Tapsearch Com EditorYou can't have your cake and eat it too -economics
January 13th 2010 03:58
As our economies based on making money on money instead of making things are burning out, it's time to plan for a post global economy and for real free trade
President Obama pouring artificial money into the economy will not work. Free trade which has very little to do with trade as historically practiced and defined is a failure. Moving production from place to place for the sake of cheaper and cheaper labor is obviously playing itself out as a growing new working poor class in the more prosperous nations are finding it hard to afford even the cheaper products at places like Walmart.
The retail service workers at places like Walmart need government and other assistance to survive economically. Shopping centers and malls need shoppers who have money to spend. In other lands, workers at places like Nike , make only about 20 cents an hour with factory team leaders making only about $50 a month- about one half of the price of a pair of Nike shoes. How can they afford anything the more prosperous nations may still have to eport.
Henry Ford said workers need to make enough money to buy the things they are making and this is not happening no matter how you size up things in the global economic arena. The investment and communication communities were supposed to fill the gaps and they have not. All the funny money monoloply games are now frozen in time. And President Obama and big government pouring more funny money into the game is now a parasite on everything in our societies. Government and medical workers are only ones left to add fuel to the economy but the private sector workers who pay their wages are underemployed or out of a job. And there is no such thing as a perpetual motion economy.
President Roosevelt never resolved the Great Depression. He just put it in a time warp. It took the Lend Lease Act and then war to ramp the economy up. Our industrial might was the only real value that was left and then the economists chose to give it away.
Only local value added economies in as local possible balanced geopolitical settings work. The term "local" can be a city, state, country or region but all parts must be in harmony in the value of work and labor to the costs of goods. A person can not complain they are unable to find work when they drive a foreign car and shop at places like Walmart. States can not pay foreign companies to build their assembly plants in the USA with many of these companies directly subsidized by foreign goverments. Things just do not add up this way.
Indiana paid Honda about $160 million dollars to build an assembly plant in their state. Only 5,000 new jobs were created with most of the auto workers jobs already lost in the state. On top of this, about 20,000 auto parts workers lost their jobs because the parts now come from the sweatshops of the world.
[B] Perhaps Europe represents the best in mixing local value added economies so no one gets shafted but still so call free trade and globalization are infecting all economies by an
unbalanced formation of the value of workers compared to the available money consumers have to spend. Consumer need to have enough to recycle and regrown the economy where they life.
In our present times the worst case scenario has taken over. Using impoverished workers in
other lands or bringing them into a more prosperous nation to supply our goods hinders if not stop adding real values to an economy and regrowing them everytime without the seeds from the original value added process. Free trade and Globalization are like using hybrid seeds that are only good for one season. In other words you can't have your cake and eat it too.
President Obama pouring artificial money into the economy will not work. Free trade which has very little to do with trade as historically practiced and defined is a failure. Moving production from place to place for the sake of cheaper and cheaper labor is obviously playing itself out as a growing new working poor class in the more prosperous nations are finding it hard to afford even the cheaper products at places like Walmart.
The retail service workers at places like Walmart need government and other assistance to survive economically. Shopping centers and malls need shoppers who have money to spend. In other lands, workers at places like Nike , make only about 20 cents an hour with factory team leaders making only about $50 a month- about one half of the price of a pair of Nike shoes. How can they afford anything the more prosperous nations may still have to eport.
Henry Ford said workers need to make enough money to buy the things they are making and this is not happening no matter how you size up things in the global economic arena. The investment and communication communities were supposed to fill the gaps and they have not. All the funny money monoloply games are now frozen in time. And President Obama and big government pouring more funny money into the game is now a parasite on everything in our societies. Government and medical workers are only ones left to add fuel to the economy but the private sector workers who pay their wages are underemployed or out of a job. And there is no such thing as a perpetual motion economy.
President Roosevelt never resolved the Great Depression. He just put it in a time warp. It took the Lend Lease Act and then war to ramp the economy up. Our industrial might was the only real value that was left and then the economists chose to give it away.
Only local value added economies in as local possible balanced geopolitical settings work. The term "local" can be a city, state, country or region but all parts must be in harmony in the value of work and labor to the costs of goods. A person can not complain they are unable to find work when they drive a foreign car and shop at places like Walmart. States can not pay foreign companies to build their assembly plants in the USA with many of these companies directly subsidized by foreign goverments. Things just do not add up this way.
Indiana paid Honda about $160 million dollars to build an assembly plant in their state. Only 5,000 new jobs were created with most of the auto workers jobs already lost in the state. On top of this, about 20,000 auto parts workers lost their jobs because the parts now come from the sweatshops of the world.
[B] Perhaps Europe represents the best in mixing local value added economies so no one gets shafted but still so call free trade and globalization are infecting all economies by an
unbalanced formation of the value of workers compared to the available money consumers have to spend. Consumer need to have enough to recycle and regrown the economy where they life.
In our present times the worst case scenario has taken over. Using impoverished workers in
other lands or bringing them into a more prosperous nation to supply our goods hinders if not stop adding real values to an economy and regrowing them everytime without the seeds from the original value added process. Free trade and Globalization are like using hybrid seeds that are only good for one season. In other words you can't have your cake and eat it too.
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