Sunday, March 20, 2011

CREATION OF THE AMERICAN PRODUCTIVE DOLLAR

    There are two different ways to look at the earning of a dollar. The 1st  way is simple. Your neighbor has the  money. You don't. The neighbor asks you to perform a task, like cutting the lawn or building a deck. You do the work to his satisfaction and he pays you dollars. You now have $20.00 and the neighbor isn't out anything because he is satisfied he has a nice looking lawn. If you built him a deck, you have $ 400.00 and the neighbor has a $400.00 deck. The neighbor hasn't lost a thing because he has the value of what he spent to show for it. You now have $420
    It works the same way in private industry. You produce a product, any product, you have created  something of  value that the company can pay you for and you get your money. Great isn't it? Nobody
loses,. Everybody gains. The company goes on to sell the goods you made for a profit and then pays you the next week for your goods produced once again. They pay their dues to the Gov't and so do you in the form of  taxes. So now we have a third party involved with the transactions who has produced nothing but has some of your productive dollars to conduct Gov't affairs,
  So far it works out okay since you're still working and because  the private Union you belong to has
negotiated a better income on your behalf, the company you work for increases the cost to the buyer.
   The economy stays good and the Gov't takes care of our business without any waste involved.
   But only if the workers are producing a product for every dollar they make.
   The perfect storm in financing has occurred here in the U.S. because the workers producing the goods are in China for example and not here. So the Corp's are making a windfall of profits while the workers are idle here. Nothing to produce, no money coming in.
    But our bloated Gov't must go on, and with all this unemployment, they need more money and on it goes.
    They simply print out more money or borrow it to get it done. This deflates the value of the U.S. dollar because there was not enough production here to support it. The value of the dollar deflates to the rest of the world currency and goods produced in China cost more as a result of it's reduction in world value. Get it yet?
    When the Gov't spends money to look after our affairs as we elected them to do, they usually cannot produce a profit. They are not producing anything that can be resold to retrieve the losses. Its money the private companies and their workers have already produced! We can only at best, chalk it up to the cost of doing business in a free market world. It's an expense, not a product. Yet with China enjoying the prosperity and because we enjoy the position of once having been the the most productive country in the world, (China is now) we are expected to be the first ones there in a disaster.
    I would like to suggest an easier answer to that particular problem. The companies that are based in one country and have their goods produced in another,  should be required by the famous "New world Order"
to pay a special tax to a central monetary fund that in case of disaster, they pay the expenses of  bailing that country out of it's financial mess instead of asking the unemployed workers of this country to do it.
    Don't you think that would be a better plan? Just sayin'.

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