Perhaps a small initiative of why this nation is heading in a direction that is apparently contrary to all common good is simple, the powers that be either do not care, or are willful apostles to the economic destruction of the nation, which they claim to represent. We keep hearing reports of the economic growth and prosperity that one wonders to whom it is benefiting, because in reality, fewer and fewer of our people see this. Yes, corporations and shareholding entities report record profit, but how does that effect the average person that struggles to exist and has not the means to enter the crap-shoot of the market, and secondly, when the average family is in debt in excess of their annual income, notwithstanding that the home they may be fortunate enough to own is not included in this estimate of chronic debt, where is the benefit of this “booming economy”? A few wealthy and a few fortunate enough to have their cake before they eat it, obviously, but the vast majority of the people that have had to earn their own way and make their own means have not benefited, on the contrary, the average lives in a decline never before recorded in history with one exception, the fall of the Roman Empire.
The death of industry was caused by one simple fact that our government kills and devours it’s own. I will use the transistor radio for example, American companies made them years ago, for the sake of argument I will use the “Admiral Radio”, now along comes competition from Japan, now the “Imperial Radio” looks the same, is almost as good, and sells for less than half. Since people have a habit of loosing or destroying such an item well within it’s potential lifetime, the cost of the product is the selling point, and not the quality, so “Admiral” begins buying “Imperial” products and stamps them with the “Admiral” logo, and the factory slowly dissolves into a shipping and handling facility, in the name of profit, sending the skilled laborers out the door for the sake of hiring less skilled and less costly warehousing personnel. Now this industry has changed from one of product, to one of handling. The profits go up, the stock holders approve as their portfolios have a large spike in the chart with the word “Admiral” underneath, the have-more crowd has profited over the have-not crowd, as off to unemployment they go, this is a 1950’s version of the “economic boom” we are told that we are living under.
Now comes the return for the have-more crowd, twenty years later, “Imperial Radio” opens up their own warehouse in California, hires extremely low cost immigrants to man their facilities, and withdraws their allegiance from “Admiral Radio”, they no longer need them, why should they make 15% of the final sale price when they can make 40%, so for a leap in investment from the foreign market, “Imperial” kills off “Admiral” with one move, “Admiral” no longer has facilities to manufacture, so they go looking for the next foreign company to rubberstamp, however the damage is done, the smarter investors knew that the product was in fact a foreign make, and sold off their investments with “Admiral” before the decline and quickly attempted to purchase shares of “Imperial” as fast as they could, assuming that the country of origin was a free market like ours, only to find that the country of origin was not free market, and that their investment was not allowed. Now the management of “Admiral” is diminished, the stocks are pennies, and only those in the know were able to leave the ship before it sank.
Now I will explain what I meant when I stated that the government kills and devours it’s own. Instead of imposing a tariff on the foreign good, or taxing the foreign product to make the balance of labor costs more equal, thus making “Imperial” forced to compete with “Admiral” for quality as well as cost, the government sits back and declares us a “free market”, so whatever goes, goes. Here is an example of what the Constitution means by tariffs. The “Imperial” radio is produced for under $3 US Dollars and required an additional $2 per unit for the shipping here to the country. “Admiral” has a cost of $8 per unit to manufacture, and the shipping costs within the country are the same once here. A tariff is the equalizing fact, if the foreign product has a cost of $5 upon arrival, and the domestic product costs $8 to produce, the government is to charge a $3 tariff per unit equalizing the unit cost, and thus leaving the two competing parties forced to compete in excellence of product instead of the baser cost. Instead, the government does nothing, it watches domestic production become a casualty “free market”, and taxes the citizens heavily for their labors, and less for their investments [Capital Gains] that have lead to the willful destruction of domestic production. Further, knowing full well that there is more revenue for the government to tariff foreign trade, they deliberately choose to tax the populace instead, as the debts increase among them. Yes the “economic boom” is real, there is so much out there growing for a few, and they invest in credit companies to further their increase, this is why a guy that makes $30,000 a year with a family has unsecured debts in excess of his $30,000.
This is my prediction, as China, India, Indonesia, Malaysia and other developing countries choose the route of Industrialization, and as their real profit grows, they also will realize that all they have to do is cut out the American rubberstamp corporations that also have sacrificed their industry for profit, most likely as a necessity, they, like “Imperial Radio” will open up their own facilities right here in the market, make an American sounding name for their company, do their own advertising, shipping, warehousing as well as their own brand, and like the electronics industry and the electrical components industries of the last generation, annihilate the competition, and this means you. Unlike the American companies, if they begin going from 15% of the final sale price to 40% of the sale price, they will begin sending home to their country of origin, 39% of the price as the cost of product, paying taxes on only the taxable share of the 1% left to the American Government. So instead of revenue being based on the 25% profit from the American Corporation, it is now legitimately and legally based on the 1% of the reported profit from the foreign company.
Now if the government took the tariff of the product, they would receive 40% before the product even made it to the stores, plus the legitimate taxes of the retailer, of they would receive about 50% of the final sale of foreign goods sold within while maintaining the industries of our country. Instead, they get less than 11% of the whole deal, per product, and they receive less from the American worker, less from the investors that have been cut out of the foreign markets due to their own nationalism, and they go after the working slob even harder because of their own stupidity and this satanic imbecilic concept of “free market”. If you are wondering why we have this “economic boom” as your costs go skyrocketing, just wait until the third world follows the examples set by Japan and Germany, when you can kill the competition and purchase them in the process, and no one will consider it a problem as long as stock dividends keep escalating, just do it. Now also consider this one fact, do you think, unlike Japan and Germany, that countries like China will even consider paying Americans to do anything with their products, when their own labor rates are so low, the concept of hiring any American to do anything will be looked at as a loss!
My prediction, “free market” as it has stood for the last 50 years has made the American Industry crumble under the weight of unfair competition, and soon, the same managements and corporations that were part of this and said nothing but “Profit, Profit, Profit” will be saying “Unemployment”. The same decline in Industry is also related to the same as Labor, when you can no longer sit at a desk, and need to work with your back, remember that for the sake of saving a few dollars here and there, you participated in your own destruction, with this invasion of illegal laborers, working per day for what the Average American would spend on beer for a weekend night, without flinching, when there is no more management left, and no more corporate need for personnel, you can also forget becoming a laborer, unless you can live each day for what you used to spend on a few hours of intoxication. My prediction is that we are within a decade of the full decline of Industry; Labor as well as Management, each a victim of “free economy” and government ignorance. Trust me when I tell you this, when corporate revenues fall for the government, they will not starve themselves for your sake, you will be starved out for their sake. This cycle is beginning again, and unlike a small threat like Japan, or a smaller threat like Germany seizing the economy for their own gain, large threats like India and China will prove that having a status like “most favored nation” is the equivalent of saying, come and ruin us. This cycle has already begun, the last small crash of the stock market was when everyone realized at once that our home grown companies could no longer compete in electronics, the next will be severe when the same companies are destroyed by foreign products made for pennies and sold so cheap directly to the American consumer, that the possibility of corporate survival or profit for the rubberstamp American “handling” facilities will be fully eliminated. This is my prediction if this same principle of “who cares” continues unchecked and unbalanced.
Forthcoming will be proposals for the solution.