A primer on why America's economic future is screwed
This is relative to those wondering why we shouldn't tax the heck out of the rich. I'm pretty close to the bottom tier but know enough about economics to realize:
(a)You cannot "tax" your way to financial solvency when government spending is an equally large problem- let's not forget Obama's initial economic stimulus package was little but increase the federal payrolls and award contracts for hastily drawn up public works projects.
(b)I've worked for enough rich people to understand if you put the screws to them they will move their money to places where there is less of a bite taken out by the government who socialists seem to feel knows how to better spend our money than we do.
Case in point, what was the trendy thing for British rock stars to do in the 70's? Move to the US to avoid heavy taxation in the UK.
(c) There seems to be some misconception that if billionaires aren't taxed enough they take all that extra money and hide it under their mattresses or bury it in jars in their yards.
The economy is like a big dinner table. The vast majority of us come to it hungry, with fork and spoon ready to dig in. The wealthy come with the bird and all the trimmings. We need them to feel comfortable bringing their investments and keeping it in the market to roll over without feeling like the vultures want it all.
(d) All this is really just useless rhetoric because everything we knew before is OVER, it's DONE. The 8 years of "Beijing" Bill Clinton saw him relax every commerce obstruction to China, facilitate US factories closing with production being resumed in China with US manufacturing know how handed to them wholesale. It wasn't the jobs that were transferred overseas, it was the technical aspects of the manufacturing- stuff that used to be called "industrial espionage" if you left one company and took it to another. As the exodus transpired American companies actually sent engineers to Asia to correct mistakes on samples from the Chinese factories because they knew consumers would not buy too shoddy of a product. I knew a guy in the car audio industry whose job was doing that, he even sent broken samples to US analysis labs to identify material faults and forwarded the results to the Chinese to correct them. His company was buying up struggling US brands they competed with, shut down their factories, and replaced the product with Chinese made substitutes- buying the brands got them the distribution channels and dealer floorspace. The agreements with the Chinese were basically handshakes, yeah they profited for a few years whoring out the once respected brand names until consumers figured they were no better than other imports, but now the Chinese can sell the equipment they taught them to make to the rest of the world and their own competitors here by just putting a 50 cent badge on it.
In summary those jobs aren't coming back unless we are willing to work at Chinese living and environmental standards.
As shareholders took their fast profits, the capital gains and dividends taxes they paid helped balance the budget by 2000. Yet all the while Clinton was fighting for their human rights on the international stage due to Gobal Socialist sentiments. You can't get back knowledge, 1.3 billion people and others now know how we live and can manufacture it with techniques we developed over generations in the marketplace. The real estate bust was simply Wall Street searching for a vehicle of investment because of the dearth in new manufacturing, the mortgages were bad because people were trying to stay afloat after trading good paying factory jobs for service jobs.
The worst news is that America has almost NO exports anyone wants, if you invent something today it pops out of a Chinese factory tomorrow at half what you could make it for. We're far from rock bottom, that will be when we can no longer fool the world with the ponzi scheme Kissinger forged with the Saudis in '73, preservation of which required the vital invasion of Iraq in 2003.
And on that I ask you to thank a war veteran or his fallen comrade for the fact we aren't all in soup lines this minute, google "petrodollars Saddam use oil as a weapon" and understand why most of Congress voted for "Bush's War".
The only questions are how far is bottom and is it slow enough to adapt- or so fast we have civil unrest. One thing to note is anyone talking about RECOVERY is delusional. What we had will never again be.