brassmein -> construction gangbox journal -> Issues -> deficit economy

An Economic Policy Based On Deficit.

America is teetering on the edge of disaster as we continue to squander our industrial economy to become a nation of consumers depending on foreign oil, foreign labor and foreign credit. In the summer of 2009 the scales were tipped for many families when skyrocketing mortgage payments and gasoline prices forced home foreclosures and loss of income. Trading and investing has worked well for some, but if it isn't based on a healthy economy founded in goods produced it is a doomed strategy.

A PERSONAL OBSERVATION

A Community Trending From Industry to Commerce

I could say my age here but it would serve no purpose. It will suffice to say that I grew up in an industrious southern town that listed a population of 35,000 in the 1950 census. My hometown had a large military complex and a thriving industrial economy composed mainly of textiles and iron. There were no less than 6 major cotton spinning and weaving mills; a couple of them were giants on the international stage. There was a large steel forging plant, and several internationally known iron foundries. There was a dozen or so other industries involved in the manufacture of iron and soil pipe and an industrial valve manufacturer of fortune 500 stature. There was also a farm and construction equipment manufacturer. Agriculture was also a major contributer to the local economy.

Since the 1960s most of the industry has disappeared. The textile mills closed when products from the Middle East were dumped on the market at half price. The Iron and soil pipe business was made obsolete by the introduction of PVC products. The iron foundries were put out of business by foreign competition and plastics. The farm equipment company left for unknown reasons and one of the two military installations was abandoned. At present there are a few struggling manufacturers and only memories of the once industrious place of my youth.

The surrounding community has now evolved into a hub of commerce and the population has quadrupled. Every major restaurant and hotel chain is represented on the four-lane boulevard known locally as hamburger row. The landscape is dotted with shopping centers and mini-malls, a couple of Walmart superstores and several home improvement department stores. The hospital has tripled in size and another one added. Dealerships for every auto manufacturing company can be found. There are numerous banks, investment brokerage firms and other financial institutions occupying palace like buildings.

Where does the momey come from?

To my bewilderment and the purpose of this article is the question of from where does the money come. There is relatively little output of manufactured or agricultural goods and no tourist attractions. The major income of the town appears to be from neighboring communities and traffic from the nearby interstate highway. As far as I can see the town subsist as a result of money changing, hamburger vending and real-estate development. I suspect that my hometown like so many others is living on a deficit economy with no plan to become solvent. The present recession and collapse of the national banks indicate that the trend isn't just local. It is a national problem that has the potential of ending life, as we know it in America.

The Nation

Our nation's industrial economy has been squandered through neglect and trade agreements like NAFTA that reward manufacturing companies for moving offshore. If we don't return to our tradition of work and industry we will always be in debt to other countries that don't like us. If we don't gain energy independence, the oil producing countries of the Middle East will own us.

There is an ocean of divide between conservative principals of do nothing and liberal principals of spend and waste, neither of which is a workable solution. Unless we learn to elect leaders who can see beyond the failed party principals and lobby interest to legislate in the best interest of the nation we are destined to become the worlds largest banana republic.

Howard Watkins
Jan. 2010

The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

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