
There is not much that we would need from other countries. We can, in essence go back to being self-
sufficient, taking care of our own first.
In theory, any country can adopt this model. Once they determine how they will employ their citizens,
the rest is basically mechanics of their economic structure. Print the currency needed to pay living
wages, support their standard of living and never have to borrow to pay for or provide for core needs.
This economic model virtually eliminates the debt issues facing Greece, Italy, Spain, Ireland and even the
US. Debt no longer applies as we become nations supporting our population needs.
Factors for consideration in this new economic model are as follows:
1. How to balance the healthy level of employment with the need to outsource offshore.
2. How to return a high level of self-esteem and a sense of value to those on welfare by having
them occupy a productive job in society.
3. How to create an incentive for US based companies to use US labor and not outsource offshore
jobs that we can do, for profit gain.
4. How to maintain a healthy, highly competitive environment in our various industries.
5. How to put the US workforce and our society first so that once we are prospering, we will then
be willing to help and share this wealth with any other country or nation.
6. How to develop this concept without becoming isolationists.
7. Increased employment in the proper industries will drive consumer demand and needs, further
fueling the economy and growing GDP. This increased employment will also generate revenue
to feed our US Government and society needs.
Copyright Pending © 2011 by James M. Marshall
All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods, without the prior written permission of the author.