i could be wayyyyyyyyyy off base here but ima take a stab at this from a different point of view.
everyone wants to blame the chinese, the govt, walmart...but arent we, you and it and bob over there in the corner also very largely to blame for a
lot of our economic woes?
heres what i mean. bob over there refuses to work for $4/hr as would most of us. he wants top dollar for his job whether he's actually worth it or
not. for his employer to pay him and his coworkers top dollar they have to charge more for their goods and services. that gets passed back to all of
us (bob included) in the cost of purchasing said goods and services.
now, bob works hard for his money (in his opinion) so when he spends his money he wants the most bang for the buck so he's going to go buy his goods
from places that will sell to him cheaply. enter walmart. walmart cant buy goods from bobs employer and still sell them at a price bobs willing to
pay, so they import, they import a lot.
now the problem is, since bob gets top dollar...other countries like china arent really interested in importing our goods when their own workers can
produce the goods they want for nearly nothing.
think about it, if bob gets paid way more than the avg chinese worker and yet bob wont pay the price of domestically produced goods, why would anyone
expect that a chinese worker making less money is going to buy those same goods?
(at this point let me applaud grover for his attitude of buying american whenever possible. go you
now where i do blame the government is in the constant screwing with the tax codes. other than the fact bobs just greedy, after taxes he just doesnt
take home enough to buy domestically produced goods.
so, do away with income tax, cut the tax breaks to the oil companies until they start selling gas for a resonable price (does anyone really beleive
that a company making 60 billion a quarter needs any tax breaks?) and institute a larger federal sales tax in its place. the result: we take home
more money each week/month so mentally we think we have more money so we spend what we take home. sure, its all still taxes but its a fair tax.
someone making 200k/yr pays the exact same taxes i do particularly on "luxury goods". (of course there are certain necessity goods youd not tax or
tax lightly. food, medicine, anything for babies (toys notwithstanding)) but at least then everyone pays the same % tax on their money and thats fair
(cuz all this complaining aobut rich people is lame, why penalize someone for doing well? isnt that the goal for all of us?) offer lower tax rates on
us made products than you do foreign made products (who cares if its fair to them? it encourages us to buy domestically thus keeping bob in a job and
making money and spending it at home)
is this a perfect plan? not even close...but it could be a start, and it would make a LOT more sense than the current tax laws. i mean, the current
laws are so complicated that most of us have to hire someone else to explain them to us and do our taxes for us. all the govt has done with the
current tax code is to create a whole job market for tax attornies and preparrers. i may not know how to do a 1040 but i know that if im looking at a
product that costs 100 bucks and if theres a 15% tax on it i owe $115. and i like simple, particularly with math.
but to sumarize, i think its a hole we've dug for ourselves. we want high wages and low prices. if we're being objective...we cant have it both
ways. not on domestic goods anyway. and as long as we ARE making top dollar at our jobs...countries like china simply wont buy our products while
being the only source of the goods we want at prices we're willing to pay.
whats this got to do with foreign countries owning our notes? well, maybe if we had a stronger manufacturing base and were spending more of our money
at home...we may not have needed to sell off the notes to start with?
yeah i know, its simplistic and possibly naive, but if you think about it i may not be THAT far off