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uncledad

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Member since: Tue May 13, 2014, 05:50 PM
Number of posts: 6,024

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The American economy is not healthy.

It hasn't been for quite a while. Under any administration. Wal-Mart being a prime example of misreading economics.

What Wal-Mart is a very good example of trickle down economics. At the top the owners retain their capital and increase their profits by stifling competition from small businesses that made up the middle class in the post war years. Post war being WW2.

In place of competitive wages and superior product as was the original plan of Sam Walton, It went with holding down wages and out sourcing to the lowest cost supplier. That supplier being a dictatorial communist country which to this day remains so.

You see Sam Walton knew as did Henry Ford, your customer base needed jobs that paid well enough to purchase your products. Wal-mart being the largest grocery store in the Nation has the highest percentage of customers on food stamps as employees.

It takes in more welfare money than just about any corporation. That being the case, corporate welfare is very profitable. The fact it is funneled from your taxes to their bottom line finds you delighted is a windmill of your own choice.

The middle class used to have three components, the upper tier of professionals and small business owners, the middle of mangers and tradesmen, and the blue collar working class being the largest of the three.

Removing manufacturing from an industrial based economy, lowers employment opportunity and reduces the tax base and increases poverty. Not only that, out sourcing to an other country's economy limits the growth of management jobs, the historic move from blue collar to white collar employment. It also reduces the need for skilled tradesmen and reduces the customer base for small business owners.

Adding technology into an industrial economy increases economic out put by reducing labor costs. Using that capital to spend in improving infrastructure to take advantage of opportunities within the work force. Classic example is the growth of modern Chinese cities and their infrastructural base.

Going full circle, the service based economy is decreasing. Simply math explains that less money spent in a consumer economy results in decreased employment and sales tax revenues. Local communities dependent on sales taxes to pay bonds used to fund themselves are in deep trouble. It just goes down hill from there.

Despite blowing economic bubbles in tech, housing, the stock market, the bond market, and the credit market. The economy is slowing down.

What happens next? The middle class continues to shrink and so does the tax base.

There are a lot of people who see the economy as a pay check and the taxes that come out of it. They know something is wrong with the economy. It feels unfair. It's human nature to look for someone or something to blame.

I don't blame Wal-Mart for what it is. It is useful. As we age out, it's what America is doing, it will be the go to supplier for many people. They will sell more Depends than they do Pampers in a few years.

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