The Coming New Year Boom Economy
Our economy is now taking off. Here is the logic. Remember back to WWII, the rest of the world was destroyed and the US supplied the product that everyone needed. Filling the orders from the rest of the world in 1946, created full employment for the U.S.
This time around, we have told the rest of the world to take a hike, we don’t need them to produce our products. We will produce it ourselves. This demand for product previously produced overseas is stimulating our economy while putting the skids on everyone else’s economy.
It was cheaper to produce products in the third world, but the middlemen costs were beginning to take too big of a slice of the pie. The evaded tax consequences of offshore production were a big loss for our government.
In the past, the American manufacturer went to China and made shirts for a dollar apiece. He then sold them to a wholesaler, who happened to be his wife. The wife sells them to an importer at $15 apiece and the shirts hit the shelves at $35. The only American making money is the “Manufacturer.” $14 a shirt tax free. It is still going to cost about $12 a shirt to make them in the US. Most of it going to labor and production costs. In this case the return for the manufacturer (one person) is a lot less, but the benefits of onshore production stimulate our economy and create jobs.
Notice that this production out of country was considered “Globalism.” It literally wiped out industry in the United States. We could not compete on a labor or regulation basis. Their quality was good as was the price. Right now, heavy industry is returning. We still have a long way to go, much of the consumer goods manufacturing is still offshore.
So, for the coming new year what do we have? Some things will do better, I see unemployment down for the year. Manufacturing should go up. I can’t do much for predicting the stock market, I was never any good at reading chicken entrails. At McDonalds, you may have to push the start button to get your Big Mac. (I wish they would go back to their old coffee instead of trying to copy Starbucks. And while we are at it, give us the old French fries with animal fat—they were so delicious).
I think there will be some blowback on environmentalists. The low flush toilet has to go, as well as the restricted flow shower head. The government needs to get out of our lives. If they want to tell someone what to do, let it be the homeless. Taxpayers have a right to expect better government services than the deadbeats who pay no taxes.
I can stop stockpiling the old incandescent light bulbs, Government regulations have been dropped, so companies can keep making them now. I used one of the new ones over the kitchen table and the food looked absolutely horrible. I think we can expect many more government regulations to fall by the wayside.
Here’s hoping everyone had a Merry Christmas (ie the kids got what they wanted for Christmas). Here’s hoping that everyone reading has a Happy New Year.
Source: http://greatdepression2006.blogspot.com/2019/12/the-coming-new-year-boom-economy.html
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