Summary of U.S. Economy (Toward 'Fair Trade' foreign trade policy)

Economy in Crisis ^ | 5/06 | editors

[ProCivitas]

Summary of America's Current Economic Condition... the Editor

1. Wholesale sellout of core strategic assets to foreign acquirers: according to official figures, more than 8,000 American companies have been sold to foreign corporations in the last 10 years

2. Decline of vital industries through bankruptcy, foreign predatory competition, and foreign acquisition: examples include steel, publishing, clothing, machine tools, automobiles, electronics, and others

3. Inability to manufacture competitively: American manufacturers suffer a 22 percent structural cost disadvantage compared to overseas competitors through taxes, health and pension benefits, litigation, regulation, and rising energy prices

4. Overdependence on imports: $1 in $4 of US consumption of manufactured goods now goes immediately and directly to imports

5. Massive wealth transfer to foreign ownership: our trade deficit, at $723 Billion in 2005, is costing $1.4 Million per minute in remittances to foreigners

6. Loss of job and career opportunities for people at all educational levels: 3 Million high-paying manufacturing jobs lost over past 5 years

7. Insourcing of foreign manufacturers destroys our domestic industries, takes profits and taxes overseas, and provides only low-skill jobs for American workers: foreign manufacturers operating in the US now account for over 20 percent of our exports and manufacturing assets, and a large percentage of our employment

8. Foreign financing of vast majority of government debt: foreign countries now control 47 percent of our total federal deficit and finance nearly 100 percent of all new borrowings – our competitors are now our bankers

9. Outsourcing key manufacturing, research, and design: unchecked offshore outsourcing benefits individual companies and shareholders but destroys entire industries and communities

10. Transition to services-oriented economy: high-paying goods-producing industries have lost net employment over the past 25 years while non-tradable service-providing employment has nearly doubled

11. Lost scientific, engineering, technological prowess: in 2004, China and India graduated a combined 950,000 engineers versus 70,000 in the US. US ranks near the bottom of science/math proficiency

12. Wealth shift into less productive assets: residential real estate now represents a record 38 percent of household net worth on record over-inflated home valuations and record mortgage levels

13. Record levels of personal and government debt: household liabilities at record levels, federal government adding record levels of debt each year financed mostly by foreign countries, trade deficits transferring unprecedented accelerating amounts of wealth to foreign hands each year

14. Misleading commonly used economic statistics: misleading incomplete statistics like GDP, job creation, and productivity belie our crumbling economic infrastructure

15. Proven failed trade policies and other legislation contributing to our demise continue unchallenged: destroying our industry and allowing our assets to be sold or taken from us

Source: www.economyincrisis.org

Please Pass It On To A Friend, Ask Them To Pass It On To A Friend, And Also Send It To Your Congressperson, Or As A Letter To The Editor

[ProCivitas]

As many of the U.S. companies are profitable before 'outsourcing' American jobs to countries like China or Mexico, it looks like we have a loyalty problem among our pseudo-'leaders' in U.S. corporations and government.

[GeorgefromGeorgia]

What group authored this document? Sounds like Pat Buchannan?

[Phocion]

Sounds like Pat Buchannan?

I thought it sounded like the Democratic Party. Though the two do sound extremely similar on trade matters.

[rodeocowboy]

You can't blame the "companies." Companies are going to do whatever it takes to be profitable. Therefore, it's up to the government to make conditions more profitable for those that wish to do business here in the USA, period. We need to cut taxes, AS WELL AS SPENDING, by 2/3'rds and cut government by that much as well. Then we would see a boom in the economy that we have never experienced before, and could process as many Mexicans as we wanted without hurting the economy at all (with 2/3'rds of the bureaucratic mess called the "immigration-process" missing, we could process them so fast that they would deport themselves just to get in line). In fact, the economy would be so strong that we would be begging them to get in line so that we could quickly process them and get them doing the work we need to get done.

Businesses are only going to pay high wages, or high taxes. They will never do both. But sadly, the current republicans will never make such a bold move. Instead, they will be weaklings and get voted out of power in 2006 only to start all over again in 2008 (hopefully with unwavering, conservative principles.

[Greysard]

The article may be unpleasant to read, but many business owners, like myself, are quite aware of many of those issues. Businesses' burn rate is super-high, so much that you either must make money out of thin air, or to close up the shop. An engineer demands $80K/yr in salary, taxes double that, and this engineer does not produce enough to justify his pay even if you beg him to work a little bit harder. The books of many local manufacturing businesses are dangerously close to red, and the larger you are the harder you crash. For example, Ford does not look like a good buy now. The only sector that is alive is aerospace and military, whether you like it or not.

[MarkeyD]

Willie, is that you?

[MarkeyD]

An engineer demands $80K/yr in salary, taxes double that, and this engineer does not produce enough to justify his pay even if you beg him to work a little bit harder

What are you talking about? Depends upon the engineer and whatever it is that he produces.

[Greysard]

Depends upon the engineer and whatever it is that he produces.

Electronic stuff, and software to run it. Awfully expensive to make, primarily because of labor costs. We do manage, of course, but the products are expensive. If we were in consumer market we'd be history, totally unable to compete with Chinese. If we were to produce a simple alarm clock, for example, all locally, it would cost about $100. That's why when you buy a GE alarm clock it says "Made in China" - that's the only way to whip it up for $3, to deliver and sell to you for $12 and have enough profit to do it again.

[Clintonfatigued]

A. Pole, Willie Green, you need to ping this article--it's good.

There's something I don't understand about so many Free Traders. Why is it that they repeatedly call on Americans to show patriotism, be willing to endure sacrafice for the common good, and to show personal responsibility in their word and deed, but any time anyone applies those very same standards to corporate executives and large business entities, those very same people label it as Socialism?

[A. Pole]

Bump

[A. Pole]

There's something I don't understand about so many Free Traders. Why is it that they repeatedly call on Americans to show patriotism, be willing to endure sacrafice for the common good, and to show personal responsibility in their word and deed, but any time anyone applies those very same standards to corporate executives and large business entities, those very same people label it as Socialism?

We have a word to describe them: HYPOCRITES!

[Mase]

but any time anyone applies those very same standards to corporate executives and large business entities, those very same people label it as Socialism?

If you don't support free trade then you must endorse protectionism. Protectionists believe that trade is harming the economy and demand that something be done to correct their perceived wrongs. Someone needs to determine what sectors of the economy get protected; how much in tariffs get levied, and what quotas get imposed. That someone is always the government. So, by advocating for protectionism you're saying that more government control of the economy is the answer. Sounds like Socialism to me.

Maybe you protectionists can explain to us free-traders why it is you rail on government incompetence on these threads all day long, but when it comes to the freedom to trade, you all of a sudden believe that government is capable, reliable and responsible? Restricting trade is just the first step on the road to statism.

[Mase]

it looks like we have a loyalty problem among our pseudo-'leaders' in U.S. corporations and government.

I'd love to see you make that charge in person to any of the many vets who 'lead' the companies you (not so subtly) imply are traitorous. You might be surprised by their reaction.

Your posting history shows this to be an important issue to you. By what metric can you show that the freedom to trade has had a negative impact on our economy?

[Nowhere Man]

There's something I don't understand about so many Free Traders. Why is it that they repeatedly call on Americans to show patriotism, be willing to endure sacrafice for the common good, and to show personal responsibility in their word and deed, but any time anyone applies those very same standards to corporate executives and large business entities, those very same people label it as Socialism?

Well, as A. Pole put it, it is hypocritical but basically the Free Traders are greedy and out for themselves, American and her people will just be flappin' in the breeze. I can't put it any other way but be direct.

[William James]

Corporate executives, for the most part, have no loyalty. The biggest corporations aren't even really American. They're transnationals. They're just money-making machines. What the heck do they care about the American people?

I say: Enough with the selling out of the America's workers.

THIS, and not the MSM spin on the war, is likely the real reason for the GOP's loss in November. Look at some of the new Democrat senators: Tester, Webb, Brown. They ran on this issue.

No one likes losing their job so that the Chinese can build the People's Liberation Army and the People's Liberation Army Navy.

That's part of why I'm supporting Duncan Hunter for president.

[William James]

"Maybe you protectionists can explain to us free-traders why it is you rail on government incompetence on these threads all day long, but when it comes to the freedom to trade, you all of a sudden believe that government is capable, reliable and responsible? Restricting trade is just the first step on the road to statism."

America built its manufacturing industry through trade regulation. And it's losing its manufacturing industry through trade liberalization.

Yes; I'm a protectionist. And what.

[Clintonfatigued]

Good choice.

Speaking of which, my new tagline touches on that.

[Mase]

America built its manufacturing industry through trade regulation.

So you believe that government is capable, reliable and responsible? Why do you think we need more government control of the economy? The truth is that America prospered in spite of protectionism. Fortunately, we've learned a lot since that time.

And it's losing its manufacturing industry through trade liberalization.

Yeah, it's a disaster. We only manufacture more than Japan and China combined. LOL!

It's obvious that lowering the barriers to trade has killed our ability to build wealth. LOL again.

Yes; I'm a protectionist

And, like all protectionists you're economically illiterate. Let me guess, you're also bad at math?

And what.

And what was your previous screen name?

[Toddsterpatriot]

America built its manufacturing industry through trade regulation.

America was built on the horse and buggy. Eliminate cars now!!

And it's losing its manufacturing industry through trade liberalization.

Math is hard for you, isn't it?

Yes; I'm a protectionist. And what.

We missed you, Willie.

[Toddsterpatriot]

Who dredged up this old, still steaming, pile?

1. Wholesale sellout of core strategic assets to foreign acquirers: according to official figures, more than 8,000 American companies have been sold to foreign corporations in the last 10 years

OMG. There must be no American companies left. LOL!

4. Overdependence on imports: $1 in $4 of US consumption of manufactured goods now goes immediately and directly to imports

You mean we manufacture 75% of our manufactured goods consumed? LOL! I think they accidentally let some truth slip out. I always heard we manufactured 0%.

7. Insourcing of foreign manufacturers destroys our domestic industries, takes profits and taxes overseas, and provides only low-skill jobs for American workers:

Those profits are still taxed here. And yes, some manufacturing jobs are low-skill, whether the factory is US or foreign owned.

8. Foreign financing of vast majority of government debt: foreign countries now control 47 percent of our total federal deficit and finance nearly 100 percent of all new borrowings – our competitors are now our bankers

I'm waiting for the punchline.....

10. Transition to services-oriented economy: high-paying goods-producing industries have lost net employment over the past 25 years while non-tradable service-providing employment has nearly doubled

Waiting here too....

12. Wealth shift into less productive assets: residential real estate now represents a record 38 percent of household net worth on record over-inflated home valuations and record mortgage levels

Closer to 20%. Math is hard.

13. Record levels of personal and government debt: household liabilities at record levels,

Household assets and networth at record levels. Addition and subtraction is hard.

14. Misleading commonly used economic statistics: misleading incomplete statistics

Like #13? LOL!

Source: www.economyincrisis.org

Expat, did they steal your site?