Saturday, September 15, 2012

The Future

Here is a nice bucket of ice water for a Saturday morning.  Globalization is a good thing for the guys at the bottom and a bad thing for the guys at top.  With rapid transportation and immediate information sharing the world has become very small place, which in a lot of ways is a good thing.  In the standard of living arena, it is the great equalizer because poor people the world around see and seek a better way of life. Because companies are in the business to make money, those same poor people get the opportunity to provide cheap labor and achieve that better life.  This is not a bad thing for them because it immediately raises their standard of living and over time they build that better standard of living.  All praise the global economy for making the world a better place for all human beings.

But, from whom do these industrious workers "steal" their work from?  The hard working labors of countries that have forgotten that businesses are in the business of making money.  The business world balances all costs against revenues, with profits being the deciding vote.  So, if you raise the cost of doing business in your country businesses will seek lower cost alternatives elsewhere.  So what happens when we the voters force our government to punish those greedy businesses with punitive tax rates and ever changing regulatory requirements?  Of course we need those greedy businesses to pay for exploiting our workers and making money because to do otherwise is "unAmerican".  Really?

But, who pays for these higher taxes and regulatory costs?  Do you really think that businesses pay these?  We the People pay those costs in one of two ways.  The first way if we are lucky, we pay in higher costs for the products we buy.  It is just plain smart business to pass on higher costs to the consumer.  Those greedy bastards passing off the costs to us like that, outrageous I say time to get the tar and feathers.  The fact is that you still want the stuff, so you will pay the higher price.  The second and far more devastating way we pay is in lost jobs.  If the cost of doing business gets too high, those greedy bastards move the jobs elsewhere.  Because if they don't find a way to lower their costs they can't stay in business.  Any business has to make money and to do that they have to factor in the costs of taxes, labor, and shipping against the price the market will allow.  By moving jobs to X country full of poor people, you may be able to rebalance that equation back into your favor.  If you were in  business would you not do the same?

But, who is at fault for this migration?  Is it those greedy bastards in business that need to be competitive and make the most money possible? Is it the poor people who just want a better life? Is it the consumer that wants cheep stuff? Or maybe it is those career criminal politician that just wants your vote?  I say it is all the above because it is human nature to want more and to be successful.  So what does this mean for us at the top of the labor market?  Either we make it profitable to produce in America or we will see the trend continue.  I am saying that we need to stop allowing/forcing our government to punish businesses for providing us jobs.  We need to realize that hard work is not a punishment, but rather an opportunity for a better life.

Hard work you say.  Yes, hard work. Hard work combined with the best legal system in the world made this country truly work, which resulted in the world's highest standard of living.  Businesses would flock back to America, if we reduced their costs especially their tax & regulation burden.  We could provided them with an abundant skilled labor force at a reasonable cost.  I am not saying pay American workers pennies on the dollar, but rather make the balance sheet work in our favor, instead of against us.  Lower taxes, remove the overseas shipping cost, and provide stable reasonable labor rates, so even the greedist of bastards could see the advantage of moving work back to our shores.  We still won't be able to compete in all market areas, but would you rather be building washing machines or flip-flops?

I say bring on the global marketplace and allow open competition because we have a huge advantage because we are the consumers.  Plus, we might still have an outstanding labor pool of smart and willing workers.  Lets once again lead the world in making America the best place to do business, vice the place to get soaked by our government.  If you want jobs then stop making is a bad place to do business by electing yahoos.  Cut or eliminate corporate taxes.  Stop changing government regulation at the drop of the special interest hat.  Stop putting unrealistic labor demands on companies, such as fines for not providing health insurance or making so expensive because you refuse to allow world wide competition rates.

Now is the time that we need to start making realistic choices about where this country is headed.  If we don't choose wisely, this country will end up just another tale of greatness befallen by bread & circuses. With 50% of the people reliant on the government for their livelihood, we are at the tipping point.  Wake up America!

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