Americans Economic Future

Reblogged from Hedgemastermb





Opinions  

I begin this report to my fellow citizens by showing this excellent Wikipedia Chart.  The darker red based color represents the worst debt of all the nations throughout the world!  With this obvious financially destructive image concerning our great country, we begin a condensed analysis of our economic condition.  After these dire objective truths, we will present corrections and direction to remedy this apocalyptic potential.  America has accepted and greatly amplified fiscal and political Socialism over the past twelve years that include the disastrous Bail-out.  Socialistic application of Federal Government activity has been the primary cause of our fall in economic health. Look at the other Countries with the same color on the map, Greece, Spain and others. This report will identify and quantify Real Solutions back to a successful and prosperous Nation!



This converts to TRILLIONS OF DOLLARS!


 Look at Differential from Gold Reserves to Dollar Production

The Problem is Federal Government!

Several charts above show that it wasn’t just this President that created the current damage to our nation.   President Obama is just one more President that refused to understand capitalistic foundations necessary for sustained growth. President Obama embraces the destructive reach of overlarge and overused Federal Government. Federal Government adventurism and overuse is the most pernicious and dangerous adversary to Capitalistic freedom in America!  The rate of public debt and the vast amounts of printed dollars are the long term result of our declining manufacturing and services industry incomes and hiring.  Both political parties as well as America’s citizen constituents share this assignation of blame.
Our current Government is now mirroring weak European nations like Greece, and far more dangerously the past Soviet Union and Mao’s China. We must correct and redirect this socialistic construction to capitalistic resurgence. It will not be easy!
Let’s, once again, with clear vision and objective intelligence recognize the political and financial extremes to which we have traveled as shown clearly in the charts above!
President Obama is one of the most visible proponents of liberal Socialism and large, all powerful, Federal Government solutions. This President has used wealth re-distribution, demonization of any contest to Socialistic beliefs, rule by Executive Order and blame to all others for resulting economic failure.

 Below, will be steps of Real Solutions that must take place to regain the “Economic Health” and “Personal Freedoms” that Americans have squandered because of social promises for free “goodies.” Shame on us all!

What is Capitalism?  

Capitalism within the philosophy of our Constitution determined that all citizens, created equal, would have access to opportunity and full legal protection from Federal Government intrusion in business and personal life. (Not Freebies)

Federal Government was to be a Capitalistic Enterprise. Never was it intended by our Founders as an engine of promised prosperity and care to all individuals, or favoritism to selected types of businesses, unions and political classes as does Socialism.  Federal Government was not intended to be all powerful, intrusively pursuing individual’s most intimate information or higher and higher taxes imposed on private holdings to support larger and richer Government.

Federal Government’s Constitutional primary function was to guard the borders of the country and allow no intrusion against the laws or allowance of the States under the Constitution which it represented. The Federal Court was created to oversee States and their Courts to make sure they followed Constitutional prerogatives, not to judge individual citizens.

Each State has its own constituents and is responsible for the citizenry therein. States should be primarily obligated to address the vast majority of citizen functions and needs, not Federal Government!
There was more growth than workforce available throughout most of the 1800’s & early 1900’s in America.  Despite some depressions, recessions and wars, America grew and thrived.

America’s Past and Present Situation

Unfortunately, creeping into our society in the first half of the 1900’s, was growing Federal Government power and inefficiency beginning with Wilson through Franklin Roosevelt. The war postponed the after-effects of these Socialistic additions by these two Presidents. The effects began to show clearly in the early 1960’s after the assassination of a fiscally Conservative President Kennedy, who was a far seeing and great President.

Disaster struck, John Kennedy was replaced by President Johnson in 1964. President Johnson immediately robbed Social Security, created a massive National Welfare Program while overspending on a war he began. These actions were so costly that the Gold Standard had to be removed by the succeeding President.  That was the end of true Capitalism!

The established trend toward Socialism continued in America throughout the 1970’s with dishonesty by Presidents, inflation and the creation of tax paid Government Employee Unions!
The Federal Reserve was formed under President Wilson. When the Gold Standard was revoked decades later in the 70’s, the Federal Reserve became all powerful. We look at this period of time of President Johnson, Richard Nixon, Gerald Ford and Jimmy Carter as not beneficial to America.   This beginning of socialism built upon the base of Wilson and FDR remains the driving source of the too large Federal Government negatives displayed on the charts above.

Decades later, two Presidents, Reagan and Clinton, ran the Federal Government very well under the circumstances.  They did not allow excessive growth except for the Union wage growth within the Federal Government. Sadly the Federal Reserve continued to print excess dollars during this period as well.  Both men were very worthy and excellent Presidents. Those two Presidents by their actions proved that “America gets positive Capitalistic results from Capitalistic practices.” They temporarily patched the deficits being created by industry moving offshore.

The Chinese Example

China and the Soviet Union proved in the 1940’s through 1980’s that “One cannot get Capitalistic Success with Socialistic Policies.”  China today is a study in Capitalistic application’s success and recovery.
China went through classic Socialism/Communism for decades which is currently where we seem to be heading! Can we learn from them? 

We know with Chairman DENG’s arrival, deposing Mao, his Wife and minions, China began to address resurrecting the poorest and most backward society that was also the most populous nation on Earth! They had far fewer jobs than population.  How did they turn it around? 

Deng put a front-end Capitalistic structure in front of the Socialistic structure that existed.  That Capitalistic structure offered production of goods far cheaper than State competitors like Japan, Taiwan and South Korea.  Their product quality was initially pitiful almost laughable, but they kept at it. They improved by speedy evolution and education of ordinary folks to those needed functions copying the Japanese model post WWII.  China today still has millions unemployed.  However, the Chinese are far better off with Capitalism and improving daily.

XI Jinping, (Pronounced Shee Jinping), the current succeeding leader of China may be far more Capitalistic in philosophy than America’s last and current President.  Bottom line: “America seems to be emulating China’s terrible past mistakes while China emulates our past great successes.” 

Bloated Inefficient Federal Government

Our manufacturing jobs began to go to other countries when our large Corporations continued global expansion at an accelerated rate in the late 1970’s.  At the same time President Carter approved Government Employee Unions creating a classic Socialistic setting of favored Government Class over private middle class.

Japan, South Korea and Taiwan were predominant recipients of our American Manufacturers outsourcing in the late 1960’s continuing through today with additional competitors including China and many others.  Our administrative services industries were also somewhat displaced in the 80’s & 90’s to places like India and the Philippines.

Services and manufacturing were the two broad areas of employment that at one point in our history was responsible for well over 70% of all labor in America.  Goods “Real Manufacturing” alone had 47% of the workforce in our past. Now, by some measurements, real export manufacturing less agricultural goods use less than 10% of our workforce. It’s at historic lows. Those were the “Good Jobs.”
Our Government constantly produces badly weighted figures to make uncomfortable statistics and numbers look better. It’s very similar to the wildly incorrect unemployment numbers. The citizenry has little faith in Federal Government pronouncements and so they should!

Our citizen youth, black, brown and white

These are the most affected by this outrage of no jobs! Capitalism is necessary for their futures. In some cases, 50% unemployment exists for youth in our larger cities. Their future resides in part time jobs or menial-labor. This Socialism is disastrous. We must prepare for their futures immediately.

Are we doing justice to their futures by being more costly to potential Manufacturers? Look at the debt! Should our Federal Government that has produced “ObamaCare” and “Dodd Frank”, two horribly drawn programs, be trusted? The astronomic costs of these two Government programs and laws will be dramatically large and injurious to every citizen.

Myths

Let’s explode some tired myths. “WAGES” are not the primary reason we lack international manufacturing   competitiveness as we had in past decades! 
"Private Sector Wages” are not the reason our American Companies and many other foreign companies won’t come back and build in America.

Since the early seventies, large American Corporations have fled America. They all say it was because they had to get “International” to be geographically diverse and situated in the affected foreign markets.  That’s partially true! They moved for other reasons for which politically they often hesitate to discuss.  Thank God Big Business did move!  Had they not our Pensions, 401k’s, stock investments, bank savings and many other economic factors of our financial health could be vastly worse! 

Let’s bring back our Global Manufacturing, Not home building or local creation and consumption of goods that our Lazy Press seems fixated upon.  I’m talking international real manufacturing using American labor for exports like China or South Korea.  

Look at Wall Mart and the origin of products on their shelves! When you see appliance with American names look them up and see where they are manufactured not assembled. You’ll be shocked.  Does Dell or APPLE manufacture their products here? NO!   Does GM have more labor workers here than overseas? NO!  WHY?  Tax Payers bailed GM out! 

I said above “it’s not primarily Wages” that caused these manufactures to leave”!   More succinct reasons come from quiet conversations with international business people who are wary to speak publicly. 

The Reasons for “Real Goods Manufacturing” leaving America were and still are:
  • Federal Government Rules, Laws and Regulations (first reason given.)
  • Federal Agency interference NLRB. EPA etc. (Note: There are at least 200 Agencies that oversee parts of business)
  • “Legal Avarice” with massive Class Action Suits by an unrestricted legal profession using slanted Federal Labor Laws and Ridiculous Agency rules. Many foreign manufactures I’ve talked with won’t come here to build because of this very  concern (Lawyers in the majority reside in the Senate and Congress)
  • Corporate Taxation (Many American Corporations have not repatriated their profits for years back to America) a sure sign of the validity that American taxes on Foreign Profits are comparatively far too high and a real factor for businesses not returning
  • Union political and legal pressures fortified by Federal Government political support. (ex. Boeing, S. Carolina vs Unions & Federal Government Agencies)
  • ObamaCare, a new wedge in solicitation of business to our shores
  • High Minimum Wages when training new employees
These are the real reasons we have not competed and will continue to lose millions of jobs. There has been no real attempt to rectify causes of unemployment.  International manufacturing retention and small businesses have been largely discouraged by our Federal Government for years while we use ineffective short term non-solutions. PLEASE READ "AMERICA'S ECONOMIC FUTURE!" here on this blog (2112). Thanks!

Very Recent Proof  

Mexico is currently building American and Global corporation’s businesses and facilities for manufacturing and maintenance.  Their economy is doing great! NOT China or other Asian emerging market countries! This is Mexico!!  The land of Massive Immigration, Drug Cartels, Hezbollah involvement, Corrupt Governments blackmailing US citizens, Beheadings and Kidnapping. Corporations are building and hiring for good jobs just miles away from our Border! WHY?

GE, Goodrich, Honeywell, Cessna and other American based Companies all building in Mexico, just miles below our Southern Border, Just recently for 2013, GM has announced $1,000,000,000.(One Billion dollars for manufacturing and production in Mexico ). $100,000,000 (One hundred million 1/10th as much) in NY.  This is proof positive of what’s been written above. 

You’ve read this far! Now, let’s begin a real conversation of how to create America again as the Capitalistic bastion it was always intended to become for our children.

Real Solutions 

America has to become Capitalistic once again!!  This will be tough!
Necessary Steps: 
  • Immediate dissolution of all Federal and State, County, and City Government Unions and all other tax paid employee unions
  • Ten Year moratorium on Federal Government hiring (No replacements) Federally contracted civilian employment is frozen in numbers and reduced by 50% in five years
  • Most Federal Agency functions retained will be switched to States.  All Federal Government must shrink 50% of current size and costs in ten years
  • There will be No layoffs or discharges of current federal employees allowing fair treatment of current government employees. Early retirement would be encouraged
  • New 401K’s replace all Pensions of current and future Tax Paid Government employees
  • Removal of Class Action status for legal pursuit of Corporations in America
  • All mandatory Union use for any labor contracts by the Government or private businesses will be stricken from Federal law
  • Taxes for foreign income of American Corporations would be 15%
  • “All” Elected Officials Retirement time and income provisions are adjusted dramatically in time served and percentages of compensation 
  • Travel allowances and expenses of all Government employees hired or elected “public transport only, no first class” will used in most cases 
  • All Federal Police forces including Home Land Security and their affiliates will be abolished.  Also ATF and TSA. The FBI and CIA will remain. Strong States Rights will be returned 
  • The Justice Department will be confined to Federal Issues with strict rules against changing or challenging State rules except those ruled unconstitutional by the Supreme Court 
  • A  President must obtain approval of both Houses to sign any Foreign treaties. The United States will withdraw from the United Nations 
  • Private Medical care should be nationally available cross borders with no State boundaries, however, purely voluntary and not controlled by Federal Government ObamaCare will be privatized or retired 
  • A primary Federal Government function would be searching and promoting American workforce and national capabilities bringing businesses to America. This is a major prerogative
  • Military and civilian corporations should be employed to create well fenced and protected borders both north and south that would be impenetrable identifying each individual and their right to enter
  • The Federal Reserve must be restructured immediately  
Once these actions are executed America will have massive employment by foreign corporations and the return of American corporations. 
 “If you dislike a States treatment as a citizen, you move to another State.  It’s far more difficult to move to another Country.” MB 

Very Important!!   

Summary:  This is a brief!  It could be far more detailed. It is for the purpose of debate which I welcome. Not a debate for minor points of detail please!!  A debate of philosophy for governmental capitalistic modification and real Job creation for our country!



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