Politicians passed NAFTA and politicians voted China the status of “Most favored Nation”, so it was politicians that ruined our economy. Yes, it is ruined and personally I don’t see any hope for recovery. If you used to have a job in manufacturing, or if you used to work in any trade that depends on others having even a moderate amount of money you know what I mean. How about a little analogy to explain just what I mean.
Bob and Bill are competitors in the same kind of business located In the USA. They both manufacture widgets. Each widget cost both business $2 to make. They compete by sales promotions of one kind or the other. Both business are stable and hire many employees.
Then the politicians pass the North American Free Trade Agreement. Bob sees that if he moves his business to Mexico it would be possible to drastically lower his cost of manufacturing. Labor costs will be much lower, there would be little, or no government regulations, such as OSHA. It is almost a win win opportunity.
So Bob does move to Mexico. Now he has a distinct advantage and he can undercut Bill by a large margin, but of course he only undercuts him enough to take all of the business and pockets the rest (That’s the name of the game).
Bill sees what is happening and he realizes that he must also move to Mexico. To remain where he is would only lead to bankruptcy.
So what just happened? All of the employees just lost their jobs.
Why, do you say? So the business could make more money.
Didn’t the politicians know what would result? The truth is they didn’t care (then).
All politicians are rich. They are the ones that own the businesses, or stock in the businesses.
Anyone, with even half of a brain, can see that this would and did happen to all of our manufacturing businesses. We are told that our economy is changing to a service orientated type. That is definitely true as there are no more manufacturing jobs.
The problem with that is service jobs generate no income for the country and because service jobs require parts and equipment there is a constant drain on our wealth.
We had import duties which kept this from happening before NAFTA. Those who should have put the American workers needs ahead of their, and foreign countries interests, did just the opposite.
Our “Most favored Nation” designation of China is even worse than NAFTA.
Now I have a few questions that this generated.
Who is going to buy widgets when they have no job?
Who is going to buy anything when they have no job?
Who is going to pay the taxes necessary to support our country?
By the way, all politicians are responsible for the downfall of our economy. Democrats started it and Republicans have done nothing to stop it. What do you expect as they are all rich.
Buy the way, by the way, if you think this is not your problem, or it will not effect you then you are about to learn all about economical recession in the real world (your world).
What I have said is only common sense, but you don’t have to take my word for it. Jump in your car and take a ride through the retail section of your town or city (If you can afford the gas) and notice how many businesses are gone. They are gone because people no longer have money to buy what they were selling.
You don’t even have to go to that much trouble. If you are reading this you are on the web. Just check out the news about the housing industry, and the automobile industry.
Very few are buying because very few have a job and those who did buy when they had a job are losing everything.
The only thing I could suggest is to pray to God to get us out of this, but to be truthful I don’t know why He would.