Monday, September 6, 2010


I do a lot of reading about financial/economic news as a means of finding investment opportunities (yes I do my own investing...personal responsibility). One of the overriding themes is that this country has lost its manufacturing base over the last 40 years by entering into free-trade agreements with other countries. Of late, China seems to be the beneficiary of our overseas movement of jobs. Their manufacturing base exploded over the last few decades.

The reason why I write this is to counter all those who are posting about how terrible this is. Am I the only one who knows anything about what happened throughout history. Evidently so. Well, I am about to enlighten you. Write this on your forehead so you do not forget it. Work always flows to where labor is cheapest. This is a factoid that seems to surpass many people.

History is riddled with slavery. The reason being is slave labor is the truest for of "cheap labor" there is. You cannot beat receiving work in return for a minimal standard of living. Many countries throughout history created empires by importing slaves. The United States is no exception.

Why are people of today amazed that companies would export jobs to places where it is cheaper? This is man's model. Whenever something can be created less expensively, it is in a companies best interest to follow that path. This often results in lower prices and higher profit margins. And, yes, higher profit margins are a good thing contrary to what the bleeding hearts will say.

People want to try to interject a governmental system into the natural order of events. The belief in the power of the imperial government is misguided. History reveals that government only serves to steal, oppress, and screw things up. It implements laws that impede the natural progress of things.

The simple fact is that work goes to where labor is the cheapest. Get over your resistance to this fact. China benefited for a number of decades. Of course, now since they experienced inflation and the cost increased there, they are finding that manufacturing is leaving for other parts of Asia. Am I the only one not surprised?

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