A Penny Saved
Do you remember this phrase; a penny saved is a penny earned? There’s this older couple that walks the sidewalks of little town where my mother lives; they scourer the grounds for lost coins. I once was a student of Macro Economics and one of the concerned 20 years (it was really 40) ago, was that American’s weren’t saving enough. I believe the story line goes, that we could better care for our needs if he had more individual savings.
In the 70’s , saving was looked upon as stupid. If fact, cash was looked upon as stupid. CREDIT was the way to go. Inflation was double-digit, so buy on credit today, pay it off with cheaper dollars tomorrow. Cash/savings devalued while sitting in the bank.
The Average Man
I can remember my father saying that the “Average Man can’t get ahead by merely saving. To get ahead you need to invest.” Investing in stocks then, was easy, you looked at the blue-chips, long-range they were a good return, or put your money in land.
Since our individual economic situation was so good, every country wanted to get their hand in our wallets, therefore to maintain pricing order, we imposed tariffs and duties on imported goods. That lasted until foreign governments banded together and forced us (actually blackmailed up) into in the GATT and NAFTA treaties, giving all countries and businesses an open door to our wallets. If you don’t believe this, understand, that our imports exceeded our exports, therefore importers could make demands.
I would hate to be an elected official today….out of one side my mouth I’d say “we need to create jobs in this county”, but out of the other side, I see the import problem in the support the “world economy”. In keeping a U.S. company’s profit margin high, they move production to cheaper labor countries, which gives us cheaper prices. (And cheaper quality)
But if we don’t make it here, we don’t employ people here, if we don’t employe people, they can’t make money here, if they don’t make money they can’t buy stuff here…… Seems pretty obvious, pretty circular. And, if people can’t work, we pay them unemployemenet or welfare or something, but to do that the government needs more taxes, so people want to put more tax on company’s, company’s move “offshore” to evade taxation, which deprives the Government of needed infastructure capital, which rankles people, who want good roads and safe bridges to drive on but who doesn’t want any more tax on them…anther seemingly obvious, circular situation. So, if we can’t get it from the company, then we need to put more tax on those that have more money, hum, sounds pretty socialistic to me. “Taxation without Representation”. Yep, the poorer get represented (in the government bank book), while the investor, losses his investment capital to higher taxation. Again seems pretty obvious, somethings not right.
Oh, yeah, if we don’t put people to work here and companies don’t pay taxes here, how can we support all that welfare?
What was that??? “Ask NOT what your country can do for YOU, ask what YOU can do for YOUR country”. John F. Kennedy, (1961 inauguration speech) BOY!!! Now there’s a concept lost to modern American socialism.