TomF75

More Debt, Less Filling

I think the MILLIONS of production jobs to China has done far more damage to the US economy than buying imported cars!!! Especially since most of them now manufacture their product here is the USA. Face it the Wal-Martization of this country is what killed us. We enjoyed 20 years of non-existent inflation on the backs of cheap Chinese imports. No company benefited more from that than Wal-Mart. The simple fact is that most of these jobs are gone and never coming back unless the standard of living in this country falls alot farther than any of us dare imagine.


On Jan 09 09:39 AM Michael66 wrote:

> People just do not comprehend how much harm they do to the American
> economy when they buy an imported car.
>
> Take, for example, the effect of buying a $50,000 Mercedes here in
> the US.
>
> Approximately 60% of the list price of the Mercedes or $30,000 is
> transferred to Germany. That is $30,000 of American capital. The
> US loses $30,000 of capital and Germany gains $30,000 of capital.
>
>
> This $30,000 of capital is permanently lost to us. We can no longer
> use it to invest in America.
>
> In addition to a transfer of capital, that $30,000 transferred to
> Germany also represents $150,000 of jobs transferred to Germany.
>
>
> Economists figure that when one dollar is introduced or transferred
> out of a country it actually represents $5.00 of jobs gained or lost.
> This is called the “Job Multiplier effect” of capital lost or gained.
>
>
> Multiply $30,000 by the standard job multiplier of 5 and you have
> the sum of $150,000 which is the dollar value of jobs that the $50,000
> Mercedes sent to Germany and that we here in the US have lost. <br/>
>
> In other words, the purchase of the Mercedes lost America the equivalent
> of three jobs each paying $50,000. Germany gained the equivalent
> of three jobs each paying $50,000.
>
> Currently we are transferring $6,000,000,000 (six billion dollars)
> of capital per day out of the US to purchase depreciating and wasting
> assets. In essence, we are squandering our capital.
>
> This is a disaster in the making.