The Decline of America

It begins with a penchant for exploitation; I have to pay Americans $X by law, I can pay illegal aliens 1/2X and then can't complain. It continues with; I have to pay expensive utilities, taxes, transportation, I can avoid this by moving the factory to another country. It persists with; I can sell these goods in America for ten times what they cost to manufacture.

It ends with Americans not buying the goods, the factory being taken over by the host government, and the value of the money made, dwindling to less than what it was when Americans worked in the factory in America. That the term "Recession" may be a far more generous description of the fall of the American empire is held silent, for the likelihood of America going into a depression, and taking parts of Europe with it, is not beyond contemplation. Too many mistakes at the same time can turn a misfortune into a catastrophe.

The "migration" of manufacturing to third world countries will toss a large segment of the American population into poverty. Not all Americans are highly educated and skilled professionals, hence there needs to be a large number of blue collar jobs. That a Cambodian works for 3c a day should not be factored into the equation, for that Cambodian can not buy the goods he manufactures. Americans, who no longer have jobs, can not buy the goods. People in the third world will buy from China, as America has assisted China in producing goods so much cheaper. Nations as China, India, and other so-called "large markets" which have gained the expertise need no longer depend on American products, create their own, cheaper and often better.

Cheaper, because all costs, from labour to utilities are less, and without high taxes, sell for less. Better as one isn't dealing with a "disposable" culture. Hence, this American microwave may sell for $300, this Chinese product sells for $200. It is the same product. The American manufacturer opened a factory in China, trained the workers, used local materials, and then, when the lease was up, the factory was taken over by the Chinese. The Chinese received a "free" factory, "free" trained workers, and "free" technology. Recognising the vast "Third World" market, China did not seek to sell its goods to France but to Cameroon, not to Germany, but to Trinidad, and entrepreneurs from all over the world were invited to China to become "middle men". America, looking at the larger markets, found itself with merchandise that gathered dust on shelves, because when a consumer's main expenses are food and fuel, one wears last year's Nike's, doesn't buy that new flat screen T.V., and looks for bargains.

So the first error America made was in moving production overseas. That error could of been addressed by reopening factories in America under a different set of rules. Letting workers become shareholders, moving to four day weeks, or double shifts, a trim management structure, etc. This would, of course, pump money into a community, and keep it there. Associated businesses, i.e. those which produce the raw materials and components for the product would maintain viability, and the economy would benefit. Of course, this was never done, and although it will be at some future date, the time between now and then will see America dropping to the economic level of a nation like Mexico while India and China replace it. If there was no war in Iraq which eats money and produces nothing, the possibility of moving the "now" and "then" closer in time, offers hope. However, whenever the war ends, the returning soldiers will find no jobs, no homes, and like a large segment of those who fought in Viet Nam, be "unnecessary."

America's wealth had a basis. Americans were innovative and productive. After World War II, where the rest of the world was struggling to rebuild, America was churning out products. After the halcyon days of the 1950s, Japan was able to gain a foothold due to American help, and went on to produce with a vengeance. South Korea joined Japan in American investment, so two economic powers were produced that later would challenge America's market share. Europe returned to high productivity by the 60s, America gained another challenger. The shortsighted policy of finding "cheaper" places to manufacture has resulted in the disaster America now faces.