There are some very good observations in this article. Hank Reardon would agree with some if not most, especially the track taken by Google, Apple and Microsoft of vertical integration.
The key words I read were taxation and regulation. The beauty is that lawmakers don't have to "work" to bring jobs back to America. The simply need to get out of the way.
Right on, Rich! See the EPA nullification post here. We need more states to enact similar nullification of not only the EPA but the FDA, the USDA, HHS, etc.
That is too simplistic. If wages are 2.00 in China and 10.00 here and there are no taxes etc there is still something standing in the way of that happening.
Food for thought, Having been in manufacturing for decades, it is not the competition that bothers me, but the taxation and regulation that makes it so attractive to offshore.
I have a friend from high school who started his own company shortly after graduating. He became wildly successful, but was getting killed by taxes. He moved all of his manufacturing to South America because his profit margins allowed him to reinvest in his business, and grow it. I always thought that it was a travesty that he did that, but understood his reasons. Maybe if something like the author of this article suggested could happen, he would bring his operations back to the US. Until then, he will keep his money and employees elsewhere.
Francisco d'Anconia, on the other hand would have loathed the parochial attitude here. What makes a manufacturing job in the US better than one in Mexico? Good, smart, value-added people live everywhere. I would rather trade with an ethical (in the objectivity sense) from India, than a moocher from Silicon Valley, wouldn't you?
Or why doesn't companies seeking special tax breaks for themselves smack of looters to you? Shouldn't taxes be the same for every company? (Lower of course!)
I remember reading of the "Service Economy" back in the seventies. It was another Utopia. My question then and now is what is the intrinsic value of last year's tax forms? We all need the service provided by tax people, but after they're done what value do the documents have?. You could say the same for yesterdays banking papers, stock receipts, and any number of service products. How much is a haircut worth 4 weeks from now? How much is an insurance policy worth, until the owner fills it with cash?
My point is wealth is not created by the service economies. Cash is, income for the provider is, but wealth, or future value, is not.
By classic definition wealth comes from land, resources, improvements to land, and value added through manufacturing. In the late 19th & 20th Centuries "intellectual property" was added to that list. Copyrights, patents, etc.
Most of us will not write a best seller or #1 hit song, Land and resources are available to most, but cumbersome and not easily transported. That leaves "value added through manufacturing" as a source of wealth available to most people. Let's shorten that term to "labor".
This is something politically we have moved away from since the 70s. Wealth from labor is no different than the farmer taking harvest, going to market, and keeping the overage as a profit. The blue collar family did the same for years. Go in everyday, get paid, buy your necessities, keep the change. Except, we were being told it would be so much better to become a service economy.
This is only my opinion, but there are a lot of people that really aren't college material, and I'm one of them. But, someone has to fix the leaky pipes, keep our cars running, put on a new roof, seal the driveway, build the cars, build the roads, etc. There are fortunes to be made doing things people don't know how to do or don't want to do. In a paperless service economy where financial. medical. legal, and tax services lead the field the humble working person is mostly forgotten.
In our Nation, if we look at that list again, there are resources. If we look at the heydays of the US, it was when we were using our labor to procure our resources, to manufacture new and wonderful products the world wanted to buy. There are a lot of arguments back and forth about ecology, economy, labor costs, and so on. Even the invisible hand of equilibrium is mentioned. The underlying fact is, to import all or much of the things we need, we must export the labor, which is a shortened version of one of the sources of wealth. We are exporting a large part of our wealth for "things" with little long term value. When we made this turn, we became a debtor nation, because we were consuming more than we produced. When we borrow to finance this consumption, or a war on top of our consumption, we only magnify the problem of exporting labor.
If the people that are more gifted at labor related tasks are abandoned, they become a large group of people to be cared for by our progressive Utopian nannies. On the other hand, if there would be a renewal of manufacturing those same people would be producing rather than a net consumptive loss. This production, and the overage, adds up to wealth.
Yes, the rich do get richer; because just as jobs trickle down, wealth percolates upward. The rich getting richer doesn't mean the poor have to get poorer. The poor can rise out of poverty with the "fruits" of their labor. In the socialist/progressive model this is not possible. In that model they can only remain poor. Additionally, in both models the rich get richer, because they know how.
I think you are very short sighted this is 2014 and 1974. Yes one one lives by the fruits of ones labor, but it doesn't have be on a dirty factory floor. There is plenty of wealth created in the service industry. If I may paraphrase a theme I seen in Atlas Shrugged that stuck with me: the value of ones mind; my mind is more valuable than my muscles. I do not need to tun a wrench to earn wealth. Please note I am not devaluing skilled labor but there other options. The service industry includes marketing, design , transportation and retail. I do not have college degree but make $25 and hour in a quiet engineering lab validation on stuff that will be built in China, but take to the mall store from the ship, marketed, and sold by Americans.
Gentlemen, if you have not done so I suggest you read Fountainhead and study it's message. While it it not completely a celebration of the individual it points out that without the individual CREATOR, there is nothing for society (read moochers tec.) to take and use. Without the individual creator society does not move forward. The act of creation is a mental act. iIt is an act of the mind. It creates information and knowledge. From these physical things are manufactured and even more information and knowledge is created leading to even more physical creation and manufacturing. Atlas Shrugged is a logical continuation of the philosophical foundations laid in Fountainhead. To fully understand the rational behind John Galt, and the residents of Galt's Gulch it is important to understand the individual creator.
I say again, if you haven't read Fountainhead, read it. At the very least watch the Gary Cooper movie version. It not perfect, but it is a good intor to the actual book.
I have an need to again. You point is well taken, If I am correct manufacturing not all in all but just a part of creation process. It starts with creator creating information and knowledge. What bothers me is the made in American shills (on the left and right ) is doom and gloom if we do not manufacture items in the US and manufacture them like it still the early to mid 20th century.
I have seen multiple interviews with the "Man on the Street" where the respondent to the question about "Is current minimum wage sufficient to raise a family?" Come on peole. The minimum wage was originally designed to ensure that children and young works were not victimized by industry. It was never intended to be a wage that could support a family. almost all minimum wage jobs I held and there were many, were temporary stops toward a better job up the chain. Those politicians pushing this as help support families have totally missed (I suspect deliberately missed) the point of a minimum wage. This increase seems like the fixes proposed by Wesley Maunch et al in AS.
RIGHT! I saw a video on Reason TV recently that covered this - what they want is certainty & dependence without any call to growth, development or creative thinking (indeed, what they want is complete stagnation). Why do people live in America if this is how they think???
Truly it exposes the union mentality of pay up or we will shut you up. It's revolting and why I cannot tolerate unions in any way. The lackeys made the case for keeping lower wages by claiming that they are able to have them because of lack of specialized skills and education. A fry cook has not earned the right to make $15.00 hr. Plus this forces smaller businesses to hire fewer employees, and also cut back hours for those they already have. My children understand you can't expect to be paid at that rate for a job which isn't designed for that.
To your point of pay up or we'll shut you up. I live in New Jersey, near Atlantic City. There have been at least two casino closures due to union contract demands. The one that stands out the most was tone where the union demanded a 5 % raise across the board. The casino said it could not afford such a raise. It even opened its books to the union for them to examine. The review showed that the casino could not afford the raise. the Union demande3d it anyway. The casino gave them the raise. Seven months later it closed for good and all union members lost their jobs as well as all of the nonunion people.
It's ridiculous! There is no concept that if they demand more than the employer can pay, then everyone loses. It's common sense! But the union mob bosses don't see it that way. They want to line their pockets, period.
Loving it here Non-Moocher. It took me a long time to come around - I used to be a big "social activist" back in college (seduced into a hidden Marxism without even knowing it). It's funny how much you can turn around if you keep an open mind and keep learning. What kind of art by the way?
I paint, using oil, acrylic and watercolor. I also draw with charcoal. I love it!
As you can imagine, I was surrounded by all of the culture of Marxism/Socialism in art college. 4 years at VCU. I came out shaking my head thinking there was so much more to learn. I was t disappointed. Glad you've found this little haven among the fog, and made it out to the rational side ;-)
IF, goverment and business can get together, it would be wonderful to see made in U.S.A. on products. However that's a big if with his magisty in office.
I've been thinking if there are any good documentary people out there they should do a documentary of someone starting a business highlighting the taxes, regulations, and all the related hoops that businesses have to go through to run a business in the US. Maybe that would put the spotlight onto some of these issues for people to better understand why we need less taxes and regulation.
There is no such thing as either a "service economy" nor an "information-based economy". People live on product. Without production there is NO economy.
If you can sell your product at a higher profit because people can afford to buy it at the higher price it would be wiser to trade value for value rather than undermining the whole system.
Consider this. It is reported that the US has the highest corporate taxes in the industrial world. If that is true, businesses, whose ultimate goal is to make money, the more the better are naturally attracted to locals that are cheaper to do business. This leads to looking for cheaper places to hire labor, buy raw materials or talent and to buy government services (read that as pay taxes). Businesses naturally optimize this cost figure. Given that taxes come straight out of profits than easy way to boost profit is to pay lower taxes. There is a one for one increase in profits for each dollar in taxes not paid profit goes up by a dollar.
It is also reported that China devalues their currency, even if all taxes were dropped and the EPA opened the door would the government move to correct the imbalance between the dollar and the Yen. There are too many international investors and companies in our politicians pockets.
Yen = Japanese.. Yuan = Chinese. ;-) At the current market valuations and (immediate) stability index, I'd rather invest in Yuan than Yen (damn, say that 10 times fast!!)... then again, considering it's all Italian Automaker Money (Fiat)* I think I'll stick to investments backed by something more than a dotgov promise...
*no offense intended toward Fabbrica Italiana Automobili Torino.
Yes, One's mind is more valuable than one's braun. About 30% of the fine and thoughtful people in this nation either aren't suited for college or went to school and perused a degree in flower picking and can't find gainful employment in their chosen field. Since it is short sighted of me to want to rebuild a portion of the US industrial segment, providing an economic ladder for them to begin to climb, then what do we do? The progressives would simply extend unemployment benefits and food stamps, and ask them to vote appropriately next election. There is no economic ladder to climb with unemployment and food stamps.
Historically, Americans are climbers. My Dad was a climber. He was born in the depression, had a high school education, and ended up the millionaire next door; by the fruits of his labor. By exporting the manufacturing segment to the lowest offshore bidder, the first 2-3 rungs are removed from the economic ladder the lesser educated would begin to climb. We could just throw those people away, because they are probably mooches anyways. Or, if we were wise, we could give them something to do and set up a ladder to climb, gain some productivity from their efforts, and allow them to play the selfish game of advancing their own self interests. In my thoughts, even though they are light years from the academic levels in this group, they are better producing than mooching. Even if they are producing something you would never want, as long as someone does, it's productive.
Ron, my mind is MUCH more valuable, at least to me, than my Braun. It's a good electric razor, but after eight years or so, it's starting to show some wear and tear.
Perusing a degree in flower picking is an interesting pastime, but pursuing one might be even more profitable in the long run.
As you stated above, it's our "Benevolent Government" which has ENACTED the laws and high taxes which have definitely inspired US corporations to offshore manufacturing and associated jobs! So when the government creates legal incentives like those, you blame the corporations for taking advantage of them?
Corporations, much as a lot of people might like them to be, are NOT in "the business of creating jobs." That's NOT their purpose or charter.
And a close look at "government" clearly shows that government does NOT "create jobs." It takes tax revenue from sources and allocates it where the votes are. If there is some luck, a few jobs might accidentally be "created," but they can't prove that more jobs would not have been created if the tax revenues had been left in the hands of the folks earning the profits in the first place.
If you start with the wrong premise, you will likely draw an invalid conclusion.
I don't blame business for going offshore. Through the various laws created by the federal and state governments Companies have been highly motivated to go off shore. A CEOs responsibility is to earn ROI for his stockholders and stake holders. If that means laying people off to get the desired earnings...then that is the decision he gets paid for.
For my retirement income stream we put together a string of rental homes. Mostly from the properties walked away from and thrown away by banks in the 2007-2008 housing collapse. In most of those properties we found one or two bedrooms with the door locks on backwards. That doesn't happen by accident. How many times does an interior lock wear out and need to be replaced by the owner. The only benefit we could see in setting the locks in this fashion is to send the children to their rooms, and make them stay. The neighborhood we're invested in isn't a bad area, but I would guess there are a lot of "low information" voters. Is that the way progressives discipline and motivate their children? To me it makes sense because they seem to know a lot more about punishment and less about incentives. Just look at what we've seen of the healthcare law. A penalty for this, a fee for that. A medical device tax, a Cadillac plan tax.
It seems to me the health care bill had nothing to do with health care and everything about sending the cash to Washington so they can best decide how to spend it. If they really wanted to impact the cost and availability they would open the gates at medical schools across the Nation and keep them open until there are more Hospitals and clinics than there are barber shops. You see, in Columbus, Ohio you can get a hair cut for $8.95 at Saturday's. While grooming a toy poodle is $50. Pet groomers are hard to find and barbers are like Santa Claus, they are everywhere. My point is more Doctors and Clinics would have a downward pricing pressure on their system. To limit Doctors, limit hospitals, limit access...all of that leads to scarcity because those bright minded Doctors will find something else to do or someplace else to be a Doctor.
Nixon tried to work his way through the first OPEC oil embargo by fixing prices. I remember long lines around the corner on odd and even days to purchase our 8 gallons of regular. Since then, we have come to realize it's not an oil shortage, it's a money shortage. The last 5 years proves that as long as we have the money to purchase gasoline there is almost an unlimited supply. So, in both cases the government has had their heavy hand in the mix, fixing things for us, as Walter Williams would say, "fixing things for people that are too damned dumb to fix it for themselves!"
Spot on, Ron! I was in NJ during the First Gasoline Crisis. I discovered, thanks to a rumor from a friend, that I could wait hours in line for my $2-5 worth of gas in NJ or I could burn two gallons of gas to drive across the border to PA, where the station attendant would say things like "fill 'er up, sir?" and "Check the oil?..."
I wrote about that to my US Senator and asked if there were any coincidence between the long lines in NJ and the no-lines in PA versus which way the previous Presidential elections had gone for the two states.
And then a miracle happened, and a few weeks later, NJ "suddenly" got a larger allocation of crude to run through (our) refineries and the gas lines disappeared.
Yep, mostly politics behind all that crap, but slathered over by the mainscream media to point the blame everywhere else. And the "average citizen/voter" believes it all.
Ah, the memories... and I'm now "very retired" and have been living in my own little "Galt's Gulch" for a bit over ten years and loving it!
Oh, hey, on a similar note, the Blessed Wise Ones in my local county refused to let one of the local hospitals expand their bed count "without justifying why they were needed."
Ayn Rand's villains are alive and well and all over our government offices.
One of my friends, he's a financial planner, argues we have the same demographic problem as Japan. It doesn't matter how much we open our resources and change our tax laws to motivate investment in the US, we don't have the young and eager work force to do the jobs I hope to create with incentives. I argue that we have about 35% of the able workers not participating at all in the economy. We should move in the growth direction to absorb that work force, then address our immigration laws to grow our way out of this financial mess. I must admit he is a liberal, but very good at what he does. Still, the idea of a dynamic and growing economy escapes him. Progressive can always see the growing needs of the people, then they take the pie (static, based on last year) and cut it a few more slices to spread around. Simply stated, we don't need more slices, weneed a bigger pie.
That is true for the unemployed as well. They don't need more cards or more govt programs offering ever decreasing benefits with more rules. They need growth in their personal incomes. They need a bigger pie. And the most personal, portable and versatile source for wealth is "Labor". Americans have the ability to seek opportunity when they see it. The California gold rush, the Klondike gold rush, the pioneer push, all of these were opportunities sought by the people. I'm fascinated by the pioneers and the homestead act. Think about living in bustling Philadelphia and leaving friends and family in early March, so you can walk to St Louis. I say walk, because you wouldn't want to over burden the horses. Then Wintering in St. Louis to prepare for the walk further west to where ever the unmapped trails might lead. That's the kind of dedication incentives can lead to. This micro managed, over regulated crap we have today stifles any thought of taking a risk. Then ad the incentive to just stay home and get Sec 8 housing and free food... nothing much happens.
I hear some say Americans aren't as tough as they used to be. I know that's true of me, I'm old now and I'm not tough anymore. I am some smarter. As a people, I think the masses, or maybe the mean, do what they need to satisfy themselves. If there is no opportunity or incentive, then the grass doesn't look any greener over there. Imagine how broken the Oakies that left Oklahoma in the thirties must have been. They walked away from everything they once had to build a new life. for the most part in California. Over time, big government has figured out how to "fix" California's immigration problem. I think we are, as a people, just as tough as ever. We are lost in a "What's the use..." sea of gov't benefits and regulation, a blizzard of regulations, taxation that complicates life everyday. (you can't purchase a home, car, or pay for education without considering the tax consequences)
So, what if the gov't lowered Corporate tax rats to the lowest in the world? What if they then lowered Capital gains taxes as well. Would investment dollars flow into the US as they do now in Singapore and South Korea? I say yes, because of incentives. Would unemployed people learn to do something new to follow the opportunity created by foreign and domestic investment. I say yes, because of incentive and because I have reinvented myself 5 times as life changed before my eyes. Could the country look up if they had leaders to look up to? You already know my answer. Someone needs to drop a line to Washington to let them know, "There ain't no free Lunch!" get back to work on what is, not what some book smart idealist thinks ought to be.
And I've heard reports that many of the brightest, most energetic, business-creating and hence, job-creating people tend to be folks that come to the US on some kind of visa. So, when I read a report that the particular kind of visa they're looking for "sells out"... i.e., hits its quota for the year within a few hours in early January every year, it makes me wonder if Pogo isn't right, once again, and the "enemy" is not the "immigrants."
Go figure... but so long as too many people believe that government is the best place to look for solutions, the problems will continue.
Even the liberals' arch-nemesis, Bush, tried to say it... "... Make the pie higher!" They just don't get it. Solve that problem and we'll all win.
Ron you put forth lots of statements with no back up. can you go back through your comment-make an assertion and give examples to back up your assertions? Also, what is your major point? A college education is important because....A college education isn't the leverage it once was....unions have artificially elevated the unskilled worker...etc
My point is without setting up an economic model that offers incentive at every level some will be left behind, or take their marbles and play somewhere else. Our benevolent government has built artificial economic walls around our Nation, keeping investment dollars out, mostly. Capital follows ROI (return on investment) CEOs are charged with the responsibility of earning ROI for the stockholders. If the corp. tax and capital gains tax is lower somewhere else in the world, other things roughly equal, the investment goes to the other country. We have these taxes (the world's highest corp tax) because there are millions of people in the USA that must be fed, sheltered, and given money simply because they exist. My point is we have a choice, we can continue the path we're on. Most on this forum are sickened by the path we're on. We can cut those millions off and let them fend for themselves. That would be more productive than the current approach, because even if they steal for a living someone would have to produce to replace the stolen goods. Or, and I admit this is a stretch, create an economic model that has a niche for all who wish to participate.
We can sit here and say we already have it! I think that is a pompous statement. Some of us already have it. Some of us have it very well indeed. My theory is that if our benevolent government lowered the corp tax to the lowest in the free world. Then lowered the capital gains tax in a similar manner, investment capital would flood into the US at record speed.
If you were laid off at the GM plant, because you were a non union worker, does it matter if your new employer is a foreign Corporation? By lowering these economic obstacles we would be hanging the welcome sign up for the world to see. It would instantly make our domestics more competitive as exports, because part of the selling price was taxes. Foreign investment would follow the ROI. First thing, they buy land or buildings. Then they would build or renovate their properties to meet the needs of their plan. Then they would hire workers of all sorts. White collar and blue. This would impact construction immediately, but temporarily and then permanent staffing would finally start putting displaced people back to work.
What's the hold up? In my opinion, our Benevolent Government can't see that a smaller percentage of a much larger pie is a bigger number than the faltering and failing situation they now have. In salesman's parlance, "The fear of loss is greater than the desire for gain." And, if your a cynic, politicians really don't want to solve a problem, they want to run on the issue the problem creates.
Facts? I can't give facts on a business plan. It is speculative by nature. There are too many what ifs. You can make very accurate suppositions about human behavior when they are incentivised. For selfish reasons people will do what is best for their self interests. Example? From 1983 to 2000 was a pretty good run. That 1983 administration had some pretty good minds working to create economic incentives. Art Laffer and John Rutledge designed a model that worked very well until world competition on tax rates changed the flow of capital.
In my little business I own a string of rental homes. We recently had to raise the late fee. Why? Because it was cheaper to make me wait than use the guys at the check cashing store. That's how far away from the inside the beltway mentality the recipient class are. Their motivation hinges on which is the better deal, paying my $50 late fee, or paying the check cashing store 10%. If those people had a better alternative, most would surely take it. An Example of that: Detroit and Chicago were built by migrating families moving to where the opportunity was in the late 40s and 50s. What has happened in those cities since then has nothing to do with the incentives that beckoned people to move there. If my lower middle income clients could find a place where opportunities were better, they would break their backs getting there. Right now, the incentives are just not strong enough. Once again, the fear of loss is greater than the desire for gain.
I appreciate the conversation about the economy. I always learn something from talking to people. In my life I have seen the magic of growing a larger pie several times. It is the answer to turning a failing business. Growth! I believe it is the answer to our failing government. Our present government cannot see what could be, they can only see what is and then divide it.
Or why doesn't companies seeking special tax breaks for themselves smack of looters to you? Shouldn't taxes be the same for every company? (Lower of course!)
My point is wealth is not created by the service economies. Cash is, income for the provider is, but wealth, or future value, is not.
By classic definition wealth comes from land, resources, improvements to land, and value added through manufacturing. In the late 19th & 20th Centuries "intellectual property" was added to that list. Copyrights, patents, etc.
Most of us will not write a best seller or #1 hit song, Land and resources are available to most, but cumbersome and not easily transported. That leaves "value added through manufacturing" as a source of wealth available to most people. Let's shorten that term to "labor".
This is something politically we have moved away from since the 70s. Wealth from labor is no different than the farmer taking harvest, going to market, and keeping the overage as a profit. The blue collar family did the same for years. Go in everyday, get paid, buy your necessities, keep the change. Except, we were being told it would be so much better to become a service economy.
This is only my opinion, but there are a lot of people that really aren't college material, and I'm one of them. But, someone has to fix the leaky pipes, keep our cars running, put on a new roof, seal the driveway, build the cars, build the roads, etc. There are fortunes to be made doing things people don't know how to do or don't want to do. In a paperless service economy where financial. medical. legal, and tax services lead the field the humble working person is mostly forgotten.
In our Nation, if we look at that list again, there are resources. If we look at the heydays of the US, it was when we were using our labor to procure our resources, to manufacture new and wonderful products the world wanted to buy. There are a lot of arguments back and forth about ecology, economy, labor costs, and so on. Even the invisible hand of equilibrium is mentioned. The underlying fact is, to import all or much of the things we need, we must export the labor, which is a shortened version of one of the sources of wealth. We are exporting a large part of our wealth for "things" with little long term value. When we made this turn, we became a debtor nation, because we were consuming more than we produced. When we borrow to finance this consumption, or a war on top of our consumption, we only magnify the problem of exporting labor.
If the people that are more gifted at labor related tasks are abandoned, they become a large group of people to be cared for by our progressive Utopian nannies. On the other hand, if there would be a renewal of manufacturing those same people would be producing rather than a net consumptive loss. This production, and the overage, adds up to wealth.
Yes, the rich do get richer; because just as jobs trickle down, wealth percolates upward. The rich getting richer doesn't mean the poor have to get poorer. The poor can rise out of poverty with the "fruits" of their labor. In the socialist/progressive model this is not possible. In that model they can only remain poor. Additionally, in both models the rich get richer, because they know how.
Yes one one lives by the fruits of ones labor, but it doesn't have be on a dirty factory floor. There is plenty of wealth created in the service industry. If I may paraphrase a theme I seen in Atlas Shrugged that stuck with me: the value of ones mind; my mind is more valuable than my muscles. I do not need to tun a wrench to earn wealth. Please note I am not devaluing skilled labor but there other options. The service industry includes marketing, design , transportation and retail. I do not have college degree but make $25 and hour in a quiet engineering lab validation on stuff that will be built in China, but take to the mall store from the ship, marketed, and sold by Americans.
Atlas Shrugged is a logical continuation of the philosophical foundations laid in Fountainhead. To fully understand the rational behind John Galt, and the residents of Galt's Gulch it is important to understand the individual creator.
I say again, if you haven't read Fountainhead, read it. At the very least watch the Gary Cooper movie version. It not perfect, but it is a good intor to the actual book.
You point is well taken, If I am correct manufacturing not all in all but just a part of creation process. It starts with creator creating information and knowledge.
What bothers me is the made in American shills (on the left and right ) is doom and gloom if we do not manufacture items in the US and manufacture them like it still the early to mid 20th century.
Those politicians pushing this as help support families have totally missed (I suspect deliberately missed) the point of a minimum wage. This increase seems like the fixes proposed by Wesley Maunch et al in AS.
Regards,
NonMoochingArtist
As you can imagine, I was surrounded by all of the culture of Marxism/Socialism in art college. 4 years at VCU. I came out shaking my head thinking there was so much more to learn. I was t disappointed. Glad you've found this little haven among the fog, and made it out to the rational side ;-)
As less than 1% of local fast food workers participated it was held solely for the media to amplify and not as a serious strike.
The Chinese currency is the Renminbi, but your concern is valid.
*no offense intended toward Fabbrica Italiana Automobili Torino.
Historically, Americans are climbers. My Dad was a climber. He was born in the depression, had a high school education, and ended up the millionaire next door; by the fruits of his labor. By exporting the manufacturing segment to the lowest offshore bidder, the first 2-3 rungs are removed from the economic ladder the lesser educated would begin to climb. We could just throw those people away, because they are probably mooches anyways. Or, if we were wise, we could give them something to do and set up a ladder to climb, gain some productivity from their efforts, and allow them to play the selfish game of advancing their own self interests. In my thoughts, even though they are light years from the academic levels in this group, they are better producing than mooching. Even if they are producing something you would never want, as long as someone does, it's productive.
Perusing a degree in flower picking is an interesting pastime, but pursuing one might be even more profitable in the long run.
As you stated above, it's our "Benevolent Government" which has ENACTED the laws and high taxes which have definitely inspired US corporations to offshore manufacturing and associated jobs! So when the government creates legal incentives like those, you blame the corporations for taking advantage of them?
Corporations, much as a lot of people might like them to be, are NOT in "the business of creating jobs." That's NOT their purpose or charter.
And a close look at "government" clearly shows that government does NOT "create jobs." It takes tax revenue from sources and allocates it where the votes are. If there is some luck, a few jobs might accidentally be "created," but they can't prove that more jobs would not have been created if the tax revenues had been left in the hands of the folks earning the profits in the first place.
If you start with the wrong premise, you will likely draw an invalid conclusion.
For my retirement income stream we put together a string of rental homes. Mostly from the properties walked away from and thrown away by banks in the 2007-2008 housing collapse. In most of those properties we found one or two bedrooms with the door locks on backwards. That doesn't happen by accident. How many times does an interior lock wear out and need to be replaced by the owner. The only benefit we could see in setting the locks in this fashion is to send the children to their rooms, and make them stay. The neighborhood we're invested in isn't a bad area, but I would guess there are a lot of "low information" voters. Is that the way progressives discipline and motivate their children? To me it makes sense because they seem to know a lot more about punishment and less about incentives. Just look at what we've seen of the healthcare law. A penalty for this, a fee for that. A medical device tax, a Cadillac plan tax.
It seems to me the health care bill had nothing to do with health care and everything about sending the cash to Washington so they can best decide how to spend it. If they really wanted to impact the cost and availability they would open the gates at medical schools across the Nation and keep them open until there are more Hospitals and clinics than there are barber shops. You see, in Columbus, Ohio you can get a hair cut for $8.95 at Saturday's. While grooming a toy poodle is $50. Pet groomers are hard to find and barbers are like Santa Claus, they are everywhere. My point is more Doctors and Clinics would have a downward pricing pressure on their system. To limit Doctors, limit hospitals, limit access...all of that leads to scarcity because those bright minded Doctors will find something else to do or someplace else to be a Doctor.
Nixon tried to work his way through the first OPEC oil embargo by fixing prices. I remember long lines around the corner on odd and even days to purchase our 8 gallons of regular. Since then, we have come to realize it's not an oil shortage, it's a money shortage. The last 5 years proves that as long as we have the money to purchase gasoline there is almost an unlimited supply. So, in both cases the government has had their heavy hand in the mix, fixing things for us, as Walter Williams would say, "fixing things for people that are too damned dumb to fix it for themselves!"
I wrote about that to my US Senator and asked if there were any coincidence between the long lines in NJ and the no-lines in PA versus which way the previous Presidential elections had gone for the two states.
And then a miracle happened, and a few weeks later, NJ "suddenly" got a larger allocation of crude to run through (our) refineries and the gas lines disappeared.
Yep, mostly politics behind all that crap, but slathered over by the mainscream media to point the blame everywhere else. And the "average citizen/voter" believes it all.
Ah, the memories... and I'm now "very retired" and have been living in my own little "Galt's Gulch" for a bit over ten years and loving it!
Oh, hey, on a similar note, the Blessed Wise Ones in my local county refused to let one of the local hospitals expand their bed count "without justifying why they were needed."
Ayn Rand's villains are alive and well and all over our government offices.
That is true for the unemployed as well. They don't need more cards or more govt programs offering ever decreasing benefits with more rules. They need growth in their personal incomes. They need a bigger pie. And the most personal, portable and versatile source for wealth is "Labor". Americans have the ability to seek opportunity when they see it. The California gold rush, the Klondike gold rush, the pioneer push, all of these were opportunities sought by the people. I'm fascinated by the pioneers and the homestead act. Think about living in bustling Philadelphia and leaving friends and family in early March, so you can walk to St Louis. I say walk, because you wouldn't want to over burden the horses. Then Wintering in St. Louis to prepare for the walk further west to where ever the unmapped trails might lead. That's the kind of dedication incentives can lead to. This micro managed, over regulated crap we have today stifles any thought of taking a risk. Then ad the incentive to just stay home and get Sec 8 housing and free food... nothing much happens.
I hear some say Americans aren't as tough as they used to be. I know that's true of me, I'm old now and I'm not tough anymore. I am some smarter. As a people, I think the masses, or maybe the mean, do what they need to satisfy themselves. If there is no opportunity or incentive, then the grass doesn't look any greener over there. Imagine how broken the Oakies that left Oklahoma in the thirties must have been. They walked away from everything they once had to build a new life. for the most part in California. Over time, big government has figured out how to "fix" California's immigration problem. I think we are, as a people, just as tough as ever. We are lost in a "What's the use..." sea of gov't benefits and regulation, a blizzard of regulations, taxation that complicates life everyday. (you can't purchase a home, car, or pay for education without considering the tax consequences)
So, what if the gov't lowered Corporate tax rats to the lowest in the world? What if they then lowered Capital gains taxes as well. Would investment dollars flow into the US as they do now in Singapore and South Korea? I say yes, because of incentives. Would unemployed people learn to do something new to follow the opportunity created by foreign and domestic investment. I say yes, because of incentive and because I have reinvented myself 5 times as life changed before my eyes. Could the country look up if they had leaders to look up to? You already know my answer. Someone needs to drop a line to Washington to let them know, "There ain't no free Lunch!" get back to work on what is, not what some book smart idealist thinks ought to be.
Go figure... but so long as too many people believe that government is the best place to look for solutions, the problems will continue.
Even the liberals' arch-nemesis, Bush, tried to say it... "... Make the pie higher!" They just don't get it. Solve that problem and we'll all win.
We can sit here and say we already have it! I think that is a pompous statement. Some of us already have it. Some of us have it very well indeed. My theory is that if our benevolent government lowered the corp tax to the lowest in the free world. Then lowered the capital gains tax in a similar manner, investment capital would flood into the US at record speed.
If you were laid off at the GM plant, because you were a non union worker, does it matter if your new employer is a foreign Corporation? By lowering these economic obstacles we would be hanging the welcome sign up for the world to see. It would instantly make our domestics more competitive as exports, because part of the selling price was taxes. Foreign investment would follow the ROI. First thing, they buy land or buildings. Then they would build or renovate their properties to meet the needs of their plan. Then they would hire workers of all sorts. White collar and blue. This would impact construction immediately, but temporarily and then permanent staffing would finally start putting displaced people back to work.
What's the hold up? In my opinion, our Benevolent Government can't see that a smaller percentage of a much larger pie is a bigger number than the faltering and failing situation they now have. In salesman's parlance, "The fear of loss is greater than the desire for gain." And, if your a cynic, politicians really don't want to solve a problem, they want to run on the issue the problem creates.
Facts? I can't give facts on a business plan. It is speculative by nature. There are too many what ifs. You can make very accurate suppositions about human behavior when they are incentivised. For selfish reasons people will do what is best for their self interests. Example? From 1983 to 2000 was a pretty good run. That 1983 administration had some pretty good minds working to create economic incentives. Art Laffer and John Rutledge designed a model that worked very well until world competition on tax rates changed the flow of capital.
In my little business I own a string of rental homes. We recently had to raise the late fee. Why? Because it was cheaper to make me wait than use the guys at the check cashing store. That's how far away from the inside the beltway mentality the recipient class are. Their motivation hinges on which is the better deal, paying my $50 late fee, or paying the check cashing store 10%. If those people had a better alternative, most would surely take it. An Example of that: Detroit and Chicago were built by migrating families moving to where the opportunity was in the late 40s and 50s. What has happened in those cities since then has nothing to do with the incentives that beckoned people to move there. If my lower middle income clients could find a place where opportunities were better, they would break their backs getting there. Right now, the incentives are just not strong enough. Once again, the fear of loss is greater than the desire for gain.
I appreciate the conversation about the economy. I always learn something from talking to people. In my life I have seen the magic of growing a larger pie several times. It is the answer to turning a failing business. Growth! I believe it is the answer to our failing government. Our present government cannot see what could be, they can only see what is and then divide it.