Monday, November 23, 2009

National Wealth

Economics, Trade Deficit, Government Spending Deficit, Jobs for Americans, and the Buying Power or value of the US Dollar are all interrelated and very important. These subjects need to be understood by the General Public. Economics is not that complicated. It is interlocked with understandable cause and affect principals of various economic action options that can be easily understood by almost any High School Graduate.
Real wealth and real monetary value is created only when the members of a family (or a tribe, nation, city-state, etc.) plant, grow and/or harvest something of commercial value from the earth, extract something of commercial value from the earth, provide professional services (medical, legal, dental, engineering, architecture, accounting, land surveying, technology, etc.), and/or manufactures or constructs something of commercial value that is consumable (or permanently useful for income or rent) and then sells, leases or rents these items and/or services to parties outside of their family in return for a net transfer of gold, currency or commodities from other parties outside of their family into their own family. The members of that family can reflect their real wealth with the accumulation of grain, gold, cattle, jewels, land, buildings, commodities and/or other marketable products for reserve use in times of emergency and/or also to raise the standard of living for the members of that family.
Did the Biblical Abraham squander his assets unwisely and then became hungry and homeless when a famine occurred? Is the USA repeating this action? When the Biblical Abraham's family faced starvation, Abraham probably took his family to Egypt where there was grain stored and hoarded by the Egyptians to insure the survival of greedy Egyptians during times of drought and famine. Abraham and his descendants probably submitted themselves to be slaves of the Egyptians in return for food and shelter.
People working together in an organized fashion are generally more productive than individuals working alone. An extended family will live better than a nuclear family. A tribe will live better than an extended family. A nation will live better than a tribe, unless the tribe or nation's leaders decide to spend the resources unwisely. The US government has decided to spend the US located national wealth unwisely for the past few decades.
Without businesses and corporations providing jobs, everybody would have to live off of the land. Most of the jobs in the USA are created by corporations and businesses. You could study and then work hard and then start your own corporation (or business) as I did in 1968.
Any family, tribe, country, etc. and its individual members can prosper or become debt ridden in accordance with their industrial behavior, government spending behavior, and/or other economic actions of the leaders of that family.
If any family purchased imported things from outside of their family of less monetary value than the monetary (or otherwise useful value) of the items that they sold and exported to others outside of their family, then that family would have a net positive foreign trade balance. Only a net positive foreign trade balance would have increased the value of the real wealth privately owned assets of that family.
The USA government economic policies, environmental regulations, trade policies, free trade policies, labor costs and other recent factors have caused our wealth generating factories to close These factory closings have caused the lay off US workers for labor cost savings. Anticipated future environmental regulations have also caused US companies to close and leave the USA.

Transportation, distribution, warehousing, tax collection, sales, marketing, delivery, packaging and other similar services provided within that family (or an organization, tribe, country, etc.) are necessary to enable and support the original creation of wealth by the basic productive efforts within in that country. These costs are added to the cost of the product that was initially created by other basic productive efforts within in that country. These services are necessary for the export of locally made products to foreign countries in return for foreign exchange and to distribute goods within that family. Transportation, distribution, warehousing, tax collection, sales, marketing, delivery, assembly, packaging and other similar services provided for imported products just stir the economic pot and assist the importers that send US dollars to overseas manufacturers.
Consumer spending (consumer confidence) is a symptom of economic well-being, not the cause of any economic recovery. The population needs to be employed and able to support their families for economic and political stability.
US Government jobs generally do not produce any of the food, shelter, and clothing required to sustain life. The communist form of government where everybody works for the government because the government owns everything does produce the food, shelter, and clothing required to sustain life. Most of the individuals in communist countries want to work at something other than producing the produce the basic food, shelter, clothing and other necessities required to sustain life. They usually become a nation of non-producers wanting the disgruntled producers to produce more and more so that privileged individuals of the ruling class can keep themselves busy as musicians, poets, social workers, philosophers, historians, politicians, bureaucrats, administrators, etc., and let or require or force others work to produce the food, shelter, and clothing required to sustain the life of the nation.
The businesses across this nation are creating jobs, but these new jobs are located in foreign nations because of the US government trade laws and the US environmental laws that were created by both major political parties make creating jobs in the USA un-economical. Labor and environmental costs are almost always much less expensive in foreign nations due to the US government trade and environmental laws. US citizens elected the congressmen and senators who voted for these laws that generally did not exist several decades ago when the USA was a successful industrial giant. Both major parties are in favor the free trade and environmental legislation which has destroyed US industries and the industrial employment opportunities for the average US working person. I do not know what the Prohibition Party's position is on this issue, or even if that party still exists.

We must somehow repeal existing free trade legislation and environmental laws in order to re-industrialize and reverse the balance of trade if we desire to employ US citizens instead of foreigners to manufacture the things that we consume.

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