Monday, February 24, 2014

Americas Economic Future

08/16/13 by Hedgemastermb

Introduction:  This is a lengthy article that summarizes the great excitement and accomplishments by our Forefathers and by men and women escaping the decaying grasp of Monarchy, Dictatorship, and Theocratic Rule by multiple religions in many countries. It sets the stage that shows the progress of our country and its people through wars social and economic growth unheard on this earth from the 1800’s, 1900’s to the present.  This article tells a tale of politics, society, business, education and change. It is exciting and unsettling! It will make you think and become an “Active Participant” in ways you would never expect! It will make you Mad, Happy, Sad, Proud and ready to fight because this Article is about “America’s Future” for our children!

It will also identify what the real economic challenges are; and, precisely how we can fix them! It’s not the usual solutions offered. This Article points to freedom to capture once again our greatness!
Look at the debt of other Countries with the same color on the map, Greece, Spain and others.

 This converts to TRILLIONS OF DOLLARS!

Look at Differential from Gold Reserves to Dollar Production

Where we came from, Where we are Going, Where We Could go!
The Revolution:  In 1776 Thomas Jefferson penned the Declaration of Independence. A Constitution was adopted to set guides as to what this republic would be. George Washington fought a war to enact these incredible documents with its unique structure, direction and rights unheard of throughout the world. He won that war in 1781 and a treaty in 1783 between France, Britain, Spain and our New United States of America was signed cementing the United States of America as a legitimate country. They signed a Declaration of Independence where these founders pledged their lives, fortunes and sacred honor!

America was available and somewhat uninhabited. People came from all corners of the world to escape despotic rulers and poor economic societies where only a very small portion of the population had real benefit of existing wealth or the possibility of creating new wealth.

Because America’s Constitution was capitalistic it allowed the freedom of each person to succeed or fail in all aspects of society. Growth and population spread west at a prodigious rate. Empires were formed in finance, business, real estate, and politics. Relatively soon land, that went east to west, from one ocean to the other and to the cold north and the tropical south, was being occupied.  

America grew in all aspects. There was land expansion and ownership, currency, businesses, mining resources, relative youth and low numbers of population per land mass, low prices and few restrictive laws for these brave migrating travelers.  Overburdening Federal Government was not in existence, in fact, Federal Government was a part time structure. Lawlessness, some violence and few laws made travel an adventure. Wars, financial crisis, political intrigue came and went and America grew.

The road along the way
People started coming from Europe, China, Britain Ireland and Scotland. There were South Americans, Central Americans and Africans brought as slaves. (The latter to our great fault and shame)

The country grew leaps and bounds through the 1800’s through wars and skirmishes of expansion as settlers moved Southwest and Northwest. We had a civil war when we corrected the sad event of slavery in the 1800’s. America was growing as an industrial power after the civil war. Inventions that benefited mankind were made from our free immigrant citizens. During this entire period before and after the Civil War of 1861 to 1865, Electricity, Steam engines, Telegraph and many others were put to use in America.

In 1819 we had a panic from over lending and a drop in prices of our primary export which was largely Agriculture at that time and Banking increased its size and lending. There was a pull back in our primary customer base in Europe buying and we learned much about Capitalistic international commerce. A bump in the road to greatness!

The early 1900’s were rocky with World War I. There were presidents who tried to become more like the monarchs of the past such as Woodrow Wilson but, America survived.  The Great Depression and WWII came and went and America survived that as well.  

In 1921 we were growing and healthy. Unfortunately we had elected a President eight years before that believed more in Central Government and personal control than the Constitution itself! This was President Woodrow Wilson. We elected a president who believed he was a singular leader who was restricted by the Constitution. This was President Wilson:

Wilson was fond of saying, “While we are followers of Jefferson, there is one principle of Jefferson’s which can no longer obtain in the practical politics of America. You know it was Jefferson who said the best government is that which does as little governing as possible, but, that time is passed! America is not now and cannot in the future be a place for unrestricted individual enterprise.” 

President Wilson then greatly and destructively increased the size, cost and reach of Federal Government. The Great Depression in 1929, in my opinion, and the incredibly slow recovery that took a war to remedy was caused by President Wilson’s actions in his eight year reign.  

Our federal government was increased yet again in 1932 to 1936 by President Roosevelt while he tried unsuccessfully to buy away the depression.

Only a War, manufacturing and strong exports that followed did that! We refurbished Europe and Britain through the late 1940’s and 1950’s. Our industry grew larger and superior in technology, agriculture, machinery of all kinds, metal production and mining. This production and sale of goods went to our own constituents and the world.  It was a golden age!   In the early 1960’s governmental and economic changes began taking place that did not fit the constitutional directives or philosophy and were dangerous to America’s capitalistic future!  Let’s spend time outlining these subtle but damaging changes.  

America essentially went from a capitalistic county with small government overhead into a larger, more powerful and very expensive federal government controlled structure that Jefferson warned us about continuously in his writings. We should have read and heeded his warnings! Here’s a small sample of President Thomas Jefferson Quotes:

They all are vital messages!
  • “The Democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”
  • “My reading of history convinces me that most bad government results from too much government.”
  • “A government afraid of its citizens is a Democracy. Citizens afraid of government is tyranny!”
  • “If people let the government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as the souls who live under tyranny.”
  • “Experience has shown that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”  
  • “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.”
  • “I predict future happiness for Americans, if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”
  • “Laws that forbid the carrying of arms . . . disarm only those who are neither inclined nor determined to commit crimes . . . Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man.” 

Thomas Jefferson thought up and penned the original draft of our Constitution! Should American’s listen to and be amazed by his predictive capability 250 years ago? He literally penned the problems and dangers that now currently exist written above! He was a “Prophet”. America will have to do what our forefathers expounded upon to regain primacy in the world’s economy.

In today’s economy, wealthier citizens with international financial positions and other currencies will be okay temporarily. Tax paid, Public Employees will also be okay temporarily.  However, America is no longer the “Promised Land” for those who yearn to have employment like the 40’s 50’s and 60’s.  Manufacturing and other blue collar skilled jobs that made America and its people prosper.   Good jobs where America’s children could apprentice and become journeymen producing product for world export are fast disappearing.  
The Golden Age ended in 1964 when a truly great President John F. Kennedy was assassinated. President Lyndon Johnson came into the white house.

Disaster struck, John Kennedy was replaced by President Johnson in 1964. President Johnson immediately robbed Social Security taking out of its segregated fund and put it into the General Fund in order to create and pay for a massive National Welfare Program while overspending on a war he began. These actions were so costly that the gold standard had to be removed by the succeeding president.  That was the end of true capitalism!

1964 President Johnson, upon the unfortunate death of a young great President, John Kennedy, who had so much promise and capability, began unhealthy directions in opposition to our Capitalistic past as defined by Jefferson: President Johnson was responsible for the following:

  • Began and maintained the Vietnam War for unspecified reasons
  • Robbed Social Security to pay for that war and the new very Socialistic Welfare Act with no job attempts or training requirement 
  • Spent present and future dollars so much on the War and Welfare that the next President had to close the Gold Window taking the Nation away from the Gold Standard. A dangerous path for future economic health. It was the beginning of the current weaknesses in our financial health.
  • Increased dramatically the size of Government Agency activities exponentially
  • Massively increased the cost and size of Federal Government and loss of Dollar purchasing power which continues today
I want you to dwell on that! We went away from the gold standard and put forth mandatory growth requirements that guaranteed too large of a Federal Government and its Agencies which led to and added over time to the exodus of Manufacturing from this country. That’s damage that we feel dramatically today. (Manufacturing jobs in the sixties made up well over 46% of all employed workforce. Today it’s less than 6%). 

The established trend toward Socialism continued in America throughout the 1970’s with dishonesty by Presidents, inflation and the creation of tax paid Government Employee Unions! This is the purest and most egregious sign of “Factional Socialism” in segregating Public workforce from Private workforce. 

When the Gold Standard was revoked a decade later in the early 70’s, the Federal Reserve became all powerful. We look at this period of time of President Johnson, Richard Nixon, Gerald Ford and Jimmy Carter as not beneficial to America.   This beginning of active Socialism built upon the base of Wilson and FDR remains the driving source of the too large Federal Government negatives.

Years later, in the eighties and nineties two Presidents, Reagan and Clinton, ran the Federal Government very well under the circumstances.  They did not allow excessive growth except for the Union wage growth within the Federal Government. Sadly the Federal Reserve continued to print excess dollars during this period.  Both men however, were very worthy and excellent Presidents. Those two Presidents by their actions proved that “America gets positive capitalistic results from capitalistic practices.” They temporarily patched the deficits being created by industry moving offshore.

The Chinese Example of Corrective Capitalism
China and the Soviet Union proved in the 1940’s through 1970’s that “One cannot get Capitalistic Success with Socialistic Policies.”  China today is a study in Capitalistic application’s success and recovery.  China went through classic Socialism/Communism for decades which is currently where we seem to be heading! Can we learn from them? 

We know with Chairman DENG’s arrival, deposing Mao, his wife and minions, China began to address resurrecting the poorest and most backward society that was also the most populous nation on earth! They had far fewer jobs than population.  How did they turn it around? 

Deng put a front-end capitalistic structure in front of the Mao socialistic structure that existed.  That capitalistic structure offered production of goods far cheaper than state competitors like Japan, Taiwan and South Korea.  Their product quality was initially pitiful almost laughable, but they kept at it. They improved by speedy evolution and education of ordinary folks to those needed functions copying the Japanese model post WWII.  China today still has millions unemployed.  However, the Chinese are far better off with capitalism and improving daily.

XI Jinping, (Pronounced Shee Jinping), the current succeeding leader of China may be far more Capitalistic in philosophy than America’s last and current president.  Bottom line: “America seems to be emulating China’s terrible past mistakes while China emulates our past great successes.”

Bloated Inefficient Federal Government
Our manufacturing jobs began to go to other countries when our large corporations continued global expansion at an accelerated rate in the middle to late 1970’s.  At the same time President Carter approved Government Employee Unions creating a classic Socialistic setting of favored “Government Class” over private “Middle Class”.

Japan, South Korea and Taiwan were predominant recipients of our American manufacturers outsourcing in the late 1960’s continuing through today with additional competitors including China and many others.  Our administrative services industries were also somewhat displaced in the 80’s & 90’s to places like India and the Philippines.

Services and manufacturing were the two broad areas of employment in our history was responsible for well over 80% of all labor in America.  Goods “Real Manufacturing” alone had 46% of the workforce in our recent past. Now, by some measurements, real export manufacturing less agricultural goods use is 6% or less of our workforce. It’s at historic lows! Those were the “Good Jobs.”

Our government constantly produces badly weighted figures to make uncomfortable statistics and numbers look better. It’s very similar to the wildly incorrect unemployment numbers. The citizenry has little faith in Federal Government pronouncements and so they should!

Our citizen youth, black, brown and white
These are the most affected by this outrage of no jobs! Capitalism is necessary for their futures. In some cases, 50%+ unemployment exists for youth in our larger cities. Their future resides in part time jobs or menial-labor. This Socialism is disastrous. We must prepare for their futures immediately.

Are we doing justice to their futures by being more costly to potential Manufacturers and having them go elsewhere? Look at the debt! Should a Federal Government that removed Glass Steagall and produced “ObamaCare” and “Dodd Frank”, two horribly drawn programs, be trusted? The astronomic costs of these two Government programs and losses due to removal of Glass Steagall laws will be dramatically large and injurious to every citizen for many decades.

We must as a nation become internationally labor competitive for our children’s future. Let’s explore possibilities and explode myths.

Let’s explode some tired myths. “WAGES” are not the primary reason we lack international manufacturing  competitiveness as we had so successfully in past decades! 

Current "Private Sector Wages” are not the reason our “American Companies” and many other foreign companies won’t come back and build in America.

Since the early 1970’s, large American Corporations have fled America. They all say it was because they had to get “International” to be geographically diverse and situated in the affected foreign markets.  That’s partially true! However, They moved for other reasons for which politically they often hesitate to discuss.  Thank God Big Business did move!  Had they not our Pensions, 401k’s, stock investments, bank savings and many other economic factors of our financial health could be vastly worse! 

Let’s bring back our global manufacturing, Not home building or local creation and consumption of goods that our “Lazy Press” seems fixated upon.  I’m talking international real manufacturing using American labor for exports just like China or South Korea.  

Look at Wall Mart and the origin of products on their shelves! When you see appliance with American names look them up and see where they are manufactured not assembled. You’ll be shocked.  Does Dell or APPLE manufacture their products here? NO!   Does GM have more labor workers here than overseas? NO!  WHY?  Tax Payers bailed GM out! 

I said above “it’s not primarily Wages” that caused these manufactures to leave”!   More succinct reasons come from quiet conversations with international business people who are wary to speak publicly. Let’s be unafraid and cause positive controversy! 

The Reasons for “Real Goods Manufacturing” leaving America in the past  and still are:
  • Federal Government Rules, Laws and Regulations (first reason given.)
  • Federal Agency interference NLRB. EPA etc. (Note: There are at least 200 Agencies that oversee parts of business)
  • “Legal Avarice” with massive Class Action Suits by an unrestricted legal profession using slanted Federal Labor Laws and Ridiculous Agency rules. Many foreign manufactures I’ve talked with won’t come here to build because of this very  concern (Lawyers in the majority reside in the Senate and Congress)
  • Corporate Taxation (Many American Corporations have not repatriated their profits for years back to America) a sure sign of the validity that American taxes on Foreign Profits are comparatively far too high and a real factor for businesses not returning
  • Union political pressure combined in partnership with Agency legal pressures fortified by Federal Government political support. (example: Boeing, S. Carolina vs Unions & Federal Government Agencies
  • ObamaCare, a new wedge in solicitation of business to our shores
  • High Minimum Wages only when training new employees
These are the real reasons we have not competed and will continue to lose millions of jobs. There has been no real attempt to rectify causes of unemployment.  International manufacturing retention and small businesses have been largely discouraged by our Federal Government for years while we use ineffective short term non-solutions. 

PROOF Very Recent  2011-2012 
Mexico is currently building American and Global corporation’s businesses and facilities for manufacturing and maintenance.  Their economy is doing great! This is not China or other Asian emerging market countries! This is Mexico only miles from our border!  The land of Massive Immigration, Drug Cartels, Hezbollah involvement, Corrupt Governments blackmailing US citizens, Beheadings and Kidnapping. International Corporations are building and hiring for good manufacturing jobs just miles away from our Border! WHY? (It’s not wages)
GE, GM, Goodrich, Honeywell, Cessna and other American based Companies all building in Mexico, just miles below our Southern Border, Just recently for 2013, GM has announced $1,000,000,000.(One Billion dollars for manufacturing and production in Mexico ). This is proof positive of what’s been written above. They are creating thousands of direct manufacturing jobs and tens of thousands of secondary jobs. Columbia and Peru are beginning to get these jobs as well.    

You’ve read this far! Now, let’s begin a real conversation of how to create America again as the Capitalistic bastion it was always intended to become for our children.

Real Solutions 
America has to become Capitalistic once again!!  It will be politically tough to turn 40+ years around!

Suggested Steps: 
  • Immediate dissolution of all Federal and State, County, and City Government Unions and all other tax paid employee unions
  • Ten Year moratorium on Federal Government hiring (No replacements) Federally contracted civilian employment is also frozen in numbers and reduced by 50% in five years
  • There will be no firing of employees. Early retirements will be offered. 
  • Most Federal Agency functions will be removed and switched to States.  All Federal Government must shrink 50% of current size and costs in ten years
  • New 401K’s replace immediately all Pensions of current and future Tax Paid Government employees All benefits must be on par with the private sector.
  • Removal of Class Action status for legal pursuit of Corporations in America
  • All mandatory Union use for any labor contracts by the Government or private businesses will be stricken from Federal law
  • Taxes for foreign income of American Corporations repatriating profits would be 15%
  • “All” Elected Officials (Senators Congress and appointees) Retirement time and income provisions are adjusted dramatically in time served and percentages of compensation 
  • Travel allowances and expenses of all Government employees hired or elected public transport only, no first class or paid private will used in most cases 
  • All Federal Police forces including Home Land Security and their affiliates will be abolished.  Also ATF and TSA. The FBI and CIA will remain. Strong States Rights will be returned 
  • The Justice Department will be confined to Federal Issues with strict rules against changing or challenging State rules except those ruled unconstitutional by the Supreme Court 
  • A  President must obtain approval of both Houses to sign any “Foreign Treaties”. The United States will withdraw from the United Nations 
  • Private Medical care should be nationally available cross borders with no State boundaries, however, purely voluntary and not controlled by Federal Government ObamaCare will be privatized or retired 
  • A primary Federal Government function would be searching and promoting American workforce and national capabilities in bringing businesses to America. This is a major prerogative as the Chinese model suggests.
  • Military and Civilian corporations should be employed to create well fenced and protected borders both north and south that would be impenetrable identifying each individual and their right to enter
  • The Federal Reserve must be restructured immediately  
Once these actions are executed America will have massive employment by foreign corporations and the return of American corporations. Our children will have career jobs not temporary!

“If you dislike a States treatment as a citizen, you move to another State.  It’s far more difficult to move to another Country.” MB 
Very Important!!  

Summary:  This is a brief! (I know it’s long) It could be far more detailed. It is for the purpose of debate which I welcome.  Not a debate for minor points of detail please!!  A debate of philosophy for governmental capitalistic modification and real Job creation for our country!


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