Banking: A Government Casino Game

The U.S. achieved prosperity through open competition.

During the past 25 plus years, unbalanced government trade actions have resulted in off-shoring significant productive and service sector activities and the loss of millions of jobs.

The loss of jobs has resulted in a reduction of taxes and fees collected at all levels of government and lead to significant layoffs in education and other fields of public service.

When the cost of unemployment insurance payments and other support provided by the government is added to the resultant trade deficit, the real cost of imported products and services can exceed the cost of domestically produced products and services.

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Future Forecast: 2011

Original publication date: January 2011

Essentially the 2011 theme is as follows: Indications are that progress identified in previous “Future Forecast” postings continues.

There is a caveat to achieving economic success in 2011 and forward. The caveat is the ability and willingness of national, state and local governments to acknowledge and accept the trade deficit is the systemic root of all revenue and employment problems.

Simplistic statements that the U.S. must concentrate on the pursuit of creating advanced technologies while off shoring the production of common products and servicesis head-in-the-sand reasoning.

Job creation and economic prosperity require industrial activities at all skill levels and product and service needs.

Failure to achieve progress is experienced most frequently in activities constrained by standards intended to ensure a certain level of achievement. In reality, these standards become a resistance level to progress.

Notes:

1. Shortfalls in hiring eventually lead to reductions in efficiency; reduced profit margins, lower than achievable GDP, and unrealized revenues from taxes and fees.

2. Mild inflation is appearing across all production sectors in the form of increased costs for the inputs to production: materials, equipment, qualified personnel. National and international logistics costs are in place for inflation.

3. Consumers are experiencing increased costs for core staple items in the form of increased prices and/or reduced packaging sizes.

4. Clothing costs have increased dramatically. Most sale items are fully priced. EDV (Every Day Value) items, a term applied to the logic of fixed pricing, represent highly elevated pricing.

5. Global competition is appearing via temporary shortages of fresh vegetables and fruits.

6. The position of the Chairman of the Federal Reserve may be overdue for a change. At some point of continued effort and resultant stress, the message may be overcome by the presentation.

Future Forecast: 2010

Original publication date: March 2010

Future Forecast for 2010: The following predictions are based on trends in government.

Note: The forecast published on March 17, of 2009 has become fully active and continues in total for 2010.

Conformity to the will of a central government was considered a danger to the foundation of freedom and the survival of the nation. For that very reason, the founders limited the powers of the federal government, or so they thought.

Since sympathizers supporting the King of England helped load furniture of the vanquished on ships in Boston harbor, there has been continual movement away from the intent of the founders, largely influenced by European sympathizers.

A central banking system, although not provided for by the constitution, was created under an “elastic” interpretation of federal powers. Essentially, the constitution could be stretched in any direction deemed necessary to tax citizens to fund activities, and activities could be added as deemed necessary. Initial funding for the central bank was achieved through the sale of shares purchased mostly by states of the Old World. (See Alexander Hamilton)

Free education for all citizens became a central issue. “Democracy cannot succeed without an electorate competent to inform itself.” The concern was that “brats” might grow up, fall under the spell of false prophets, and vote away their property rights. Less than fifty years after ratification of the constitution, June 21, 1788, the public system of education began to emulate the European model. (See Horace Mann)

America has replaced the British Empire as the protector of the land where the sun never sets, and become the customer of the protected. Since World War II, this outcome has allowed Europeans to increase their commercial enterprises and investments while reducing their own defense efforts by relying on American presence. America has become the Beat Cop of the World at the expense of the lower and middle class.

Government, business, industry and education have advanced and improved the quality of life in America. However, they have recently returned to their status as eighteenth century problems once again. Deficits caused by unbalanced trade, ineffective education, squabbling government and fiscal incompetence are not a new phenomenon.

What are the future consequences?

1.     Political Implosion: At best, the efforts of Washington can be summed up as designing a roadmap to nowhere. By all appearances and certainly outcomes, the combined accomplishments of the house and senate will leave the country as a neutered house pet.

The rugged individualism that created America is considered offensive to the wimps, pimps, potheads, Hollywood pornographers, child molesters, illegal aliens, and socialist apologists that the Washington elected seek to keep them in office.

The train is leaving the station, the boat is leaving the pier and many in Washington will be on their way home. Have heart, the citizens will keep the soup kitchen open for you.

2.     Wall Street and Washington Reprisals – Hollywood Fiction Movie: Hollywood and international playwrights may create fictional movies about a malicious software program installed in the NYSE. The program might track trading patterns of brokerages selling naked short stocks. Add some intrigue that the program blocks covering the naked shorts and the brokerage collapses bringing down Wall Street and the banking system.

Spice it all up with some hookers, drugs, and billions of dollars in forged treasury bills laundered through international banks to purchase legitimate stocks. There are likely to be many inputs from editorial writers . . . could be a hit movie in the international market . . . could even become a squeal or international TV series.

The cast of characters may consist of lawyers internal to government agencies with the responsibility of overseeing the market, but instead, using intelligence reports to manipulate it for personal gain. Add hacking pools sponsored by international governments accessing friend and foe databases through hardware and software back doors originally designed for monitoring international correspondence by citizens.

3.     Law Enforcement and Justice: After decades of social activism frustrating law enforcement and the courts by a growing pool of lawyers seeking riches, it will become too expensive to uphold the law and administer justice. This will result in an ever-increasing release program for inmates.

To cover deficit spending, government will resort to adding exorbitant fines and fees that do not provide any service or value to the daily life of citizens. Children will continue under threat of violation by deviants whose rights are of more concern than those of children.

4.     Citizen and Employee Rights: The health of citizens is of paramount importance as a resource to the viability of the country. Preventive care beginning at an early age will enhance health and reduce the cost of future care. Effective education will be recognized as a necessity . . . the operative word being effective.

Health care and educational facilities will be matched to the need of programs. Gold-plated and unused facilities will be eliminated and campus recreational facilities will be unlocked for citizen use after school hours. These facilities will be monitored by full-time law enforcement where necessary.

5.     International Trade Reversal: The need to balance global trade will be acknowledged as an effective way to establish full employment, communication and trust between countries and communities. Unbalanced trade deprives one community of wealth while providing excessive wealth to another.

The current unbalanced trade relationship creates hostility and conflict. Given all costs, many imported products are more expensive than American manufactured products. When employees do not earn health benefits from their work, the government is the last resort. This is much more expensive.

6.     Western Manufacturing Growth: The importance of maintaining AMERICAN manufacturing capability across all possible product lines where the resources and technologies are available will be recognized. Where these product lines have been off-shored, they will return and be produced domestically as well. These activities will be financially viable under a balanced trade approach.

Manufacturing creates the need for four additional jobs outside the factory, whereas service activities create the need for only two additional jobs. It is in the interest to national security of a nation that support structures of transportation and industrial marketing accompany this effort. This is the only approach that will result in a balanced budget in the future. The prospect of increasing exports to balance trade is unreasonable.

7.     Commodity Redirection: Raw materials required for manufacturing will be redirected to new AMERICAN factories. This change will help to offset the current attempt to lock-out AMERICA from mineral resources, support the national security initiative, and provide employment in the logistics and transportation areas.

8.     Commerce Department Mission Change: Traditionally, the commerce department has supported industry and facilitated export and import efforts. The department mission will be updated to include maintaining a balance between import and export values.

This area of imbalance has cost AMERICA over twenty-five trillion dollars in GDP and twelve trillion dollars of tax revenues in the past fifteen years. Had a balance been maintained in this area, there would be no unemployment, tax revenue shortfall or budget deficits today.

9.     Academic Programs Repurposed: Business and law education programs will need to change their focus from creating and managing independent business activities, to include an understanding of how a nation creates and maintains wealth thorough a nation centered initiative. The current approach does not include an effective method of ensuring a balance between the value of imports and exports, maintaining balanced trade or supporting national security capability.

10.    Military and Merchant Marines Redeployed: America’s military are currently stationed in many countries that may have the ability to provide for their own defense. This approach does provide a basis for building-up a deployed force quickly. However, these deployed support forces deplete the resulting number of combatant forces available.

Current congressional logic regarding force manning is debatable. By all appearances, congress seems to believe money in the form of pay solves all problems. The constant redeployment of forces to combat zones is not desirable or reasonable. A much larger force is necessary if AMERICA continues efforts in the current mode.

America has virtually no merchant marine force, instead, relying on foreign transport. This may seem to be a cost savings, however, is not in the interest of national security. There are always studies that support disintermediation in logistics channels based on cost. These studies do not guarantee the capability when needed in a national emergency.

Curious Observation: How AMERICA, with an almost daily financial and logistics reporting system, could allow the accumulation of trade deficits over a period of years, without action; may well be a case study for decades  to come.

The comment “We didn’t see it coming” may become a mystery of the ages equal to the building of the Pyramids of Egypt.

You be the judge.

Future Forecast: 2009

Original publication date: March 2009

Future Forecast for 2009: The following predictions are based on trends in government.

The original intent of centralized government was to support citizen activities of building the nation. However, government has evolved to directing citizen activities through laws and mandates which control, rather than support citizens building the nation.

This trend has created a need for money to support government activities. In addition to the many taxes imposed, government has spent money held in trust for social security and borrowed additional money carried as debt to be paid in the future.

The issue is that since government has shifted from supporting citizen activities to directing and controlling citizens, the list of government initiatives grows without the money necessary to pay for them.

What are the future consequences?

1.       Nationalized Health Care: All premiums paid to private insurance companies will be paid to the government and the individual citizen will pay tax on the supposed benefit as income. The result is that all citizens, those who can pay and those who cannot pay will receive marginal health care.

2.       Government Sponsored Euthanasia: The Nationalized Health Care program will go broke from the cost and inefficiency of government management.  To compensate for the shortfall, limits will be placed on treatment based on age. The threshold for pulling the plug will be lowered as age increases and could reach too old for minimal standards of basic health care.

3.       Uptick Rule: The rule will be reinstated to stabilize stock prices. With the uptick rule, sellers can only borrow and sell short if the price has ticked up, and not borrow to sell when stock prices are already in a decline. This activity will generate more tax revenue via day trading and capital gains of rising values.

4.       Mark-to-Market: The rule will be removed to limit bank paper losses. Currently, if the market value of an investment falls below the book value, the investment is recognized as a loss. Removing this rule will decrease write-offs and increase tax revenue.

5.       Inflation and Stagnation: Shortages in products and services will result from production shutdowns and inventory depletion, accompanied by high unemployment. This will result in higher prices, increased welfare payments and higher taxes.

6.       Growing International Conflict: High unemployment rates will lead to internal conflicts. Governments will blame trade partners for bad economic decisions which impact their citizens. Cause for this problem has been a long-term imbalance in trade causing some economies to lose wealth while creating artificial and unsustainable growth and wealth in other nations.

7.       Commodity Shortages: Unbalanced trade between nations will result in commodity shortages in nations importing finished goods.  This shortage is a result of commodities being controlled by, and going to the nations producing goods, and weakens national security of nations importing finished goods.

8.       Growing Trends in Monarchy: According to Wikipedia, there may not be a concrete definition of monarchy as a form of government, however, monarchs have a common theme “absolute power over the citizen” and sometimes they may be called dictators. Citizens in many nations are becoming “more” subservient to religious and political leadership. As an example, Russia has a form of shared monarchy with two political elite, while Cuba and Venezuela have a single form of monarchy. The US appears to be entering a shared monarchy with centralized government exercising absolute power over the citizens.

9.       Freedom of Speech Ending: Citizens are cautioned regarding the use of language terms, the settings in which specific terms can be spoken, and the inference about what citizens are thinking based on the terms they speak. The press joins in censorship, limiting the scope of their research based on these same controlling guidelines.

10.   Law Becomes Experimentation: Citizens and elected representatives are increasingly ignored by the appointed cabinets and hierarchy of monarchs at all levels, state and nation. Major courts have failed to consider the outcome of their actions and ignore and change constitutional laws based on the taste of their last latte.

Curious Observation:  The growing trend in monarchy, law experimentation, and ending freedom of speech are enabled as a result of the prosperous nation built by the citizens . . . a process which is being reversed. What are the future consequences?

The consequences are most likely higher rates of inflation, higher taxes, poor health care, international conflict, diluted Chinese investment, diluted senior citizens savings, and eventually destroying the new monarchy.

You be the judge.

New Rules: Purpose and Definitions

This posting contains terms and definitions which help the reader understand subjects contained in following postings. This page will be updated with additional terms and definitions as discussions are posted to this category.

Purpose of the New Rules Category:

New Rules explains WHY specific problems exist within the US economic, legal, and political systems. Explanations are above-board and direct. Put it in simple terms, the entries are BLUNT.

The indisputable fact is the U.S. is NOT leading anything . . . at least in the correct direction.

Leadership of the nation is as Dracula, sucking on the blood of the nation. This may seem an exaggeration, however, you are not asked to be persuaded by this writer. You are asked to look around and observe . . . then you decide and participate in your community as appropriate.

The discussion is based on logical and understandable principles. NO group or individual is singled out or judged.

Terms to review:

Ignorance: A person who lacks knowledge, is unaware of something or chooses to subjectively ignore information.

Stupidity: A quality or state of being stupid, or an act or idea that exhibits properties of being stupid . . . an idiot (idiocy). “Idiots” are seen as having bad judgment in public and political matters.

How these terms apply:

An example of a current issue, healthcare, will demonstrate the application of these three terms:

1). A representative without knowledge of medicine or the contents of the healthcare bill may be categorized as ignorant on the subject.

2). A representative preparing to vote on the healthcare bill without pursuing knowledge and understanding of the bill, may be categorized as stupid.

3). A representative who is both ignorant of the subject and did not pursue knowledge and understanding prior to voting may be categorized as an idiot . . . Idiots” are seen as having bad judgment in public and political matters.

Therefore, it is possible for a representative in this case to be ignorant, stupid and an idiot at the same time.

The level of education or years of experience are not a consideration when observing individual or group actions.

Highly educated and experienced individuals and groups can take either correct or incorrect actions;

While under-educated and inexperienced individuals and groups can also take either correct or incorrect actions on the same issue.

Summary:

Issues to be addressed are listed in the “New Rules” category.

What is to be demonstrated for the reader is that rules enacted as legislation or regulation rarely consider the consequences of the act, and are rarely in response to the cause of an issue.

Far too often actions taken address a symptom, not a cause, and do not improve a situation.

New Rules: U.S. Economy and International Trade

Updated: 1/7/2017

This update establishes a minimal lost opportunity cost of 24 trillion dollars in GDP not earned; and minimal loss of 12 trillion dollars in taxes and fees not collected, for the period of 1992-2016. Reason for the update is to provide an educational experience for the reader rather than an informational posting.

Note: Forward looking data referenced in the posting may continue to change over time.

Legislation and regulation rarely consider the consequences of the act, and are rarely in response to the cause of an issue.

Background: The U.S. congress and administration have, over the past twenty-four years, enacted a series of well intentioned, however, questionable efforts to improve the quality of life for citizens.

What could possibly go wrong? It appears the combination of these activities may have been responsible for creating a false and unsustainable economy, resulting in the current international financial crises.

This blog entry is brief and serves as the foundation for understanding the cause and effect of many of the current problems in the economy, government and educational systems.

U.S. Exports vs: Imports 1992-2016

a.) The chart scale on the left is in 500 billion dollar increments. Years 1992-1998 indicate mild growth in the trade deficit.

b.) Exceptions during this later period are 2001 (9/11) and the world financial crises of 2009 which slowed global trade overall.

b.) Overall, years 1999-2014 indicate increasing growth in both imports and exports, with the exception of 2015-2016 indicating a slowing trend. However, the total accumulated trade deficit is increasing.

Exports vs: Imports Effect on GDP
Exports vs: Imports by Year

1. Decisions by congress and the administration during the 1992-2000 period set in place the status of Permanent Normal Trade Relations (PNTR) with China. This is a legal designation in the United States for free trade with a foreign nation. In the U.S. the name was changed from Most Favored Nation (MFN) to PNTR in 1998.

2. This action has resulted in an increasing trade deficit with china Updated 7/20/2018

Total import imbalance (imports exceeds exports) for the period is 9 trillion, 975 billion, 399 million dollars. U.S. International Trade in Goods and Services published by the U.S. Census Bureau.

Dr. Ben Bernanke previous chairman and a member of the Board of Governors of the Federal Reserve System stated, given current low interest rates, the Money Multiplier Effect (MMF)in the U.S. is running at the rate of 800% per year. Updated August 6, 2014.

If correct, this would indicate for every $100 deposited in a bank and loaned to a borrower, it will create $800 more dollars as it is passes between merchants, additional banks for loans and customers. In addition, at every transaction, taxes and fees are collected in the form of sales and income tax which are paid to city, state and the federal government.

Theoretically this is possible given the current interest rate established by The Federal Reserve, however, it is unlikely. Historically, a rate over 250% had been the norm during the period of 1990-1995. Beginning around 1995, a decline in the MMF occurred, culminating in a 100% and lower MMF since the recent financial collapse.

It should be noted that prior to 1975, the U.S. had a trade surplus. From that period thru 1990, a much higher MMF of +300% was experienced. As the U.S. began providing temporary MFN status to China in 1992 and on to permanent PNTR status, the MMF dropped considerably. This decline in MMF occurred in conjunction with the escalating trade deficit, loss of tax revenue and manufacturing jobs, and an overall high unemployment rate.

The theoretical MMF is derived through a process referred to as Fractional Reserve Banking.

1. Industrial capacity, utilization of manufacturing facilities during April of 2012 is estimated to be 79.2% of the current standing capacity. Keep in mind this is the percentage utilization of the current standing capacity. Historical utilization rates average around 85%. Standing capacity has continued to decline since 1975, the first year the U.S. experienced a trade deficit. Since then, maximum capacity has continued to erode with many manufacturing and service facilities moved to foreign markets.

Summary of the banking problem:

Currently, banks face unknown costs coupled with reduced purchasing power of retail customers, unknown costs for industrial customers, and an impending collapse of international financial markets. For government to insist that banks loan into this financial fiasco would be a repeat of government demanding banks loan into another sub-prime mess . . . which government did!

What is the central concern of government today . . . increasing banking regulation . . . what about the trade deficit which is the root cause of the problem? Oh, the U.S. no longer controls that . . . the WTO does . . . is the U.S. now a member of the EU? Is the center of U.S. government now the European Parliament?

Summary evaluation of the data:

Information in the chart and tables above has been available for several years, and what action was taken to stem the flow of wealth from the U.S. to emerging nations?

Economists and academics have been pushing for more exports to balance the trade deficit. Well, they are getting more exports, but the delta between imports and exports has been growing larger. You frequently hear a monthly deficit has narrowed. What about the total deficit? The U.S. has been exporting mostly capital equipment used to build infrastructure for producing products for export.

The U.S. imports most of the consumer products from one nation. What is that nations income level per capita? You would think that several years ago, economists and politicians would have gotten the message that the U.S. can’t match the imports because of the inability of potential . . .  if you want to call them “potential” customers . . . to buy U.S. exports. Is it realistic to believe they will be buying imports or making their own? When will the concept of Balanced Trade be addressed?

Consider this: The $9,975,399 (that is 9 trillion, 975 billion and 399 million) at the case MMF of 250% would have exceeded over $24,938,498 . . . that’s 24 trillion and 975 billion more dollars of domestic spending, and $12,469,248 . . . that’s 12 trillion and 248 billion more dollars in taxes and a heck of a lot more jobs. But the truth is it would have been much higher than that given annual compounding. Keep in mind this is minimal and reflects a factor based on 1992-1995.

In short, imports are very likely more expensive than domestically produced goods and services given the need for government to pay for unemployment insurance, healthcare, food stamps, etc.

What do notables in economics have to say about trade deficits.

A series of links on “Balanced Trade” for your review:

Wikipedia | Ideal Taxes Association | American Thinker.

What Washington and Wall Street did not see coming, many others did.

New Rules: Recovering From Disaster

Recovering America from economic, legal and political disaster. Note: Links to references appear throughout the log.

Rarely has the time been more appropriate than now, to exclaim, “America may be at the peak of the disintegration phase of a nation.” Was George Santayana correct when he stated “Those who cannot remember the past are condemned to repeat it.”  Possibly Santayana’s description of fanaticism as “redoubling your effort after you’ve forgotten your aim” is appropriate today.

The pivotal point for national disintegration may depend on the manner in which the current healthcare reform issue is resolved. Will America retreat from the movement towards public resolution of the issue, or pursue a commercial solution?

Many of America’s best achievements have been realized through public projects requiring massive assistance. Successes in medicine, communications, transportation and energy relied on public projects, and today they have advanced to become both public and commercial endeavors.

Have Americans, specifically economists, lawyers and politicians  forgotten, or possibly they never knew, how the wealth of a nation is created, and that wealth provides opportunity and quality of life for the citizens? Many of the issues Americans face today reflect ignorance of the process and are responsible for the following:

  • Failed educational systems.
  • Fewer employment opportunities.
  • High crime rates.
  • Failing businesses.
  • Failed financial institutions.
  • Failed stock markets.
  • Failed city governments.
  • Failed state governments.
  • Failed federal government.
  • Failing international relations.

There is a common cause for these issues. It is amazing that the intelligence of a nation would not discuss and address the cause of failure. Possibly this is the key to the failure of all nations in history. There is no substitute for free enterprise, albeit with some limitations, be it entrepreneurship or capitalism. Government can support, but not replace free enterprise, except in a failed nation.

These issues and more are addressed in the category titled “New Rules” in the log.

New Rules: Economics For Politicians

Updated: 1/10/2017

Economics for politicians explains and shows in easy to understand terms and pictures why sufficient tax revenues are not available to support current city, state and national government activities. The presentation is non-verbose and easy to understand. It's a little like a UPS commercial . . . short and to the point. More elaborate explanations would be just that . . . more elaborate . . . and arrive at the same conclusion.

Citizens can earn their own . . . health care . . . social security . . . retirement and additional benefits if businesses and government analyze, and plan correctly. Of course follow-through is important.

Support for education should not be a problem. However, sometimes what you have learned and been told is not correct . . . surprise . . . surprise. Higher education and business believe global trade is a good thing. They are correct, however, incomplete. The failure is to consider balanced trade.

Solving the current problem of a major shortfall in tax revenue is a non-partisan issue; and, until that is recognized, there will be no solution.

Solving the current problem is NOT a union issue . . . although Skinnerian conditioning would have everyone believing it is. It is not the concept of unions, but the failure of unions to support the proper objectives. The subject of unions is a candidate for a separate posting. The only question to be asked and answered is, "where will the money come from?" When the response to the question is another tax, government must remove roadblocks to business success.

Business must be able to generate additional profits to pay new taxes . . . which may mean lowering taxes. This should not include turning on the printing press . . . what it means is moving to expansion in some way that is not inflationary. Until business in conjunction with government can design the solution . . . NO taxes should be levied. In a normal domestic market where goods and services are produced and nearly full employment is realized, the following picture represents the process where incomes are good and tax revenues and fees are sufficient to provide for the needs of citizens and government.

The full domestic production sequence shown below ensures there is a balanced use of resources and the desired/required availability of income and tax revenue to support a prosperous national economy.

Full Domestic Production

Planners have clearly failed to analyze the global situation correctly. During the past several years, this failure has resulted in the loss (conservative) of  twenty-two trillion dollars in GDP and eleven trillion dollars in tax revenues (end of 2014). Where is the trade imbalance centered? Mostly in Asia and China.

How many jobs have been lost in the U.S. by not maintaining balanced trade? For every manufacturing job lost . . . four additional support jobs in logistics, industrial marketing, service and the community tied to that job are also lost. The argument is frequently advanced that imports are cheaper . . . that is not correct. After the wealth has been transferred to exporting countries there is nothing left for government services except to turn on the printing press. Once again “government didn’t see it coming!”

Although some will advance the proposition that the U.S. can increase exports to balance trade . . . this also is not correct. Frequently the statement is made that exports have increased . . . yes, this is true, but exports have not and will not, make a dent in the 22 trillion dollars of GDP lost to the trade imbalance. U.S. retail stores are a lot like your local hamburger palace. You just drive in and pick up what arrived at the import dock in Los Angeles or some other major port . . . no home cooking!

The huge trade deficit accumulated over the years was caused by unbalanced trade agreements. In short, government is creating the problem . . . sound familiar . . . same for banking . . . Wall Street, Fannie and Freddie.

Unbalanced Global Trade

As the U.S. transitioned from sole reliance on an agricultural economy to an expanding manufacturing based economy,  rapid growth in factories, cities, roads,  railroads, airports, bridges, communications, retail, healthcare, recreation and additional areas occurred to support the effort. This activity created wealth and a higher quality of life and an expanding middle-class. Education and experience in all fields of employment, professional and skilled trades expanded during the 20th century.

As reliance on global trade grew, the need to produce domestically diminished as import activity increased. The result has been vacated factories, reduction in the need for skilled professionals and trades, high unemployment rates, loss of tax revenue and fees, degrading of infrastructure as it stood idle and not producing tax revenue or fees. Diminished quality of life was accompanied by lost opportunities and increased crime.  Countries exporting to the U.S. have benefited greatly at domestic expense.

Balancing trade will improve outcomes for citizens, however, looking forward, new technologies and methods present additional challenges . . .  more can be done with less . . . and new professional and skilled trades will need to be created . . . or evolve. Evaluation of what constitutes valuable work or enterprise must be considered worth reward. It’s simple, if there is no income, there is no expenditure, and there is no economy. Deficit borrowing to reward the unemployed is a diminishing solution as national debts increase. What constitutes work will and must be reevaluated.