Friday, December 3, 2010

New ideas to increase American manufacturing

During a period of ten years, I developed a completely new set of ideas to increase manufacturing jobs and reducing the trade deficit. Some of the ideas do not require Congress to raise or lower taxes or social programs. They have recently published a selection of them in a forum:

The ideas have received positive feedback there. These ideas are as follows:

Best solution for competitiveness

Abstract: A de facto minimum wage increased international agreement would be a better solution than the massive decline in U.S. wages and salaries which the Conservatives are working.

The reason Obama is struggling very hard to solve the problem of trade deficit is that the loans to pay for excess imports more loans to pay interest on the increased debt to foreign lenders, will ultimately produce a collapse U.S. economy worse than the last couple of years. That
in turn, leaving China as the sole remaining superpower in the world.

Obama has asked the rest of the world to help reduce the trade deficit, but foreign nations involved have denied, or only a symbol. For example, India recently said that buying an additional $ 10 million United States dollars in exchange for us to support a permanent seat on the Security Council of the UN, but $ 10 billion to do almost anything to help the trade deficit that swings around $ 500 billion dollars a year figure.

The business community and conservatives want to resolve the problem by lowering U.S. wages and salaries to a level competitive with third world nations, so that American workers can produce goods cheaper than those sold by China, Philippines, Indonesia, Bangladesh, etc. That would make the middle and lower class poor.

There are two ways that the Conservatives could do it. Some Republicans are proposing the elimination of the minimum wage, and social programs like unemployment insurance, food stamps, etc., ie, do not say "unemployment insurance", etc, but the budget deficit is so high that without raising taxes on higher income earners, the only way to produce a balanced budget that was requested by the Republican Movement and the Tea Party would be to eliminate all social programs. Once the above is done, people would have jobs as wages of an employer is willing to give, or face real hunger.

The other way to do so would be to promote a high level of inflation, without increasing the minimum wage, etc. With a thousand percent inflation, the minimum wage actually become worth only abut 70 cents per hour, for example, and $ 300 per month for food stamps a family would become $ 30 per month. Inflation is caused by printing money, and the Federal Reserve has announced it is initiating the printing of approximately $ 600 billion in new money in the near future.

However, the reduction of American wages and salaries is not the only possible way that American exports competitive. You could also make the competition to bring wages in foreign nations to a level of America.

This could be done by a rapid increase in international minimum wage. As the international minimum wage increases, which would pay for itself to foreigners, because the income of older people, enabling companies to sell more goods and services, which would produce more economic growth. Just keep wages stagnant economic growth. The higher wages in foreign countries that would mean more sales of goods and services produced by American workers at current wage levels.

We could do this effectively enough unilaterally immediately. I should not wait for the long process of making a new international treaty.

The method would be for the United States to pass legislation that would allow countries to sell their products and services in the United States, a corporation, foreign or domestic, would be required to pay employees anywhere in the world to an extent that the lowest employee receiving a salary equal to the minimum wage in America. For example, if a Chinese company wanted to sell something in the U.S., its lowest level employees must earn no less than the minimum wage in America.

In this way, the whole world that the United States seeks economically would be paying at least minimum wage in America. Companies from other nations to do this because they want to sell to the United States, and this would also be very popular with workers from other nations.

It is true that the introduction of a requirement of all the minimum wage in force immediately could cause economic chaos too. However, if it were implemented over a period of five years, which would be sufficient time for companies to adapt. Thus, under de facto minimum wage could be 20% of America's minimum wage the first year, 40% the second year, 60% the third year, 80% the fourth year, and 100% thereafter.

Note that legislation to establish an international regime de facto minimum wage does not add anything the deficit or require spending cuts and tax increases. Therefore, there would be no political reason for anyone to oppose it.

If the Republicans threatened to block legislation, only to be blocking the way things have been doing, the consequences of reduced wages international agreement not to approve the minimum wage and the fall of the United States to be a poor power, a third class If the trade deficit is not reduced might be explained to voters. The voters know so it would be a terrible thing for Republicans not to support it.

Of course, it is urgent to start in the legislative process quickly, because if not, then the wages and salaries are massively reduced in either of two ways discussed above.

There is another option for the rapid creation of new manufacturing jobs in the United States would not be necessary to increase the budget deficit or raise taxes.

Should not the cost of living adjustment Social Security for this idea to work.

People may acquire additional income from social security, and that the money would be used to create many new small manufacturing companies. Some of the small manufacturing companies probably remain small in order to continue to provide only a modest contribution to the U.S. economy. Some would probably become the major companies make new products in the United States, both for domestic consumption and for export.

Interest rates unusually low at the moment, but in normal times, annuities typically pay 6% or more. You can do that, because when a person dies, no return to what the person has in

Therefore, to be attractive, I think a program for the purchase of additional funds from social security would attract adequate amounts by paying 6% more than the cost of living adjustment. That means every $ 200 paid in person would give an extra dollar of income per month, when the person reaches retirement age. If the person is already receiving social security, additional income to start immediately.

In addition, foreign citizens are allowed to buy social security pensions for them at the same speed. Produced by small companies manufacturing new year, and further reduce net debt to foreign lenders at the bit immediately to bring new dollars in the United States. In the long run, it would be a payment to foreigners when he began to receive social security but would be offset by manufacturing in the United States.

There are several ways the money could be used for the implementation of new manufacturing firms in the United States. Whatever method is used, it would be of vital importance that the letter of all new business and its agreement with the federal government should specify that all products manufactured by the company would have to be manufactured in the United States, at all times
the future existence of the new company. It would also help large companies to acquire new companies that proved successful. However, the manufacturing agreement-in-the-United-States to continue holding of the subsidiary, when a company became a subsidiary of a large corporation.

I have a recommended method, which probably could be improved. It is designed to ensure that very few of the manufacturers of new error. The greatest danger of failure in the early years, when a customer base has not yet developed very far, and a new company has fixed costs, however, must pay such as rent and interest on loans. With a still fluctuating
Early customer base, there will be periods of lower revenue for the company and the periods of higher income. Often, a period of lower income will make the company to fail when they can not make your rent and interest payments.

Therefore, each new company will begin to own land, original buildings and housing for the owner or several partners. The cost of that would be part of the loan, the government provided for starting a business. The loan, of course, include all equipment necessary for commissioning and initial working capital.

Now, as part of the protection of new businesses fail, the government loan non-interest bearing. Instead, the principle would be reimbursed at a rate of ten percent of what the company actually sold each quarter. Thus, temporary reductions in sales would not cause the company to fail. The payments, of course return to the social security fund.

Then there would be a landmark agreement. Permanently, the company would pay 3% of their gross income on social security payments, payroll tax --- funds are not counted as part of this, of course. The permanent income than one would expect, I think, provide full funding
for the social security fund in the coming centuries. If 3% did not solve the problem long term social security funding, the percentage could rise to a level that could solve the problem. All this would have to be estimated at first because it would be better to have a firm agreement with each new business from scratch, with the percentage of gross revenues paid into the social security fund are the same for the company (or subsidiary if became one) for all time.

The government selected the new owners likely to do well in running a business, and provide oversight of the early years as needed. Once a company is securely established and the owners knew exactly what they were doing, monitoring the government would withdraw.

This would not be socialism at all, by the way, because the end result would be a group of companies free enterprise. That would be similar to much of what China has been doing to produce about ten percent growth rate the last couple of decades. The Chinese government gives temporary help firms, which then continue as private companies in the free enterprise once they are well on their own.

China remains socialist in some ways, but for the most part, China has become a nation free enterprise.

For example, one of my ideas would be the imposition of a fee required Investment (RIF). This is seen in either the retail or wholesale, something like a sales tax but a tax would not be real. The RIF would be the same for domestic and foreign. Instead, the money needed for investment income Cargo RIF enter into special bonds issued by the federal government. Non-interest bearing bonds. Bonds can be bought and sold, but could only be charged if the bailout money used to build new factories in the United States. So, I mean really new. Just building a new factory to replace an old one not closed
count.

RIF bonds to be issued to companies, foreign and domestic alike, which makes products people bought. Any company can use its revenue bonds under federal government supervision sufficient to ensure that this happens, to build a new factory in the United States or could sell their bonds, no doubt, at a discount to another company I wanted to build a factory in the United States. In a number of areas, a new factory can be designed so that it can compete with products made by low-wage workers abroad. There is no doubt that companies specializing in the construction of factories to be competitive in that way.

One source of new exports to our range are products with new designs, special designs of the new museum quality.

To create the avalanche of new designs that we have to increase enough to save exports to the United States, we must increase the number of artists, encouraging them to do the work of the highest quality, and make arrangements to have their designs manufactured United States States.

There are several ways that could increase the number of artists, so there are many options to choose from.

1. Could provide an income of $ 1000 per month (ie, equal to $ 1000, 2010) to anyone who wants to be an artist and has the right skills, with the provision that to maintain income, the artist must work on time complete. The artist gets everything he or she earned from the sale of their work without affecting the grant. One million artists supported in this program would require one billion dollars a month in grants, not all that much compared to many programs. Taxes paid on sales would probably most of that cost to the government.

2. You could pass legislation that would allow people who bought the work directly from the artists who made them, to have half of the purchase price of the products as a tax deduction. Most of that cost would come back in new taxes paid by artists in the income they receive.

3. We could provide all adults in the country a credit equal to 1000 2010 dollars, so the adult could be used for the purchase of any direct work of an American artist who did the work. That would cost something in the area of 200 billion dollars per year. I'm running for various reasons, so it did not look up the exact number of adults in the United States at this time.

Some people may be able to come up with new ideas for options of further adding to the list above.

To drive the quality up, there are several things that could be done.

1. Could be a number of awards each year for high-quality works that had been done during the year. If I had a million artists, we could have 50,000 prizes of $ 10,000 each, for example. That cost 5 billion dollars per year.

2. We might have teachers who continuously provide instructions and examples appropriate (images of works in museums) to the artists, with the aim of getting the work of each artist to museum quality. Each artist, for example, might have 100 hours of instruction this year.

Others might be able to add to this list.

To manufacture products in the United States would hold the copyright on the works of artists strong.

So we want to do something to encourage companies to start making products with new designs from artists. Since it would be copyright, no foreign company could produce new designs in competition with American products, so no need to worry about cheap labor outside the United States. Then, in exchange for incentives to companies to start producing the designs, the companies signed a contract strong binding always making the whole design of new products in the United States.

various incentives would be possible.

1. Each company may be proposed by the government of half the cost of the new factories needed to manufacture a new product design.

2. In the U.S., each time a customer bought one of products of new design, he or she could have half the cost as a tax deduction.

3. Corporations be allowed to join a government funded cooperation supermarkets everywhere that sell only products of new design.

4. The shareholders of the companies manufacturing the new design would be allowed to pay no taxes on corporate dividends.

Others could not doubt add other options to the list.

What we must do to save America is to have a national debate earlier lists, and other ideas from other people might have to add to the list.

No matter if my ideas were used in the end, if someone's ideas were used.

The senators want to end ethanol subsidies

Instead of the attack was unfair subsidies and tariffs in China, U.S. manufacturers and service providers with regard to economic disadvantage, a bipartisan group of senators to approve the domestic production of ethanol.

The product of alternative energy from corn is the beneficiary of subsidies, tariffs and quotas, which are unprecedented in the basis of 17 senators led by Dianne Feinstein (D-CA) and John Kyl (R-AZ) takes place.

"Maybe the elimination or reduction of subsidies for ethanol and trade barriers are important steps to take to reduce the budget deficit, improve the environment and reduce our dependence on imported oil," they wrote in a letter to Senate leaders .

The awards, which are currently at 54 cents per gallon generally discourage the importation of low-cost subsidies for ethanol made from sugar in Brazil, critics say.

They also note that the growing demand for corn to produce fuel additive added to cereals to higher prices of feed and food, so that more people suffer from hunger in the Third World.

This year, the government also requires the nation's fuel 12000000000 gallons of fuel containing renewable resources. The combined market share of government expenditure to grant U.S. $ 31000000000 Over the next five years, according to the letter.

"The combination of subsidy to ethanol gas tax is not to defend" the letter said.
Despite the rare cooperation between the parties, could be the end of federal support for ethanol industry will be much easier said than done.

The industry is strongly supported in the production of maize in the Midwestern states like Iowa, Illinois, Indiana, Illinois and Nebraska. Parliaments of these countries - at least 10 senators - just the suspension of aid in support of the sector.

Not to mention the fact that nowhere more important than the ethanol industry in Iowa, which happens to be the first state to hold presidential primaries. Due to its special place in the presidential nomination, each presidential ambitions MPs lose their chance at the White House by supporting the bipartisan effort.

However, many Republicans feel the pressure of the right to end their subsidies and tariffs parties. Tea party members are less receptive to alternative energy and built a movement on unnecessary expenses.

"The elimination or reduction of ethanol subsidies and trade barriers are important steps to do to reduce the budget deficit, improve the environment and reduce our dependence on foreign oil. We look forward to working with you responsible fiscal policy, the energy can "read the letter.

The Crucifixion of Christmas by business and media

Christmas consumerism is unsustainable practices of companies and advertisers that Americans are increasingly attracted.

Black Friday is a term that describes the day after Thanksgiving, for Christmas sales are expected to dealers in black or cost sharing for the year. Christmas shopping now 50 per cent per cent of retail sales, which makes it essential for the survival of businesses. Typically, consumer spending represents 70 percent of U.S. economic growth.

Ironically, our mentality of consumers could be our loss in the last 15 years, the vast majority of products sold in the U.S. during this period abroad. With stagnant wages in the same period, are increasingly buying up the claim, putting citizens and the most indebted country has a trade deficit and national staff continue.

But many people much more cautious about buying a $ 1,000 TV for $ 300, quite important. Knowledge is power, and blissful ignorance of the companies have taken the Christmas and America, "the people" have become powerless.

Protection of the Republic has need of care and supervision to special interests to prevent the acquisition, as has happened in America. the absurdity of man, has become "Black Friday" trampled to death for discounts Door Buster - a symptom of mania, which affects the general population.



However, there are few signs of life. At the request of a group of people promising to buy anything to Black Friday, in protest against the enormity of the Christmas shopping has become popular. What started as an innocent tradition in the 1940 season is now three months since the media constantly pushes.

Online shopping and small purchases have also some reason in the party again, as people reject the gifts flashy and visible to the simplest products. However, much of this spirit may be necessary to stop this madness at Christmas and the United States.

The values of freedom and liberty that America was not built to give the bondage of blind consumption. Stay educated on the issues and press for the module itself is important for healthy citizens of a republic.

German example shows how to operate a successful manufacturing company

Germany, the unemployment rate lower than the U.S., and increased GDP growth, is a model of how to manage a thriving economy.

Germany's success is based on its manufacturing base. The production represents about 25 percent of the German economy in comparison to only 11 percent in the United States. extended when the U.S. financial sector and the United Kingdom at a cost of production of goods, Germany has managed to stay the course. The results were phenomenal.

Germany is the second in a € of China's trade balance, which is especially remarkable when one considers that Germany has a population of 82 million dollars. Germany is able to put through an intensive production system of capital and knowledge to achieve efficiency stressed.

German SMEs are the key to effectiveness. SMEs are small, family businesses and medium-sized manufacturing. These are highly qualified middle school through vocational training in Germany, and this terrible workers tend to remain in the same company for decades. Have a banking system, a maintenance of time and not to engage in speculative behavior is affected risk.

"What we have here is part of capitalism, not shareholder value," said former lawmaker and businessman Klaas Hübner. This small production company should not worry about shareholders, and can focus on long-term growth and development. German firms in the securities markets, such as BMW will continue to invest in national list to guarantee their future profits.

While other UN programs when unemployment Great Depression hit Germany a new approach called short-term work, where the government pays a portion of the wage gap if the company reduced its full-time employees and no part-time tried to dismiss.

There are several lessons to emulate America and our struggling economy. The most important thing is that the producer is to achieve high growth and wages, and push the effort in this country in this regard through the reform of trade agreements, education and our banking system should be done.

Follow import more than we pay for

Here are some sobering facts: The U.S. loses 725 billion dollars a year in another country by operating losses. This money is not to buy our goods and services. E 'up to three additional functions of the United States:

1. Foreign countries are financing the U.S. government - with levels as high as 53% of U.S. government bonds in foreign hands down 2. The stranger, use the rest of the money to buy our industries and enterprises (over 16,000 U.S. companies that produce wealth in the last 30 years) 3 United States Many industries are now non-US companies (such as publishing books for 63% ownership foreign sound recording industries 97%, 75% of motion pictures, the cement industry, 62%) controls

The result: foreign lenders are actually supported the U.S. government, lower U.S. interest rates and consumer spending. If foreign countries stop these loans are easy to grow in the United States, the imported goods cheaper and the government should raise interest rates to attract lenders in the United States government bonds. We assume naive belief in the sustainability of the superpower status of the United States. N superpower in history has ever so little of what they consumed in taking so long to produce a crushing debt. Why is this a risk? If foreign creditors are willing to help us continue to ship goods abroad and our government to bankroll an indefinite period, everything would be in exchange for dollar bills printed, and in order. But at some point, be able to continue as U.S. debt rising foreign demand a bit 'more than one document as collateral for the loan. As currently purchase using most of these dollars to our credit, will always offer less than the U.S. as a guarantee. U.S. prices of debt and financial losses are much faster than the rate we replace them with new industries and new factories climbing. We assume that every point we can provide our industry a whim to rebuild. The U.S. automobile industry shows how difficult it is. It takes time, money and know-how - three luxury of a country at war with massive debts can not have. Why was nothing done? This is designed for 30 years and like any new government that are not taken with the "hot potato". Instead, make the country U. S. undervaluation of its currency in Asia and do not open their markets. The United States accuses Europe does not help reign in the military threats to global stability and to subsidize their own industries. Meanwhile, these regions, the debt of the United States for abusing its status as a slightly run a world power, huge deficits in the lifestyle of the United States without the support of domestic production. By our own admission, has moved from a manufacturing to a services economy. However, we do not recognize that domestic services are not easily exchanged for foreign goods. At present, our goods deficit with the rest of the world is 14 times greater than our surplus services. Straw Finally, high oil prices, terrorism, higher interest rates or other exogenous factors that could upset the delicate balance that currently supports the U.S. standard of living. Our options are to wait to see the market forces that want to return to a balanced situation or problem and develop a plan to tackle this problem. The problem with "wait and see approach is that since other countries are actively implementing its economic" war plans "we can not then it is likely that the new balance in S. U. The problem: The proposed approach is pain-term for the United States and the outcome can not be what we expected either. At least, the leaders of the United States, a working group to examine the issue in detail and understand the magnitude of our economic weakness and to make as many Different scenarios can happen any time soon. Everything else is nothing short of a disgrace to the past generations who sacrificed themselves for our current position and dereliction of duty for future generations, based on the debts of this generation have to live.

Unions frustrated Outsourcing Conference

The movement has succeeded in a plan by a Mexican magazine to a conference defeat on outsourcing for U.S. companies in Seattle.

The magazine had MexicoNow conference on 2 December planned on air and space company in the U.S. to Mexico to promote.

This is the third time this year that the magazine has tried such an event in the U.S. are the two other scheduled conferences both in Wichita, Kansas, were canceled. Although it is difficult to understand why union leaders have threatened to picket the two events, saying it would result in the loss of American jobs.

"It's sad that such threats are held in a free market, where the emphasis should be placed on the long-term competitiveness and lower prices for consumers," MexicoNow Editor Sergio Ornelas said in a statement.

However, the members of the International Association of Machinists and Aerospace Workers District Lodge 751 and say the Society of Professional Engineering Employees in Aerospace, they are only to protect what is theirs.

District 751 President Tom Wroblewski said in a statement that the goal was the union does not request the cancellation of the event power, but about the responsibility of the potential loss of thousands of American jobs. Upcoming events were just a way for his side heard, "he said.

"I do not think that it's time for an open debate over outsourcing in America," he said. "Sending work to Mexico or China, short-term gains for companies to win the practice, but our members know first hand how it can destroy a community - or nation -. The long-term competitiveness in the air when America's leadership in this global economy have our businesses and our country to invest in us - and not abroad. "

Ornelas guilt of the threats and risks of an interruption that was the reason he and his newspaper decided to cancel the event.

"It's sad that such threats are held in a free market, where the focus should be on the long-term competitiveness and lower prices for consumers. It is because of these dangers and risks of interruption and care is our students that we have for this event to say, 'he said.

The planned event was addressed to the manufacturers of aerospace United States to "enjoy knowledge of the competitive advantages for air and space company in Mexico," they can "interact with the managers of the aerospace plant in Mexico" and the development of a detailed cost of the pro forma of a potential project offshore industry in Mexico. "

"While the goal of MexicoNow American jobs, we steal some effort will continue, the group was able to do a conference in Washington against subcontracting," said Wrobel.

Food Safety Bill Hits Speed Bump

Due to a terrible procedure, the Food Safety Modernization Act will have to wait until the end of the year, before reaching the president's office - if ever.

Since the bill contains costs for importers, producers or farmers whose products were recalled by the Food and Drug Administration. Some see this as a tax. Under the Constitution, the new tax measures must originate in the house.

"The Senate knows the rule and should follow the rule and must be familiar with the rule," Majority Leader Steny Hoyer (D-MD) said that, according to AFP.

"Nobody should be surprised by the rule. E 'in the Constitution, and has lectured and been reading and the Constitution. "

The bill, which passed with bipartisan support in both houses of Congress should go to a conference committee between the two chambers, each time for a new vote, then the president's desk for signature. It should be one of the signature achievements of the lame duck session of Congress.

Even simpler than that, there were indications that the House leaders were willing to accept the weaker version of the Senate measure, which would have allowed the camera to avoid a new vote on the bill.

Now their time is increasingly seen as a certainty, although Democrats say they are confident the bill can be approved at the end of the year.

But Republicans have vowed to block any measure that does not relate to taxes and spending.

The measure was brought to the forefront of political action, due to a rash of recent health crisis with eggs, peanut butter, spinach and milk.

According to Senator Dick Durbin (D-IL), each year 76 million Americans suffer from foodborne illnesses can be avoided. 325,000 are hospitalized each year due to contamination of food and kill 5,000.

Under current law, those responsible for the distribution of contaminated products is responsible for the issuance of their recovery. The FDA can only suggest that the withdrawal will be published. The law could change the situation and give the FDA mandatory recall authority.

The bill also provides for more frequent inspections of food processing plants and better monitoring of the epidemic. FDA hiring new inspectors to meet.

Despite the defeat, the Democrats still maintained an optimistic tone about the potential passage of the bill.
"I think we have done. I think it will happen soon. Let's get something for the House to be moved. In a way, it will do. We're just looking for a way to do it," said Senator Tom Harkin (D-IA).

"Human error happens Nobody who tries to jam -. It's just human error, no one has made a fatal error is nothing here, nothing will kill this bill .."