Originally posted by: blackangst1
The other problem with forcing companies to employ Americans and only operate within our borders (which, of course, will NEVER EVER happen at this point) is you would see hyperinflation like weve never seen before.
Then we'd REALLY be fucked.
There would be some inflation as wages increase and unemployed and underemployment decrease. Prices and wages would then equilibrate to American free market levels. What's wrong with having an internal American free market?
I think we'd be better off this way because it's hard to consume more than you produce and at least this way Americans would be producing instead of borrowing, selling off hard assets to foreigners, and consuming. In reality there is no free lunch--the wealth has to be produced before it can be consumed.
The issue is--do we pay for our consumption by doing the work needed to produce the wealth we consume--or do we borrow money now while paying back the loans by exchanging hard assets (land, real estate, business ownership)?
Another issue is--who benefits from all of this? Americans can "compete" and produce goods and services that other nations will purchase just as soon as they are willing to work for third world wages. In the third world a small amount of people own the capital and take a very large amount of workers' contributions to the act of production as profit and wealth for themselves, paying their employees low wages. So, would that be good for Americans? Would it be good for Americans to work for third world wages and to be happy with only a small portion of their contribution to the act of production while the small percentage of Americans who own the businesses become even wealthier?
Obviously, my answer is that we'd be better off having higher wages, less unemployment and underemployment, consequent higher prices, and a more equal distribution of wealth than we would be to have lower prices and a third world standard of living while having a tiny percentage of Americans living like kings.
It's also worth mentioning that with a healthier economy comes lower taxes as a result of having more people paying middle class amounts of taxes.
These issues will all play out over the next several decades. As anyone who's read my commentary before knows, my prediction is the following:
The nation's population will explode towards third world levels, the prices of natural resources (land, clean air, clean water, ore, minerals, etc.) will increase, global labor arbitrage will continue to rack the nation's labor market, the politicians, the economists, the pundits, and the media will continue to peddle education (for jobs that no longer exist) as the solution to our economic problems to the masses as though it were an opiate, and the masses will gleefully consume the opiate. The United States will have then transformed itself into a third world country. Our contemporaries will then fondly remember the middle class of their youth from the Seventies, Eighties, and Nineties and wonder how it all fell apart. Historians will speak of the United States as we now speak of the Roman Empire. The Chinese, having lowered their population and having acquired a better understanding of economics and international trade, will then have the world's largest middle class and will be the world's new economic superpower.