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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIt will take a major revolution or an outright collapse to stop all this nonsense...
Letter from an angry reader
Posted by Dan Crawford (Rdan) | 3/29/2013 09:00:00 AM global trade
From Stormy, who has written on global trade for over a decade, sends an e-mail on the discovery that we are losing competitive advantage:
........ Four or five years ago, I saw the writing on the wall. Off-shoring, outsourcing...name of the game. All the blather about new technology was just that: blatherotherwise, how do we explain China? It uses cheap labor ...as does Vietnam, Mexico...on and on. Apple and IBM are the poster children of the modus operandi. They are American companies in name only.
Eventually, I just gave up singing the song. All the big economic voices have their selling of corporate profit.... Globalizationpoorly designed for all us schmucks. It was designed for the rich....end of story.
WTO rules? Ok: Last time. China played that WTO game by stiffing its own companies to lure the multi-corporations to set up house on Chinese soil. Chinese firms were taxed at twice the rate of foreign firms. Non-existent environmental standards in China, which lowered the cost of doing business. Unions? None. Lowered the cost of doing business. Cheap, slave labor. I could continue...but what is the use? And of course: monetary manipulation. Make cheap in Chinasell high in the West. Where were the big economic voices?
And what did the U.S. do? Worry about the consumer stepping up to the plate!---banks charged uxorious rates for credit cards and loans. Extending risky credit was the name of the game. Get every last penny from the American consumer.
Sorry to get so annoyed. I saw all the stupid arguments...they were dodges. Clinton gave Phil Gramm a big wet kiss and signed the Financial Modernization Act of 1999. Then he told us NAFTA was a win-win.... create jobs at home. Yup Yup. Then Clinton joined the lobbyist crowd and made his millions. Now we have Obama his loves the big CEO`s---
Obamas efforts to stem outsourcing/offshoring have been silly. Obamas solution? Cut taxes on corporations to keep them here. China gave tax free ten-year holidays to many corporations. O think he is going to match that? His strategy is classic economic stupidity...a knee jerk solution. And will O match the cheap labor costs? Will he match the low environmental standards? Will he call a halt to monetary manipulation? I suggest, play Name the Corporation who hates American. Name the corporations and the CEO who have shipped jobs overseasonly to send the goods back home.
Shame them. Make it difficult for them. Put a tariff on all goods made abroad by American companiesand exported here. Revisit the idea of what a corporate charter means. Take it away from corporations who consistently stiff us.
Close down tax havens. Get serious about them. Christ, if we think Iraq and Iran are problems....what about Bermuda? Close it down. I am serious. Send in the marines. If we cannot think of ways of really hurting Bermuda and similar uglies....we do not have a country interested in defending itself.
And change the rules of the WTO: Countries must have environment and labor standards. Countries cannot have a two-tiered taxation systemone for indigenous and one for foreign firms. All must be equal. No advantages to foreign firms in order to lure them. Otherwise, ditch the WTO.
It will take a major revolution or an outright collapse to stop all this nonsense. And with Global warming, pollution, resource lost, etc. Etc.... we do not have much time.
We have to start thinking outside the box. And listen to the squeals from the very rich.
doug
http://www.angrybearblog.com/2013/03/letter-from-angry-reader.html
MineralMan
(146,281 posts)either is essential to fix the problems. Your mileage may differ.
Javaman
(62,510 posts)the bizarre need to tear down in order to build up.
I believe there is a certain amount of control freak in these types of folks who make these types of proclamations.
MineralMan
(146,281 posts)If someone's life is not going well, or if they're seriously economically challenged, it's easy to believe that things might as well fall apart completely. Perhaps they already have on a personal level. Sadly, if things do fall apart, they're going to get much worse for everyone, including those for whom things are already bad enough.
Javaman
(62,510 posts)In_The_Wind
(72,300 posts)Shame them. Make it difficult for them. Put a tariff on all goods made abroad by American companiesand exported here. Revisit the idea of what a corporate charter means. Take it away from corporations who consistently stiff us.
Close down tax havens. Get serious about them. Christ, if we think Iraq and Iran are problems....what about Bermuda? Close it down. I am serious. Send in the marines. If we cannot think of ways of really hurting Bermuda and similar uglies....we do not have a country interested in defending itself.
And change the rules of the WTO: Countries must have environment and labor standards. Countries cannot have a two-tiered taxation systemone for indigenous and one for foreign firms. All must be equal. No advantages to foreign firms in order to lure them. Otherwise, ditch the WTO.
dkf
(37,305 posts)The sad thing is our education system is what will doom us as other counties start surpassing us. China's cheap labor won't always be that way, but its the path forged by Japan, S. Korea and now China.
Look at how Asian immigrants tend to so better than other races. Extrapolate that to a few billion people and then decide if we need to be afraid of their cheap labor or the competition.
Jackpine Radical
(45,274 posts)Only corporations understand the kind of education the workforce needs in order to fill corporate roles.
Eliminate nonsense like history, philosophy, and theoretical (as opposed to applied) everything (physics, chemistry, math). If it doesn't help a corporation make money in the immediate future, we don't need it.
Cut the minimum wage so we can compete directly with Chinese labor.
Eliminate access to health care for those who can't afford it. They are expendable.
*sigh* [font color=gray] I know I need to add this, or another 20 people will put me on Ignore.[/font] *sigh*
dkf
(37,305 posts)The poorest Asian immigrants come to our US schools and so many learn to excel, even more so than Asians that have been here for a generation or two. That is something they learn abroad that we have lost.
Roland99
(53,342 posts)nineteen50
(1,187 posts)democratic states are being turned into debt-collecting agencies on behalf of a global oligarchy of financial investors, think Cyprus.
We seem to have entered an advanced capitalism, one that this time is entirely in favor of the propertied classes now firmly protected in their politically stronghold, the international (global) financial industry our new unelected government.
Spitfire of ATJ
(32,723 posts)....to them not only EXPECTING a bailout but actually TELLING us to give it to them,...or they will hurt us.
magical thyme
(14,881 posts)"...banks charged uxorious rates for credit cards and loans."
But the definition I found was, "adjective doting upon, foolishly fond of, or affectionately submissive toward one's wife. Origin: 15901600; Latin ūxōrius, equivalent to ūxor wife + -ius -ious..."
Guess the writer meant usurious, but whatever.
Seriously, this is 1. really badly written and 2. many of us saw the results of off-shoring coming not 5 years ago, but more like 25-30 when the big name analyst groups started pushing it.
A number of things could be done to fix it, but they likely won't because that would inconvenience the 1%. So things will run their course and it will fix itself one way or another.
AverageJoe90
(10,745 posts)a Yellowstone eruption(short term? Our lifetimes, plus that of our children's).
China, on the other hand, is the power we need to worry about; there are many bubbles of all sorts just waiting for the right moment to burst; and couple that with increasing public discontent.....unless Beijing gets its act together and stops impeding the implementation of democracy and starts acting against corruption, then I'm afraid it is probably a sure thing within another two decades at the very most.....and if that comes to pass, it'll make the Recession of '08 look like a frickin' cakewalk.
dotymed
(5,610 posts)Capitalism destroyed communism in the USSR and democracy in America.....it is so true..
AverageJoe90
(10,745 posts)Apparently, believe it or not, Mikhail Gorbachev wanted to try to implement a Swedish-style social democracy at the end of the Soviet era.....forget where I heard about this, though I'll try to find the info sometime.
dotymed
(5,610 posts)(if practiced as it is supposed to be...see Bernie Sanders) that would be an equitable government.
markiv
(1,489 posts)3rd world coming up, 1st world headed down.
not because that's what makes the most sense, but because that's what we've actually seen since 1992, now at least 21 years. for all of the scares and blowups, what we've seen is a pretty orderly decline of middle and working class USA citizens, guided by some larger mostly unseen force
a steady, orderly decline is the hardest thing to fight against, boiled frog, and all that - a conditioning of the mid for those targeted
Marr
(20,317 posts)If public sentiment moves that way (and we saw a hint of it with the Occupy movement) the 99% could replace our corrupt, permanent government sorts in a fairly short amount of time-- from the bottom up.
It's never going to happen from the top-down, however. The 1% has that game buttoned up. You get a choice between which corporate lackey you prefer, but that's about it.
Demo_Chris
(6,234 posts)Corporations do what they do to make money. They will do anything they can get away with to do so, including violating the law or any human standards of morality. That's how it works, and if one corporation refuses another will replace it. It is a jungle, a war for survival, and success is the only measure of virtue.
That's how it works.
Unfortunately, because of this corporations are often forced to do things that the leaders of those corporations recognize are not good for society at large. This happens at every level of business, from the guy selling junk at a Flea Market to the head of a multi-national -- any time someone sells a customer something they know that customer doesn't really need, they are making a choice between their personal morality and their need to make a living. And as you head up the latter this doesn't change. Does the painting contractor refuse to hire undocumented workers, does he insist on paying his people a living wage and benefits? If so, when it comes to bidding on the housing tract he is going to lose out to the guy who lacks these scruples. The person who focuses on profit gets ahead while the person who was distracted goes out of business. The same applies wherever you look, whether it's poluting the environment or outsourcing labor, profit rules all.
It is government's job to establish and enforce limits where none would otherwise exist. It is their job to insist that products must be made here, that companies not polute, that workers be treated fairly. If they do not, no one will, for those who try are always eventually destroyed.
The problem we have here now is that the government tasked with establishing and enforcing those standards is owned by the corporations they are tasked with policing. This is not a new problem. It's ALWAYS been this way to one degree or other. Today, the concentration of wealth has reached a historic extreme, and as a result this power is consolidated in a way unseen for a century. Sadly, those who own these corporations are using this wealth and power to accumulate more, always more. It doesn't matter how poor the peasants are, there is always something more to extract from them. As Kings and Princes have always known, even if all you get is a single grain of rice from each peasant, gather that from a million people and you can turn it into a ruby. And let's face it, it is better to be the Prince of impoverished desperate people, than the President of a prosperous population. The later might command respect, the former is a god.
What can we do to change this?
I don't know. Nothing maybe. But if there is a solution it has to begin by recognizing reality as it is.