Comments on: America’s long slope down http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: advocatusdiabol http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1542 Sat, 14 Jul 2012 00:19:33 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1542 But saddling the middle class, who is making less while burdened with even more debt, with an increase in taxes is dooming them. Rise taxes if you must but leave the struggling middle class out of it. The so-called “job creators” have had their cuts and they’ve created few jobs, time to try something different.

]]>
By: BrilliantEcho http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1541 Fri, 13 Jul 2012 19:20:23 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1541 This is such a simple logic. This is such simple math. Years ago as a kid, I figured this out.

I recall observing the life of such old American brands as RCA, Zenith, and others who had moved to less expensive countries for labor. Their American manufacturing bases ultimately withered, then died. When just a FEW companies do so, it may not be noticeable. But, the “great escape” of manufacturing to offshore locations seemed so logical. It was cheaper to use labor over there, than here.

Decades on in this great escape, the globalization has actually worked as it should, allowing OTHER countries to raise THEIR standards of living. What I don’t understand, though, is how Americans are so surprised that also at play with the “raising of all boats” to the same level, is the logical expense of lowering the level of OUR boats.

At the end of the day, with the Cold War long over, Capitalism WON. WE, America, WON! Everyone IS playing our game, and isn’t THAT what this was all about?

This idea is so overlooked (or as I believe, is misrepresented to the electorate). To “win” election, politicians “decry” the loss of manufacturing, or “blame” those bad companies, or “bad” policies of someone (anyone) else, just to get elected, or reelected.

“Saving” the U.S. Auto industry made me think of Britain’s attempt decades ago to do the same for their auto industry. You can’t legislate away logic going another direction.

Freedom of speech is a wonderful thing. It’s a shame that such a simple logic isn’t espoused as to what has happened, and why we are where we are, and where we are really going.

Those jobs aren’t coming back. Americans will need to learn new skills, just as happened in the industrial revolution, or any other revolution, in any other era.

Misleading American’s to think they’ll “fix” manufacturing, or “bring” those jobs back, well, politicians will do anything to gain or keep power, won’t they?

]]>
By: daphnesylk http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1526 Thu, 12 Jul 2012 01:22:41 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1526 I think we would do well to remember, trees don’t grow to the sky. Economies ebb and flow, sometimes ebb for longer than we’d like. It doesn’t mean the end of the world. If a forest gets overgrown, like our housing market did, either trees starve, or a fire starts. Eventually there is new, healthier growth. The scorched earth in between is ugly, that’s unfortunate, but inevitable, and painful though it is, for the best.

]]>
By: stejamdev http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1525 Wed, 11 Jul 2012 20:22:52 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1525 I believe David Cay Johnston makes an important statement by using the word failure, as he says:

My reading of this and tons more data is that the Bush tax cuts utterly failed, the Fed’s artificially low-interest rate policies under presidents Bush and Obama do far more damage than good (especially to savers), and that the United States is harmed both by the imbalance in the trade relationship with China and scores of trade agreements with South Korea and other low-wage countries that are deeply flawed at best.

At what point can we declare that supply-side economics (Bush tax cuts) and Keynesian stimulus (low interest rates) have totally lost credibility? The Economics community seems to offer the same remedies with each market correction, and if the remedies don’t work, try some more! And more! And more! (Etc.) They’re mad, like doctors who keep shocking the patient with defibrillator paddles again, and again, and again, and again. We have to acknowledge that true economic growth can only be made by gains in efficiency either through production or trade.

]]>
By: JLS123 http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1524 Thu, 05 Jul 2012 15:06:30 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1524 I have to disagree and say that the tax cuts are not what is leaving the economy in the red! Tax money goes to the government and let’s face it, the government is not creating jobs or shoring up the economy with that money (no matter what the TARP defenders told themselves in the past or even still do). Further, when you have unemployment so high, employers slashing pay, benefits, etc. to the point that even employed people are taking big financial hits, how is raising taxes going to help them or the economy? It won’t help at all! We need to stop sending so much of our money to China, they have largely the US to thank for their economic boom b/c we freely buy so much of their crap. And the US needs to get serious about what it spends our tax money on. I bet it isn’t a stretch to say that 50% of tax money is flushed down the toilet on bloated salaries, bloated staffing, the chronically abused myriad of welfare services (now including health care), pork barrel spending (like the doomed funding of a Pakistani Sesame Street (meanwhile there is quite a movement to cease federal funding for public television here in our own country – what a joke, we were supposed to fund public television in a foreign country but cease funding here???? Who thinks of this stuff?), billions spent on illegals and trying to stem their flow. I could go on and on. When will the politicians pull their heads out of the ground, to put it nicely??? Nobody wants to do the right thing anymore b/c their only concern is pandering (hand outs, hand outs, hand outs) to the right groups of people so they can get votes, get into office and then do nothing to help the country as a whole! All anyone ever does anymore is vote for the person they think is going to get them the most stuff/benefits/money/handouts. Everyone votes for themselves, not the country, that is a huge part of the problem! When will people smarten up and realize that the politicians who will make wise decisions for our country AS A WHOLE IN THE LONG TERM are the best politicians to vote for? Everyone will end up benefitting from those decisions over time! We are in a vicious cycle right now where politicians make promisses to people (sometimes follow thorugh, sometimes not), people say, “yes please, I will vote for you”, over and over and over. It’s not working people, can’t you see that? Start voting for the country and everyone wins in the end! Unfortunately it appears that most people are not smart enough to realize what is best for the country long term, only what is immediately best for them! Either that or they truly don’t care!

]]>
By: Pangaea7 http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1523 Wed, 04 Jul 2012 16:49:30 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1523 There are other factors at play.
us population growth v.s. those that left the work force.
u.s is now about 310 million v.s. 210 million a decade to 2 ago. yet the manufacturering jobs left to other shores due to “outsourcing” Corporations built “shell” companies to “shelter taxes off shore and not paid to IRS. The Housing Bubble and the Banksters and their Derivative Funny Money Dealings. Maybe it’s time to RETHINK and REWRITE the Tax code for the Modern Era we find ourselves in as the inequalities have reach their Pinnacle.And for God’s Sake TERM LIMITS on our “DO NOTHING” Congress and their Lobbying Friends !!!!!

]]>
By: ConstFundie http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1521 Tue, 03 Jul 2012 10:51:23 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1521 @jambrytay,

National debt is simply creating money out of thin-air. The created money enters the economy as real and very spendable, and adds directly to incomes. Although, i note that the added income is much less equally distributed than the future liability.

Speaking of bubbles, that seems to be exactly what economic bubbles have in common, a build up of ‘created’ money (typically called debt) until it towers so beyond reality that an economy fails(pop!). This is what we witnessed in the US, i.e., the bank bailouts, and are seeing throughout all of the Banks/economies of the west.

]]>
By: vision966 http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1520 Tue, 03 Jul 2012 10:38:38 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1520 You’ve voted. As for loss of manufacturing jobs, what China does, America won’t want to do. Do you really want to slog 7 hours a day for just USD 70? Its much cheaper in India. Its equally cheap too in Indonesia, Vietnam, Philippines, Africa…… and the list goes on. With EU going down, it looks like they will be the next candidate with low wages amongst the skilled industries (China and India are largely in unskilled industries) competing directly against Japan and US. That’s probably even more serious. But Japan gets to harp on US for defence and China for businesses – that’s one smart nation, just nice in small numbers (population) with also hoards of forex reserves that will get by largely unscathed.

]]>
By: brandonhstubbs http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1519 Sun, 01 Jul 2012 17:36:41 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1519 it will be the last days of the french monarchy and the russian empire redux, if something isnt dont to redress this imbalance, and the rich will lose.

]]>
By: jambrytay http://blogs.reuters.com/david-cay-johnston/2012/06/20/americas-long-slope-down/#comment-1517 Thu, 28 Jun 2012 12:37:20 +0000 http://blogs.reuters.com/david-cay-johnston/?p=391#comment-1517 ConstFundie-

Taking on debt is not income and the USCEnsus data i cited doesn’t count it as such. The data i cited is income and shows a very clear trend. Sory to burst your gloom and doom bubble.

]]>