Posted: June 11, 2014
We can continue to send more U.S. money overseas than comes back forever – can’t we?
There are all kinds of economic measurement items. Some like to watch the stock market as a key to our economy. Some like to watch the unemployment rate as a key. Some like to point to new businesses in the local community as a sign of growth. Some like to follow the housing market. Others like to follow the trade deficit.
Back in the day, primitive societies tried to make everything they needed for themselves and then create stuff they could trade with other tribes to gain items that were hard for them to make. They created societies that made sure all of their members produced or contributed something, otherwise, they weren’t needed. They knew that if they sent more money to other tribes than they took in, they were in a losing position. Big societies like the U.S. work differently.
In our society we made it fine for big multi-national companies to re-locate overseas and make the world their market. They are the ones who benefit from outsourcing. Big companies, with the backing of Washington D.C. and Wall Street moved overseas and took jobs, a presence in local communities with them. Now you don’t talk to a neighbor when you need customer service. You get someone with a funny accent on the other end of the phone, if you can find a phone number to call. Most of multinational profits come from overseas sales. Big companies don’t need the United States. They move where the action is and the action is going to be in Asia now.
The trade deficit shows that American’s are addicted to their stuff and it seems cheap stuff is even better. We buy stuff and then store it in storage lockers, Pods, garages. We fill up rooms with stuff and have television shows dedicated to “hoarders”.
We used to make all kinds of things in the U.S. Not much is made in the U.S. now. The trade deficit tells that America is sending money outside the country that may or may not come back.
There aren’t jobs because we don’t do much anymore. We just want our stuff and we don’t care if Americans made it or not. We have moved from a producer society to a consumer society and, indirectly, a welfare/victim society.
The trade deficits continue to spike, as well as spend and borrow government policies, a media that smoke screens facts, and a population that doesn’t read much.
We see big storms ahead. It doesn’t take tea leaves to tell you that change is coming.
Full article here >>>.