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By: Joe Bottieri
December 9th, 2010
We will not have a significant recovery until we create jobs. Yet, we've borrowed and spent trillions of dollars as incentives trying. Those trillions that have us at the threshold of bankruptcy gave us absolutely NO results.
Why? Because once the money is in the consumer's hands it's spent on imported products, thereby stimulating foreign economies. Look at China's economy and how it continues to grow as the USA and other failing economies throughout the world pump trillions into their economies with no results. The benefits of that stimulus money ended up in the countries where the products are manufactured. Because of that, no matter how much stimulus money we throw at the high unemployment problem, permanent results are evasive.
The reason we're in this mess in the first place started long before George Bush. It started when consumers stopped caring where or who made what they were buying as long as it was cheaper. That's just plain stupidity!
Big retailers started the destruction of our economy when they found products could be copied and made in China (and other 3rd world countries) for a fraction of what it cost to make them here. All other big retailers follow suit. Their greed and consumer stupidity, destroyed jobs by the millions here. No amount of stimulus money can change that.
There are only two ways to create jobs here:
1.) On the consumer level: we have to stop buying foreign brand products,
2.) At the merchant level: they must purchase their inventory Made in the USA.
Because this has gone on for so long, many of the products we need are no longer available made here in the USA. The consumer is unable to stop buying foreign made products. It is up to the retailers to undo the damage they did to our country, and they could do that rather quickly as it wouldn't take long to get USA companies back to making what we consume.
Any attempt to create jobs by putting more money in the consumer's hands will only create temporary jobs here while stimulating jobs in China and other countries that make most of the goods we consume. Once the stimulus money has been spent, we're right back where we started.
We are not alone in this situation. All the European countries we are hearing about with struggling economies are in the same situation. Why-oh-why our politicians won't admit and recognize the problem is beyond me. Are they afraid of offending China or are they afraid to admit their mistakes of setting ridiculously low tariffs on goods made in Asia?
Taxes are a last resort, as no one likes them except politicians who get to spend the income. Government intervention into private enterprise isn't good either, but the problem has gone on for so long that only Congress has
the power to fix it.
Here's my proposal:
A new tax: Job-loss tax! Not an import tax or tariff, but a tax at the merchant level to cover the loss of jobs caused by buying inventory made outside our borders. For manufacturers - the same tax applied to the imported components they use in the products they assemble here. This tax would immediately bring jobs back to the USA and the immediate (albeit temporary) income the government would receive from it would pay down out deficit fast. This tax could easily be 100% of the product landed cost. The side benefit - the trade deficit would come into balance.
We have to stop thinking it's a world economy and we must participate. That's BS spewed by those countries who want to dump products here. Let's get the fact straight: they need us – we don't need them. They are not going to pull their investments out of the USA because we take action to strengthen our economy even if we reduce imports. They will however, pull their money out if our economy continues the downward spiral.
Lets hope the Conservatives have the will to do what's right for our country for a change, and stop trying to be the world hero. Unfortunately however, IMHO those greedy spineless bastards in Washington will cave to the special interest groups and not pass any legislation that will offend other countries while we drown in debt.
It's not a world economy.
It's private companies all over the world competing for your purchase. It does make a difference where your dollars go. This world economy crap is just that: BS shoveled to us by those who benefit from it. Think about it: it's just as important to those foreign companies (and countries) whose products you buy as it is to Ford Motor or GM as to whose car you buy. Wake up fast America it's almost too late.
It's gotten much worse since originally written. Even our medications are mostly produced in China now.
Adopting one animal won't change the world, but it will change the world for that one animal.