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Re: Fun with economics
Posted By: Don, on host 67.186.212.219
Date: Thursday, May 12, 2011, at 13:15:52
In Reply To: Fun with economics posted by Don on Thursday, May 12, 2011, at 09:15:01:

I thought that this email was worth a rebuttal. My comments are in [brackets].

I am on board for this, LETS do it!!

[Maybe. But let's think first. This spam-mailer is advocating some economic policy which has been toyed with (always with disastrous overall economic results) for decades in our country. Henry Hazlitt teaches in his book Economics in One Lesson that the difference between a good and bad economist, or economic policy, is that the good is to look at all of the groups involved and at the short-term as well as the long term results, while the bad occurs from looking at only one group and ignoring the policy's effect on others, and / or to focus on one specific time frame (usually short-term) while ignoring the rest.]

Diane Sawyer has a special report coming up this week. They removed ALL items from a typical, middle class family's home that were not made in the USA. There was hardly anything left besides the kitchen sink. Literally.

[What does this tell you? One thing it implies is that there was a wide variety of items in their home. Their lifestyle, as is that of most Americans, is rich and diverse. Another implication is that purchasing foreign goods is bad. Doesn't say why, here or anywhere in the massive paragraph, it just assumes that any self-respecting American knows that it's bad. It leaves it to the reader to automatically fill in their evil of preference ("unpatriotic", "bad for the economy--somehow", "supporting evil foreign slave-drivers ["capitalists"]", etc.)]

During the special they are going to show truckloads of items - USA made - being brought in to replace everything and will be talking about how to find these items and the difference in price etc..

[No mention here of how many dollars the family would be out if they bought comparable (if available) products made in the USA. From my experience, that number could be hundreds if not tens of thousands of dollars. What did this family do with all of that extra cash? What does the average American household do with savings? Usually we spend it, thus improving our lifestyle. Does that help or hurt the US economy?]

It was interesting that Diane said that if every American spent just $64 more than normal on USA made items this year, it would create something like 200,000 new jobs!

[Interesting statistic. Did you realize that 74% of all statistics are made up on the spot? How much of a benefit is "full employment"? Do you realize that we could have 100% employment tomorrow by refusing to use motorized vehicles for transportation? We would have complete, back-breaking, employment by hiring men to carry loads and passengers by foot. This is a straw-man argument. What we want is civilization, not the slavery of "full employment". The free market is the natural environment to find the balance between employment and leisure. This perspective allows us to look at the full economic problem. What would you rather have, assuming the statistics sited here are correct: scenario 1) 200,000 men and women going to work to produce goods that are already available at a great price, and a loss of $19.2 trillion ($64.00 x 300,000,000 Americans) on extra expenses, or scenario 2) of 200,000 men or women not in the job market (by choice or by default) and a net gain of $19.2 trillion to the American economy? I would pick the latter, hands down. It's a common rhetorical practice to focus on only one side of any equation or situation, ignoring or hiding the inconvenient remainder of the math.]

I WAS BUYING FOOD THE OTHER DAY AT WALMART and ON THE LABEL OF SOME PRODUCTS IT SAID 'FROM CHINA ' FOR EXAMPLE THE "OUR FAMILY" BRAND OF THE MANDARIN ORANGES SAYS RIGHT ON THE CAN 'FROM CHINA ' I WAS SHOCKED SO FOR A FEW MORE CENTS I BOUGHT THE LIBERTY GOLD BRAND OR THE DOLE SINCE IT'S FROM CALIF. Are we Americans as dumb as we appear --- or --- is it that we just do not think while the Chinese, knowingly and intentionally, export inferior and even toxic products and dangerous toys and goods to be sold in American markets? 70% of Americans believe that the trading privileges afforded to the Chinese should be suspended. Why do you need the government to suspend trading privileges? DO IT YOURSELF, AMERICA !!

[Let's look at the argument that buying "American Made" creates more American jobs. The government has a mechanism in place to do just this. It's called trade tariffs. Let's go to the extreme to see the holes in this theory. If we raised all tariffs on all foreign goods to the point that it was impossible for those foreign businesses to make a profit, then everyone would have to buy "American Made" goods, since they would be the only ones available in our stores. Good or bad for the economy? Even this spammer recognizes that buying American is often more expensive. How much more expensive would toasters, tools, clothes, and bananas be if we followed this economic policy? Very quickly we would find our lifestyles taking a major hit. Exchange creates wealth. If we curtailed these foreign exchanges, our wealth would diminish drastically. Are more jobs available, or fewer, as the wealth of a nation increases? Continuing the debunking, why is it so expensive, in so many instances, to buy locally instead of from a foreign country? Why isn't it cheaper to buy something made in the USA? You would think that without the cost of shipping a product across the ocean we could compete. But principles govern, and we are reaping an ever increasing whirlwind of rising costs and unemployment based on our economic policies. This is why so many businesses are outsourcing and / or leaving the country. Most of us are familiar with the idea that our religious freedom in this country is based on our political freedom. Now we are seeing (if not learning) what our political freedom is based on. That foundation is economic freedom. This spammer's support of a "patriotic" sacrifice to (somehow) support our economy is in violation of the basic law of cause and effect.]

Simply look on the bottom of every product you buy, and if it says'Made in China ' or 'PRC' (and that now includes Hong Kong ), simply choose another product, or none at all. You will be amazed at how dependent you are on Chinese products, and you will be equally amazed at what you can do without. Who needs plastic eggs to celebrate Easter? If you must have eggs, use real ones and benefit some American farmer. Easter is just an example.The point is do not wait for the government to act. Just go ahead and assume control on your own. THINK ABOUT THIS: If 200 million Americans refuse to buy just $20 each of Chinese goods, that's a billion dollar trade imbalance resolved in our favor...fast!! Most of the people who have been reading about this matter are planning on implementing this on May 1st and continue it until June1st. That is only one month of trading losses, but it will hit theChinese for 1/12th of the total, or 8%, of their American exports.Then they might have to ask themselves if the benefits of their arrogance and lawlessness were worth it. Remember, May 1st to June 1st !!!!!! START NOW. Send this to everybody you know. Let's show them that we are Americans and NOBODY can take us for granted.
If we can't live without cheap Chinese goods for one month out of our lives, WE DESERVE WHAT WE GET! Pass it on, America ..

[There was so much bad economic policy in there that it staggers my mind. What is it that made America great? Is it that we didn't buy from foreign markets? If China, England, Mexico, or any other country is able to profitably bring their products to our markets then I would say that the main export we have to offer in America is being well marketed. Capitalism. This is the idea that a person can choose their work and profit from it. Freedom is the philosophy that nurtures capitalism. What kind of freedom? All kinds. But they all rest on economic freedom. What is a trade deficit? This is a straw man which has been painted to seem as a monster to be avoided. But think about it. If you go to the movie theater several times a year and the theater owner never buys your kid's lemonade or anything from your yard sales, you have a trade deficit with them. You have purchased more from them than they have from you. EVIL! Nope. It's just that they had something you wanted and they didn't want or know about what you had in return. Think about what we're labeling as "evil"--the fact that someone produced a product or service that you want to buy. That's it. That's what's inside the straw man. There are many special interest groups who benefit from your belief that a trade deficit is evil, and they have been very successful in finding enough American sheep willing to believe their propaganda.

There is an economic crisis in this country and it's being fought effectively by those who understand economics. This spammer's suggestion that we can improve our economy by a "patriotic sacrifice" of buying American Made, and the philosophy that spawned it, is diverting many potentially intelligent sheep from the effective fight. The battle is being fought between the philosophies of economic freedom (capitalism) and a state-controlled / regulated economy (statism). When we see that, and begin to once again establish the economic freedoms that our country were based on, we will begin to once again compete as a nation in the world economy. It is competition in a free market that fixes any economy, whether in your town or throughout the world. The most patriotic thing you can do is to learn and teach that property rights exist and that no man has a "right" to the unearned. And while you are learning this, be grateful for the capitalists around the world who have innovated and built businesses which enable you to travel from ocean to ocean and to live in your spacious American home, enjoying your American lifestyle.]

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