China is experiencing a 10% economic growth every year. What's their secret? Theyhave a booming ecomony that doesn't import hardly anything.
They don't need to import anything because they don't have their own government standing in the way of industry. If they wantto start upa chemical plant, they don'thave to file environmental impact statements, deal with local zoning, get permission fromt he DNR or Army Corps of engineers, they don't have a BATFE or DEA that they have to worry about, or an FDA to file extremely expensive reports to if they make something for human consumption. A company I worked for, bought a lot of chemicals from China, becuase the costs were fractions of a penny on the dollar of what a domestic producer would have to charge- this is due to our own government putting roadblocks in our ability to produce anything.
For example, lets say 1person works 50 hours a week(10 hours overtimeat time and a half) foroneyear in a factory. He makes$11 per hour and works 48weeks ofthe year. He'll make $29,040 a year before taxes. If the factory has 1,000 workers with similar employment, the local revenue is $29,040,000. Most economists say that money spent locally has about a multiplier effect of 7, meaning that each dollar spent will get spent 7 times over before it leaves that economy. If every factory workerspends or invests all their money locally (it's a model, just go with it), the local economy earned $203,280,000. That factory is now outsourced, crippling the local economy, soAmerican's can save $1.50 per crockpot at Wal-Mart. Did we just increase our standard of living?
That dollar that is spent 7 times over in a community willalso be taxed at least that many times. payroll taxes will cut theoriginal dollar down to about $0.75, figure a 5% tax every time its spent, you end up having to spend 7 times as much to get a full dollar tothe last recipient in the community.
America's economic power is slipping everytime we outsource factory jobs, because they're not being replaced.
Correction- some
American's economic power is slipping. Its those that bury their head in the sand and believe that they can get by without a marketable skill or knowledge that are going to be hurting.