Saturday, December 6, 2008

America with no manufacturing?

Below are all the things going on shaping the new economic world. The depletion of manufactured products in America and the reasons why. The auto industry is pretty much all that's left. Let's consider what a country is like with no manufacturing. India for instance has been what we call a poor undeveloped nation. No middle class to speak of. You have the high society and the poor. The poor make up the large part of the country. Now India is a developing nation. Their car companies are going global. Tata Motors will sell cars here in America soon. This is growing a middle class in their nation by creating manufacturing jobs. They are growing a middle class. The same thing is going on in China and other countries. They are developing nations. So what's going on in America? Developing nations are selling manufactured goods in America under the fair trade act at a competitive advantage due to their low labor costs and lack of government regulations and litigation problems. This is slowly eroding American manufacturing. What does America become without manufacturing? It would seam we become a poor nation with the wealthy and the poor. Middle class it would seem is going away. Are we becoming a poor nation? I guess if you're in the upper class you would say no. If you're in the middle class / turning lower class you may have a concern. Well the upper class is what is running the country. You could see from the giving away of money to banks that produce nothing and the resistance to loaning money to manufacturing / auto companies that the rich don't like the middle class. It would seem that they want it to go away. I guess if they have a large percentage of poor people you could get labor for next to nothing. That brings us back to these poor nations like China or India. Are they really poor or is it just that the rich have a large supply of cheep labor to get their work done? All that's needed is to disarm the middle and lower class and finish getting rid of middle class manufacturing. A bunch of poor people make great workers. They'll do a whole days hard labor for a meal. The only difference from slavery is that the rich wouldn't own the worker. That's illegal you know. You can't own, buy or sell people. I don't see a lot of difference from owning people or having them in a position where they have to do a days hard labor for a meal. It just seems a twisted way to create slavery. This doesn't apply to race, sex or nationality. It's simply the rich and the poor.
This is a really sad view of things. I don't think America would come to this although the poor is growing rapidly at the moment. There's the view that as labor costs go down here and go up in other countries they will start building more things in America. I guess that would mean a simple transfer to lower cost labor while maintaining a manufacturing base. This just lowers the life style of middle class without making them poor. I certainly can't see where it's all going but changes are happening fast. In theses times cash is king. Consider that people are selling things dirt cheep. Houses can be had cheep. Car companies are selling cars cheep. Stores have to have big discounts to move product. You can buy businesses for pennies on the dollar. That's why cash is king. My advise is get out of debt. pay off everything. Pay cash for everything. Save, save, save and when there's a down turn like this you can cash in big time. Consider Ford stock. Just a month ago it sold for $1.01/share. It's now about $3.00/share. If you had $100,000 cash you could have made $200,000 in a month and bought a $400,000 house for you months profit with out spending a dime. It's too late for me to learn this lesson but if you have young ones please let them know that cash is king. All they need to do is save and wait. The past 50 years, every 10 years there's a recession and you can make tremendous money if you have some cash. I know a guy that bought Chrysler stock for a song the last time they were almost bankrupt and he became wealthy for a $10,000 investment. Now's the time to make money. Unfortunately for many it was a time to loose money. Cash is king. Save it and wait. You will make a fortune. For me that's all the education you need. Times are changing so keep up but believe me there are people who recognized this and they don't need to work.