… to hell in a hand basket. What’s the real problem with our economy?

The author of this article states that the trade deficit and the lack of manufacturing in the U.S. should be the real emphasis of improvement in this country. Sadly, he doesn’t go near the real underlying reason that we even have these issues.

When I was very young, the U.S. manufactured its own goods in factories here in the U.S. that were staffed by workers who were Americans. These same workers were also the consumers of the manufacturer’s products.

One day, though, ABC Inc. realized that it could manufacture its model 01 widget in a factory outside of the U.S. and import it back to consumers in the U.S. for less than it cost them to do it domestically. WOW! What a great thing; less overhead equated to inflated profits for ABC Inc. and its stockholders.

Eventually, the vast majority of companies in the U.S. realized that this technique was awesome. Who suffered? The worker. Even though those products were now on the shelves for cheaper than they had been when they were manufactured in the U.S., the consumer no longer has the buying power to purchase them because he’s unemployed.

What really made this happen? GREED! It’s that simple. And while you cannot legislate against greed, the government was able to regulate it somewhat. Those days are gone. The MONEY that controls the government in the U.S. is very happy to stand on the backs of poor foreign workers to increase their profit margins. They’re not about to change a thing.

I’m not an advocate of isolationism, but we in the U.S. must begin to find some way to rein in the greedy bastards who got us into this mess, and we need to find some way to regulate the flow of goods into our country that would benefit us rather than destroy us.

What think ye?

Later…

~Eric

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About V. T. Eric Layton

vtel57, Nocturnal Slacker

6 responses »

  1. Jim says:

    2 things, 1) Make the Chinese pay more in Tariffs, the trade deficit is the biggest stumbling block to North America’s recovery, if we made it more expensive for China to import, then the manufacturing would come back to NA.

    When NIKE makes new sneakers over in Asia for $5.00 and sells them in the US for $150.00, they should be charged an import fee of say $130.00 to sell in NA, then they would see it would be cheaper to manufacture in the US…throw them some tax breaks ala Republicans.

    2) NAFTA, need to focus on this and trade with Europe…ignore the Far East.

    As was said in the news lately the illegal immigration of Mexicans has slowed down due to the sucky economy in the US and the improving conditions in Mexico. This will have a trickle down effect on seasonal workers, maybe the Texans and others along the border will have to hire locally and at reasonable wages to get their crops in…(includes a lot of Mid Western states as well)

    Good info on Tariffs…

    http://en.wikipedia.org/wiki/Tariff

    • Sadly, experience has shown us that if the gov were to add a $130 import fee to each of those Nike sneakers, the price would just go up to $280 a pair. Companies do not absorb those fees. They just pass them on to the consumer, which ends up being just another tax.

      Anyway, something needs to be done, eh Jim? It’s affecting all of us in the world, not just the U.S. or Canada.

  2. You are so right, Eric! Happens every time! They just pass the cost difference on to customers.

    Hums the following to the song “Jingle Bells”

    Oh, rust and smoke, the heater’s broke, the door just blew away.
    I light a match to see the dash and then I start to pray-ay.
    The frame is bent, the muffler went, the radio it’s okay.
    Oh, what fun it is to drive this rusttttttttty Chevroooooooleeeeeet!

    http://www.funny-stuff-central.com/cmas.php

    Seems to me that is where most folks will be soon. Some of us are already pretty much there LOL!

    • I’m there already. I drive a rusty Chevy now. It’s my only vehicle, too. It’s mostly bailing wire and chewing gum at this stage (it’s a 1982 model). She keeps on going and going and going, though. πŸ™‚

  3. Don’t feel badly Eric. Many of us are. Driving a ’97 Honda that I bought in ’96. It has close to 250K miles, but it takes a lickin’ and keeps on tickin’….still get in and turn the key and starts right up. But it’s using oil even after fixing the oil leak…oh well…

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