In 2009, not long after the collapse of the United States mortgage market, which quickly escalated into the full-blown Great Recession, I sat down and analyzed what I thought were the basic flaws in the U.S. economy. At the time, I did not see any politician either elected or running who seemed to have the slightest clue on the fundamentals of how this economic implosion occurred, never mind one who had any idea how to get our economy out of its self-created downward spiral.
1. The majority of U.S. workers are unskilled and do not have a college degree. According to the U.S. Census Bureau and the American Community Survey, 52.7 percent of Americans have some college education, but only 27.2 percent have actually obtained a degree. Therefore, there can be no recovery unless industrial or jobs that do not require a specialized degree are brought back to the United States in mass.
2. Manufacturing jobs, or lower-skilled labor jobs have been shipped mainly to China. In fact, large retailers over several decades have encouraged and advise manufacturers to close down in the the U.S. and relocate there. Their motivation is simple: they want to pay less for products, so they can increase profits. This policy is understandable in the short term, but undefendiable in the long run, especially when accompanied with lopsided trade agreements. These two add up to the dissolution of the US. middle class and a new economic order of poverty and dependency on Big Brother and his faithful minions.
Moreover, this low-cost Chinese labor ids subsidized by American taxpayers and workers in many different ways. Here are just two of the obvious:
A. Many of these companies received local, state and federal write-offs to open their stores throughout the United States.
B. China artificially suppresses the real value, or market value of its currency — thus artificially lowering the prices of its goods and services. China is not the only country that does this. For decades Japan was allowed to dump steel and its consumer products into the United States below its cost, subsidized by the Japanese government, which drove American steel and car makers out of business.
This is not Free Trade
Why was this allowed?
Simple answer: Follow the money and you will find that our elite, wealthy ruling class benefited mightily by the destruction of the American manufacturing base.
3. At the same time, these rulers of our country and our capital have deliberately opened our Southern border and allowed the influx of millions of illegal alien laborers, which (a) suppresses the already low wages of the vast American unskilled labor class and (b) helped repopulate dead inner cites bailing out a legion of government-subsidized landlords and (c) watered down — or devalued — the vote of the average non-elite or politically non-partisan American.
4. For the last decade our economy was employing unskilled or semi-skilled workers by creating a housing-and-false-credit bubble that fueled an illusion of prosperity and jobs. It was built on a house of cards and could not stand, but those who propped it up prospered by being bailed out — i,.e. the monied ( bankers) and political elite (FANNIE MAE Executives) — while the workers lost their temporary jobs, their credit and of course their phantom equity in their homes, which accounted for the bulk of their savings. All gone now!
This is only a thumbnail sketch of why a recovery under any of the past political parties and leaders just could not happen.
How could it happen?
If we had a leader who:
1. Demanded that China raise its currency value to market rates.
2. That the U.S. stopped subsidizing companies with tax breaks that promote the further destruction of our manufacturing base.
3. That the U.S. stop all illegal alien hiring by businesses by upholding existing federal immigration laws and have those companies offer the jobs to unemployed U.S. citizens.
4. That the U.S. prosecute, brought to justice and seized the ill-gotten financial gains of the major players in the wealthy class who have destroyed our economy through manipulation and churning credit and property.
Attempts to Overthrow President Donald Trump
Then out of nowhere, Donald Trump, a top business entrepreneur and reality-TV star decided to run for president, embracing such an America-First economic platform and won. Since, and even before he did, the business and political establishment of the United States and the World have don’t everything they can to try and overturn his election to the point of threatening impeachment and denigrating those 62 million plus U.S. citizens who voted for and elected him.
To his enemies’ amazement, President Trump has stood up and continues to stand up to their relentlessness assaults and their attempts to delegitimize his presidency and slander those who supported him. Only time will tell if Mr. Trump will be able to right a wronged and broken U.S. economy by leveling the economic playing field.
This is just one of many aspects of U.S. economic trends we will watch and comment on over the coming months.
© 2018 Chet Dembeck