Saturday, October 18, 2008
It's Still the Economy Stupid
By popular request (and when I say popular I mean only) I present Dr Doom. I betcha those two guys running for President right now aren't cranking out quality sketches like this, yo.
Speaking of Doom, it is essential to our economy that we stop sending jobs to Latveria, or India or China. Our country cannot survive this.
Small and large businesses alike, due to the advantage of a shrinking world, advanced technology and third world wages, have found a dramatic impact on their bottom line by manufacturing and even providing service overseas. I've worked for two traditional companies in recent years - one, a clothing company, saw a marked improvement in gross profit by setting up manufacturing in China - so much so that their former pride of everything being "Made in America" was tossed quickly out the window. Money talks. The impact was the elimination of no less than eight US jobs. The other company dealt in fresh produce, which does not allow the option of a six-week slow boat from China. Despite being ten times the size of the other company, they will likely barely be in the black this year.
While this may sound more like a recommendation FOR intead of against, one must look at the long range impact of closing automobile manufacturing plants and the like. The biggest one is the eventual oppressive unemployment in this country, which will mean less disposable income, which will mean less ability to buy the cheaply made goods in the first place. We're becoming a country of service-only jobs. All we do is move goods, sell goods, transport goods, talk about goods and services, provide services and count money.
We don't make anything anymore. Can't anyone see the problem with this? China is getting rich making product for us but buys almost nothing from us in return. Why would they? They can make it cheaper there. And they are smart enough to know that exports are GOOD, imports are BAD in the sense of a trade deficit.
As these other countries continue to make stuff for our country, they will want higher wages and will want to imitate our high standard of living. Freight companies will want a bigger piece of the pie. Goverments will want a bigger piece of the pie through tariffs. The gap will close.
What to do?
Again, I will likely not be getting the votes for President based on the reality of my platform, and will not make fans of businesses and trade unions. But I will not make promises just to get elected. To discourage a further hemmoraging of American jobs I propose a steep hike on import tariffs, to offset a reduction of employer-based taxes that will encourage hiring in the US. I will NOT raise the minimum wage during my term, in hopes of driving up a labor force to start actually manufacturing again. And I will propose credits for capital expenditures that businesses undertake to bring manufacturing jobs back to America.
We can't keep sitting behind desks, kids. We need to get back to the assembly lines.
Otherwise, we're Doomed.
Next up: Energy. Still taking sketch requests.