I was watching Shark Tank a few days ago. A guy from the middle of America came in with an invention for small trucks.
The invention was a useful one for truckers (I am not one of them), but required some serious investment.
The guy was adamant about producing his invention in America. He was talking about his hometown, where all the big employers have left, and unemployment and poverty are rampant. He was talking about his love for OUR country and that he dreams to contribute somehow to OUR prosperity, and to that of his hometown in particular.
The Sharks raised the issue of the costs of production in the U.S. (US) being much greater than that of overseas.
The guy countered, raising quality and trustworthiness issues with overseas production, citing some examples.
There was no doubt that the Sharks were impressed with the guy and his position. One of the Sharks actually cried remembering his dad, a factory worker, who was so proud of being a factory worker.
But none of them chose to invest in the guy’s invention out of concern that manufacturing it in the U.S. (US) would cost them more than that of overseas.
I understand their position, being a business woman myself, no matter how morally wrong that might be.
When I choose my contractors for a job, their rates are one of most important factors in my consideration. After all, I am in business to make money
Of course, the money I make are so slim (barely keeping my family above water), that I am in no position to follow my principles.
But the Sharks are. The Bush’s tax cuts, financial deregulations, and the NAFTA agreement (signed by Clinton) made them so much richer while the rest of us are so much poorer.
Yes, it’s true that the economy now is global and the labor market is in particular. Yes, Americans now compete for jobs with Chinese, Russians, Indians, etc., who can afford much lower wages. So the whatever jobs in America are left also offer lower wages (and that is how we get poorer).
As we get poorer, our government gets poorer (it’s income is our taxes). It can no longer offer comfortable retirement plans, etc., and must borrow to keep the poorest of the poor from hitting the pavement and rioting.
Talking to that guy, the Sharks cited Apple as an example of the company that manufactures offshore, yet employs 45,000 people in the U.S. thanks to great long-term planning.
But these 45,000 American employees are mainly salespeople who sell Apple products to us. As we get poorer (and we will – until the global labor market’s wages get equal everywhere, we are going to see our incomes slide), we would be able to afford iphones, Macs, ipads less and less (I cannot afford neither of them as we speak). Apple would have to then reduce its American sales force more and more, until it may get out of American market altogether. As its market shrinks, so will its production, and Apple itself will get poorer and poorer.
But that is really long term planning, and no business nowadays plans that far ahead.
Our “truck” guy is but a Don Quixote of our times. He is fighting the tsunami of changes that swept our world with the onset of the global economy.
I see Obama as such a Don Quixote as well. He is fighting the losing battle too, as he believes in compromises with the other side of the political isle to the point that he almost committed political suicide last August (remember the deficit ceiling debacle?). He seems to ignore the political reality, where Republicans are being ruled by 1 person, Grover Norquist, who is financed by the likes of brothers Koch, and the policies Republicans endorse and push are being carefully prepared and fed to them by ALEC, the group of 18 large corporations.
In such political reality, the welfare of the U.S. (US, the people) is pushed aside for the sake of winning the power and making more money for ALEC and the likes of Koch brothers (even though it is ultimately short-sighted goal).
One cannot even blame them. We all are faulty in that we want our prosperity now, counting that the future would take care of itself. This is true for Democrats like me just as much as it is true for Republicans.
Even though our money bills say “In God we trust”, we trust in money bills so much more.
It takes people with more money than their possible life span may require, like Warren Buffet, to raise above the Green God and put the welfare of their country first. But their voices are the lonely voices lost in the wilderness.
Everybody admires them and aspires after them, but no one hears them.
When Warren Buffet said that Bush’s tax cuts were intended to create the tide that lifted all boats, but in reality only all yachts were lifted, the yacht owners chose to ignore their idol.
The GOP now is months from nominating Mitt Romney, one of these yacht owners. He would surely uphold the policies that lifted his yacht. Even though his background shows more concern for the fellow Americans (like his health insurance reform in Massachusetts, for instance) then the greater majority of GOP leadership, one cannot forget that he is a Shark. He too would cry out of sympathy with a trucker and then send him away with nothing.
I’ve heard Obama talking about the same tax reform I’ve been screaming in the wilderness on these pages for years now: the reform where companies get financially rewarded for keeping jobs here and financially punished for sending them overseas. I am not counting on these reforms even if he gets to them (if he wins the election and has enough political capital to get the ball rolling), because he may compromise the life out of these reforms too – just as he did with health care, financial regulations, etc.
I think if our leaders cannot or are unwilling to take care of our country, we, the people, should start doing it ourselves. Please read New Economy, or Buy American, Stupid!
Archive for the ‘opinion’ Category
SHARK TANK
Posted by Ella Moss on April 8, 2012
Posted in American economy, economy, FINANCES, global economy, labor market, opinion, personal finance, politics, predictions, Uncategorized | Tagged: ALEC, economy, Grover Norquist, labor market, Mitt Romney, Obama, politics, Shark Tank, taxes, Warren Buffet | Leave a Comment »
THE ENEMIES IN OUR MIDST OR HOW TO KILL THE WORLD’S LARGEST ECONOMY
Posted by Ella Moss on June 11, 2011
I just heard on the news that the 3rd Al Queda biggie was killed, giving the U.S. the edge on that murky shapeless war on terror we have been officially waging since 2001.
While I am happy to hear these news, I think that even we were to win the 4 wars (1.this “war on terror”; 2. in Afghanistan; 3. in Iraq; 4. in Lybia), we’ve been waging since the fateful 2001 (and I am not counting the “war on drugs”), we are heading to lose our way of life.
It’s not the democracy I am worried about here, but material comfort and relative peace on the streets (outside of occasional shootings and muggings).
It appears that there has been another war waging, and it is on American economy.
It’s beginnings are murky. But I would trace it as far back as Reagan’s Administration, that first began an unofficial war on unions. Unions make labor-intensive manufacturing very expensive and eat into profits of investors.
Well, nobody likes unions (except for unions’ bosses), so what’s the big deal?
The big deal is that everybody likes the middle class.
The middle class is as essential to any economy, as an engine to a car. Without it, economy is dead.
Even if we were to end up with a few thousands of super rich dudes, while the rest of us would struggle to survive (i.e. the middle class would disappear completely), all the many billions of these super rich would not create the job growth a multi-million population requires. They would invest into emerging markets, not the dying ones.
Why would they create a factory of any kind in the U.S., where people are struggling to stretch a dollar to pay rent, bills and buy groceries and their discretional income is so tight that all they can afford is cheap Chinese goods in Walmart, when these super rich investors can build a factory in Brazil, or India, or same China, where people are eager to spend their increasing earnings?
By the way, is not it one of the main reasons, that the numbers of unemployed right now stay where they are despite us giving continuous tax breaks to these super rich?
Yes, the second attack on American economy began during the prosperous 1990s, when Clinton Administration signed away any kind of protection of American labor force, and internet was born (internet makes outsourcing a breeze).
Suddenly, American labor force had to compete with the labor force of other countries, and American people could no longer ask for wage increase, because the majority of the world’s labor force was so much cheaper and just as good.
It took about 10 years for Americans to notice that their incomes were stagnating while their bills grew. They kept waiting for their personal prosperity to come, while changing jobs, professions and investing into 401K and increasingly expensive real estate.
But Clinton Administration also approved the deregulation of financial markets.
Suddenly, the credit was so cheap and so available, that the American people have not noticed that their actual discretional income was dwindling to nothing.
Why worry, if one could still buy a McMansion, and buy even more stuff by turning the McMansion into an ATM machine?
Yes, 1990s were prosperous. The economy was booming as people were eager consumers. The problem was that everything was bought on credit rather then with actual money.
Everyone was expecting the actual income to catch up, as it used to.
But it did not, because so many jobs have either left the country or paid as much as in other (read CHEAPER) countries.
Eventually, the credit bubble had to burst, and it did in 2008.
If the federal government did not pump money into the banks that lost the money by lending it to population so indiscriminately, The economy would have simply collapse like it did in Argentina in 1990s.
Americans were saved, although suddenly they came face to face with their economic reality and realized they were so much poorer than a decade ago.
So many of them have lost their job, that those who did not no longer dared to ask for a wage increase or benefits or union perks. In fact, they started giving up their last benefits and perks just so they could keep a job.
And that is when the final attack on American economy began.
Since it was now the federal government that was pulling the economy down the road as its engine, the middle class, stalled, the enemies in our midst began to attack the federal government.
The ideas Obama put on the table were nothing short of brilliant: invest federal dollars into aging crumbling infrastructure and green economy – labor-intensive enterprises that must hire domestic labor force. Every created job would spur on 10s of other jobs, and the economy would begin humming again.
But the enemies in our midst thought otherwise. Suddenly, federal deficit began to be used as a panic-inspiring weapon of choice.
Of course, the surplus that Clinton Administration left the country with would have been a much better deal. But if credit is sparse everywhere else, how else would you come up with money needed to pump the economy?
The enemies in our midst said, “Let starve the federal government of tax income, let’s keep taxes low so the few super rich would invest their money into economy. The government is too big and lives beyond its means. Its deficit is going to bankrupt our children”.
Americans love their children, so anything threatening the kids works as a great scarecrow.
They are also badly educated (read my American Education Reform ).
So Obama’s proposals were decimated, the government began shedding its work force, unemployment came back to its pick numbers, and unions everywhere lost their power and benefits.
Now there is no one to pull our economy from the brink. Those who are employed, work at REDUCED wages, that are getting closer to the 3rd world range.
Meanwhile, every single life staple, like groceries, rent, cable bills, insurance, etc. doubled or more in price (as compared to 10 yrs ago or less). Even those who work at median salaries have less money to buy desirable but unnecessary things.
This means that businesses producing and selling anything that is not a life staple make less profit so they begin to shed their labor force.
The less there is labor force, the less income the government gets. Since deficit is now a dirty word, the government has no choice but shed its work force and cut services to the impoverished population.
Now the time came to put the final nails into the coffin of what used to be the largest world economy: refuse to raise the ceiling on federal credit.
Once the federal government loses its credit-worthiness, watch American economy collapse into THE GREATER THAN THE GREAT DEPRESSION ditch.
The idiot dream of labor-intensive manufacturers like Koch brothers would come true:
labor in America would become as cheap as in Africa.
Unfortunately, the American workers would no longer be able to afford using the toilet paper they manufacture for Koch brothers. Like their African brethren, they would have to use tree leaves to wipe their asses. So Koch brothers would eventually go broke too.
No, it is not the federal deficit that threatens the future of our children. It is our inability to discern the enemies in our midst.
As for the scary federal deficit, it was Reagan administration that first racked it up into the trillions. Then Bush administration turned the surplus into another multi-trillion dollar debt. No one screamed of deficit while republicans were in power. The congress did not attack neither of the republican presidents for taking us into expensive wars (Reagan’s Panama blitz, Nicaragua fiasco, etc.; Bush’s Afghanistan, Iraq and the amorphous war on terror).
No, I am not happy at all with Lybia war either. I just don’t think it matters much anymore.
Like I predicted in 2008, “FINANCIAL CRISIS – IT’S NOT OVER UNTIL IT’S OVER”
Posted in American economy, economy, education, education reform, FINANCES, global economy, labor market, opinion, personal finance, politics, predictions, Uncategorized | Tagged: Al Queda, Bush, deficit, economy, financial crisis, global economy, great depression, India, Iraq, money, news, Obama, outsourcing, politics, predictions, Reagan, recession, taxes, unemployment, war, worry | 4 Comments »
ON TAXES, UNIONS, JOBS AND DANGEROUS POLITICS
Posted by Ella Moss on October 25, 2010
1. JOBS
What job would you prefer:
a) a job that has annual wage increase specified in the contract, over-time pay for all work done beyond 40 hours on weekdays, all benefits and pension one can live on after 10 years or so of service
b) 60+ hours per week, high stress job with no benefits, no over-time pay, no pension whatsoever and wages just above minimum specified by congress
If you said “a”, you prefer either government or a union job, if “b” (WHO ARE YOU?!) – you’re gunning for a private sector.
Since it is a buyer market, whether we talk real estate or jobs, that’s how private sector job looks like right now.
Our government is putting even more teeth into the buyer market by trying to cater to those we do not name who want less government, less unions, and, yes, less taxes. The government cuts down on hiring, and laying off as many people as possible. Our future governor Cuomo promises to cut agencies and authorities by another 20%. New York 18b panel is going to put another 1000 lawyers on the street.
Last December, a partner of a medium size law firm told me of a job interview for a associate position:
“She told me, ‘I was making $120,000 at so and so. I’ve said, ‘We do not pay above $75,000. And she took it!”
I would not be surprised, that next year he would offer $35,000 for the same job.
Now, you need at least 7 years of higher education to become a lawyer (all those student loans), and then you take on a 60+ hrs / wk high stress job. It used to be that at least salary was worth it. Not anymore.
Make no mistake, employers (me included) would really prefer slave labor. So with no competition, we would do our best to get as close to that ideal as possible.
Once “Tea buggers” are elected, we may even pass a slave law in congress.
2.Unions
We all hate unions. They make everything more expensive. Look at MTA: every year we pay more for public transportation despite lack of tangible improvements, while their workers get paid more than lawyers, have all benefits and can comfortably retire at 55 years of age. I personally may never be able to retire at all. And then they even have a nerve to strike once in a while!
Now teachers union is under fire. Just think, once you have a tenure, all you need is to show up at work – working itself is not required.
But do you know that before unions came into being, there was no tangible middle class at all? Do you realize that the U.S. became a prosperous country only when unions gained strength and created huge middle class?
When 90% of people earn subsistence wages only, they have no discretional income to buy all that producers of goods and services want them to buy. So producers cut on production and lay people off, and economy contracts even further. Take a look at how people used to live before unions: their houses hardly had closets (most people had only one or 2 dresses), the houses were much smaller and often 10 people would live in 1 room. Oh, by the way, most people in Africa or Bungladesh, or Mexico still live that way. They have no unions and lots of almost-slave labor.
Do you still want to get rid off unions?
3. TAXES
Like everyone else, I try to pay as little tax as possible. After all, it’s my money that the government takes away. The government is so wasteful, and it has no clue that I need another computer, or that I have to take my kitten to a vet.
But the grown up in me knows that taxes in a democratic society is really a money pool for services we all collectively need like:
schools, public transportation, law enforcement, firefighters, and even a helping hand when we become old and feeble or lose a job, etc.
Sometimes, of course, this money pays for something we don’t like. I don’t like wars. Some don’t like welfare.
But a strong society should have some military might (we do get attacked – 9/11 comes to mind, for instance), and a strong society should take care of its needy (or we may have riots, revolutions, or, at least, whole a lot of crime).
It tickles me that “Mama Grisly” and her brood are so against taxes and government. Alaska gets more government subsidies than any other state. What are they going to do out there once they cut our taxes: eat snow?
So the Republicans and people who drink spiked tea say that stimulus has not worked (even though their leader Bush Jr. approved it first – because they collapsed our economy). They want less taxes, less government jobs and strangle the unions out of existence. In other words, they want to create African way of living in North America (this way they would not have to import slaves, as we would have plenty of them right here).
Interestingly enough, many of them are not rich. They simply drink spiked tea and think they may become so.
They may be faithful followers of trickle-down economics. The latter was not invented by Reagan. It has been in existence until 20th century. But now the rich invest wherever they find the cheapest labor, and it is not the U.S. (yet).
The truly rich, by the way, tend to be democrats and are ready to pay taxes, because they are much better educated and they dig history and economics.
But they are spineless, and as soon as those on spiked tea yell at them, they too begin to talk cutting government (good jobs), unions (good jobs) and taxes that create those good jobs…
Posted in American economy, economy, FINANCES, global economy, labor market, opinion, personal finance, politics, predictions, Uncategorized | Tagged: Bush, economy, economy solutions, financial crisis, global economy, great depression, jobs, money, politics, taxes, trickle-down economics, unemployment, unions | 14 Comments »
REALITY CHECK
Posted by Ella Moss on September 24, 2010
Long long time ago, like maybe 30 years back, America used to have 2 political parties that had their country in mind when they were involved in sanely stately discussions.
But then suddenly media covering those discussions was branded LIBERAL, and this originally good word that stemmed from a synonym of freedom became a CURSE WORD.
So now anyone who is LIBERAL is BAD in America, that country of LIBERTY.
The mainstream media so does not want to be one-sided that it always brings two opposite views to discussion table. In order to make things interesting, the most contrasting views are picked, and anchors become referees of a new blood sport of politics.
In other words, the mainstream media no longer covers mainstream politics.
Then there is CONSERVATIVE media, that has dedicated several major TV channels, hundreds of radio talk shows and plenty of print media.
Have you heard of a liberal talk show? A democrat / left side of the isle talk show?
Of course not! LIBERAL, LEFT IS BAD – don’t you know?!
Ok, what about mainstream, that “middle of America” political view exposing media programming?
Yes, you can find that on Comedy Central, or some late-night comedy show. Because those few of us who are mainstream, “middle of America” sane people remaining in this blood-thirsty media-inspired rift of right and left have no other outlet to vent ourselves at all the political insanity around us except for poking fun.
No wonder no one is taking us seriously.
Well, until today, maybe, since Colbert was actually granted audience with congress (or vice versa) today, and hundreds of thousands of people are planning to attend Stewart’s rally in Washington.
Yes, comedians are now organizing rallies, since they are the only true representatives of sane people in the U.S. that speak for us.
Democrats don’t really represent us anymore since they turned into spineless push-overs. Republicans don’t really represent us, since all they really care about is power, and to that end they are ready to obstruct any bill presented by democrats no matter how reasonable or beneficial it might be. They only say “yes” to the right to bear arms (because democrats say “no”). They used to say “yes” to cutting taxes. But now they “no” to that too, because democrats propose that (I’m talking about the small business tax credit that is being stalled by them, and allowing the Bush tax cuts expire for dwindling middle class).
Now there is also TEA party. That party is straight from Alice in Wonder Land (remember the Mad Rabbit and his cohorts?).
I hope, Stewart at his rally would propose the creation of SANE PEOPLE PARTY. Because we are left with no representation.
Posted in American economy, economy, FINANCES, opinion, politics, Uncategorized | Tagged: Alice in Wonder Land, Colbert, comedy, conservative media, democrats, economy, liberal media, life, mad rabbit, media, money, Obama, rally, republicans, sanity, small business, Stewart, talk show, tax cuts, tea party, Washington | 2 Comments »
EAST VS WEST
Posted by Ella Moss on September 6, 2010
As I was growing up some 20-30 years past WWII in Leningrad (now St. Petersburg), its ghosts were all around. Kids from my neighborhood would still blow up grenades, and other old and unused ammunition we’d find in the ground, sometimes with deadly consequences. Everyone had family stories about the war, and every family has lost someone to that war. My very own grandma had to kill her second child, who was born during a bombing, when Leningrad was under siege. Everyone was starving then, she had no milk, and nothing to feed her baby with. So one day, as the baby lay down next to her, crying, she put pillow to his face. Then she sent my 10 yr old father to fetch people to help to bury his brother. She went to her grave still crying about that…
So I was growing up certain that humanity would never have another terrible war like this one.
Well, I’m no longer so certain of our maturity.
It appears, that during the last 50 years of the past century, 2 worlds were growing: the Western and Eastern (Muslim). Western world has been prospering and fostering tolerance and acceptance. Muslim world was getting riches too, but the great majority of it still lived in poverty, and it grew dark, intolerant, jealous and hateful. So these 2 worlds grew apart, and then, one day, the Muslim world attacked the Western world.
It was in 1993, and I just happened to be at the WTC shopping mall where I bought a skiing bag 15 minutes before the bombing, as I was planning to go skiing with my friends that Friday.
After seing all those wounded, and, perhaps, some dead, I quit my job that day, and went skiing, determined to enjoy my every moment on earth.
But because only 6 people died, and the WTC kept on standing, no one, including me, paid attention to the growing Muslim menace.
Sure, I’ve noticed that all wars around me seemed to be involving muslims, and I was wondering to myself – what is it about that religion that makes people so blood thirsty…
But then, in 1997, I happened to find myself in Pakistan, living for 4 days with a fundamental Muslim family.
This was a very good, happy family. The wife and the mother of 4 children was obviously adored, respected and cherished. The 3 girls, ages 10, 15 and 17, were well taken care of, studying in school and planning to go to college (they all wanted to be doctors). All 4 women in the family laughed a lot and easily – a good sign of happy people. It was their choice to cover themselves in black burka, when they were heading out. They could not go outside their home past 6 pm, if unaccompanied by a male relative, but even that somehow turned out to be a sign of being cherished and protected.
When I was comparing my free western life to theirs, I could feel a pang of jealousy: neither me nor any other western woman I knew were as cherished, revered and protected. But then it is another topic altogether.
I just wanted to say that I was enamored by Pakistani people I’ve encountered there: they were so open, so hospitable, so generous…
And then, 9/11 happened.
This time I was about 14 blocks away. But I could still see the II WTC falling in the cloud of yellowish white dust.
As I was walking home all the way to the Northern tip of Manhattan (no one could get a ride that day), I was hating all Muslims and Arabs like I never hated anyone before. My heart was churning blackness.
But at about 55th St., a car stopped by me and a guy asked me if I need a ride. I gladly accepted (I had another 130+ blocks to go).
My driver just happened to be a Pakistani. I immediately thanked God for this “coincidence”, as I knew it was a reminder not to hate the whole nation or religion.
Of course, when I got home, the Palestinian family who lived across the hall from me was having a party, ordering pizza, smoking and dancing right there in the hallway….
Still I was sad, when nice Afghani people closed their fast food joint across the street that day, and never re-opened, being afraid of us, people waiving American flags.
And that’s how the Great War of East and West really began in earnest. West has attacked 3 Eastern countries since then, and one was destroyed completely. But because that country was completely innocent of all attacks on the West, the West has destroyed its reputation and further damaged its already wounded economy.
But now the Muslims have decided to exploit the West’s famous tolerance and build a mosque 2 blocks away from the ghosts of the 2 towers they have destroyed.
Of course, these are not the same Muslims that destroyed the Towers. Those are dead. These other Muslims who want to build the mosque may very well be very nice people (like those who hosted me in Pakistan).
But now we know that we are at war. And I know that there are Muslims like my Palestinian neighbors who partied on 9/11. Those kind of Muslims would look at this mosque like their flag raised above the graves of the enemy. That would hurt. A lot.
And I don’t think that we, the Western world, would lose whatever is left of our tolerance (let’s face it, we don’t have much left – but that’s another topic), if we ask those Muslims angling for the mosque to build it 20+ blocks away.
Just, please, don’t keep reminding us at the grave of 3,000 people about those who murdered them one sunny beautiful day 9 years ago….
Posted in opinion, politics, Uncategorized | Tagged: 9/11, bombing, East, flag, grave, Iraq, life, mosque, Muslims, NYC, Pakistan, politics, the WTC, tolerance, war, West, worry, WWII, WWIII | 3 Comments »
