The US Must Alter Our Economic Model in Order to Survive

The continued recession and joblessness remains the news of the day. They will remain so unless the US alters our expectations as to who and what we are, economically speaking.

The US will never again be the nation that provides the world with consumer goods as we once were. EVERYTHING can be made cheaper in other lands - EVERYTHING! Our standard of living and wages have priced us out of the business of being the world's provider for quality steel and thousands of other things the US used to be the primary source for the entire planet to acquire. The US used to be the world's PX.

India and China have huge populations and wages that are minuscule compared to the US standard of living and wage scales. When a union worker is paid $50.00 per hour in wages and benefits, and India or China pays the same worker the equivalent of $1.00 per hour, who does one think can make the product cheaper? All things being equal except for wage scales, thus cost of production, no one with any concern for their money would by the exceptionally expensive American product.

The only caveat to that are a few really big things or things that require an expertise that costs lots of money to develop and administer - say aircraft and ships, some computer systems, etc. I mean who want's to buy an aircraft made in any third world nation? Not me, that's for sure.

So excepting for the exception and not the rule, the US is basically out of the business of being the world's manufacturing base. Until the cost to produce and ship an American washer, dryer, refrigerator, etc can be brought down to be competitive with a a foreign made version, no one will buy the vastly more expensive US product. That's common sense as well as good economics.

I have long observed the concept of globalism and inter-connected economies, manufacturing and such. Obama wants to drastically increase US exports. Of what, may I ask? Clearly based on decades of trade imbalance, unless we come up with a new and magical thing everyone must have and only we can make it, what are we going to export? Progressivism? Say, could we instead export progressives themselves? Now that would be great for the US!

Foreign tariffs and foreign nations subsidizing their manufacturing costs is another imbalance that we can hardly compete with, unless of course we start subsidizing our manufacturing base as well, and while progressives might like that, it is a real bad idea. Progressives favor more unwise things that are pie in the sky? Say it ain't so.

I am of the firm belief we need to shore up our dollar and pay down our debt, and I mean now. Lower all taxes on everyone - yes lefties, the rich too, for only the rich hire other people to work for them. Poor people have never given anyone a job, so get over the asinine "take more from the rich." The rich are the ones with the money to increase our economy and its ability to compete. They provide the capital for investment that leads to manufacturing and jobs which benefits everyone down the line - yep, trickle down. Don't y'all hate it? I know ya do!

The interconnectivity of the entire planet's economies means anything can be made almost anywhere and then shipped to world markets. To deny this fact is foolish. Anyone trying to argue we can again become the world's manufacturer is naive or dishonest.

I think our only chance will lie in two efforts. First is to be the go to country for technology and the really big ticket items - aircraft, etc. and to become the new, bigger and better Switzerland. The Swiss are the world's bankers so to speak. They manufacture very little - watches and clocks - but that's about it in terms of a manufacturing base.

We could do the banking thing better then they do if we set our minds to it. If we shored up the dollar and paid down the debt we would reinstall confidence in the dollar. That alone would fix many issues. It is a big task, but if the US hopes to survive economically, we will have to do it at some point, so sooner is better. The dollar is already the world's currency. It would be only natural for us to be the banking and investment vehicle for the world.

I am not an economist so there is much I cannot address, but I damn sure know this - if the Swiss can get the world to invest their money in the Alps, we can sure get them to invest it here. We can do anything the Swiss can do bigger and better - it is only a matter of setting our national psyche to dong it. For that to happen it will take non-progressive government.

To repair and rebuild the American economy we need to be an attractive and stable platform for the world's money and investment. Progressive government is not conducive to that end in any way, means, shape or form. Progressive government does not instill any sense of security or stability. Our own economic malaise drags on precisely because business and investors are staying on the sidelines in fear and trepidation as to what progressives will try next.

Until that dynamic is altered by ousting these self-admitted haters of capitalism, the US is in grave danger of becoming a second world economy. All one need do is read the progressive words and concepts of government and economy and then look out around your world. Things are not getting better in the US, now are they?

Tax cuts do work, but for progressives to have a political base they must play to their constituents. They play class warfare, hating the rich and big business and generally arguing for more and bigger government. And we can see where that has led and is still thus far leading - no damned where I wanna be.

So the first step to fixing this nation and righting the ship of state is to send these folks packing. Once they are no longer politically powerful enough to throw up their progressive roadblocks we just might be able to fix this thing. If not, get used to the pain of disappointment friends.