Wow, that’s one enormous conspiracy theory you got going there.
Not a conspiracy. Merely consequences of action by government and industry over time. Government tax, trade, regulatory, and spending policies have over two decades encouraged actions by industry that have moved our manufacturing base offshore. As trade barriers went down, manufacturing shifted to countries with lower wages, lower taxes, and less regulation. The quicker route to profit was perceived to be moving production instead of making significant productivity enhancing investments in aging US manufacturing infrastructure. For example, go to China and visit the furniture manufacturing plants that have replaced the US furniture industry in North Carolina in less than 10 years. These plants have state of the art equipment and processes which had they been placed in the old US factories they replaced would have significantly increased productivity. The workers work for $100 to $120 per month versus the $2400 per month of a skilled US nonunion hourly worker. Plus, the Chinese factory has limited taxes on exports, low to no social security and medical costs, and limited inventory risk.
Lower tax rates for private equity firms than small business, combined with loose monetary policies have resulted in huge pools of money that are being “invested” in financial speculation and restructuring of companies (read downsizing and offshoring) instead of building productive capacity.
What happens to our economy long term if we continue to produce and sell less to other countries than we buy? Ultimately, the bill has to be paid. If our financial institutions won’t invest in new productive capacity in the US, who will? Until government policies encourage investment in the US, our manufacturing base, and the underlying foundation of our economy, will continue to erode. There are consequences to policy.