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Originally Posted by Robbie
Paul, I really wonder if this is how your intelligence works or not.
I am saying that IF govt. creates the proper environment (right to work states, lowering taxes locally, etc.) that businesses will thrive in an area and the economy will rise.
I never said that it's "good" to have a Ford factory in Mexico. And I'm not "wrong" when I say that if you have businesses in your community then the economy will rise and people will make more money and have more disposable income.
You are acting like you only hear what you want to hear and are not reading what I am actually writing.
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So apart from lowering taxes, you agree with me.
Chine's economy is slowing. Because the West doesn't have enough people with enough money to buy enough of their goods.
That's not a great example of what I'm saying. Destroying jobs in the country that consumes the most is a short term policy. Lowering wages, destroying jobs, kills consumption and destroys long term profits.
It's not a situation solely about Walmart, it goes right through the private sector. Add migration of cheap workers putting citizens out of work, exporting jobs, a tiny percentile getting very rich and relying on financial markets to grow an economy. Can only end in one way.
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The same exact companies that LEFT Detroit are thriving. They simply built new plants in non-union (right to work) states with less taxes. And of course some of them (like Ford) built a plant in Mexico.
They were always "modernized" in Detroit. Some of the modernization was fought by unions (of course) who thought it would cost them too many jobs.
In the end...over taxation and unions getting too greedy killed Detroit.
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I would need to know where those companies moved to and if it excluded the companies that went belly up because of the demise of the car industry in Detroit.
Research how much of tax revenue is spent in the country it's raised in. Then how much of your income is buying goods made outside the US. Then the growth of debt.
Yes, Unions were a huge problem with their approach to modernisation. In my old profession, garment production, there were no Unions. That industry went East in the 70s to 80s. Putting 100,000s out of a job who now can't afford to buy enough from China to keep their economy flourishing.
And can't afford to buy from you.