Re: OT Prepackaged Bankruptcy for Big 3 ? - Big Problem


"Frank Howell" <fphowell@xxxxxxxxx> wrote
Bruce S wrote:

This premise is false. We keep producing more manufactured product
every year - that is, in fact, creation of wealth. We have now, and
will have for the forseeable future, plenty of wealth to spread
around to the population.
Bruce

The problem is that the decrease in production jobs due to the increased
production via better machinery, etc is going to take it's toll in overall
reduced wages.

Your problem is that your reasoning is limited by your education (true for
everyone). When we talk about creating wealth, most people think about
manufacturing things (cars, toasters, TVs, etc.), and fail to consider all
the other things we make in this country that contribute to the creation of
wealth, but are not manufacturing. Consider computer software, books,
movies, TV shows, CDs, and all sorts of other things in that vein. Further
consider things like patents and licensing agreements where the money comes
back here, regardless of where the work is done. There are lots of ways to
create wealth.

There are thousands of products that used to be made domestically, that
are now made offshore. Toasters, furniture, appliances, shoes, clothing,
etc that at one time were made domestically, and historically provided
higher paying jobs then the service sector jobs that have replaced them.
All those jobs provided not only higher wages, but also stayed in local
and regional geographic locations adding to those local economies and tax
base.

It is a myth that manufacturing pays better than service. Sewing machine
operators in sweat shops are manufacturing jobs, lawyers are service jobs -
which would you rather have your kids doing? And as I said above not all
jobs that create wealth are actual manfacturing. Actors make good money,
but are not manufacturing anything.

Your view that we are producing more wealth to spread around doesn't smell
right to me. I see the wealth leaving local and regional economies and
going into Gigantic corporations tills. I see vast sums leaving the US and
supporting other countries economies, which is not all bad, as other
countries want to raise their standard of living and live the good life.
But at what hidden costs to the US local economies is the crux of the
problem.

That is all part of the myth of "balance of trade." We do not need a
balance of trade in order to keep the wealth right here. When you get
caught up in that type of thought, ask yourself if you have a balance of
trade with the supermarket. Do you get as much money from them as you give
them? If not, how can you survive - you don't have a balance of trade, and
are constantly losing money. Why aren't you broke yet?


Another aspect of this Gigantism in America is Banks. We have all seen the
hidden consequences of Giant Banks and their role in the economy. They are
too big to let fail, or so they say, and for that reason I abhor these
Monster Banks for the following reasons. With local and regional banks,
money deposited and loaned stays in those areas. The profits and salaries
generated by these banks stay in those comminutes and expand the tax base,
which is how most towns pay for services that are vital to the community,
fire, police, schools, libraries, etc. The money that is lent would likely
receive greater scrutiny as to the credit worthiness of the borrower and
in the case of Real Estate, the worth of the property. The bank has a
direct stake in the community via the outcome of it's decisions with
regards to these loans and the profits from the repayment stays in the
local or regional areas generating more funds for future loans. With
Gigantic National banks, profits leave these areas and the prudence of
the loan comes in secondary to the profit the it generates.

The essence of all that I wrote above is: Gigantism in America, be it
Corporations, the Federal or State governments is a form of putting all
your eggs in one basket and when they fail, the effects are Gigantic.

As an aside, I even see that America and Gigantism extends even to sports.
This obsession takes form in many ways. Our sports heroes are elected by
weight and height and in baseball we have seen the recent steroid episode,
in that many of the players became HUGE! And HUGE numbers of home runs
followed, only to plummet with the recent indictments and subsequent
decline of steroid use .

Huge stadiums, with huge people, huge TV audiences,with huge salaries and
huge egos for me, are a reflections of obessions gone wild.

Your commentary is paranoia run amock.

Bruce



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