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On Nov 2, 7:18*am, "D. Peter Maus" wrote:
On 11/2/10 07:49 , Joe from Kokomo wrote: On 11/1/2010 6:05 PM, Joe from Kokomo wrote: ... Probably us falling into 'third world status' has nothing to do with your 'guilt and deception'. I think you are overlooking the obvious. The USA is just too expensive any more. First to Mexico, now China and India and probably Africa after that. A race to the bottom. :-( On 11/1/2010 11:55 PM, John Smith wrote: You are simply telling me what my treasonous-criminal-public-servants are doing ... yes, we are going to have to tell them NO! Put high tariffs on all imports, bring jobs back to American... In -theory-, you are absolutely correct. However, in actual practice, tell me when the cheap Chinese labor and cheap Wal-Mart prices go away, how long do you think it will be until the American consumer starts rioting? (You do realze that when the 15 cent an hour Chinese labor goes to $15 dollars an hour American labor, that prices WILL go up, waaay up..) And yes, the public servants who think they have usurped power are racing us towards the bottom and economic slavery ... I want them and the banksters and wall street there ... Also correct...but unfortunately, you are forgetting the "Golden Rule": He who has the gold makes the rules. Quite a conundrum. Any suggestions as to a solution? * *Ooh..ooh...[waving hand}...Teacher!, I've got this one. * *Yes. Actually, we need to rethink the nature of wealth, in THIS country. Where the real root of wealth is. Over the last century, well, 60 years of it, we've gone from a manufacturing economy, to a merchant economy. Rather than building and selling, we've elected to buy and resell. Shifting the liability of labor to other entities as a cost saving measure. Even though we still have robust manufacturing activity in this country. We still build most of the world's cars, for instance. With more foreign plants being built on American soil even as we discuss this. * *But, it's HOW we use labor that renders the difference in how we're ranked in the Global Economy. * *In our own MBA driven business culture, we've attempted to offload all costs to other entities, to drive up profits, and the stock price. Because we've looked at labor as a liability. Rather than an asset. Shifting the cost of labor to overseas manufacturers. Attempting, as it were, to conserve our way to prosperity, by eliminating most, if not all, production costs. * *In this way, we've allowed other cultures to do our manufacturing for us on their home soil, in plants owned by foreign companies. WE simply place orders, buy commodities, and take a markup. Avoiding labor, benefits and pension liabilities, and saving, often--though not always--a huge tax burden. * *Those same other nations, on the other hand, come to this country for non-union labor, and build their own products, for sales and export, in factories of THEY own. Saving some on labor, benefits and pension costs, and snapping up huge tax incentives, but retaining the true source and origination of wealth: The engine of production. Because they view labor as an asset. The major car companies come to this country and purchase our labor, but build in their own plants. *From raw materials, to end product. The finished product, in that case, is owned by themselves. To be sold by themselves. With all markups, handling fees, retained by the company. They have higher costs, in that they have physical plant overhead, but, they have control over the profit produced by the product at each stage of handling. * *In the US MBA driven model, only the cost of the commodity is borne by the company. With profits controllable at stages between purchase of the finished product and beyond. Where as the foreign model, the profits begin with the acquisition of raw materials. And along each stage of production. Further, labor at each stage produces wages at each stage, which produces economic vigor that the 'merchant' economy does not. * *What this means, is that we do have cheaper products on the market, in many cases than could be produced by our own hands. However, QC, and the enormous infrastructure of production, which injects robust economic yield into our own GDP, belong to foreign nationals. * *Put in a single sentence: We purchase products. THEY purchase labor. |
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