Anyone Can See that America is Shutting Down
America is shutting down. Our political system is flawed and no longer benefits Americans. Our priorities have been completely displaced.
How could we be so careless as to let the the U.S. descend in so short a time from being a wealthy and productive nation to one controlled by lobbyists, living on imports, selling our companies to our foreign competitors and living on ever increasing debt.
Our decline has been the result of decades of failed policies that are still running rampant:
A lack of restrictions on imports
- (as practiced by other counties) has put many of our companies out of business and caused the wholesale liquidation of our best companies to foreign ownership. With an influx of cheap imports, it is impossible for American manufacturers to compete. No other country allows an unrestricted flow of their competitors products into their country. We must regulate imports and provide incentives and subsidies to homegrown industries.
Our government and its leaders have developed no industrial policies
- (like most foreign countries do) to protect American owned companies or to be more instrumental in developing and creating more productive industries in our own country.
A country’s companies are its wealth producers. If all of our wealth production is easily bought at an accelerated rate – and our foreign competitors companies won’t be sold to us, it is easy to see America has no future ability to generate wealth. This is the reason the media highlights thousands of store and factory closings everyday with increasing unemployment. Allowing this systematic depletion of American industries will lead to social disruption, poverty and increased crime.
Our leaders priorities are misguided. Our representatives are too preoccupied with running for re-election that their time is consumed with fundraisers. They are too busy trying to keep their job, to actually fulfill the duties of the job they were initially elected to perform. Following their run as government officials, most ex-officials then turn to the lobbies who funded their campaigns to attain their new careers as lobbyists. They then lobby for the interests of other countries and “free trade” proponents to further dismantle the U.S. economy.
Other countries do not operate this way. Japan is managed by intelligent caring leaders working for the best interest of their country. They would never let their people or ex-government officials form lobbies that would do anything that is detrimental to their country. That is why Japan with only 4 percent of our land mass and with no natural resources, has developed the world’s most productive country with the 2nd largest current surplus in the world next to China.
Japan has a huge consistent balance of trade surplus with us and even a balance of trade surplus with China. We had a balance of trade deficit of $230 billion in 2007 with China plus a total accumulated balance of trade deficit of $719 billion, and a government budget deficit this year of approximately $1 trillion on top of an accumulated budget deficit of $10.6 trillion.
Japan has specific plans and goals developed. We have no industrial policy, no government directed plans or economic goals at all. We are just living on our reputation and gloating about our past comparative successes. We must remember our successes came in 30 years from 1945 to 1975 when we had no competition. Most of the major countries were devastated by the damage inflicted by WWII. We were the “top dog” during that time, developing and producing most of everything – cars, steel, TV’s and doing it better than others. We have not progressed since then, we have regressed through our disastrous trade deals. While some of the other countries worked feverishly to develop plans and goals, specifically Japan and Germany and later China. Judging by their accomplishments, they are now becoming the “top dogs” and we are the “underdog” forced to live on imports and debt – financed by them, with a crumbling industrial infrastructure, and no plans to do anything about it.
Japan can compete with Chinese wage rates because Japan has developed the world’s most sophisticated capital and knowledge intensive manufacturing systems that equate to one man working on one machine accomplishes the task of 100 men. We have developed nothing like .
Japan has very little unemployment however because they have developed superiority and efficiency in so many industries and now have more manufacturing facilities per capita than any other country in the world. We would do well to copy much of what they do. We do not have to be very creative in our solutions as they are easily accessible, we can look to other countries who are stimulating their economies (i.e Japan and Germany) and follow suit. We should take a hard look at where we are going and realizing we are shutting down.
A few suggestions that must be immediately implemented:
1. We must restrict imports through tariffs and other means. Other countries use their huge exports and corresponding trade surpluses as the means to buy American companies and take our profits.
2. Restrict the sale of any more American companies like most foreign companies do in their countries. We cannot afford to lose one more company. Foreign investors have taken 16,613 of our best companies in the last 30 years.
3. Change or get out of the WTO agreement. It should be made illegal as it usurps our constitutional rights with all its conditions stacked against us.
4. Amend or get out of NAFTA, it is causing all of our manufacturing to move out of the country.
5. Fix the VAT import/export disparity immediately. It subsidizes foreign companies to export to us, while penalizing our exports to them. It totally prevents us from competing in the world market.