Dec 052011

A Real Jobs Plan

The first thing that has to be done to create jobs in America is to correct the wage difference between foreign workers and American workers with the current cost of foreign labor being way lower than American labor, so that manufacturers  can make a profit in America and so bring jobs back to America.

The main stumbling block to this is the fact  that Americans will have to pay for products made with high cost American labor, and so far they have proved beyond any doubt that they are not willing to do this. If you look in most American stores you will see that most products are made in foreign countries. This is not because of greedy shopkeepers or an anti-America conspiracy, its because Americans refuse to pay the high cost of products made with American labor. If Americans were to pay for products made at the cost of American labor, this will cause huge inflation in manufactured goods and to counter this inflation, the government must stop the crazy spending binge its on and spend less than it takes in so that taxes can be cut in a responsible way. But so far the government can not do this. Politics, you know.

Another problem of getting jobs back to America is one I have been writing about for a long time now, that Republicans like the current situation where business take advantage of low foreign wages to get products made at the lowest cost possible and then sell them in the high price American market. This makes for huge profits for business interests that give campaign contributions to Republicans so they can  keep them in office to keep doing favors for them.

The jobs issue can be corrected with tariffs that do not choke off all trade, because foreign trade does create jobs, but too many low cost products coming into America only destroys jobs. But just enough tariffs to level the wage difference between America and low wage countries so that a fair trade atmosphere can be created, will definitely create more jobs. But nobody is talking about this because Congress and the American people are hooked on cheap foreign labor.

Another alternative will be  Congress passing legislation to counter the exchange rate manipulation that China is doing, and Congress is now in the process of doing this; but exactly how they are going to do this remains unclear at this time. But either way, if China stopped its currency fooling around, this will not fix the whole problem; it will  have only a minuscule effect because you can’t trust China to fix a problem that is counter to their interests. America has to fix this to take care of  its own people.

Another way to create jobs in America is really politically incorrect, but it is a fact that there are about 12 million illegals in America, so get rid of the illegals and millions of jobs will be available! But this will not happen because the Republicans want the cheap foreign labor, because this is what the people who give Republicans money for their campaigns to stay in office want. As for the Democrats, they know that illegals mostly vote Democratic, so they want as many of them as they can get in America. Funny thing though, the much hated Tea Party has taken a clear stand against illegals by stating that they must be deported. Could this mean that the Tea Party is the only political entity that represents main stream America, you know, the  tax paying majority who are paying the bill for all the short sighted policies  the government is making?

The last time America had a normal economy was in 1950, but just after that products started being imported from low wage countries and American factories started closing. Back then Americans paid the cost of products made with American labor. They didn’t have as many possessions back then as they have now, they were lucky to have one radio and one car. They had small houses and they didn’t go on many vacations as we do. They fixed things instead of throwing them away, or did without  them. But that was a normal economy, it was balanced with Americans making products for Americans. Today we have more toys, but fewer  jobs and a skyrocketing national debt. Clearly we were better off with a simpler way of life. 

So, the point here is that Americans will not vote for any politician who advocates bringing Americans back to a 1950 economy (they like their toys), but neither are Americans willing to pay the higher price of American made goods. So, America will either go into a permanent malaise like Japan, or with massive debts and  ineffective government collapse into another great depression. Then the price of American labor will be reset to a lower more competitive rate, but this will destroy a lot of American lives in the process.

We have had the $878 Billion stimulus program that did nothing and now all we’re getting from presidential candidates are some cute little jingles like  999  and another $447 Billion Jobs plan. These will not work,  because they are not touching the low foreign labor cost that is the main problem . The American people have to drink some strong coffee and wake up, the government is just offering us smoke and mirrors to solve the problems they created, while America is going down the drain.

The only way anything has been accomplished in America is when the American people get together and do something about it. Smooth talking politicians eating $16 muffins while getting $500 hair cuts, and their  multi-million dollar ad agencies working to get them in office are not helping anything.

In the mean time, the clueless one in the White House still hasn’t figured out that the garbage his Harvard professors told him about re-distributing the wealth was a historically proven failure BEFORE he was born.

Jose Lugo, editor

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