Dear American Companies: Here's How to Fix the Economy (Corporate Profits, unemployed, weapon)

[pknopp]

Originally Posted by hnsq

Don't you think the devaluing of the dollar is intentional though? How else do we reduce federal debt without increasing taxes or cutting spending (both of which are political suicide for any politician)?

Sure, that is in part why they are doing it. I will note that NOT cutting spending has been political suicide for some politicians. There is a growing segment ready to throw politicians out that will not address the deficits.

Monetizing the debt is going to have it's own problems. Ones that I hope can't come soon enough. Other countries are going to be less willing to loan to us when they are getting back far less than they loaned.

[hnsq]

Originally Posted by pknopp

Sure, that is in part why they are doing it. I will note that NOT cutting spending has been political suicide for some politicians. There is a growing segment ready to throw politicians out that will not address the deficits.

Monetizing the debt is going to have it's own problems. Ones that I hope can't come soon enough. Other countries are going to be less willing to loan to us when they are getting back far less than they loaned.

I agree with you completely...I am not saying in any way that I support the idea of devaluation of the dollar as a means of debt reduction, I simply think that we will see this method be used increasingly more as time goes on, given our current political environment.

[munna21977]

but if there is a stiff import duties/tariff on say a DVD player made in china but sold in Walmart USA, that will be a small step in bringing back some jobs back to USA. Everytime I call my American Express Customer Service, why the call goes to India-Is there any way on putting some tax on outsourcing of call centers. Maybe that will bring some call center jobs back to US.

Originally Posted by pghquest

That sounds great and all, but if I keep my business in China, all the tax breaks in the world wont beat paying ZERO. Corporations not based in the USA, dont pay US taxes

[pghquest]

Originally Posted by munna21977

but if there is a stiff import duties/tariff on say a DVD player made in china but sold in Walmart USA, that will be a small step in bringing back some jobs back to USA. Everytime I call my American Express Customer Service, why the call goes to India-Is there any way on putting some tax on outsourcing of call centers. Maybe that will bring some call center jobs back to US.

You mean we should do the same thing Cuba, and North Korea does.. Hows that working out for them?

[Rosinante]

Originally Posted by FrugalYankee

So the automobile companies need to double what they pay their workers?

As if their bloated unionized wages aren't enough? Apparently not.

I needn't trek any further into this thread, and thanks, poster, for asking the question that needed to be asked. Of course, people who vote for a living are too stupid to understand this.

[sickofnyc]

Originally Posted by Rosinante

As if their bloated unionized wages aren't enough? Apparently not.

I needn't trek any further into this thread, and thanks, poster, for asking the question that needed to be asked. Of course, people who vote for a living are too stupid to understand this.

An uninformed response to a post that never really got the main idea of the thread. Do you also judge books by their covers?

[GuyNTexas]

Originally Posted by sickofnyc

Dear American Companies: Here's How to Fix the Economy - DailyFinance

This is Capitalism, not the Oligarchy and Voodoo Trickle Down Economics that the right wing advocates for defends and desires to repeat.

Well there it is ... trickle down economics exposed! And the untimely demise of more sound left wing democratic socialist economic policy died sometime shortly after 1914? Is that the insinuation here?

Actually, my little left wing counter clockwise thinking friend ... as usual, the true history is exactly the reverse. During that same time period, the communist-marxist democrat Woodrow Wilson beat out Teddy Roosevelt for the presidency, and that marked the beginning of the overhaul of the United States from a Republic to Marxist-Socialist Empire, for which the true nature of the disaster could hardly have been comprehended at the time.

What do we have to thank President Wilson for? Our involvement in World War I; the Federal Reserve Act, the 16th Amendment, the reduction of foreign import tariffs and the imposition of an income tax to recoup the lost revenues, and the establishment of policies that would be crucial to the banker created "Great Depression" a few years later. Not to allow his first term to be his "Krowning" achievement, in his second term, he was instrumental in molding the Treaty of Versailles (which virtually guaranteed World War II 20 some odd years later), and the creation of the League of Nations (now known as the United Nations). (I won't even go into the overt racist agenda that Wilson was known for in those days). Wilson could justly be considered the only man to have prevented another Socialist Democrat, Franklin Delano Roosevelt from becoming the greatest traitor ever to occupy the White House. But it's a close call, as FDR swooped in and confiscated private gold from the citizens, stealing all wealth that the people had amassed since the establishment of our nation, and created the many socialist programs that have since that time bankrupted the nation and placed the United States in receivership, owned outright by the foreign banker gangsters to which Wilson had helped establish their beachhead for their war against America, which we are now paying the price.

Long story short ... democrats KILLED FREE MARKET CAPITALISM, beginning in 1912, and each successive socialist democratic regime thereafter, helped strengthen the structure of the Socialist-Marxist model first facilitated by Wilson, and finalized by FDR, to which true conservative free market enterprise never was able to recover from. Somewhere along the way, republicans decided that if you can't beat them, join them, and we have been governed from that point forward by a Foreign banker owned government whose hostility toward free markets or anything resembling a system that might challenge their total monopoly dominance, would never again be tolerated.

The subsequent boom and bust cycles that have occurred since Wilson's traitorous selling out of the country to foreign bankers in 1913, represent socialist economic farming .... as each economic boom period allowed the commoners to build wealth, so that the elitists could swoop in later and harvest that wealth during the artificially created recessions.

That's the reality.

[Mircea]

Originally Posted by munna21977

but if there is a stiff import duties/tariff on say a DVD player made in china but sold in Walmart USA, that will be a small step in bringing back some jobs back to USA.

Originally Posted by waterboy7375

And if the American consumer refused to buy it and instead bought one from a company that did there manufacturing here the problem would fix itself.

No.

You must compete globally. End of story.

What happened to Zenith? They could not compete globally.

No one can afford to buy Zenith electronics (TVs, stereos, boom-boxes, CD/DVD players) made in the US, but they could afford to buy LG electronics made in Korea by Koreans who make far less than US workers.

This is what happened to Zenith...

312 Million * $5 profit = $1.56 Million
900 Million * $5 profit = $40.5 Million

Get it?

LG took its $40.5 Billion in profits and started buying Zenith stock and the next thing you know.....LG owns 51% of all outstanding Zenith stock....and so LG owns Zenith.

Then LG bought up all remaining shares of stocks and now there is no more Zenith.

Is that what you want? Do you want all US companies to be foreign-owned?

Apparently that's what you want.

And how's that working out for all of the former Zenith employees?

In order to survive in a global economy, US Corporations must make profits -- more profits than their foreign competitors.

Why do you think US Corporations are sitting on hoards of cash? So they don't get "Zenithed."

The only way a US Corporation can stop a take-over -- by any competitor foreign or domestic -- is by hoarding cash and using that cash to buy their own stocks.

Originally Posted by munna21977

Raise the minimum wage to atleast 10 dollars per hour.

Congratulations....you just caused massive Wage Inflation in the US.

Why don't you educate yourself and see what FDR and Nixon did. The US suffered Wage Inflation during the Great Depression, and then also during the early 1970s.

Go read about the Wage & Price Freeze, and the various government bureaucracies that controlled wages and prices -- just like the Soviet Union did.

When you're finished studying that, you can go read Emperor Diocletian's Wage & Price Control Edicts starting in the year 274 -- because the Roman Empire suffered from Wage Inflation, too.

And then when you understand Realityâ„¢ you won't be making silly comments like "raise minimum wage."

Well, wait, I'm just assuming you don't want people to suffer....maybe you do.

Originally Posted by munna21977

Also give tax breaks to companies who bring back jobs from China to USA. Make work visas for foreigners more difficult to get. and bring the cost of health care down-that alone is hurting our economy and our middle class.

None of those things make America competitive globally.

You do not live in a vacuum....you live in a global economy....you must be able to compete.

Get over it already.

Refuting...

Mircea

Originally Posted by pknopp

Monetizing the debt is going to have it's own problems. Ones that I hope can't come soon enough. Other countries are going to be less willing to loan to us when they are getting back far less than they loaned.

What countries?

More than half of your public debt is owned by the United States -- US banks, US cities/States, US government employee pension funds for cities/States, US corporate pension funds, US insurance companies, US mutual funds and people who buy savings bonds.

Originally Posted by pknopp

The problem is the Fed has so devalued the dollar the last couple years, what do you do?

The US Dollar has not been devalued.

You'll know currency devaluation when you see it. The Italians devalued the Lira, and the Romanians devalued the Lei. One day the government just said, "Hey, 10,000 Lei is now worth 1 Lei."

So instead of the sticker price being 10,500,000 Lei it was now 1,050 Lei. Pretty cool.

I paid 455,000,000 Lei for my house -- no, I'm not a Billionaire or anything, that was about $13,000.

Of the 196 countries on Earth, only 2 counties and their central banks do a better job of managing Real Inflation than the US and its central bank. You don't have Real Inflation to speak of, but you do have rampant Cost-push Inflation and Demand-pull Inflation.....I lump those together and call them Cost Inflation....because most people on this forum don't even understand Interest Inflation or Wage Inflation much less Cost-push Inflation. It kind of puts the zap on their head, so I just simplify it for simplicity's sake.

Your Federal Reserve is powerless to stop Cost Inflation, but you can do something...consume less or produce more.

Domestically...

Mircea

Originally Posted by cw30000

Why are we even compare with the 3rd world. We are a much more advance country and have a much higher standard. But all I am seeing is how we can compete with the 3rd world.

You have to be able to compete globally. You must be able to sell your products globally, and you cannot if they are made in the US.

Back in the day, US corporations competed only against other US corporations in the US for Market Share.

Remember Durant? General Motors fires Durant, so Durant teams up with Louis Chevrolet and they start making Chevrolet cars. The Chevrolet gains Market Share very rapidly, eating the Market Share of General Motors. Durant takes his profits and starts buying General Motors stocks, and the next thing you know...

....Durant owns 51% of GM stocks and has controlling interest. Durant calls a shareholder meeting --- his right majority shareholder; nominates himself as the CEO of General Motors --- his right as majority shareholder; and then casts 51% of the votes for himself -- his right as majority shareholder.

So not only does Durant own General Motors, he is also the CEO.

But competition is not solely domestic -- it is now global and for US corporations to compete globally, they must gain Market Share and that means building facilities in emerging markets to provide goods for those markets to gain Market Share.

Once you are shut out of a market, it is nearly impossible to get into it.

Look at the US and the domestic market for automobiles. Can you start a new car company in the US? No. You're pretty much locked out, not only by US domestic auto but by foreign auto too.

The US is a teeny-tiny 4.5% of the Global Market Share.

If you want to survive, you have to sell to the other 95.5% of Planet Earth.

Competitively...

Mircea

Originally Posted by hnsq

Don't you think the devaluing of the dollar is intentional though? How else do we reduce federal debt without increasing taxes or cutting spending (both of which are political suicide for any politician)?

The US Dollar is not being devalued. And whatever is happening is not intentional, because if it was, the the US would not have invaded Iraq; wouldn't care about Libya; and wouldn't care if Iran opens the Kish Island Exchange.

The actions of the US show that the US has done everything it can to protect the Petro-Dollarâ„¢ including waging war.

If the US had no interested in protecting the value of the US Dollar, then it would have taken no action, and $1 would be so weak it could only buy 0.35 Euros.

Monetarily...

Mircea

Originally Posted by mpyne

Except this isnt what American Corps do

They will still charge the $27 or maybe charge $23.99 but still have it built in Mexico

This is the major fallacy why companies outsource labor to 3rd world countries. Not so the can sell it here at cheaper prices (they charge what the market will bear) but to maximize profits.

I see you still can't grasp the concept.

US companies do not off-shore so they can sell cheap things to the US. They off-shore so they can sell cheap things to the rest of the world. You do understand that you are not the only consumers on Earth, right?

I lived in Romania at a time when the average Romanian made $300/month.

You think those are "slave wages?"

You think Romanians were all homeless or lived in cardboard boxes? No, they had homes. They rented apartments. You can buy a house for $8,000 when you're earning $300/month. Did Romanians have cars? No, only about 1 in 10 Romanians had cars. 10 years later that's now 4 in 10. Cars and certain other things are expensive. Mostly goods made in the US. Romanians can't afford to buy US made TVs and other electronics, but they could afford to buy Korean made TVs and electronics...and so they did.

You might want to spend time studying things like Cost-of-Living, because it's, uh, Relativeâ„¢.

Liberals should really be into that. You know, Relative Ethicsâ„¢, Relative Moralityâ„¢ etc.

I find it astonishing that Liberals can grasp the concept of Relativity in those contexts, but not in the context of Economics.....Relative Economicsâ„¢.

But that didn't help Zenith....LG still took over Zenith.

If you don't like it, then take an ugly stick and beat your parents, grandparents and great-grandparents to death, because they're the one who sat around staring into space while your government ran amok stealing everything.

Your government's foreign policy over the last 100 years was really, really short-sighted, and now you are paying the price for their mistakes......all 100 Billion mistakes.

Relatively...

Mircea

[hnsq]

Originally Posted by Mircea

The US Dollar is not being devalued. And whatever is happening is not intentional, because if it was, the the US would not have invaded Iraq; wouldn't care about Libya; and wouldn't care if Iran opens the Kish Island Exchange.

The actions of the US show that the US has done everything it can to protect the Petro-Dollarâ„¢ including waging war.

If the US had no interested in protecting the value of the US Dollar, then it would have taken no action, and $1 would be so weak it could only buy 0.35 Euros.

Monetarily...

It absolutely is being devalued, obviously not to the extreme in which you presented. Reductio ad absurdum is never a good debating tactic. Can you address my point regarding lowering US debt through devaluation of currency?

Also, as a side note, why do you sign each section of each post with a stupid word in italics? It is very strange...

[roysoldboy]

Originally Posted by sickofnyc

Dear American Companies: Here's How to Fix the Economy - DailyFinance



This is Capitalism, not the Oligarchy and Voodoo Trickle Down Economics that the right wing advocates for defends and desires to repeat.

Did I see any mention of the assembly line as a huge part of Ford's contribution? I don't remember it but then unions don't think about that either.

Why didn't you include this little bit of the article when you copied nearly all of it?

If the companies don't eventually see the benefit of doing this and do it voluntarily, the government (an extension of the people) will likely the mandate that they do it--either through taxation or by radically increasing the national minimum wage.

And given that government solutions are often terrible solutions, it would be best for everyone if we persuaded corporations to do this voluntarily. So what follows is an initial effort to do that.

I just wondered about that because what you did quote sounded like words right out of Richard Trumka's mouth.