Posted on 09/29/2009 5:27:17 AM PDT by Shane
“...Henry Ford when he realized he had to pay his workers enough for them to buy the cars they produced”
I know that sounds “just,” but it doesn’t work economically.
As Hazlitt argued the point of “fair/just wages,” should the Cadillac dealers make enough money to purchase Cadillacs while the Fit workers only earn enough to purchase Fits?
What we need to do is cut big government, reduce deficit spending, let the banks fail, pay down our personal debt, live within our means, and let the free markets decide what is produced by whom and who will purchase it and for how much.
The more the government tries to “fix” any of these aspects of the economy, the further into depression the government will drive us (and transfer the value of our assets — our real estate, the monetary value of our savings, and the value of our private property — to the government to give to the welfare/big-government class, and the elite bankers).
I’m not a big fan of Prechter, but he’s right about the government trying to re-inflate the housing bubble by extending subprime lending.
It is all based on the failed Keynesian precept that if the government spends, that money will find its way into the hands of the consumers, who will spend and that the cycle will perpetuate. It’s silly for anyone to try to defend this obvious self-consuming economy, but that’s what they are doing by allowing this FRAUDULENT type of debt revolving to continue.
Karl Denninger on his market-ticker blog does a good job of explaining what these criminals are doing through the FHA.
Oh, not the US government.
They are trying to collapse the standard of living and the asset value of the US citizen by destroying the dollar and destroying the reputation of the US as a safe partner to do business with.
Those in the US government who support this agenda, are fully confident that they will be wealthier and more powerful than ever when this plan unfolds (as it is unfolding).
Amen.
I'm not arguing from a moral or just point of view: I'm arguing from common sense, which Henry Ford had, as a manufacturer of products for which he sought a market.
That is not looking for a government answer. The expansion of the middle class was not created by government stimulus checks. It was created by entrepeneurs.
Sorry, folks, but our manufacturing output is at an all-time high. We just do it with less labor.
Should we make more? Yes!
What holds us back? Gov’t, regulations, etc
But one whopping portion of our trade deficit is imported energy...mostly oil. It accounts for up to 65% of our trade deficit.
We have the domestic supply, we can access it cheaply and efficiently (and safely for the enviro-weenies) but are restricted by gov’t control.
Just start tapping domestic energy and you have solved a big chunk of the trade deficit.
Here is what happens with a large trade deficit:
A large trade imbalance reduces the value of your currency.
As you currency drops in value, it becomes cheaper to buy from you, hence, capital and exports rise as a result.
Trade deficits correct themselves unless you have gov’t interference.
The Chinese interfere by not allowing their currency to float.
The US interferes by gov’t regulations, restrictions on domestic energy, etc.
Very good point.
And let’s keep in mind that the long-range goal of the first Socialists (Marx, et al.) and his uber-wealthy industrialist- and financier-backers was to eliminate the middle class — the middle class that the industrial revolution and the American system of governance created to an unprecedented degree.
That goal has not changed, though they have attempted many different means of attaining that goal, from violent revolution to the long-enduring Fabian approach, which is succeeding.
The goal of the Statists is to return to a two-tier/two-class system of society, the ruling overlords and the serfs.
I put it in simple terms....it galls them that they have to share Yellowstone or Glacier with the likes of us....
poor Teddy Turner shouldn't have to have such middle class neighbors in Montana...heck, he would rather see all the middle class homes destroyed so his ultra rich billionaire group can have their estates and their private golf courses .....
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