Saturday, January 16, 2016

1984 – Globalism, Global Economics and The Disconnect In Presidential Politics…(The rest of the story!)

This reality within this story is a peek into the future of the fundamental disconnect between Wall Street (grows again) and Main Street (lost jobs/wages).   The reality within this example is exactly what has taken place over the past three decades.
Wall Street entities Goldman Sachs will be fine; Ted and Heidi Cruz will be fine; Jeb Bush, Marco Rubio, Nikki Haley, Carly Fiorina, Chris Christie, John Kasich will be fine – it’s middle America who suffers.  The economic consequence, yet again, creates disparity between those insulated by Wall Street and the rest of the U.S.
…. And so they will propose solutions, their solutions.
Meanwhile the non-import market, your visit to the grocery store, food, energy etc. sees prices increasing.  This is what happens when a production economy becomes a service economy.
In 1984 a name brand polo shirt would cost around $45, a really good TV around $600 to $1,000, a decent couch $1500, and a pair of name brand sneakers around $100.  However, eggs (.49), milk ($1.79 gal), and store bread (2 loaves for $1).
Electric bill $100, water bill $20, phone bill $50.
In 2016 an imported name brand polo costs around $20, a really good TV $300 to $600, a couch for $500 and a pair of sneakers $50 – All imported, all Asian, all about half of of what they cost in 1984.
However, eggs ($1.99), Milk ($4.50+), and store bread ($2+ each).  All domestic products and all double or triple 1984.  Electric bill $250, Water bill $100, phone bill $100. Again domestic consumables, again double or triple.

We consume and spend more on domestic goods such as food, energy, fuel, than we do purchasing imported durable goods.  As a consequence the net out-of-pocket is essentially the same to a little more.  However, the income opportunity, the jobs, the good paying jobs, well, those are gone because the durables are no longer part of the domestic production.
To keep the unemployed pitchforks at bay, government policy (now directed by Wall Street globalists and corporations) subsidize the income gap; EBT, WIC and food stamp assistance necessarily increasing.
Pitchforks dropped, but economic independence turns to dependence.   Government policy adjusted accordingly – deficits necessarily explode.
Yes, under Donald Trump’s proposal the cost of “durable” goods -at least those we import- will increase, your iPhone might cost $800 instead of $600.  However, the North Carolina apparel, clothing and furniture manufacturing market will have an opportunity to revitalize – and with it, jobs.
There’s going to be a period of pain as U.S. manufacturing finds it’s footing and begins to restart.  However, in the longer term it’s a shift from “dependency” to “independence”.
Those who were fully matriculated independent adults prior to 1984 know exactly what needs to be done.
Freedom is dependent upon it.