Simply restructuring the tax code will not fix the economy. Nothing will except us becoming a nation of producers rather than consumers. Is there any correlation to the rise of foreign made products and the slow death of our economy? Yes there is.
This one will shake the "gold standard" people a bit.......
Think of it like this. If we were on a gold standard, where gold was the currency of the nations......if we continue to consume and not produce, we would be sending our gold to countries overseas, for things like energy, televisions, cars, you name it, it's not likely to be made in the USA anymore. So if we produce nothing, yet continue to send our gold to other countries, who in turn buy nothing from us because we have no products of value to be bought, where does that leave us? Broke and forced to borrow our money. It's as simple as that. Gold is a finite, paper money is faith, which is proven to be infinite. We can't make more gold, but we can print cash like it's going to rot. Hence the downfall of the gold standard, our government knew they couldn't regulate business to death (as well as finance progressive or wasteful spending measures that have increased spending seemingly exponentially) and remain on the gold standard. It's impossible. Our only major export is cash, lots of it. And we aren't being paid for it either. Walk into any retail store. Look at the copious amounts of products that come from foreign countries, and tell me that you see no relation. We are bleeding our economy dry, one transaction, one credit card purchase at a time. You wonder how China got the money to raise their population from poverty? From us. Mr and Mrs Chang now has a TV, electricity, and internet because our government regulated business to death. We artificially created wealth without doing the work necessary to earn it. We printed money that was not earned, is backed by nothing but faith, and has lost it's value several times over. And the standard of the currency that created our nation is now traded as a commodity on the open market, without regard to actual value, but perceived value. Currency is not an investment, it is the value by which everything is determined.
Now the next question is why has industry left the US? Why do we import steel, food, energy, etc. when we have all those things here? It is because government has regulated capitalism to the point of near non existence. They tell us how we can explore for energy, what and how products are made, and how we must hire our employees, how we must pay them. The government guarantees that no matter how worthless you may be, you are guaranteed a minimum wage. These things are all part of the economy, things that affect how business is done. and that is the power of the government over the economy. It's not taxes, it's nothing but the 81,000 pages of rules and regulations regarding business operations mandated by the government.
If we produce nothing, we have nothing to sell. If we have nothing to sell, we can not make money. If we can not make money, we can not employ people. If we can not employ people to make products to sell, then the economy fails. It's that notion that is the truth of the matter. Until government allows the return of capitalism, our economy is doomed. America was the creator of true capitalism, and it will be it's murderer.
No comments:
Post a Comment