It is absolutely amazing to me that, I know the world is hurting, Obama and Congress did not learn their lessons. The reason the US is in trouble and hence the world is that too many people took out loans to buy what they could not afford. Then as these people were paying off these loans, the jobs they were counting on started disappearing to outsourcing and, the more destructive, offshoring. Many corporations irresponsibly displaced workers to save a buck or two. Next, even corporations that wanted to protect their workforce were forced to offshore jobs, just so they could compete with the less scrupulous companies. This had a domino effect. It is Incredible short sightedness on the part of the corporations, and share holders, pushing for ever greater return on investment (ROI). Why couldn't they see the golden geese they were killing?
Free Market Economy? What is free market but veiled monopolism. Truly "efficient" markets lead to no less than complete international monopolies with no border controls. We are now experiencing the full failure that is Free Market Economy.
First we started paying a little. When you start displacing a workforce you are not only displacing that worker but also the entire community. It is "okay" when one job is at stake, but a whole factory? With each job comes numerous community jobs that get either reduced or eliminated or both. Just imagine how much money gets pumped back into a community with each $40,000 job.
Sure the job is not actually lost in the world economy as it is being sent somewhere else. But the new person does the job for less, which means less money in the system. Less money means extra cash that kept the economy in motion is now sitting in the bottom of the executives pockets.
The problem that Free Market Economists have missed is the instability that this creates in the world. If these corporations decided that they wanted to open a new branch and add jobs to the wold that would be economic expansion. But by displacing workers they are extracting money out of the system. and when you extract enough money out of the system at some point no one is left to buy your products. This is the point the corporations have achieved at this moment in time.
For example, if you have a community of 1,000,000 people, and you take one hundred $40,000 jobs out of that community. Just how much money is that? 40 MILLION DOLLARS. Just imagine how many groceries could be purchased. how many boats, campers, electronics, clothes and fashion items that could buy. We the people of the United States and the world have allowed our multi-national corporations to loot our cultures in allowing unchecked job displacement.
Yes, sometimes jobs need to fall by the wayside to make room for better, newer technology. It is a different story if a job is being displaced out of obsolescence, e.g. no one would argue that we still need stage coach manufactures anymore. But, if that job is displaced due to being shipped half way across the world...
So what is Obama's plan to rescue these people, take out loans for which the US or world can not afford and drive hyper-inflation that will destroy what is left of the US economy. Hopefully this will not also bring down the rest of the world with us.
The fix is not complete protectionism, on the contrary if an individual or corporation wants to start a new business or part of a business in a foreign land, excellent! This is job creation and should not be penalized. This will grow the world economy. What will sooner or later shrink the world economy is when corporations and companies displace their work load by removing money from local communities. This needs to be weighted heavily and heavily discouraged with penalties and taxes to insure that when it DOES happen it is for good reason.
What can be done? We need to stem fear, you can not do this with a loan on a bank account that is empty. We have seen the consequences of bad checks. How is it that we are allowing Obama to continue the same bad practices started by the people? Fear can not be a market motivator. It will continue to drive the market down, which will take good companies with it as it goes.
My guess is that maybe we should shut down world markets for a while till the fear factor can be reset. Fear needs to be mitigated, and maybe suspending market activity will do it. Then somehow everybody who relies on the markets for a livelihood needs to be taken care of with what they financially need to get them by till the markets are restarted, things such as food, water, medical coverage. Then after a designated time, maybe 6 months, the markets can be restarted where they left off.
What do you think? would this idea work or is it crazy? If I am crazy why wouldn't it work and what are your ideas to fix our problems?
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