And no, I don’t mean the mental type, although our national state of financial depression can be pretty depressing, no doubt.
After reading what the economists and politicians have to say about the financial/employment mess we’re in and their conclusion that this is going to last for years upon years, I disagree.
There IS a way out that can return us to prosperity within 2 or 3 years. Here it is:
Raise tariffs on all imported goods that can be manufactured here, to a level that encourages the reopening of old factories and the opening of new ones here in America to make those goods.
Then, when those factories are producing, selling and prospering, ban the importation entirely of like goods, with few exceptions.
Reduce the importation of goods to only those things which are not manufactured in the United States, and grant exceptions only if imported items are sold for a significantly higher price than the same or similar American goods.
This is called Protectionism, it’s reviled by the very wealthy everywhere who are making fortunes at our expense and keeping us in poverty, and Protectionism works. “They” say that it creates inflation by driving prices up. This is a lie.
Inflation is caused by increasing the money supply. Only. Nothing else causes inflation except printing or borrowing money. Nothing. If a Chinese toaster costs $20 and an American one costs $40, banning the Chinese toasters will result in more Americans competing in the toaster market and the price will drop to $20.
If a nation of 100 people are all making $1 a day in wages each, a day’s food would cost about 15 cents and a day’s lodging would be about 20 cents. But if you increased the National Debt by borrowing lots and lots more money, all that money gets spread around and that dollar isn’t worth so much anymore. Wages go up. Costs go up. To pay the debt, more money is printed. That’s the deal. All the rest that the politicians tell us is crap.
The manufacturers who have outsourced the stuff we used to make to China, Mexico and whereever else, will have to re-open factories here to stay in business, as new startups will pop up everywhere to compete with them. The job market will open up practically overnight and though the employees may not be paid much at the beginning, they’ll be working again. With everyone working again, and buying again, all businesses profits will rise. With an increase in profits, there will be an increase in price competition, keeping prices low.
If we did this the Chinese would raise holy hell. They’d threaten, create international incidents both political and military, they would attack us any way possible short of fomenting war, call in our debts to them, flood the market with dollars, flood the overseas market with half-priced goods to kill our exports, sell piles of counterfeit U.S. goods for nearly nothing, refuse to sell us rare earths, any and every thing that might force us to back off.
If we want our country back and our economy growing again, that’s what we need to do. That we’d do this is extremely unlikely, I would give it about a snowball’s chance in Hell, but it would work.