Why the ECONOMY rules the issues in 2016
The gross
profit from MAKING things (yes, software too), inventing things (yes
software, too), and making things better faster and cheaper is higher,
MUCH HIGHER than fixing things other people have made (and made so cheap
it’s less expensive to get another than fix it), or serving in a govt
mill of counseling, advice, regulation or enforcement.
There are
MORE than several states (13, I believe) now caught in a death spiral
in which the tax base is declining as ever increasing claims for
resources EXCEED the permanent ability of the states to pay what is owed
to claimants.
But among the USA in general…
The result is a military left with the responsibilities of the 1960 USA, and the resources of a 1970 Great Britain.
The result is a DISPROPORTIONATE penalty on the less educated in terms of income.
The result is a DISPROPORTIONATE penalty on minorities (and this goes along with the above, hand in hand)
The
result is a DISPROPORTIONATE penalty on the big cities where
manufacturing is evaporating and idleness, unemployment and increasing
competition for fewer and fewer dollars leads to crime, and VIOLENT
CRIME
The result is a DISPROPORTIONATE penalty on businesses who
do not seek the lowest labor costs by ANY MEANS, since the penalty for
not achieving that is to be ELIMINATED
The result is a DISPROPORTIONATE penalty on blue collar middle class as businesses DO FIND the lowest labor cost
There
is less govt revenue to help as pressure from lost REAL GROWTH (not
growth thru financial products and derivatives) makes many systems
FINALLY unsustainable. A few TBTF banks and businesses cannot make up
for the lost revenues of the middle class.
R&D via govt grants diminish, then disappear.
Programs
once successful, leading to jobs and INDUSTRIES, and items of pride
become viewed as LUXURIES taking needed resources from the immediate
needs of the people (NASA, anyone?)
There is more stress on everything around us
We
are the family where two of our five kids have chronic diseases and
everyone is suffering and pulling at the same rope in disjointed fashion
because both parent are DEAD. Everyone is fighting for the same
resources, and the pile is decreasing.
Manufacturing flees to
lowest labor cost, STEM goes to where manufacturing is, service gets
outsourced, and the more educated find themselves competing for jobs in
Starbucks, Costco, and Olive Garden in a death spiral of decreasing
wages as warm bodies get in larger supply. The overqualified who were
once turned away FOR THAT REASON, suddenly find employers don’t care or
or realize nothing better will come along for you, or if it does, there
is a plentiful supply of warm bodies. And you look at your children and
grandchildren and fear the path to fiscal success is to get final
education in the technical universities of China, and manage marketing
in Tolucca, or some other such result …or stay here and counsel the
unemployed or unemployable with a govt service check.
Jobs
don’t exist, job CLASSES evaporate, education for the few, and
diminishing newer jobs doesn’t exist, can’t be reached or the people for
whom this would be a benefit have not even reached the level at which
they can take part in that. Result?
Police enforcement on DECREASING ORDER
We
could borrow for a while (which includes printing moneys), but now the
yearly interest on the national debt ($430bn in 2014) which sustained us
for a bit is overtaking major compulsory programs (like Medicare-$495bn
in 2014 and Defense). This has OBVIOUS consequences in constraining
national programs.
Only a program which results in RAPID, SUSTAINED GROWTH can reverse this.
It’s that simple.
If
we want to help our allies in the South China Sea, ..HELL - IF WE WANT
ALLIES, we must have the resources only profits, and growing govt
revenues, poured into R&D and then USA manufacturing of American
ships, planes, sensors and weapons can provide.
If we want better
health care, we must have the resources only profits, and growing govt
revenues, poured into R&D and then USA manufacturing of systems,
drugs, and inventions can provide.
If we want make our borders and
citizens SAFE FROM JIHAD, we must have the resources only profits, and
growing govt revenues, poured into systems, increased human forces and
intelligence can provide.
If we want those who are falling out
of society to take part in the USA, we must have the resources only
profits, and growing govt revenues, poured into WORKABLE systems to give
them the OPPORTUNITY to do so.
Now if we start penalizing Chinese
imports we will face higher prices, but we will supplant that with jobs
in factories HERE. The businesses will pay taxes, the workers incomes
will appear then rise, and they will pay taxes, supermarkets will appear
and grow, car dealers, clothiers, etc. But it will NOT HAPPEN
overnight.
There’s just this … THERE IS NO CHOICE.
The alternative is for the USA to eventually look like Ferguson, because sooner or later ALL HUMANS will descend to compete.
Sound bad?
Optimists make headlines, cynics make history.
Want more of what’s been happening?
VOTE CLINTON
Epa,
ReplyDeleteAn absolutely excellent post. Thank you for a synoptic, bullet point (military style) report.
YVW
ReplyDeleteJust another outrage #SIGHS