Fancy economic theories simply do not work. Redistributing the wealth of this country doesn’t work.
The ultimate slavery machine every created was created in England and the United States with the complete industrialization in the last couple of hundred years. Men went to work in factories instead of farming. Rich men went to college to get an education and to manage the workers.
It started with men working 6 days a week to provide for their families.
A lot of these men went into apprenticeships and learned trades. Trades pay better than labor. They were protected by Craft Organizations that eventually became unions. The assembly line was the end of a lot of those trades.
Most wives stayed home and cooked. She cleaned. She raised the kids. Sounds like America around 1912. The wives did not go out to work. They did not earn a living. But in this partnership of marriage they had a well balanced relationship. The husband went out and worked his tail off. The wife did the same at home. They shared the wealth together. This was all prior to the introduction of World War I and the income tax.
This income tax was the beginning of class warfare in this country. It was to blame for an enormous change in government. The original income tax was supposed to be a tax on the rich people to support the war. Before that the taxes were imposed on imports into this country with tariffs to support the government. The income tax was supposed to only effect 2 percent of the people in this country. That was how it was written. Tax the wealthy and leave the middle class and poor alone.
Europe flared up into a forest fire of wars. They combined into the first World War. Only we didn’t get involved in it until 1917. Germany was the villain in all of this. Though Russia had quite a hand in it too. The combatants ruined their selves in this conflict financially. Currencies went bankrupt. People lost everything. Many lives were lost. We went in and cleaned up the mess after the Germans, French, Russians, English and Italy. By the time we got in, both sides had exhausted their armies. We went in with fresh armies and cleaned up. Naturally we came out of this fairly wealthy. Our currency was the one to have of choice instead of the British Pound that used to have that title.
By the late 20s, we had expanded the wealth of this country and everyone and his brother were taking advantage of record gains in stocks. That should tell you something. Anytime everyone knows about something like this, it usually goes sour. That is what happened.
The assembly line came into its own. Ford started it. It brought the cost of producing goods down. The victims of this were the trades. Most of the wealth of the middle class came from the trades. The assembly line did away with a lot of that wealth. Ignorant people could put a bolt on an item for pennies on the dollar. All through the 20s, two things happened to bring us down.
The farms were failing. Lack of planning meant the crop rotation did not occur. Each year the crops became less. A lot of farmers went under. This is way before the stock market crash.
Craft Unions failed right and left because of the assembly line. Industry had bypassed their wages with a new way of dong things. (We will get back to this) As a result, men were unemployed that normally would have had a good income. This undermined the foundations of our economy. People no longer could afford that house. They couldn’t afford basics. This happened before the crash. But I think it caused the crash indirectly.
The attempts by FDR (Roosevelt) were a sad failure for the most part in the attempt to “socialize” the masses. It is where our universal pension system came from though. Social Security was a big hit. So was unemployment insurance. The inflation of the currency was a direct fraud. It suddenly put the majority of Americans paying into Income Taxes. It didn’t happen over night. It was a creeping thing. The middle class was losing. More money but the money bought less. Gradual inflation hit the masses. Suddenly more and more people were spending more and more money but getting less for it. Suddenly the Income Tax effected a lot more people.
In 1939, the world changed again. Hitler crossed a line. It was the end of Hitler’s Germany.
It took Hitler no time at all to defeat France’s obsolete defenses. Suddenly the entire country was occupied by Germany. Countries all over Europe were over run by German troops. The truth is in 1941, Hitler had won the war. Only a 26 mile channel of ocean, kept Hitler from over running England.
If the war had ended there, all of Europe would be under German control to this day. England would have become a German Partner.
Then a German Ally, Japan, did a very dumb thing. They woke up America to the threat of the Axis taking over the world. They invaded Hawaii. Hawaii was a protected territory of the United States. It was not a State in 1941. Politically, FDR could not have justified us entering WWII. The Japanese did it for him. With airplanes, they blew our fleet of ships right out of Pearl Harbor. We didn’t have a fleet anymore. It was on the bottom of the Pacific Ocean. If they had followed through, then Hawaii would be Japanese today.
So after 3 years of war, from 1939-1942, Europe was in ashes. Britain was being pounded into the ground by V2 Rocket Missiles. Britain was on limited food supply. The new German Submarine Corp was more than a match for Britain’s aging destroyer Navy. The United States was thriving. The depression was over with. Supplies to the war were making our nation wealthy again. Our production lines were going full strength.
At this point, most of the wealth of the world was centered right here in the USA. The dollar was king. The British Pound owned that title prior to this. The Pound went for $5 in 1938. By 1945, it was worth less than half of that. It was artificially kept at $2.80 for a while. It eventually went to a $1.05 as a low but that was years later.
We joined the Allied effort. They were pretty much gone. My own Father spent seven years in the British Navy. From 1938-1945 he was an enlisted man. As near as I can figure out, he wouldn’t talk much about it, Dad was a fleet boxing champion, middle weight class. He was also a Supply NCO in the navy. He turned down promotion after promotion to keep his job near home in WWII. He was eventually part of the Norway Invasion. He had a framed letter from the King of Norway, thanking him for his participation in freeing Norway from the Nazis. He was also both a carpenter and a composing room printer. That saved us.
Britain at the end of the war might as well have lost the war. Not from a humane stand point, from the fact that they lost their financial system. The colonies all declared independence. The navy was depleted to nothing. Those Subs did a number on antique navies. There is a lesson there but we are too stupid to learn it, or our admirals are. The former colonies stole all the factories that belonged to Britain at the end of World War II.
It took Britain years to recover from the war. France did better even though everything was destroyed. The United States took over Britain’s place in the world. Britain ended up going socialist with the Labour Party. It ended up going social medicine as did most of Europe. Britain put forth an effort to train its people. My cousin went through 3 years of the University of London Electrical Engineering School. Britain payed him a living wage while he went to school. They paid for his schooling. He then went to work for a local electric company for 20 or more years.
His story was not uncommon. He was fairly bright with A grades through most of his long schooling. I think it made a slave of the system of him from an early age. He is now old like me. He has Parkinson Disease and is severely crippled.
What caused us to leave was Dad. He couldn’t even buy a carton of cigarettes in 1947 England. Everything was still restricted and books were given the people to limit their use of products. The world was a disaster. Stalin saw this. He wanted to take over the entire planet. He was suddenly a monster, rather than a partner.
The USA came to the rescue. We put armed bases all over Western Europe. We stationed troops all over the world. All of this came from the profit of NOT directly fighting a war for 3 years in Europe. It gave us an exaggerated opinion of ourselves. And that basically is the problem we have to this day.
We loaned money to everybody. Our credit status was great. Then a series of small wars has left us in debt. Korea came first in 1951. We had a monopoly on the biggest bomb ever created in the Atom Bomb. It lasted until spies duplicated the Bomb in Russia. We could not use the Bomb. So conventional troops had to do the job. Wars tend to use up expensive equipment and men. We certainly lost the war in Korea. It was fought to a stand still at the 38th parallel. It is still there.
Then a decade later, we went to war in another primitive country, South Vietnam. We lost that war too. The first small war cost us about 10-12% of our wealth. The second war cost us roughly 400 billion dollars. Each time our currency took a big hit. The current wars are even more expensive.
We took such a big hit that our currency went down to 1/10 of its value. Nixon took us off the Gold Standard in 1970-71 time frame. He made it legal to own gold again. It took 10 years for the currency to settle at 1/10th of its value.
In the meantime, our government was under the illusion that it was still wealthy. It still was spending money like a drunken sailor on a three-day leave. And that is the real problem. We have to come down to Earth at some point in time.
* We are not the wealthy nation of 1946. We need a serious Reality Check.
* We no longer can afford to:
* Support Armed Bases all over the world.
* Give money out in foreign aid.
* Support the UN and its agendas.
* Support a World Wide Currency.
* Support a massive welfare system.
* Support a global government effort at the UN.
Support the development of battleships, airplanes, and tanks to fight wars in primitive countries. Financially it cannot be done. Russia learned that the hard way with the loss of battle helicopters with sophisticated systems. They were shot down from horseback! It bankrupted the nation of the USSR and eventually caused it to break apart.
Support the industrialization of poor nations like India, China, Korea, and Taiwan. China is no longer poor.
Currency wars because of imports being cheaper than we can afford to make them. China declared an unofficial economic war on us in 1971. They won! We owe them a lot of money.
Corporate farming at the expense of the everyday farmer. This was a partial cause of the great depression. We need to support individual farmers over the more efficient corporate farms. We need decent food to our people. Not massive inhumane farming as practiced by big corporations.
The drug industry ripping us off. We have the highest expense of drugs in the world.
The oil industry ripping us off. Oil from foreign lands deplete the value of our currency.
The current doctor problem. We need independent doctors not hampered by bureacratic laws telling them how they can practice medicine.
The insurance industry. It needs a major overhaul in practices unfair to common people.
The banking industry. An overhaul of how we handle foreclosures is needed.
Employment. We need to change the way we deal with getting people back to work. Training needs to be a priority in making people employable.
Schools. They are impractical in today’s world. Testing to see where you can start means not a lot of useless classroom time for people that already have the knowledge. They need to be able to challenge out and start where they need to learn. Not taking useless courses over again.
I suggest we go backwards. I suggest that instead we turn isolationist again. Switzerland can teach us a lot about finances. We have to be willing to learn. We have to get off the ego trip of being the greatest country on the planet. It is not true, has not been true for a long time, but the lie continues. By isolationist, I mean do things that benefit us first not give it all away to the world competition.
We have to kick the UN off our soil. We have to franchise ourselves not disenfranchise ourselves.
It will not happen overnight. The current problem took years to happen.
What we are facing right now is a quiet revolution in ideas. Those ideas have to make sense. As a country, we have contributed a lot to the world. It is time. We have to change back to a country that is self-sufficient. That means that we have to wean ourselves off foreign cheap goods in favor of producing our own goods.
Instead of oil, let us go to natural gas. It is cheaper and readily available right here. We need to disenfranchise the Arab World from our money. That means a major overhaul in our supply system.
Trucks go everywhere. That is an idea that is 30 or more years out of date. We are supporting that idea with a massive highway system of truckers. It is obsolete. There is a better way to transport goods over the entire continent. I know because I have a career field in the US Air Force from years ago called Commercial Transportation Management.
The most efficient way to transport goods is to combine Trucking and Railways. High speed flatbeds can transport up to 100 or more trucks across country at a time. They can be made into a monorail system or left the way it is. The trucks have to be locked down on the flatbeds. I leave the engineers to figure out the details of the rails and flatbeds. A really efficient way is to enable the flat bed to leave the train while it is moving at high speeds. The flatbed cars then are landed into side tracks. These are on cement, level with the flatbed with about a 4 inch clearance. The trucks are then driven off the beds and proceed to their destinations. Usually a 25 miles or less trip for a trucker. Millions of dollars in diesel fuel are saved daily on such a system. The entire system can be engineered to run on propane tanks instead of gasoline at a substantial savings in cost. The initial cost of such a system is huge. But the long term savings might be worth it.
My own engineering skills are not up to the task. I would put the entire system on compressed gas instead of wheels. That makes leaving the track simple. Engineers have to make the system safe.
Long term, I am against tariffs. I think they are simply a tax on people. Short term, I want something better than a tariff on foreign goods. I want the companies bringing it in to be taxed in accordance with if they had produced the goods here what would it cost. I want it to be inconvenient and uneconomical to produce goods in foreign lands and bring them here to sell. But like an ocean liner, it is difficult to make this happen without an enormous backlash of expense to the American Public. So it has to be brought in gradually. Just like the problem happened gradually they have to be solved over time.
All of these companies need to learn from history. Britain lost its entire industrial complex at the end of WWII. They were completely dependent on their colonies. We need to change that before we become the Britain of the 21st century. We need to make changes to insure that our industries are not stolen out from under us. What advantage long term do you have if you lose everything?
Whether we like it or not the world itself is in chaos financially. We need to tie our local currency to worldly goods. That means food. We need to have food, clothing and shelter, readily available at a cheap price. This equals wealth. You cannot eat Gold, Silver, or any other metal based currency. We need to tie our system to one of practical goods sold locally. The rest of the world can go to hell. As long as our people have Food, Shelter, Clothing, and transportation at a decent cost, we can ride out the world financial crisis. But we have to be smart about it. That means bring the troops home. It means make the rest of the world defend itself. Not on our dime.
It means a serious and painful reality check.
(Authored By Dave Webb)