What the world needs now in addition to love is wisdom.
Wednesday, November 5, 2014
King Solomon on Political Promises
Dear new elected, back on track Congress, here is a way to add four million plus, livable wage jobs for US workers.
According to all polls taken, the number one voter concern for the last four elections is livable wage jobs. In every election, the candidate’s all promise the same thing.”The number one priority if elected will be jobs.” The jobless unemployment percentages have fallen in the last six years, but every statistician knows how misleading percentages can be.
In a previous post HERE, I brought up the fact that the US trade imbalance in the amount of one-half trillion dollars a year is the major cause for lack of livable wage jobs in the US. The comments I received from that post indicates to me there are a lot of people that agree with my statements, that is the reason for this post.
Keep in mind the main reason for the statistics of lower unemployment rates is that US workers are working, except millions are now working part time jobs and/or making less than a livable wage now as a result of free, but unfair trade treaties approved by Congress. In my opinion, the agreements were negotiated by inept US government trade negotiators and an inept Congress that failed to monitor and regulate the agreements so as not to cause hardship for US workers.
So what is the way to add four million plus US livable wage jobs and what has King Solomon have to say about the problem?
Check this math on how to add four million plus US manufacturing jobs in the USA.
The present yearly trade imbalance is one half trillion dollars a year. ($500,000,000,000)
In manufacturing products, the average US typical wages paid portion of the cost to manufacture a product.is one-third of the cost of a product selling price. (1/3)
The average livable wage for a US worker is forty thousand dollars a year. ($40,000)
Total of lost US wages. Multiply $500,000, 000, 000 by .333 = ($166,500,000,000)
Divide $166,500,000,000 by $40, 000 = (4,162,500)
This equates to an approximate number of lost US manufacturing jobs (4,162,500) because of the one-half trillion dollar US trade deficit.
When you consider if four million livable wage jobs were added back to the US economy, the workers would spend more dollars for services they cannot afford now, would add even more jobs in the USA. Plus the dollars would remain in the USA and be reinvested in infrastructure in the USA with plants, roads, etc.
There are a many more considerations, pros and cons, far too many for this post to write about, but in the end the pros will out way the cons of adding more livable wage jobs to the US economy. Also when you consider manufacturing lost skills and opportunity, drive up jail populations, poverty, etc. Congress should get the US back on track by adding job opportunity to make a livable wage instead of being unemployed and/or making unlivable wages for workers that require them to apply for government subsidies programs such as food stamps, rent subsidies, free health programs, etc. Another plus is a livable wage creates an opportunity for them to pay taxes instead of adding costs to drive up the National Debt, now fast approaching eighteen trillion dollars.
In my opinion, when a free trade agreement is made, provisions to regulate huge trade imbalances should also be included. For example, the trade partners must agree that imbalanced trade is harmful for a trade partner and when this occurs, and there should be mutual agreements how to regulate without retaliatory trade practices actions between the partners taking place. The World Trade Association, which the USA is a member, recognizes the harmful effects to a nation with huge trade deficits.
Obama made a campaign promise when he first ran for President six years ago to renegotiate all free trade agreements and to date has never fulfilled this promise. In my opinion, free trade is great, only if it is fair for both trade partners. Perhaps we should ask the same promise be done by our new Congress, to renegotiate all free trade agreements to make them fair for US workers.
Three thousand years ago, King Solomon wrote this proverb which I believe the new Congress elected yesterday should consider about themselves when they make promises to make jobs their number one consideration when they run for election, so as not to be described by this proverb.
Clouds and wind and no rain, a man who boasts about a non-existent gift. (Proverb 25:14)
“In the end, after all his fair promises, nothing happens. His words are empty, and in this respect be like the clouds and wind which bring no rain. Everyone knows how the deceptive the clouds can be, especially when, in the wake of a scorching summer, people long for the rains. The clouds can be red and lowering, betokening a storm, but time and time again it does not come off.” (Proverbs McKane)
In fairness to major US political parties, both failed to monitor or regulate the free trade agreements that caused the loss of millions of US manufacturing jobs. Clinton and Bush before Obama. I hope this new Congress does not continue pointing their fingers at each other instead of solving the present problem of free but unfair trade agreements for US workers.
Keep in mind, US workers cannot compete with wages of a laborer in another country that makes $200 a month when US worker has to pay $800 a month for rent. Congress is supposed to represent US workers interests over foreign workers interests. Free trade will benefit both partners only if it is fair trade in relation to trade balances.
The original premise was all dollars paid for imports were supposed to come to the US to be used to buy US products instead of being borrowed back to the US to pay for deficit spending.