Saturday, November 22, 2008

It's What Forecasts Are For...

Washington imposed a minimum wage higher than the average wage in war-devastated Germany and Japan. The Feds ordered that U.S. plants be made the healthiest and safest worksites in the world, creating OSHA to see to it. It enacted civil rights laws to ensure the labor force reflected our diversity. Environmental laws came next, to ensure U.S. factories became the most pollution-free on earth.

It then clamped fuel efficiency standards on the entire U.S. car fleet.

Next, Washington imposed a corporate tax rate of 35 percent, raking off another 15 percent of autoworkers’ wages in Social Security payroll taxes

State governments imposed income and sales taxes, and local governments property taxes to subsidize services and schools.

The United Auto Workers struck repeatedly to win the highest wages and most generous benefits on earth—vacations, holidays, work breaks, health care, pensions—for workers and their families, and retirees.

Now there is nothing wrong with making U.S. plants the cleanest and safest on earth or having U.S. autoworkers the highest-paid wage earners.

And under the 14th Amendment, GM, Ford and Chrysler had to obey the same U.S. laws and pay at the same tax rates. Outside the United States, however, there was and is no equality of standards or taxes.

Thus when America was thrust into the Global Economy, GM and Ford had to compete with cars made overseas in factories in postwar Japan and Germany, then Korea, where health and safety standards were much lower, wages were a fraction of those paid U.S. workers, and taxes were and are often forgiven on exports to the United States.

All three nations built “export-driven” economies.

Japan, China and South Korea do not believe in free trade as we understand it. To us, they are our “trading partners.” To them, the relationship is not like that of Evans & Novak or Fred Astaire and Ginger Rogers. It is not even like the Redskins and Cowboys. For the Cowboys only want to defeat the Redskins. They do not want to put their franchise out of business and end the competition—as the Japanese did to our TV industry by dumping Sonys here until they killed it.

While we think the Global Economy is about what is best for the consumer, they think about what is best for the nation.

Like Alexander Hamilton, they understand that manufacturing is the key to national power. And they manipulate currencies, grant tax rebates to their exporters and thieve our technology to win. Last year, as trade expert Bill Hawkins writes, South Korea exported 700,000 cars to us, while importing 5,000 cars from us.

That’s Asia’s idea of free trade.

-more here

You cannot have your cake and eat it too. 'Live free and play hard' people, institutions and nations eventually come to an abrupt and painful end, because in the end the Piper will have his pay.

And it still amazes me how completely naive people are in regards to the motives of government/corporate policies.

As a poster here aptly puts it,

Transnational corporations and international bankers advocate a cosmopolitan worldview because they desire free trade and open borders. Big Government propagates equality and social justice because this provides a moral license to expand the leviathan powers of social engineering. Minorities march for equality in order to attain superequality, affirmative action and a redistribution of wealth in the form of neoslavery (welfare). Pro-Israel pundits corrupt American foreign policy with notions of universal democracy achievable through wars that serve Israeli interests. Liberal idealists find salvation and divine purpose in worshiping the spawn child of Christianity known as secular progressivism. Truly there are sinister anti-Western forces at work and they are manipulating the Western world with the politics of guilt.

Most suffering in life is predictable to those who think in terms further off than 'What's for dinner?'

Yet I still come across people getting caught in proverbial (as well as literal) blizzards even though the storm was forecast on the evening news.

Not much you can do for those types.

But for those who look ahead and calculate cause and effect, the forecast for the next fifty years is for one long, dark winter...