One of the worries in America is the idea that we can no longer feed ourselves, cloth ourselves, or make things for ourselves. This is typically the fear when people are debating that America is becoming a service economy and no longer a manufacturing economy that makes anything. Lets keep in mind that over a hundred years ago, most families individually fed themselves and clothed themselves when everyone had a farm and most everyone sewed their own clothes. But today we do not have anxiety over the fact that most people have never farmed much of anything and very few people have ever clothed themselves one outfit much less all their clothes. We would not complain that our lives are worse today than then! But yet when America as a whole shifts jobs overseas, we all the sudden fear that we are headed down a path to destruction. Aside from the fact that that in itself is ridiculous... even those who disagree might be surprised to find out that their facts are wrong to begin with:
America makes more "stuff" than anyone today! According to a U.N study (and we know the U.N hates us, so trust me if this article makes us look good you know its the truth) American manufacturing output in 2009 was 2.15 trillion dollars (in 2005 dollars) compared to China's 1.48 trillion dollars. Yes! America manufactured more than China, the place everyone fears is taking our jobs. In fact America accounted for 20 percent of the entire world's manufacturing output. That is just one percent below the 1990 amount of 21%! Yes your math is correct, in a 20 year period of time, America's manufacturing as a percentage of the world's manufacturing, only dropped one percent.
In 2009, we manufactured more than Japan, Germany, Britain, and Italy combined. And we keep increasing our manufacturing! You say what? How can this be from everything I have heard? American manufacturing today has more than doubled since 1970.
It is true that we have lost millions of American manufacturing jobs. But this is not because all those jobs are moving overseas. This is because we have become so much more productive! Technology today allows the American worker to produce far more than the American worker of decades ago. Many decades ago young people could dream about working in the factory as opposed to farming jobs which were dropping off due to this same increase in productivity levels in agriculture. Today young people can dream about becoming doctors, nurses, lawyers, mechanics, teachers, architects, engineers, or many other jobs due to technological improvements in manufacturing.
Many speak of how everything they buy is "made in China"! That is often true. This is because China specializes in producing toys, shoes, sporting equipment and other low-tech, labor-intensive jobs. These products do not require the high tech and sophisticated factories of America.
In fact a large amount of "stuff" is made in the United States. Of course this is not usually the cheap inexpensive items you find on the shelf of your local wal-mart or target. America specializes in making things like: planes, air-conditioners, automobiles, pharmaceuticals, semiconductors, and more. These are not on your weekly shopping list. Nor is this "stuff" you pick up off the shelf and can turn over and read where it was made.
The fact is, the cheap items we buy on the shelf of our stores should and are made in cheap labor countries. America prospers when we free up labor to do the high tech jobs by allowing other nations do the low-tech jobs. Are some workers hurt for a time in America? Absolutely. The farmer had a tough time making changes years ago when many of them lost their jobs. So did the blacksmiths and buggy makers when the automobile replaced horse and buggy. But was America worse off? No! Today the fighter jet maker, mechanic, doctor, nurse, engineer, lawyer, teacher, and more are replacing the factory worker. But as it was true a hundred years ago, we are better for it today!
*Much of this comes from author Jeff Jacoby
Thursday, July 14, 2011
Wednesday, July 6, 2011
ignorance needed to pass an agenda
Politicians, mostly Democrats these days push for policies (their agenda) by using talking points that are easily proven wrong with just a smidgen of evidence. Lets look at it...
Those who favor larger government control over our lives often try to discredit our founding fathers by misrepresenting some of their Constitutional ideas. One of the most often misrepresentations used is the three-fifths compromise. Rhetoric such as: "They only counted black people as 3/5 a person!" "How can we listen to these people when they considered my people (this is said by a Black American liberal) 3/5 a person?!"
Politicians are often pretty intelligent people. They know what the 3/5 compromise really was. But that means nothing to them when they are trying to push an agenda through. But with a public that is as undereducated as our public is, its easy to see why they choose to speak in talking points and not reality. Even some of my readers might not be able to defend this example. The three-fifths compromise counted slaves as 3/5 a person when counting for the House of Representatives and for the electoral college. IN other words, if slaves were counted as a whole person for these considerations, it would have made the southern slave states even stronger politically. This would have in effect hurt the African American at the time.
Tax cuts for the rich is another issue. What is rich? Some say its an income of $250,000 a year or more. But many small businesses that just get by file taxes under individual income. If their company has revenue of just over $250,000 they might be taxed at that top income bracket percentage. Thus to lower taxes for small businesses would require you to lower the tax rate on the highest income tax bracket. Politicians know this. But they public often does not.
These are also the people that hire individuals. So do corporations. The fact is, lowering these taxes often allows companies to expand and become larger. This in effect can actually increase the amount of taxes these rich people pay because of increased wealth and increased incentive to move operations back to America. This is seen throughout history where lowering these taxes has led to economic expansion and increased government revenue. Also corporations do not pay taxes only people do. Higher taxes on corporations means one of three things: higher prices for consumers, lower pay for workers, lower dividends for investors.
Lastly is Rent Control laws: Designed to keep the price of rent lower in low income areas actually has the opposite affect. I have explained the affects of this in other blog entries. You can read those to understand that. But the two most prominent cities with strong rent control laws are San Francisco and New York City. These two cities also have some of the highest rent prices despite these controls. Politicians know this but the public does not.
Our job: Become educated and vote out these politicians that no longer can take advantage of our ignorance.
Those who favor larger government control over our lives often try to discredit our founding fathers by misrepresenting some of their Constitutional ideas. One of the most often misrepresentations used is the three-fifths compromise. Rhetoric such as: "They only counted black people as 3/5 a person!" "How can we listen to these people when they considered my people (this is said by a Black American liberal) 3/5 a person?!"
Politicians are often pretty intelligent people. They know what the 3/5 compromise really was. But that means nothing to them when they are trying to push an agenda through. But with a public that is as undereducated as our public is, its easy to see why they choose to speak in talking points and not reality. Even some of my readers might not be able to defend this example. The three-fifths compromise counted slaves as 3/5 a person when counting for the House of Representatives and for the electoral college. IN other words, if slaves were counted as a whole person for these considerations, it would have made the southern slave states even stronger politically. This would have in effect hurt the African American at the time.
Tax cuts for the rich is another issue. What is rich? Some say its an income of $250,000 a year or more. But many small businesses that just get by file taxes under individual income. If their company has revenue of just over $250,000 they might be taxed at that top income bracket percentage. Thus to lower taxes for small businesses would require you to lower the tax rate on the highest income tax bracket. Politicians know this. But they public often does not.
These are also the people that hire individuals. So do corporations. The fact is, lowering these taxes often allows companies to expand and become larger. This in effect can actually increase the amount of taxes these rich people pay because of increased wealth and increased incentive to move operations back to America. This is seen throughout history where lowering these taxes has led to economic expansion and increased government revenue. Also corporations do not pay taxes only people do. Higher taxes on corporations means one of three things: higher prices for consumers, lower pay for workers, lower dividends for investors.
Lastly is Rent Control laws: Designed to keep the price of rent lower in low income areas actually has the opposite affect. I have explained the affects of this in other blog entries. You can read those to understand that. But the two most prominent cities with strong rent control laws are San Francisco and New York City. These two cities also have some of the highest rent prices despite these controls. Politicians know this but the public does not.
Our job: Become educated and vote out these politicians that no longer can take advantage of our ignorance.
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