The other day while reading various news items, I came upon an article about a product called 'Bleacher Creatures' that are 10" plush 'muppet' versions of various current athletes and fictional characters such as Lord of the Rings and the 1966 version of Batman.
The company has been off the ground for a couple years and is gaining traction in terms of public awareness and profitability, and personally I like the product
But in the article I read, within just a few short sentences demonstrated the greater problem of why this economy is still floundering about and may never ever get back to the way things are:
~ Brett Keisel- Pittsburgh Steelers
"Bleacher Creatures itself has been on an incredible run. While the privately held company does not disclose financials, Matthew Hoffman (the owner) said, "We did seven figures in our first year." (2011)
Sales have nearly doubled each year since, he added.
Out of economic necessity, manufacturing is done in China, he said."
And that's the problem..
A CNBC article from last year stated the China's manufacturing costs are skyrocketing and is expected to meet US levels by 2018
So the savings can't be coming from there..
So it must be the wages.. Yes, always the wages...
~ Dwayne Wade
Even with a recent 13.5% spike in wages recently for Chinese factory workers, the lowest salary is 1,500 yuan or $240...
As comparison, at minimum wage of $7.25/hr, the lowest paid American worker makes $1,160 monthly ($290 weekly)
So Americans are good enough to buy stuffed animal toys and the hundreds of thousands of other products produced overseas by "patriotic" US owned companies
Just not good enough to actually make what we are to consume.
And for many corporations, we're too expensive to even work the phones to answer customers' complaints or concerns..
Truth is if you hear an American on the other end of the line, it sometimes is a prisoner from a minimal security institution. The jobs were "insourced" to the prison where its fully legal to pay workers 1/10th a fair hourly wage
So what is the ultimate goal for corporations.. to continually decimate the American work force?
Nope.. something more sinister..
So the ultimate goal is a one-world economic playing field where the US wage goes down, the Chinese and other third-world wage goes up and somewhere you have a consistent 'middle'
Depress the wages enough and then the US manufacturing base will come back..
Of course by then technology will be so advanced that instead of one machine doing the job of 20 people, it will now do the job of 40 or 50 and the only Americans hired are skeleton crews to make sure everything keeps churning properly.
Certainly no Republican will ever lift a finger to seek to curb job outsourcing or business relocation abroad..
And certainly no Democrat President (Clinton & Obama) has made the slightest move to stop the job-flight..
I remember back in the 2004 Elections between John Kerry and W. Bush, someone during a debate asked Kerry point blank if he was President what would he do to stop the rampant flow of jobs out of this country..
That said all I needed to know about where both sides of the political aisle stood..
Sidenote: Kerry is super rich because he married into the Heinz fortune- the ketchup is made in Mexico or Canada then sent back to the US where it is "bottled" so it can say it was made in America)
Fixing the US economy is not difficult.. You do not need to hold PhD's in Economics or Finance to understand what's wrong and what needs to change..
~ Chase Utley..
To truly fix things and get out of our six-year rut, you need leadership that is willing to:
1) Force companies to raise wages either voluntarily or through a middle class minimum wage,
2) End outsourcing of jobs and those companies that do leave and yet expect to profit off the US consumer has harsh tariffs placed on their products
3) Change the tax code so that individuals making under $25k annually pay zero income taxes while raising the top tax bracket of those who earn $1 million or more annually to pay 60% (Back under Eisenhower in the 1950s, the top tax bracket rate was 78%)
In addition, raise the tax rate on all stock market profit dividends over $50k
~ Larry Bird
There's more that can be done but its Friday and we understand a busy weekend of Christmas & Hanukkah shopping await..
So conserve your energy & have a Happy Weekend..