WHERE OUR CAPITALISTIC SYSTEM WENT WRONG
Number 1 in our analysis is the simplest explanation of all. Our lobbyists worked the halls of Congress which allowed them to sell our technology to our enemies, but also our future competitors. Case in point; China allowed us to sell them plains, trains and nuclear power plants - there was only one catch- we had to give them our technology. Little by little this became our achilles heal. Soon, in the very not too distant future, the Chinese will be manufacturing their own, planes, trains, automobiles and nuclear power plants. So for a short term profit, the capitalists have cut their throat where in the end they will not in see any long term benefit,
Number 2 in our analysis is one that we all see but do not understand the ramifications. We all buy Chinese products, it is impossible not too. Even if you think you are not buying one, you are. For instance, the Chinese now sell us apple juice. What you say, apple juice? Check out the grocery story items and you might be surprised. Talapia from China, well you get the gist of the situation. Moving on to the main point, we buy Chinese because their products are cheap, but did you ever wonder why they are? It is not their control of the currency (renminbi), it is the low pay the Chinese worker receives. The government owns various percentages of most Chinese companies, they have in effect a stealth monopoly. The workers are at the mercy of the government when it comes to wages. Therefore, it is to the governments benefit to keep wages low. How does that affect us, one word, "slavery". We are complicit in the organized slave labor of the Chinese worker. Why do we tolerate this inequity? Because we want cheap goods. One day there will be a massive strike among the Chinese worker where they will demand a living wage. Then their products will no longer be competitive with ours. When this will happen is anybody's guess. Don't hold our breath.
Number 3 needs a little bit of history to get our point across. Simple economics will bring this into focus. For example, your father was good at making shovels, he was the best at his craft, his company was always busy. However, he could not make rakes even if he tried and he didm but to no avail. For every dozen shovels he made, he only made one rake. The company across town made rakes, the best in town, but they could not make shovels. As you see, both parties stuck to what they did best; they specialized. When someone wanted to buy a shovel or rake, they knew that they were getting the best deal. Both were made the most economical way and therefore would be sold for a market price satisfying the buyer and profitable for the seller. The buyer got what he wanted and the seller got what he wanted. Supply and demand created a perfect equilibrium. Moving forward in our analysis we highlight more back ground information. For instance, both parties are located in the same local and the same country. Because the cost of living is basically the same, the cost of products in terms of competitiveness is on equal terms. Now what happens when one of our manufactures decides to hire some juveniles and pays them $1 per hour, the other competitors will shout bloody murder. They will call for the arrest of the labor violator. We are now looking at a situation similar to this today. You see what this is leading to? Not a fair playing field. Others say that this is the way global competition works. Well, it is not supposed to work this way. Global competition works when the playing field on all levels is equal. Those with the skills to produce one item better than another will win the consumer dollar, the other manufacture will win the consumer dollar for the product they make best. If they can't compete they will go out of business. As this becomes clear, we have unleveled the playing field to the disadvantage to our Country. Be that as it may we have reached a critical situation. It is two fold, first of all our manufactures have left to greener pastures - one where the costs of manufacturing is lowest. And secondly we have given away our technology. This is the gravest mistake. By selling our technology we have insured our own demise. There is no going back, no matter what the politicians tell you,. India and China have almost three billion people; their manufacturing sector is growing to the point that we will no longer show up on the economic radar screen. Just a few weeks ago it was announced that China was the second largest economy, eclipsing Japan for the first time. They are now headed in our direction. So where do we go from here? A very important question with only one answer, NOWHERE, we have sold our selves to the devil. Yes we can prolong the agony to come, but not for too long.
Number 2 in our analysis is one that we all see but do not understand the ramifications. We all buy Chinese products, it is impossible not too. Even if you think you are not buying one, you are. For instance, the Chinese now sell us apple juice. What you say, apple juice? Check out the grocery story items and you might be surprised. Talapia from China, well you get the gist of the situation. Moving on to the main point, we buy Chinese because their products are cheap, but did you ever wonder why they are? It is not their control of the currency (renminbi), it is the low pay the Chinese worker receives. The government owns various percentages of most Chinese companies, they have in effect a stealth monopoly. The workers are at the mercy of the government when it comes to wages. Therefore, it is to the governments benefit to keep wages low. How does that affect us, one word, "slavery". We are complicit in the organized slave labor of the Chinese worker. Why do we tolerate this inequity? Because we want cheap goods. One day there will be a massive strike among the Chinese worker where they will demand a living wage. Then their products will no longer be competitive with ours. When this will happen is anybody's guess. Don't hold our breath.
Number 3 needs a little bit of history to get our point across. Simple economics will bring this into focus. For example, your father was good at making shovels, he was the best at his craft, his company was always busy. However, he could not make rakes even if he tried and he didm but to no avail. For every dozen shovels he made, he only made one rake. The company across town made rakes, the best in town, but they could not make shovels. As you see, both parties stuck to what they did best; they specialized. When someone wanted to buy a shovel or rake, they knew that they were getting the best deal. Both were made the most economical way and therefore would be sold for a market price satisfying the buyer and profitable for the seller. The buyer got what he wanted and the seller got what he wanted. Supply and demand created a perfect equilibrium. Moving forward in our analysis we highlight more back ground information. For instance, both parties are located in the same local and the same country. Because the cost of living is basically the same, the cost of products in terms of competitiveness is on equal terms. Now what happens when one of our manufactures decides to hire some juveniles and pays them $1 per hour, the other competitors will shout bloody murder. They will call for the arrest of the labor violator. We are now looking at a situation similar to this today. You see what this is leading to? Not a fair playing field. Others say that this is the way global competition works. Well, it is not supposed to work this way. Global competition works when the playing field on all levels is equal. Those with the skills to produce one item better than another will win the consumer dollar, the other manufacture will win the consumer dollar for the product they make best. If they can't compete they will go out of business. As this becomes clear, we have unleveled the playing field to the disadvantage to our Country. Be that as it may we have reached a critical situation. It is two fold, first of all our manufactures have left to greener pastures - one where the costs of manufacturing is lowest. And secondly we have given away our technology. This is the gravest mistake. By selling our technology we have insured our own demise. There is no going back, no matter what the politicians tell you,. India and China have almost three billion people; their manufacturing sector is growing to the point that we will no longer show up on the economic radar screen. Just a few weeks ago it was announced that China was the second largest economy, eclipsing Japan for the first time. They are now headed in our direction. So where do we go from here? A very important question with only one answer, NOWHERE, we have sold our selves to the devil. Yes we can prolong the agony to come, but not for too long.


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