Showing posts with label Wal-Mart. Show all posts
Showing posts with label Wal-Mart. Show all posts

Monday, December 09, 2013

The Elites Do Not Create Jobs; They Export Them!

by Len Hart, The Existentialist Cowboy

Some years ago, I covered a news conference held in Houston by Milton Friedman, the darling of the U.S. right wing for his near laissez-faire economic perspective. Friedman was wrong but would never admit it. In fact, when someone raised the issue of "job exportation", Friedman was adamant: "jobs are not exported!" The working person knows better!

At last, a major media outlet is telling the truth about economics! "Business Insider" now says: "Sorry, Folks, Rich People Actually Don't 'Create Jobs'! They are a bit late! I was saying that in my very first economics class as a Freshman. I never believed that "wealth trickled down" or the focus group approved label: "supply-side economics". It was all bunkum when Reagan exploited it to float his tax cuts for the very rich; it is bunkum now but, alas, too late to prevent the decline of U.S. industry --steel, automobiles, radios, electronics. Those industries are now dominated by China and Japan. Wal-Mart may be their "agent" in the U.S.
"As America struggles with high unemployment and record inequality, everyone is offering competing solutions to the problem. In this war of words (and classes), one thing has been repeated so often that many people now regard it as fact.

"Rich people create the jobs."

Specifically, by starting and directing America's companies, entrepreneurs and rich investors create the jobs that sustain everyone else.

This statement is typically invoked to justify cutting taxes on entrepreneurs and investors. If only we reduce those taxes and regulations, the story goes, entrepreneurs and investors can be incented to build more companies and create more jobs.

--Business Insider, Sorry, Folks, Rich People Actually Don't 'Create The Jobs'
GOP right wing elitsts are wrong when they propose that wealth is the creation of ultra-super rich tycoons, robber barons, the top 1 percent. These folk do NOT create wealth; rather --they siphon (or suck) the wealth that is, in fact, created by labor. The very rich move money around --most often to offshore accounts. Even the conservative economist Adam Smith (the father of modern economics) believed that "value" was created by "labor".

Related is the fact that the U.S. is no longer a NET EXPORTING NATION. We occupy the very bottom of the CIA's own World Fact Book with the world's LARGEST NEGATIVE Current Account Balance (formerly called the Balance of Trade Deficit); Guess who is on top!! CHINA! It is easy enough to trace this trend to Nixon's trip to China. I have reason to believe that the trip had been set up by Bush Sr. It may have been the high price U.S. labor was forced to pay to get our sorry asses out of Viet Nam.

I must hasten to add that neither Obama nor Clinton is responsible for this outcome. The details of America's "new" relationship with China was worked out during the Nixon administration --most obviously by George H.W. Bush, Nixon's "special envoy" to China. The result of these U.S. trade concessions may be seen in in the aisles of Wal-Mart, the empty houses in Detroit, the stilled mills in Pittsburgh.


Saturday, October 10, 2009

The Rising Cost of Idiocy

by Len Hart, The Existentialist Cowboy

The dumbing down of America began with Ronald Reagan who made idiots feel good about being idiots. Reagan proved that not only was intelligence not required to be President, it might even be a handicap.

Reagan proved that any politician ignoring the 'idiot' voting block [the GOP] imperils his/her political future. Thus, Sarah Palin, who became an expert on Russia by observing its coast line from across the Bering Strait, is assured a growing constituency: the legion of idiots! She is the poster bimbo of idiocy! Its champion!

'Dumbing down' implies that the US still has a way to go before bottoming out! But that observation smacks of intelligence and may safely be ignored. The real idiot i.e, a GOP idiot, does not know where the f_ck we are or how we got there and is not smart enough to care! The word 'idiot' summons up images of Ronald Reagan and, more recently, George W. Bush. Unlike Bush, Reagan had essential Presidential skills. He could read cue cards. Bush could not or did not read! Reagan taught the GOP that how you say something is much more important than what is said. Bush, by contrast, was challenged to speak. 

Reagan spouted racist crap about a welfare 'grandma' who drove a Cadillac. There was no such person. It was Reagan's kindly, grandfatherly head nod that sold it. Bush, by contrast, said: "Who cares what you think?"Had a smart person told that story, he would have been pilloried as a bald-faced liar. The story was untrue but Reagan's telling of it was not only tolerated by most of us but embraced by the increasingly stupid and psychotic GOP.  

Because of that and numerous other whoppers, the GOP was thus set free to roll out their every whopper. Reagan had taken the GOP into new and unexplored territory. Think of it: there was no whopper so outrageous, no lie so egregious, no bullshit theory so incredible that it could not be sold with help from a focus group, a head nod and a smarmy, 'grandfatherly' smile.  

Reagan's idiocy became an insurmountable political advantage, an advantage that would --one day --give us George W. Bush. Reagan was not evil, they said; he was just senile! Give him a break! With this bit of GOP-logic, we should all be thankful. We are --after all --still alive. The US survived eight years in a which a senile idiot might have plunged us into nuclear war. When he thought his microphone was off, he 'reported' that he had just ordered a nuclear strike on Russia. 

The US was as close to nuclear armageddon as during the Cuban missile crisis or the little publicized incident in which the Soviet Union mistook a research launch for a MIRV heading their way. Someone had forgotten to notify them. The hero was Yeltsin who wisely waited for confirmation before launching a counter-strike that would have obliterated the US. Indeed, there is a price to be paid for idiocy, and one day we will pay it.

Others have noticed what has been called the 'dumbing down' of America. Bill Maher decried the trend; blogger Tom Degan responded: 

"We weren't always like this. Inert. In 1965, Lyndon Johnson signed Medicare into law and 11 months later seniors were receiving benefits. During World War II, virtually overnight FDR had auto companies making tanks and planes only. In one eight year period, America went from JFK's ridiculous dream of landing a man on the moon, to actually landing a man on the moon."While I admire Bill Maher a great deal, I am forced to take issue here.

This pitiful America of which he speaks is very real - of that there can be little doubt to anyone who has bothered to pay attention. But like a lot of people on the Left (I am sorry to say) he totally ignores - whether by accident or design - the undeniable advantages of living in the America of the first decade of the twenty-first century.For example:I never finished High School. In fact I dropped out at the very beginning of my Junior year. In spite of this unfortunate fact, the I.Q. of my country has dropped to such a horrifying degree in the last thirty years, whenever I arrive at a gathering of, say, two or three-hundred people, I am reasonably confident that I am the smartest person in the room.Do you have any idea how utterly cool that is? Lighten up, Bill.

--Tom Degan, the Rant

The mass media must accept responsibility for often making idiocy cute, quaint, cool, or funny. Idiocy is none of those things. Idiocy is a clear and present danger. Idiots will impoverish us all if an idiot has not plunged us into a nuclear holocaust in the meantime.

Karl Marx applied Hegel's dialectic to economics and concluded that 'capitalism' would die of its own inconsistencies i.e, idiocies! Lately, it is only dyed-in-the-wool wingnuts who are blind to the inherent 'contradictions' that have now brought the world to the brink of yet another great depression.

Karl Marx was absolutely correct with regard to the class struggle which he believed followed inexorably from the division of the world into 'capital' vs 'labor'. Bush's America is the LAB study that proves Marx to have been absolutely correct on this point. Never has the the US been so divided. Just one percent of the US population owns more than about 95 percent of us combined. I have REAMS of official stats from the US Census Bureau, Bureau of Labor Statistics, US Commerce Dept-BEA, and various think tanks and University Studies which PROVE --beyond any refutation --that following EVERY GOP tax cut, this increasingly tiny elite was enriched. If the trend continues, the ruling 1 percent will become just one half of one percent owning more than about 99 percent of the rest of the population. No nation can sustain that kind of inequality unless by the application of coercion and dictatorship incomprehensible to Americans.

Tax cuts for the wealthy --we are told --will stimulate investment and thus jobs. The official stats prove that that has never, EVER happened. Rather, windfall tax cuts wind up in offshore tax havens and other 'shelters' which HAVE NEVER INCREASED US jobs nor have they helped, in any way whatsoever, to diversify the US economy. 'Tax havens' --available only to the very, very privileged --are just one reason supply side or 'trickle down theory' has never worked and will never work. It was all a PR campaign, a focus group approved strategem --not a legitimate or valid economic theory. There is a name given the outflow of monies from an economy: contraction. Contraction of the money supply is not merely the cause of 'depression', it is the very definition of it.

The GOP rank and file told us that while US industries had all but vanished during the Reagan nightmare years, HI TECH and US expertise would save us. It didn't! IT is done in India and China. Steel is produced in Japan. Cars, it seems, are produced everywhere BUT in the US. The US boasts the world's largest NEGATIVE Current Account Balance; China --the world's largest POSITIVE Current Account Balance. Being at the bottom of that list tells me that if the US produces anything at all these days, the rest of the world does not buy it.  

China  literally 'owns' us. It is China primarily that props up the buck so that the impoverished US can buy Chinese made stuff at Wal-Mart. How smart is that? Was it intelligence that got us into this mess --or was it GOP idiocy? Don't answer; that is a rhetorical device!

Clearly, the Reaganite goppers --idiots to a person --lied to us and got away with it because we had become the bigger idiots for their cut backs in education, their domination of the mind-numbing media, the assaults made on logic and common sense. We are idiots for getting stuck with the tab run up by the idiots in power. Bottom line: idiocy is no longer an option. Get Smart!

Intrepid writer, communications expert and guest columnist Doug Drenkow observes:

As I read the -- surprised and surprising -- reactions to Pres. Obama's receiving the Nobel Peace Prize, I am reminded of something that happened ten years or so ago, when my father was still alive. I was complaining about one thing or another that then-Pres. Clinton had done. Dad, who had first voted for FDR and had years later become very embittered by Pres. Nixon -- in other words, he had seen and lived through the best and worst that our nation had to offer -- told me something I'll never forget: "A leader can't control everything. He has to work with what he's got. So he can't make everything right overnight. And he'll make some mistakes, too; he's only human. But the thing to watch is the direction he's taking us. It might be slower than you'd like, but are things generally headed the right way or not? That's how you judge a leader."

By the way, that was part of my dad giving his approval of Pres. Clinton's actions, in general and in particular for his achieving the first growth in real (inflation-adjusted) wages for American working people in a great many years. In awarding the Peace Prize, the Nobel Committee cited Pres. Obama's "extraordinary efforts to strengthen international diplomacy and cooperation between peoples."

Against the background noise of insane but persistent cries from the "birthers," Pres. Obama fulfilled his campaign pledge and spoke to the world's billion Muslims shortly after attaining office, to reassure them that -- despite what the bin Ladens (and some of the "crusaders" in our nation) say -- Americans want peace in the world, including with Islamic peoples. That was indeed "extraordinary." (Can one image Pres. Obama's predecessor making the same speech or impact?)

And yes, Pres. Obama has inherited wars in the heart of the Islamic world. But I believe he is doing everything humanly possible to not fight a "dumb war" -- as he said in his famous speech opposing intervention in Iraq -- while securing the safety of Americans, and others, in uniform and at home. He is drawing down our forces in Iraq, and even somewhat faster than had originally been thought possible, while trying to retain some sense of stability in the "Pottery Barn" we broke.

The strategy he is formulating for Afghanistan is admirably being based first and foremost upon helping everyday Afghan people stabilize their own economic and political situation (despite the apparent corruption of their leaders), which unavoidably requires security -- by our forces for now and by Afghan forces being trained -- as to protect otherwise defenseless humanitarian assistance. At the same time, American drones, special ops, and other forces are as surgically as possible disrupting and destroying al Qaeda command and control centers, leaders, and networks, now based primarily in Pakistan, which of course poses dicey problems and limitations of its own. There is no easy fix.

Whether or not we agree with his decisions, I think all of us should appreciate that Pres. Obama and his national security team, including Secretary of State Clinton, are doing their very best to be responsible, for all concerned. Remember, our allowing al Qaeda to have a safe haven previously cost us dearly, and led to the situations we are in now. Preventing further disaster prevents further war. Pres. Obama's efforts to curb nuclear proliferation are also being cited for his receiving the Peace Prize.

Every day the catastrophic potential of this threat becomes more real, as nuclear materials and technology are being disseminated and developed at an increasing rate, by nations and groups that openly and clandestinely threaten us and our allies. Pres. Obama's working with all parties -- including making agreements already with Russian Pres. Medvedev and holding the first (tentatively promising) talks between our nation and Iran in decades -- is a mark of good faith on the part of the American people in the world, after years of our -- disastrously -- "going it alone."

Pres. Obama is trying to regain -- re-earn -- for America the international good will that the previous administration squandered in the wake of 9/11. Pres. Obama has dispatched George Mitchell, who helped make the peace in Northern Ireland, to help make the peace between the Israelis and the Palestinians, another conflict that has persisted stubbornly for decades, and that inflames and complicates all the other issues in the Middle and Near East. Like Al Gore (and unlike the previous administration), Pres. Obama has taken leadership and agreed to cooperation in alleviating global climate change, another problem too big for one nation to solve alone.

And finally, remember that Pres. Obama's "extraordinary efforts to strengthen ... cooperation between peoples" does not just apply to international efforts. Like the Rev. Dr. Martin Luther King Jr., Pres. Obama I believe has won the Peace Prize for his leadership in helping make peace between people of different races -- and every other description -- here in our country, where such differences have long divided us and thus weakened us, socially, economically, and morally. America is more at peace with itself because of Pres. Obama's leadership -- and really, for what he represents to so many of us. The Peace Prize often helps give impetus to international movements that are gaining momentum, such as the fight against Global Warming. As Nobel Committee chairman Thorbjoern Jagland said of Pres. Obama's award: "He got the prize because he has been able to change the international climate. ... Some people say, and I understand it, isn't it premature? Too early? Well, I'd say then that it could be too late to respond three years from now. It is now that we have the opportunity to respond -- all of us."

It is obvious that Pres. Obama represents a new face, ethnically and figuratively, of America -- the most powerful nation -- to the world: a vision of hope through working together with, not against, one another. And that indeed is the only road that leads to peace. Pres. Obama says he is "humbled" by the Prize; I am proud of the honor he has brought to America. And I'm sure my dad is smiling down on us all.

--Doug Drenkow, Communications Consultant, Columnist

In another time, before we were 'dumbed down', someone winning the Nobel Prize would be lauded for his/her achievement. Not so, today! Since 1980, the US has entered a world on the other side of the looking glass. Idiocy is preferred over intelligence; screw ups are 'cool' and real achievement just means you're a nerd.

We used to hear a lot about 'values' from the party that now flouts every 'value' worth having,  affirming or  nourishing. If the media --Fox and CNN particularly --seem shallow, obnoxious, stupid, it's because they are but mirrors held up to this cowardly retreat from excellence.



Thursday, July 31, 2008

Bush Sr's Faustian Bargain with China or How US/China Trade Threatens to Wipe Out the US Middle Class

US/China trade has benefited China and a US elite consisting of about 1 percent of the nation's total population. It should come as no surprise, then, that the origins of US/China Trade are traced to the GOP administration of Richard Nixon. It is to be expected, then, that it was George Bush Sr who laid the groundwork for this sellout of the American middle class. Fact is 'US/China trade' was never intended to benefit the average American tax payer. And it never has!

The date of Nixon's historic China visit is January 26, 1972. The groundwork had already been put into place by Bush; the 'real deals' had most certainly been cut by George Bush Sr who visited the Forbidden City, presumably, in advance of Nixon's highly televised, worldwide media event.

Bush, a former 'Ambassador' as well as a former CIA operative, may have been deemed eminently qualified to make the trip. It was in the Grand Ballroom of the Hyatt Regency in downtown Houston that Bush Sr told me in a brief one-on-one interview how he had been duped into eating dog meat at an official dinner in the Forbidden City. I've often wondered if the US, in the subsequent trade deals, were likewise duped into eating 'aromatic meats', dog meat! I've often wondered if China just outsmarted the Nixon/Bush gang of crooks --or was it a deliberate sell out? Only the Nixon/Bush cabal, their complicit 'material support', and the increasingly tiny elite has benefited. In an era that has been defined by Reaganomics and unfair tax give-aways, only about one percent of the US population has benefited and it has done so at the expense of the remaining 99 percent of the population.

It is clear in retrospect that Nixon/Bush sell-outs to an evil Chinese regime have not benefited the cause of freedom in either China or the US. China now differs from China under Mao by having insulated themselves against a future 'people's revolution' with the creation of a 'conservative' middle class. It is hard to imagine this class coming into being without the trade concessions made that country by Nixon, by Bush, and the markets opened up to them by Wal-Mart. All benign as all this may seem, a terrible price had been paid for it.
CINCINNATI (Reuters) - The US trade deficit with China cost 2.3 million American jobs between 2001 and 2007, the Economic Policy Institute said on Wednesday in a report likely to fuel debate about free trade ahead of November elections.

Even when they found new jobs, workers displaced by job loss to China saw their earnings decrease by an average of $8,146 each year because the new jobs paid less, according to the report, funded in part by labor unions.

"This report is ground breaking because it shows the extent of damage caused by Chinese cheating," said Scott Paul, executive director of the Alliance for American Manufacturing, which helped fund research for the report by EPI, a left-leaning Washington think tank.

"(We hope) it will help to focus the debate on trade to where it needs to be right now with respect to China," Paul said, noting that free trade is shaping up as a major issue in the November presidential election, especially in closely fought battleground states like Ohio.

US manufacturers, labor unions and many lawmakers have long accused China of manipulating its currency to give Chinese companies an unfair advantage in international trade, and are pressing China to continue to allow the yuan to rise against the US dollar to help level the playing field.

--Andrea Hopkins, US-China trade has cost 2.3 million US jobs: report
It may be argued that US consumers have benefited from the lower prices for Chinese manufactured goods found primarily in Wal-Mart. But --at the expense of US manufacturing and jobs? It was a bad bargain! There was a time when shelves were stocked with appliances of American manufacture evidence of a productive population which is now reduced to tele-marketing time share scams for a living. Shopping at Wal-Mart is no longer a free choice! Bush may call that freedom! I call it fraud, slavery, extortion, gangsterism!

The CIA, of which Bush Sr was once director, plays important parts in the government's betrayal of the American middle class. Expert in waging wars by proxy, the CIA has encouraged terrorism, subverting elected governments.
CIA operations follow the same recurring script. First, American business interests abroad are threatened by a popular or democratically elected leader. The people support their leader because he intends to conduct land reform, strengthen unions, redistribute wealth, nationalize foreign-owned industry, and regulate business to protect workers, consumers and the environment. So, on behalf of American business, and often with their help, the CIA mobilizes the opposition. First it identifies right-wing groups within the country (usually the military), and offers them a deal: "We'll put you in power if you maintain a favorable business climate for us." The Agency then hires, trains and works with them to overthrow the existing government (usually a democracy).

--Steve Kangas, A Timeline of CIA Atrocities

Pakistan is a case in point.
Since 9/11, the Bush administration has been propping up Musharraf's military regime with $3.6 billion in economic aid from the US and a US-sponsored consortium, not to mention $900 million in military aid and the postponement of overdue debt repayments totaling $13.5 billion. But now the administration is debating whether Musharraf has become too dependent on Islamic extremist political parties in Pakistan to further US interests, and whether he should be pressured to permit the return of two exiled former prime ministers, Benazir Bhutto and Nawaz Sharif, who have formed an electoral alliance to challenge him in presidential elections scheduled for next year.

--Pakistan: Friend or Foe? The US shouldn't prop up President Musharraf's military regime, Selig S. Harrison

The late Benazir Bhutto revealed the truth before she was brutally gunned down in the streets of Karachi: US policy causes world terrorism. She died before she could tell the rest of the story. See also: Terrorism is worse under GOP regimes.
When the United States aligns with dictatorships and totalitarian regimes, it compromises the basic democratic principles of its foundation -- namely, life, liberty and justice for all. Dictatorships such as Musharraf's suppress individual rights and freedoms and empower the most extreme elements of society. Oppressed citizens, unable to represent themselves through other means, often turn to extremism and religious fundamentalism.

Benazir Bhutto, A False Choice for Pakistan

By now, the point must be clear: no one but an elite one percent of the US population has benefited from the treasonous deals that Nixon and Bush cooked up with Chinese despots, the men who gave to the world a horrible legacy at Tiananmen Square. October 2003 figures from the US Census Bureau make stark reading:
  • Median household incomes are falling
  • The number of Americans without health insurance rose by 5.7 percent to 43.6 million individuals.
  • The number of people living below the poverty line ($18,392 for a family of four) climbed to 12.1 percent — 34.6 million people.
  • Wages make up the majority of income for most American families. As "Downward Mobility," NOW's report on workers and wages illustrates, many American workers are facing corporate efforts to cut pay and benefits, which could lead to more American families struggling to stay out of poverty.
As every decent American has lost faith in the despotic regime inside China, there is almost no one living outside the US who believes in the 'American' ideal. Bush has absolutely ho moral authority from which he might dictate a 'Pax Americana'. Inside the US, our own 'ideals' were disdainfully repudiated by a would-be emperor. The entire world sees this for what it is: a cruel fraud upon the American people and the world.

The average American HAS NOT benefited from US/China 'trade'.
  • In 1960, the wealth gap between the top 20 percent and the bottom 20 percent of Americans was thirty fold. Four decades later it’s more than seventy-five-fold.
  • Either way -- wealth or income – America is more unequal, economists generally agree, than at any time since the start of the Great Depression…
  • And more unequal than any other developed nation today.
  • Inequality.org

Americans HAVE NOT benefited from the rise of leeches like Wal-Mart. Here’s why:
  • Despite bringing in over $378 billion last year, Wal-Mart repeatedly underpays its American workforce. More than 80 wage & hour lawsuits, including a recently certified class action lawsuit in California, are currently pending against the company. Plus, it faces more than 200 discrimination lawsuits for unfair promotion practices, pay discrepancies and other issues, including the nation’s largest workplace gender discrimination lawsuit. By failing to fairly compensate its employees, Wal-Mart cheats states out of income tax revenues.
  • Wal-Mart also pays poorly. While the company seeks to benefit from the government’s rebate payout, Wal-Mart’s low wages means store employees have little or no disposable income to spend to stimulate the economy. Think about what even a small raise for Wal-Mart’s 1 million+ workers would mean nationally, or what it would mean to your city or town if everyone at your local Wal-Mart got a raise.
  • Wal-Mart sources the vast majority of its products from countries overseas, meaning most of the cost of a given Wal-Mart product doesn’t go into the U.S. economy. Rather than boosting the U.S. economy, Wal-Mart has played a major role in exporting U.S. manufacturing jobs to countries with low labor and environmental standards. Meanwhile, the company has embraced unions in its Chinese stores and has negotiated with them to raise Chinese salaries. Apparently, what is good enough for China is not good enough here at home.
  • Wal-Mart underfunds its health care plan and cuts corners whenever possible, forcing many of its employees to postpone care, thus decreasing their productivity and increasing the eventual cost of their treatment. In desperation, many of them rely on state-sponsored care and drain yet more funds from American communities. That means when Wal-Mart employees end up in emergency rooms, it’s U.S. taxpayers who end up footing the bill. If Wal-Mart were truly interested in stimulating the economy, it would begin to adequately fund its health care plan and take care of its own Associates.
  • Wal-Mart routinely dodges state and local taxes, meaning money spent at a Wal-Mart store won’t end up in your community. Wal-Mart actively works to challenge property tax assessments and creates complex real estate arrangements to obscure how much taxes the company owes. When Wal-Mart dodges its tax burden, it takes precious revenues away from cities and states to pay for roads, schools and other services. In turn, individual taxpayers are forced to pay more to make up the difference (which takes more money out of their pockets) or get by with less.

    --The Quaker Agitator, Why Wal-Mart Does Not Strengthen Our Economy
Also see: Wal-Mart is Pure Evil!

Bush's latest approval rating continues the downward trend to about 28%. That Bush still polls above ten percent is inexplicable. It was psychologist Carl Jung who estimated that as much as 30 percent of any population is certifiably psychopathic! Therefore, Bush is losing even the 'crazy' vote on which the GOP has often depended!

Only about 1 percent of the population has benefited from his program of mass murder, corporate crime and aggressive war, and plunder. Bush's true base of about one percent of the population alone have benefited from a war of seemingly endless death and carnage. His vaunted 'surge', was, in fact, a ruthless program of ethnic cleansing, a war crime that will be charged him when he is put on trial, possibly for his life!

China, for the time being, has had an interest in keeping the US ponzi scheme propped up --they sell billions of dollars worth of crap to US citizens via Wal-Mart, the economic Kudzu that ate America.
Between 1989 and 2003, the ever-increasing US trade deficit with China has led to about 1.5 million jobs that either moved overseas or never were created in this country as production shifted to China, according to a report released Jan. 11, 2005, by the US–China Economic and Security Review Commission (USCC), a congressionally appointed panel. The pace of job losses has picked up since China joined the World Trade Organization in 2001, with about one-third of the total, or 500,000, occurring in the past three years.
Lower Wages for US Workers
By supporting foreign-made goods on such a massive scale, the company that trumpets its All-American image is creating incentives for corporations to destroy good jobs in the United States.

By purchasing such a large amount of goods produced in China, Wal-Mart indirectly supports continued workers’ rights abuses by Chinese authorities.

--Wal-Mart's Imports Lead to US Jobs Exports

Meanwhile, the Washington Post reports that Wal-Mart squeezes suppliers for the lowest price. Factories respond with longer hours, lower pay. Wealth, as we have learned the hard way, trickles UP --not down. Robber barons in either the US or China will always make up losses out of your ass. In China, the workers have no choice: China forbids independent trade unions. That is a policy not unlike that of the US GOP and Ronald Reagan, specifically, who is not fondly remembered for his effective War on Labor and his ineffective war on terrorism and drugs.
WASHINGTON (Reuters) - The Bush administration on Monday projected the US budget deficit will soar to a record of nearly half a trillion dollars in fiscal 2009 as a housing-led economic slowdown cuts into government revenues.

The economic and fiscal deterioration will complicate efforts to bring the budget to balance and pose challenges for whoever takes over the White House in January, either Republican Sen. John McCain or Democratic Sen. Barack Obama.

"I believe whoever becomes the next president will have a very, very sobering first week in office," predicted Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat.

...

White House budget chief Jim Nussle cited the government stimulus checks and slower economic growth as primary reasons for larger deficits in 2008 and 2009. "The determination was made that getting the economy back on track was a higher priority than immediate deficit reduction," he told reporters.

...

The new report said the budget deficit would fall to $178 billion in 2010, and surpluses would emerge in 2012.

However, the deficit projections did not include the full amount of funding for the wars in Iraq and Afghanistan or costly tax law changes, and acknowledged it would be a "challenge" to reach surpluses in 2012.

--Jeremy Pelofsky and David Lawder, White House sees record budget gap in 2009

See: Wal-Mart Warns of Democratic Win

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Sunday, November 25, 2007

It's Time to Flog Our "Government"

The fall of the dollar means that Americans will pay more for almost everything. The "correction" had been overdue since the US became a debtor nation, a process completed under Ronald Reagan. It was on September 16, 1985, that the Commerce Department announced that the United States had become a debtor nation and it was on that day that the American Empire died. Since that date, the GOP has been content to let consumers suck up the trade deficit with fewer real jobs. The GOP got away with it as long as China propped up the buck in order to fill the shelves at Walmart. An emerging stronger Euro changed everything.

The collapse of the dollar might not have mattered as much if the US had not over many years of incompetent GOP missrule and corruption become a net debtor nation. US consumers are utterly dependent upon "cheap" merchandise from abroad; a falling dollar is catastrophic.

So far, CNN and the US media seem to be treating this like a novelty story, a "kicker" at the end of the real news. Like the Democrats who thought they could "play" Bush's game and win, they just don't get it. The average American may not "get it" but he will most surely pay for it.

Like almost every stupid thing that has happened to the US since World War II, the GOP is mostly to blame. But Democrats should be flogged for letting them get away with it.

Iraq changed everything by pressing the point and Bush is to blame for bankupting the US with his vainglorious adventure in Iraq. The American people will pay dearly for Bush's on-going act of mass murder in Iraq.

Though Democrats were, at one time, villified as "big spending liberals", it is the GOP that has run up the highest debts and deficits. Just as terrorism is always worse under GOP regimes, debts and deficits are, likewise, greater during periods of GOP missrule.

The world might have tolerated our many follies as long as they could pass along bucks received for the goods sold the US. But, alas, the chain is broken. A growing number of people and nations now refuse the dollar. It was all, literally, a "confidence" game, in which all the world has lost confidence.

War is a racket fought by the masses for privileged elites, big corporations, and venal politicians like Bush. Bush's quagmire is fought for the benefit of no-bid contractors like Halliburton and Blackwater. The war is financed by America's working poor and middle classes who pay for the war —with their lives abroad and with their jobs, their retirement prospects, and their access to health care at home.

Bush's base —the nation's elite, his corporate sponsors, and the so-called defense industry —have paid nothing, risked nothing! Rather —they feed at the trough. The upper one percent of the population has gotten several tax cuts while the big oil companies report record profits rising concurrently with higher prices at the pump.

Just two days after 9/11, I learned from Congressional staffers that Republicans on Capitol Hill were already exploiting the atrocity, trying to use it to push through tax cuts for corporations and the wealthy. ... We now know that from the very beginning, the Bush administration and its allies in Congress saw the terrorist threat not as a problem to be solved, but as a political opportunity to be exploited. The story of the latest terror plot makes the administration’s fecklessness and cynicism on terrorism clearer than ever.

Hoping for Fear, by Paul Krugman, Using Fear Commentary, NY Times
There are big profits in the death business. Go to Texas and consult the CEO of Murder, Inc. , otherwise known as DynCorp.
The war in Iraq has boosted DynCorp's revenues, responsible for about $400 million of the company's nearly $2 billion in sales. And while the company didn't specify how much the effort has added to profits, there has certainly been an upside, Lagana said, although he added that profit margins are lower than in other private industry -- often below 10 percent.

For government contractors and other US-based businesses that are doing work in Iraq, the war there has continued to provide opportunity and benefits, although experts and companies alike say they are difficult to quantify. To be sure, security businesses, oil producers and defense contractors are among the biggest winners. Those who manufacture key products, from bulletproof vests to bullets themselves, and, more recently, those involved in reconstruction, have reaped the benefits, too.

--Businesses find benefits, costs in war work
Money is not the soiled and over-designed scraps of paper that we carry around and pass off in exchange for "things". Money is, at last, mere faith. China, especially, had "faith" that their confidence in the almighty buck would be repaid by US willingness to buy all sorts of cheap Chinese crap at Wal-Mart and other blights on the American urban landscape. The Chinese would get it all back as long as the rest of the world was willing to wink and nod.

The result is that Shanghai and other cities have out-Americaed, America. They have taller and uglier buildings and worse traffic amid the worst air pollution on the planet. Houston and LA look green by comparison. China is a ecological blight on the planet. The lesson one hopes China has learned is that there is price to be paid for having partnered with Satan.

Wal-Mart makes a killing putting people out of work, depressing local economies, and lowering wages but it is globalization --an unholy alliance with GOP "trickle down" policies --that spawned Wal-Mart and sounded a death knell for the futures of American workers. Most recently, Wal-Mart's Chinese imports have displaced nearly 200,000 US jobs

China’s entry into the World Trade Organization (WTO) was supposed to improve the US trade deficit with China and create good jobs in the United States. But those promises have gone unfulfilled: the total US trade deficit with China reached $235 billion in 2006. Between 2001 and 2006, this growing deficit eliminated 1.8 million US jobs (Scott 2007). The world’s biggest retailer, US-based Wal-Mart was responsible for $27 billion in US imports from China in 2006 and 11% of the growth of the total US trade deficit with China between 2001 and 2006. Wal-Mart’s trade deficit with China alone eliminated nearly 200,000 US jobs in this period.

Robert E. Scott, The Wal-Mart effect
The Wal-Mart effect on US workers and manufacturing is typified by the effects seen in clothing --low-cost goods with a hidden higher price: lower wages, lost jobs. Underlying every sector, however, are unsupportable US trade deficits which benefit American consumers but only so long as they have jobs themselves.

As has been the trend at least since the regime of Ronald Reagan, manufacturing suffers most as Wal-Mart grows more intrusive, exploiting the trade deficit with its own undervalued currency. In effect, American consumers have financed China's economic boom.

Of some 133,000 manufacturing jobs lost in the US, sixty-eight percent were the direct result of Wal-Mart's "partnership" with China. The effect is devastating to US workers and the US economy overall. Manufacturing jobs, after all, have generally paid higher wages and provided better benefits.

The US-China trade deficits amount to more than $1 trillion in US Treasury bills and growing. It is fair to say that China has done this deliberately to rehabilitate its own economy on US backs. It has had the effect of lowering the cost of its exports to the United States and other countries.
The relationship between the dollar and the yen has been affected primarily by the adverse trade balance that we have with Japan. At the last summit meeting in London, for instance, we discussed the very high positive trade balance that Japan enjoyed then. The goal established by your own leaders was that this trade balance would be reduced. Instead, it's continued to go up.

I think, as the economic market leaders have recognized, the high export of Japanese goods and the relatively low imports into Japan of other goods, the yen has strengthened in comparison to other currencies, including, of course, the American dollar.

- President Jimmy Carter, Interview with Western European and Japanese Reporters, July 11th, 1978

What a foolhardy game of brinkmanship this has become! It is tempting to write that China has more to lose by a collapsing buck than does the US. Certainly Bush concluded thus as he parked the US Fifth Fleet in the Persian Gulf, where it is tracked undetected by Chinese subs.

Money is whatever people will accept as payment for goods and services. As long as the rest of the world was confident that they could pass along their bucks or exchange them equitably, the US was not overly concerned about "fundamentals".

I am now told in Europe that the strength of the dollar abroad is inexorably linked to Bush's credibility abroad. We are, therefore, screwed. Bush has no credibility. And most Americans don't have the luxury of demanding that they be paid in some other currency.








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