Wednesday, January 18, 2017

How a Horse that is too Stubborn to Run Doesn’t Win any Races and Other Parables about the American Economy

                With all of the talk about “Losing Jobs to China”, nobody seems to address the real reason why this is true. China has 3 times the number of people than the USA. This means that with more competition for employment, people will generally work harder for less money, because there aren’t any real alternatives.  The reality being that the real problem is not that “China is taking our jobs” it is that Americans are the problem. Americans expect to do less work than the average human and get paid more than the average human for doing less work than him, and this is a completely unreasonable mindset in today’s global economy that is a vestigial ideology that was developed during the industrial revolution.

                During the industrial revolution and following centuries, Americans could legitimately get paid more for doing les s work on account of the fact that America was industrialized while the rest of the world was not. That means that all of the work that was done by machines in America was basically counted as work done by the humans themselves, because around the rest of the world, a human would actually have to do that work because these countries were not industrialized. However, as more countries like China become industrialized, the free market decides that since these people are willing to do the same amount of work for less money, America and other 1st world nations can no longer flex their industrial might for a higher profit due to increased competition. America wants this industrial superiority to last forever, when in reality it has already disappeared, and this is why we are losing jobs to China, and soon, the process will continue, as China will inevitably lose these jobs to countries that become industrialized in the future and have people that are willing to do the same jobs for an even cheaper rate.

Another factor in this is the population difference. With more people, more work gets done, and with more competition for work, work gets done cheaper. It is simple supply and demand economics, and the desire to survive is the driving force behind the Chinese worker rather than the American’s “Dream” of becoming rich and successful. The only way America will ever be able to compete with China is if they not only triple their population, but also swallow their pride and begin to work for wages that are competitive around the world. If these two things are true then America would see the return of manufacturing jobs because if it cost the same to pay the people, there is no reason to turn to China and pay the tariffs and cost to import needlessly. Although automation does play some role in the loss of manufacturing jobs, the truth is that people are still needed at many points in the process of manufacturing goods.

Many of the proposed resolutions to this “issue” are nothing but market manipulation, and this will inevitably amount to nothing but trouble. When the free market is mangled by these sorts of policies, unless you are a literal necessity within the global market, people will simply turn to the most cost effective means of getting the good and services they require. By attempting to artificially limit the cost effectiveness of buying from a manufacturer such as China, you do nothing but maim your own economy, because with only artificial demand for these goods and services produced in America, the free market becomes an artificial market that is defined as places effected by the artificial cost ineffectiveness, and this is a very small market consisting only of the United States, or whichever country is attempting to pretend that politics are more powerful than the free market.

Sadly, the reasons that America no longer has manufacturing jobs is because other countries have become industrialized within the last 50 years, America doesn’t have the population to force the society to accept lower wages for the same amount of work, and that people simply aren’t willing to do the work for less money than the Chinese and other people are willing to do it for. Unless America can simultaneously resolve all three of these issues, then it is impossible to gain any ground within this matter. It’s easy for people to antagonize China, but in reality the only thing that should be antagonized in this scenario is the baseless entitlement and nostalgia for the global economic disparities created by the Industrial Revolution that allowed America to develop this ridiculable mindset where for no apparent reason American work is worth some 1000% more than that of any other person. There is no difference, work is work, American work is the same as Chinese work, and any person with common sense would offer the same amount of money for somebody to get this work done, regardless of their nationality. Unless Americans are willing to accommodate and create a society where every woman of this generation has six children; the GDP PPP of America is identical to China , which is $6,800 right now; and people are willing to work themselves to death just to be alive; then America has no right to even bring itself to the table as an economic power, it it’s a dying vestige of a past world that is now crippled by it’s own cancerous indignation and entitlement, and thus should be acknowledged and respected as nothing more than that.

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