myp, et al,
Most of us tend to view the economics of American in well-defined semi-scientific terms:
Example: GNP = consumption + investment + government spending + net exports
We tend to differentiate private investment from government spending, and look at consumption as a factor of earned income minus taxes (private again).
We look at reasons for outsourcing employment and manufacturing opportunities in terms of:
- Lower Wages
- Lower Regulatory Costs
- Tax Benefits
- Ability to Downsize at Will
- Improved Performance
- Freeing up Resources For Core Activities
- Quicker Turnaround Time
- Uncertainty Over Political/Business Climate
- Accelerated Time to Market
- Commodification
- Contractual Certainty
Economics, even the most advanced studies, are historical in nature. The axioms tell us how history unfolded and the forces in play. But the axioms cannot be used to guide us into the future and make sound monetary and economic decisions. If it could, then America would have been able to avoid the crisis it faces now. So, we must not make the mistake of accepting economic concepts are written in stone. Remember what the Great Albert Einstein said: “"We can't solve problems by using the same kind of thinking we used when we created them." But that seems to be exactly what we are doing, and why American Leaders are unable to rebuild the strength in commerce and industry. We keep following scholarly economic teaching expecting to get a different result. If you keep using the same logic over and over again, then you either have a very long line of successively and immensely popular (but inept) leaders, or the logic and economic theories do not work in the invironment.
(BACK DROP)
I propose changing these constants in such a way – that, manufacturing and production will want to come back to the US. It is impossible to do on the basis of patriotism. Business and Corporations pay homage to “wealth;” maximizing wealth. They own no allegiance to America of the People (employees). They have no national pride in the brand summation (made in America).
(COMMENT)
The taxpayer is, in fact, an investor in the nation by virtue of the “tax dollar” contribution. Each business entity (with the government being a non-profit business) understands if you are not re-investing (in this case, tax dollars) in your business (America), you are killing your business (America).
The US spent, last year (2010) $663B on the Department of Defense.
NOTE: DOD budget of $663B is more than the combined budgets for the Departments of:
Health and Human Services – Transportation – Veterans Affairs – State and International Programs – Housing and Urban Development – Education – Homeland Security – Energy – Agriculture – Justice – National Aeronautics and Space Administration – Commerce – Labor – Treasury – Interior – Environmental Protection Agency – Social Security Administration – National Science Foundation – Corps of Engineers – National Infrastructure Bank – Corporation for National and Community Service – Small Business Administration – General Services Administration. (You could virtually double the budget of the entire rest of the government with what is allocated for DOD.)
(OCCUM’s RASOR)
What we do and How we pay for it:
You have, no doubt, noticed that a number of federal departments are in a strategic position to help rebuild America. Of these, there are about eight (8) that need to be brought online for a maximum effort to the rebuilding and rejuvenation process. In effect, their budgets need to be, in some cases, quadrupled:
- Corps of Engineers – $5.1B to $20B
- Plan, and build, new commercially usable locks and dams. Initiate new civil engineering projects include Mississippi River flood control, and dredging the waterway for improved navigation.
- Design and build Gulf Coast flood protection systems.
- Design and construction management new electrical power generation facilities.
- Restoration of ecosystems and new forestry.
- Energy – $26.3B to 105B
- Design and build safe and powerful, nuclear reactor production for the nation.
- Conduct energy-related research into alternative sources.
- Plan and build geothermal generation plants; massive wind farms and solar arrays in the desolate areas.
- Transportation – $72.5 billion to $100B
.
- Plan and build fast, safe, efficient, accessible, and convenient transportation system for commerce.
- Better airports
- Rejuvenation current highways, and build newer hughways.
- Rebuild the Marine port facilities
And so on with these agencies: (I could write for days on this subject.)
- Environmental Protection Agency – $10.5B to $30B
- National Science Foundation – $7.0B to $10B
- National Infrastructure Bank – $5.0B to $10B
- Agriculture – $26.0B to $100B
- Small Business Administration – $0.7B to $1B
This would represent a reduction in the DOD Budget of approximately 22%; or, from about $663B to $520B (a difference of nearly $143B). This reduction represents (slightly less than) the combined cost of the Afghan/Iraq War for the same year --- 2010.
The idea is simple. If the nation embarks on such a course, there will arise a very real need for an educated work force, more students, and more smaller business to provide the ancillary support needed. There will be a need for real scientist and engineers, as well as construction workers. This reinvestment will circulate more money inside the US economy at both the state and local level, and it will begin to build new markets for the exchange of new technologies.
Finally, it adds to the net worth of the nation (home improvements) and gives America a competative advantage in the cost of production and the associated transportation costs.
This is just a "Thumbnail View." And Again, it is not the way the 20th Centruy Political Leader thinks, and why - if we keep choosing Leaders from the old school, they will fail us all. We need leaders who are passionate about the health and sturdiness of our nation. Not professional politicians that are greedy for power.
Most Respectfully,
R
****ing guy keeps talking about 'rebuilding America' as an investment in the country. Idiot, one needs MONEY to rebuild. The USA HAS NONE.