Monday, August 20, 2018

No Time Travel Option





The video above was posted to public media by someone who believed it to be demonstrative of reality in the world today. Unfortunately, this indicates ignorance of economics more than any other single concept,

        The real message here isn't that the Chinese are producing "cheap junk" since there is, and has always been, plenty of American made cheap junk. Same materials, same machinery, higher labor cost. In Trump world, the bad guys are the people who, understanding economics, (which he demonstrably doesn't - can you say "five bankruptcies?") supply the US demands for cheap products. One of the major players in this charade is ...wait for it.... that icon of conservative Republican support, Walmart.  Sam Walton made his rep with "Made in America" signs all over the stores. Find one now if you can.

        Historically, Walmart has pushed US companies like Rubbermaid to shift production to China and elsewhere by telling them what they (Walmart) would pay for a product and that if they couldn't produce it domestically at that price, then they'd have to make it elsewhere. Bye-bye American made Rubbermaid products, hello cheaper Chinese made Rubbermaid products. A note here, many of these Chinese products, especially sports team logo wear are marked up tremendously by the American company and Chinese workers get relatively little of the upcharge. A golf shirt with logo which Under Armor manufactures in China for about $9  is priced at  $96 dollars in the US Naval Academy gift shop. There are American shirt makers who produce as good a product but are shut out because Under Armor outfits the football team as well.  Under Armor is American owned.

        The tragically ignorant thread here, is that headband wearing, redneck, cousin lovers such as those in this video shop where? Walmart, because it's cheaper. Blaming China for meeting the demand of Americans for cheaper products is ludicrous, and sadly, indicative of the many of our citizenry who have almost no cognizance of Economics. These are the same people who, at an auto dealership only care about "How much is my payment?" and jump at the offer to wait three months before making the first one, not realizing that the interest will be added to the final cost anyway.

        There will continue to be a market in certain sectors for luxury products made in America and elsewhere, but the majority of minimum wage, two jobs families aren’t the market for those products. Of course, Trump bitches about “cheap, Chinese” products, since he will never buy any of them for personal use. This, however doesn’t meant that he and his practice what he preaches.  Since Election Day, the apparel brand run by Trump’s daughter has imported 56 shipments of Ivanka Trump products from China and Singapore, part of a total of 215 shipments from Asia since Jan. 1, 2016. In Trump’s signature DC hotel (from which he was supposed to distance himself due to potential conflict of interest but hasn’t) the four-story American flag in the lobby towers over Swarovski chandeliers made in Austria. Lamps lining the hallway are from China. Small decorative boxes on the coffee tables are marked with stickers that read “Made in India.” In addition, the majority of items in the $800 per night rooms are not “American made.”  In all, 21 of the 31 products whose provenance could be identified come from outside the US. Here's a partial list: Lamps (China), Glasses (Italy), Phones (Malaysia), Remote control (China), TV (South Korea), Soaps and shampoos (Canada), Towels (India), Scale (China). Hair dryer (China). Sheets (Italy), Tissue container (UK), Umbrella (China), Robe (China), Tray (UK), Ice bucket (UK), Dishes (Germany), Chandeliers (Austria).  

        Now here’s the paradox which makes my head hurt. The majority of Trump supporters who cheer at his jingoistic speeches about economic issues have several huge lapses of logic at work in their thought processes, whatever they may be:

First: Their “default position” is, “If we manufactured these things here in “’Murrica” instead of overseas there’d be more jobs, we could make more money! Of course, this leads to logic lapse number two which is:

Second: These same naifs would expect American wages, which when added to higher domestic overhead and materials costs would make these products much more expensive. Over the entire manufacturing spectrum, this means a rather large increase in cost of living for those who can least afford it, most of whom ignorantly support this convoluted and retrograde notion. Of course, Trump and his ilk couldn’t care less, since they don’t shop at Walmart.

Third:  These folks, like their President, don’t “get” that the economic balance and nature of the world has changed and cannot be “reset” simply because they want it to be.  We are no longer in possession of all the raw materials which forged the world’s most robust economy in 1946, when Trump and many of his supporters were born. [One quick example is the rare earths required for many of the electronic systems prevalent in almost every aspect of modern life, from cell phones, to jet fighter weapons control systems, to satellite technology. China and Brazil control almost 75% of proven sources of those minerals currently known to exist!] The US economy cannot simply click its heel, chant “There’s no place like home” and return to that economy. The era of manual labor supporting a family is pretty much over.

Fourth, and just as troubling: The sub plot in much of this is Trump’s carefully orchestrated, implied “fear of the ‘other’” scenario. It’s not just xenophobia, because he has managed to make many of his sycophant base see their fellow Americans as the “other” as well as those of brown skin, almond eyes and strange accents. Somehow “they” are to blame, whether it’s “taking American jobs” which is a blatant lie, since immigrants are in most cases taking either high tech jobs because they have the training, skills, and motivation Americans lack, or entry level jobs which many Americans are too (“good”, proud, whatever) to take. Meanwhile crops rot in fields in some areas because those who have, in the past, picked it, are afraid to come to work. The other “other” is those of us who see the man for what he is and more importantly, for what he isn’t. If we mention the racism, ignorance, and general lack of respect for others exhibited by the Trump administration, we are now the enemy as well. Reporting factual data becomes “Fake News.”  In fact, anything not specifically pro-Trump is likely to be labeled as such. Trump consigliere/mouthpiece Rudy Giuliani even recently stated that truth is, “Not necessarily,” truth. Say what?

        A trip to Arnold’s Drive In, if we could hop in the Delorean and make it, would reveal that, for better or worse (but forever, in any case)  Ritchie Cunningham, Potsie, Ralph and the Fonz have been gone for decades. In many cases, so has “Made In America.”   

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