The Detroit auto producer union strikes present an interesting opportunity to consider the impact of Biden economics on Americans generally. Labor unions point to vast compensation piles for CEOs and seek large pay increases and items such as profit sharing. The President traveled to Michigan to provide support for the strikers. Since President Trump also went to Detroit one must wonder if the strike isn’t somewhat meaningless as labor unions are rather insipid since so much labor entered the world market since the 1990s and unions faded. Democrat leadership seem to concentrate their own wealth and throw corn to mollify their constituents. Maybe the Detroit phenomenon is like that as the percent of wealth going to workers is just a tiny fraction of that going to the 1 per centers and the tope 30% of earners in the U.S.A. It’s necessary to toss the pork, stir up racial unrest and etc. if the voters are to believe the economy is becoming better, voting is meaningful and plutocracy is a myth. Hate speech and insurrections could just a word or two away for political opponents..
The United States has experienced concentration of wealth in recent decades that equaled Mexico. For the present average wages are still quite above the world average yet as was well known and anticipated wages in the United States stagnated as the workforce diversified and jobs became increasingly outsourced especially after the end of the Cold War version 1.0 circa 1990. Technology was transferred as well as jobs and today China is a great auto and ship manufacturer in addition to making aircraft etc,
Biden economics eschewed tax increases on the rich and upper middle class in preference for deficit spending. Biden economics floods the nation with illegal labor to bolster future Democrat voting and provide cheap labor for middle class Democrat voters while increasing government spending with borrowed cash from the Federal Reserve building up more than 30 trillion dollars of public debt so far.
In some respects the national economy seems somewhat puffed up and living beyond its means. Some economists have though said that the public debt doesn’t really matter. Of course if the public dent exceeds the value of national assets in land ownership (such as national forests and parks) substantial pressure might be applied some day to lever extraction of natural resources from those lands and monuments.
American economic classes aren’t like they used to be during the 20th century. Taxes on the rich began to increase globally to pay for the great wars- FDR said he wanted to tax the most rich at a 100% rate rather than 90%. Beginning with President Carter taxation on the rich was scaled back. Since wages don’t keep up with capital increase the concetration of wealth was inevitable after the Reagan-Bush-Obama-Trump tax cuts.
Maybe is no longer a real middle class. There is the rich and everyone else. I suppose there are three classes of rich people too; those earning a 100,000 dollars annually to 500,000 and with assets of more than 5 million, those earning from $500,000 to 3 million dollars annually and/or with assets from 5 million to a billion dollars, and billionaires.
The middle class today also has three classes. The upper middle class earn from $100,000 to 60,000 annually, 60,000 to 30,000 and 30,000 to 21,000. Americans earning fewer than 21,000 annually are the poor, also with three classes, upper middle and lower poor divided with roughly 7,000 for the lowest annually, 7 to 14 thousand for the middle poor and 14 to 21,000 thousand dollars annually for the upper poor.
One might wonder about unions locking in much higher average wages than those of the rest of the world based on the profit of selling automobiles that are very expensive to Americans and other first worlders with enough earnings to spend $50,000 on a car or truck; will Detroit manufacturers find a global market, or even a national market down the road for expensive electric automobiles when electric transport platforms can be made for a fraction of the cost and a fraction of the weight of fossil fuel vehicles?
While President Biden and the Democrat party would shut down the U.S. government and throw a wrench into the U.S. economy if the don’t get enough billions more to continue the war tunneling to Russia without a possible light at the end except perhaps for nuclear conflict the world nations seems to be vaguely drifting toward support for an Asian alternative to U.S.-Europe economic management. That Asian leadership with a maturing China joined fortuitously through Biden economics and war ventures toward much closer ties with Russia also includes South American and African trade partners. Most people of the poorer developing nations probably will be happy with far lower priced electric vehicles that are much lighter in weight yet still reach 200-300 miles per charge (MPC).
It is possible that electric transportation platforms may reach numerous infrastructure paradigms radically different than those of the United States. Just as developing nations may flourish with internet access through Starlink hubs in remote villages and solar power technology manufactured in China, India and elsewhere in Asia it is not unlikely that some nations will build transport power grids made just to provide in-line power for electric transport platforms guided by chip and A.I, to let seamless, frictionless movement of millions of vehicles in congested and chaotic urban areas with the maximum possible efficiency, packing and use of power with no noise or pollution. One wonders if American labor unions in Detroit manufacturing very large and costly platforms will find much profit to share with an over-mature transport grid hosting their product designed more for the rich than the world’s poor.
It may be that Detroit auto producers will mover production abroad even more than today in order to manufacture small, fast, cheap platforms that cannot be sold in the United States. If Americans could actually build homes for $40,000 with better use of materials instead of $400,000 for the average cost of a new home could that even be tolerated by economic leaders in the U.S.A. There are numerous fascinating economic developments to watch in the world ahead now that the Biden international relations revolution building on that of Clinton and Obama has overthrown a century of developing peace, ending wars and enmity wit communists and restored fully hostility with out World War Two allies Russia and China and built a team for war with our world war two enemies Germany and Japan.
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