Friday, 11 October 2013

USA/UK Streamlining or Full Employment

Lowering prices by increasing unemployment? The Western World is suffering the Made in China Syndrome that came after the Streamlining Syndrome. Streamlining meant doing more with less people. Made in China means doing nothing and therefore you don't need people. The direct consequence is business closures and longer queues of out of work individuals. This means less economic activity in the long run and higher taxation and more borrowing to maintain those who, whatever the financial situation, still need to eat.

How much more can the debt ceiling be risen? Is periodically increasing the amount of money owed going to become the normal thing to do? Imagine if we all were all allowed to accumulate debts without ever being able to repay what we owe. Wouldn't that be nice? We could ask the Banks to deliver free money to everybody without a care in the world. Well, this is what President Obama is asking Congress to do. 'Keep giving me money that can never be repaid. Keep getting into debt.' Obama's Presidency is going end but the American people are going to have to live with the consequences of financial mismanagement.

I criticize President Obama not because of his race or because of the doubts about his place of birth. I criticize President Obama because he has not delivered and because he continues creating more and more public debt. America is not better off. America is worse off because of the policies of his administration and because of the policies and practices of the entire American Establishment and this includes both Republicans and Democrats. 'Cheap is Expensive.' Made in China is expensive because it is measured as the number of jobs that we do not have.

If we are going to have debts, we should at least reduce cheap imports and employ more people.

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