The rise and fall of America according to everyone else:
Ever notice everyone says the sky is falling? Companies are out sourcing, jobs are
declining, healthcare is a dead horse, Protest are occupying the streets, and you
don't have a yacht. From the top down
and bottom up everyone is asking for bailouts, handouts, and hands-up.
The fall According to me:
Why do people think the sky is falling?
The world economy has been described by economist as a pizza
with 10 slices. In the 80's-90's the
United States held 9 pieces of pizza and the rest of the world shared 1 piece.
In 2010 the pizza slices changed hands and the United States holds only 8
pieces and the rest of the world now has 2 slices to share. However, when looking at the United States by
itself; The Rich hold 90% of our pizza and the poor have 10%.
How this happened you
might ask?
Simple the United States had an inflated portion of the
pizza after World War II when we had the majority of manufacturing jobs because
the rest of the civilized world was in ruin.
We (the USA) benefitted from free trade with our allies and conquered
nations of Germany and Japan. We also
Benefitted by Allying with Saudi Arabia over oil issues. We had an inflated disproportionate stake in
the World Economy, a stake our countries businesses exploited like it was going
to be sustainable and ever growing.
When did this all fall apart?
After WWII the United States out sourced jobs and money to
prop up allied nations and insurgent groups during the Cold War. As a way to struggle with 'Communist Nations'
over political ideals. Outsourced Jobs
declined US tax revenue and built s dependency on foreign goods. Like automobiles, fuel, computer parts,
clothes, toys and food. Let's look at
some countries that supply these goods to your local stores.
The Markets:
The Auto Market: The Auto market is
dominated by Japanese, and Korean and German auto manufactures. Let's face it I can't afford Italian and
British made cars, and if you're reading this neither can you. The United State Blocks India's Tata Motors
so it's not a factor (for now).
The Computer Market: Your computer
is made in part in Taiwan, Singapore, China, Korea, and so on. Long dead is the American computer parts
manufacturer.
Clothes and toys: They're made in sweat shops.... I mean sewing
shops in 3rd world countries. Most
commonly Asian pacific nations. Most of
what comes from Wal-mart and Target is
Chinese goods. This keeps the
prices down so you can afford the commerce.
Food: Agriculture has moved away
from the family farm. To being the
industrial-subsidized-corporate-farm.
Some that even genetically alter their crops and then copyright the
gene-pattern. But the majority of farm
goods are coming from Mexico and South America. Why?
Because it's cheaper than hiring farm hands or buying tractors in the
USA.
Are economy is taking a nose dive because there are no
middle class manufacturing jobs. They
got out sourced to cheaper markets.
Why didn't the government do anything to stop this?
Simple, Ignorance of the data. Few
grew up being told that American Ingenuity was built on the back of a
isolationist country coming into the world market after the world market took a
hits from the Great Depression and 2 World Wars. Instead we were told was the Greatest
Generation ever took on poverty and Adolf Hitler to make America strong. The truth was we had untouched manufacturing
facilities while the Europe's manufacturing was reduced to carpet bombed
rubble. In the vacuum of goods America boomed in its excess as it helped
rebuild the world infrastructure of global commerce.
While the Greatest generation prospered under grants, loans,
war bonds and pensions the country grew strong with inventive and innovative
products (demilitarized technologies like radio, tv, remote control, computers,
the space program, and Medicine). My
Grandparents generation prospered under government subsidies, manufacturing
boom, infrastructure jobs, social security nets and Hollywood films. While other nations rebuilt homes and
streets, Hollywood and the USA sold the American Dream.
Opportunity was rip and propaganda about an unbeatable
America was strong. The reality is we the people bought our own government propaganda.
That America would remain at the top. Propaganda the United states still holds to
even while in decline.
Why doesn't anyone do anything about it?
Well people protest.
But the simple fact is money does more talking then picket signs. People
strive where the money is. Are motivated
where money is. And bring about change
where the money is. The USA influence
comes from its money. Our political base
comes from money.
So As long as Teachers, enlisted military, Police, Firemen, Infrastructure maintenance
and burger flippers are low paying jobs they have no influence. So unions will pay lobbyists to swing
combined union dues to grease the pockets of politicians.
Lawyers, doctors, union actors, label musicians, professional/college
athletes and celebrities have unions and lobbyists too. But these lobbyists have bigger budgets and
more influence do to it. Thus they
garnish better wages.
Laws help Occupations that hold onto cash flow. Because
larger cash flow greases more pockets.
How is this sustainable?
In truth it isn't.
However, while the rich need not fix the problems because the law
protects the wealth. The military,
police and fire departments are all paid to protect the rich land owners not
the broke citizens. The law is paid for
by large cash flows. Those with money
get treated better by the law then those without. Eventually the poor become disenfranchised
and protest. If protest is successful
the middle class grows. If the protest
is unsuccessful people are jailed. There is a point in which the wealthy cannot
pay people to protect their assets. At
some point the tide against the rich and indulgent is to great. Historically we
call these events revolutions.
This Trend in Figure 5 cannot be allowed to continue!
Do I think America is ready for Revolution? No. People are
still talking and people are still peacefully demonstrating (mostly). Furthermore revolution depends on a common
enemy and our personal agendas as Americans are fractured and split. Thus no common ground. Without common ground
you get civil war not revolutions.
What is needed to fix the America?
I always hate it when people rant and don't offer a
solution. So here is the solution to
America's problems. Simply, A large
middle class.
To provide this nation with a compedative working middle
class in a global market we need the following:
1. Better Education
paid for by the people for the people. Public
education reinforced with community colleges and trade schools, free to the
students. Students need to have trades taught
to them in high school. Students need,
auto, carpentry, backing, geography, health, history, sewing, social studies
courses to round out 'Reading, Writing and Arithmetic'.
2. Private Education facilities
to foster academic goals of individual and groups. That competes with public education in
providing a better education product. AKA Trade schools, colleges, Universities,
Pay-for-education Private schools. Private schools should raise the academic bar
and public schools should follow suit.
3. A middle class that holds 80% of the population that
works to maintain infrastructure, commerce, manufacturing, agriculture,
medical, police, military and safety regulations paid for by the corporations
and the Government. With balanced wages
and benefits for all employees.
4. Insurance overhaul.
So that Insurance does not hike up the costs of medical treatments. Insurance needs to be practical, enforced, to
pay out or not used at all.
5. A medical overhaul, where cures not treatments are
valued. So that companies who find a cure
for an ailment prosper over pharmaceutical companies that sale anesthetic to
numb the pain.
6. State run medical support with private market option. Clinics run by interns for minor ailments and
military hospitals with increased budgets for civilian health care are two
ideas that would help the public.
7. A citizen-only-welfare-system that requires volunteer
work at public facilities to warrant payment. An Example:
If you collect a welfare check for $800 you are required to read to the
deaf and blind at the public library 20 hours a week. Or pick up trash on the side of the
highway. Or work at state run second
hand stores.
8. Enforced
Immigration laws and regulations. Allow immigration but enforce the laws.
9. Government Accountability
10. Personal Accountability
How will all of this be paid for?
With tax revenue from a population increase of a growing
middle class! A population of 80% middle
class with a tax revenue of 20% will pay
for it all government programs. As long
as the Middle class makes near 100k a year.
Why this won't happen:
Simply the middle class is shrinking. The wealthy 10% of this nation have
outsourced the agricultural, manufacturing and tech support jobs. You can't get
loans for small business and if you do, large corporations move in, and shut
you down. Bank's are profiting not
holding profit and this is why you need to join a credit union (Fed, Ent, Navy
Federal are all great choices). Commerce is strangling the United States for various reasons, most
which can be attributed to wealth, licensing, collateral, insurance, and poor
market structures.
For a Healthy American Economy the United States needs a
large middle class population. This will
not happen with wealth gaps growing between the poor and the rich.
To be continued:
