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The World's News - Journey through the fields of broken dreams in the global economic arena

Old economic models worked

June 16th 2009 01:36
Cluster of sites and blogs by Ray Tapajna


Time for plain talk about the economic crisis by Ray Tapajna

Top newspaper in Ohio USA, keeps writing about what needs to be done to restore our major cities like Cleveland. But, .......

Nothing good will happen in Cleveland or anywhere else in our country
until we get back to the basics. President Roosevelt said he would not
let the dollar stand in his way and launched the Lend Lease Act which
was based on boosting local value added economies. Then the war followed
and the most awesome industrial might the world has ever known became a
reality. Lend Lease also proved you can not do business with people who
do not have money. You first have to find a way for them to grow value.
Workers who can not afford the products they make will never grow enough
value to support the whole economic process nor contribute to a balance exchange.
( See Lend Lease was real free trade and not chop liver as in the
globalist world - see Lend Lease article

The economic models that followed World War 2 created a massive middle
class which prospered from that point on until the 1980s came. Then all hell
broke loose with the consummation of free trade and globalization. I
worked in several factories while going to college. If these jobs were
available today, there would be thousands standing in line to get them
including college graduates. The U.S. Federal Government sponsored the
moving of factories outside the U.S.A starting in 1956. Caught in several
international failures, the plan was to boost manufacturing in countries that
had hugh debts. It did not work and boomeranged on American workers.

The Marshall Plan which helped restore Europe and parts of Asia was a
hugh success but then ignored by people like Alan Greenspan as being a
good economic tool. The Marshall Plan was based on duplicating success
and not transfering success from one place to another in a piece meal
fashion.

Proposed wind mills, bio medical products, research and development etc. will
not grow or restore any economy if we send the production phase outside the
country. Cleveland was once the center of high technology and I was part
of it in the computer industry where I helped launch the cat scan
industry in Cleveland . In 1979, Cleveland was a pinncale of success in
the high tech world and where a group was coming to start a new micro
computer manufacturing venture because we had so many top people available
in our area. Later, I traveled back and forth to the Silicon
Valley being part of the the best in innovations and manufacturing of
disk storage. I sold components and computers to China directly with my
own company. These products were exports and not imports.

Then free trade and Globalization came and changed all this. The U.S.
threw years of computer development down the drain and cancelled this
economic essential core. We gave the micro technology away to the world
for free and never enjoyed a return on this investment
while we sacrificed more than a million U.S. workers in the computer
field.

I had several letters published about the decline of our high technology
in our region and Cleveland was not a "rust belt" old fashioned economy
as pictured today. It was in the center of the high tech revolution. In
the 1990's I watched as more than a 1,000 system houses, computer
assemblers and manufacturers and computer dealers close down in just a
tri-state area of Ohio, Pennslyvania and Michican. I thought I was
smart enough to beat the trend but got blindsided too ten years later.
I circle my wagons around the industrial computer manufacturing sector
hoping the U.S. was smart enough not to let this industry go down the
drain but I was wrong. I thought America would wake up and send in the
calvary to protect the economic invasion but it never happened. The
calvary never came. Instead, the COSCO storage containers came filled
with cheap imports that were impossible to compete against. This is the
new invasion. COSCO is owned in part by the Chinese Liberation Army.

In the end, we have reverse tariffs on workers and labor. All the bail
outs of big money are too. No one connects these dots. The U.S. will
never be able to compete with $1 an hour workers. The balancing ratio is
less than the minimum wage and our society is not set up to take this
big of a hit.

The same applys to most others in the world. Our economies were much better
off prior to the internet and all the high tech gadgets that hide the gross failures
of our times. President Obama, President Bush and President Clinton ignored these
failures too.

( The U.S. was so successful in the computer sector
before they gave it away because it was based on local dynamics of
local value added economies. )

Ray Tapajna
216-671-6263
( Here is a cluster of my sites and blogs under one url
http://linkbun.ch/aztb )

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