Reaganomics has made America Less Productive
The California Agricultural Industry believes that there will be less illegal immigrants to pick their fruits and vegetables. Strangely enough wages are rising for California farm workers. I could go on for several articles talking about how the California example relates to the rest of America’s workers and how the government has sold out Joe Citizen but there is something even more interesting emerging from the California experiment. The unintended consequences of California’s rising farm wages clearly evidences that Reaganomics has made America less competitive on the world’s stage. All economies following the Cowboy Capitalism model should take note.
As a short premise I was somewhat amazed at how technologically backward the United States was when compared to everyday business in Europe. A simple example is the digital cell phone network just implemented this year in the US. Something Europe did with GSM back in the middle 90s, a good 15 years before the US.
The California farmers are investing millions of dollars in technology to improve food safety and time to market. A $ 1 million investment reduces the number of laborers from 30 to 18 with a payback, even with slave labor wages, of just 3 years. The addiction to low cost labor resulted in loss of productivity. The predictions of 1000 percent cost increases were exaggerated. Simply put, Reaganomics and the open border policy kept the California farmers from implementing modern technology solutions that will result in better quality controls, fresher products and lower costs.
It is obvious that necessity is the mother of invention. Take away the need and there is no reason for companies to innovate. Reaganomics has seriously impeded the United States innovation favoring outdated production methods and processing and costing the US economy in both productivity and social distress. The same concepts are true across all sectors of our economy. We have favored outsourcing for short-term gains instead of investing in the infrastructures necessary for a competitive America. Our roads and bridges are failing. The US has one of the lowest broadband penetration rates of the free world. Our best and brightest, because they are poor, never get the formal training to allow them to express their full potential. Our craftsmen and artisans are making telemarketing calls because they cannot compete with contractors using illegal immigrants.
These are the fruits of Reaganomics. The supporters will scream and shout. There are many these days who vehemently defend the stupidity of Reaganomics and risk coronary failure to express their discontent with the Federal Reserves position to fight inflation. Do not listen to the verbiage. Opinions are like assholes… Take a look at the results. Reaganism and Cowboy Capitalism weaken America’s capacity to compete on global markets. Savage immigration policies like open borders reduce the number of qualified, experienced workers necessary to avoid little things like the Subprime Tsunami.
Tags: Government Politics China Corporate America Finance Illegal Immigration Economy Reaganomics
As a short premise I was somewhat amazed at how technologically backward the United States was when compared to everyday business in Europe. A simple example is the digital cell phone network just implemented this year in the US. Something Europe did with GSM back in the middle 90s, a good 15 years before the US.
The California farmers are investing millions of dollars in technology to improve food safety and time to market. A $ 1 million investment reduces the number of laborers from 30 to 18 with a payback, even with slave labor wages, of just 3 years. The addiction to low cost labor resulted in loss of productivity. The predictions of 1000 percent cost increases were exaggerated. Simply put, Reaganomics and the open border policy kept the California farmers from implementing modern technology solutions that will result in better quality controls, fresher products and lower costs.
It is obvious that necessity is the mother of invention. Take away the need and there is no reason for companies to innovate. Reaganomics has seriously impeded the United States innovation favoring outdated production methods and processing and costing the US economy in both productivity and social distress. The same concepts are true across all sectors of our economy. We have favored outsourcing for short-term gains instead of investing in the infrastructures necessary for a competitive America. Our roads and bridges are failing. The US has one of the lowest broadband penetration rates of the free world. Our best and brightest, because they are poor, never get the formal training to allow them to express their full potential. Our craftsmen and artisans are making telemarketing calls because they cannot compete with contractors using illegal immigrants.
These are the fruits of Reaganomics. The supporters will scream and shout. There are many these days who vehemently defend the stupidity of Reaganomics and risk coronary failure to express their discontent with the Federal Reserves position to fight inflation. Do not listen to the verbiage. Opinions are like assholes… Take a look at the results. Reaganism and Cowboy Capitalism weaken America’s capacity to compete on global markets. Savage immigration policies like open borders reduce the number of qualified, experienced workers necessary to avoid little things like the Subprime Tsunami.
Tags: Government Politics China Corporate America Finance Illegal Immigration Economy Reaganomics
Labels: Class Warfare, Corporations, Economy, Free Trade, Immigration, Populism, Reaganomics, Trade Agreements, US Poverty
posted by Small Business USA at 11:48 AM
3 Comments:
The dependence on cheap labor instead of investment in technology is definitely unwise.
Australian manufacturing companies have been shutting down and moving production to third world countries for many years.
I'd have to say you've got a contrarian position on the Reagan legacy.
Burkean Reflections
Lexcen I see corporations moving to low cost production areas the same as substituting quality raw materials for lower quality materials. The lower price does not mean the product is cheaper just that it cost less to have the shiny product.
We should be concentrating on creating quality but that requires us to stop thinking about this month or this quarter and take a long term approach.
Douglas I may see things differently since I was not subjected to the 20 years of Reagan is god (since I was in Europe the entire time). I never understood the love affair with Reagan. He was credited with things that he did not do (for example the Berlin wall came down because of Gorbaciov, Reagan had little or nothing to do with the transformation of the ex-USSR).
Regarding economic policy I look at it from a very simplistic point of view. What are the results. America's economic position is far weaker than pre-Reagan. The future expectations are also worse. We have gone from the land of opportunity to the land of worrying about making the bills.
Justice is no longer important, rule of law has gone out the door, corporations are more important than individuals, et al.
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