LC’s Commentary

Listen To The Voice of Reason

Cheap labor no matter the cost

Americans are thoroughly frustrated and at times confused as they try to place the blame for the current economic quandary squarely where it belongs.  One thing is certain, it matters very little which party is in power when the glue which binds America’s capitalistic system fails.  What is the glue that holds it together? Someone compared our system to a three-legged stool-Capital, labor and consumer. If either fails or is shorten, the entire system suffers. According to current news outlets, there is plenty of capital available. However, job losses (those actually gainfully employed) shorten the labor leg. Shrinkage of those gainfully employed, with disposal income, shortens the consumer leg of the stool. When the consumer leg and labor legs fail, the capital leg is unable to support the stool and will collapse under its own weight.

Just listen as economists and politicians look for signs that the economy is rebounding. Two industries usually take center stage-construction and automotive.  When either product (new homes and new automobiles) sales are flat because of low demands, the US economy suffers. Why are the demands for these products so low? The answer is very simple.  Today, as in the Great Depression, entirely too many Americans have lost their purchasing power. This is one of the inherent dangers of allowing a few people to have most of this nation’s wealth.  Instead of buying power distributed among millions, it is in the hands of a few who have to reason to spend most of it.  It is a well-known fact that most middle and lower income Americans will spend if they have the money. Why do you think middle and low income Americans save very little of their earning? Simple-they love to spend money. When you take away this purchasing ability by putting the wealth of this nation in a few hands, you effectively kill the very thing that keeps the US economy energetic and growing. Pay people less and they will buy less. Create a tax system that spares the rich and disproportionally negatively impact the people whose income is modest at best, puts additional burden on those least able to pay.

US Job losses due to US companies moving operations overseas have had a devastating effect on the US economy. Jobs traditionally held by US workers (especially manufacturing) are now firmly in the hands of foreign nations.  China is a prime example.  Unemployment creates surplus workers. Surplus workers give employers incentives to lower wages and benefits.  Workers unemployed for long periods of time put undue stress on unemployment compensation programs. Social service programs designed to help the needy are hard-pressed to help all who desire or need help.  Much of this hardship is avoidable if US companies would keep manufacturing jobs in the US.  Loss of these jobs and related infrastructures also means the eventual loss of skills and a highly trained workforce vital to the needs of this nation. This nation was built on people making things. If US consumers purchase and use an item, why not make it in the US?

One sure way to stop the flow of manufacturing jobs 0verseas is to stop using US military might to protect shipments from overseas markets. It is ironic that our military men and women are protecting shipments of products from overseas markets.  These products are owned by the very companies that laid off their friends, relatives, closed plants and rebuilt them overseas. The same goes for the US taxpayers who foot the bill for our military. After all, they are the ones who pay for this military might.  Some call it, protecting US interest abroad. Stop pretending; just say “protecting US companies business interest abroad?”

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November 30, 2011 - Posted by | Conservative Talk Radio, Economic Empowerment, Failed economic poicy, Glenn Beck, Hannity & Boortz, Limbaugh, Soup kitchens, Taxpayer bailouts, Trickle up economics, wealth redistribution

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