- Business and Employment
My advice to the president on the state of the economy
The economy as a rollercoaster
Dear Mr. President: A suggestion to reduce the trade deficit.
The economy as a roller coaster.
If the body mass of a coaster is the economy, then the stimulus package is the force that pushes it to roll on the track of the roller coaster. Therefore, it is the track of the roller coaster on which the economy roll that we should redesign so that it creates a loop that brings the coaster back to us without having to apply force to push it again.
Our failure to create such loop may cause us to encounter brake runs along the track which can slow or even stop the economy from rolling again. We must create jobs that bring money back into the economy.
Trade deficit is the key component here, the more goods we can export to other countries, the more stable our economy will become. It is the result of our trade deficit that will determine whether or not we can sustain the waves of this economy.
For example, one of the many jobs that can help reduce the trade deficit is in the sector of agriculture. As it is now, there is a growing demand for organic produce. Americans wants to eat healthy, they’re looking into foreign markets to buy organically grown produce. We can invest a small percentage of this stimulus money in farming by stimulating small farmers to cultivate organically grown produce. We do not have to be the consumer we can become the supplier, supplying to our population while keeping the money re-circulating.
We can make our neighboring country Haiti the organic paradise; encourage Haitians to produce organic food to sell to foreign markets. We can attract investors for them while at the same time setting rules to guard small organic farmers against giant corporations. We can protect their grains from being patented to secure the process of organic farming.
We can encourage American investors to buy organic produce from Haitian vendors at market price. By building partnerships with the Haitian people, we’re making them part of the loop system, which means their economy is tied in with ours via the coaster within the loop system.
Other jobs that can help reduce the trade deficit are in the green energy sector. Creating environmental friendly cars are one of the many proposals that you have outlined as a means to reduce the trade deficit. However, to create green cars at a cost that is affordable you may have to make it a government subsidy.
What I mean by that - is that to compete against foreign markets, government will have to take charge if the tax payers money are being used to bail them out. It will not be possible in the private sector’s hands if they continue to pay workers so much money to produce a car.
By taking charge, you’re making domestic goods and services artificially competitive against imports. That is the strategy that we need to employ if we want to off-track this growing trade deficit.
A further option is to create jobs in foreign countries. What I’m talking about here is government acting as a corporation. It’s very much like what Proctor & Gamble has done in some foreign countries, which is creating a market to consume your own goods. Its a little different from outsourcing, when we outsource mostly its for cheap labor US products are not being sold their. What I'm talking about here is US companies creating products to sale in foreign lands where the factory is situated, these products are not being sold to US consumers. The only thing that is coming back to US is the profit.
This strategy is very much like the paradox killing two birds with one stone. You see, in a global economy, government can’t depend on corporation to improve their economic situation.
Corporations are separate entities owned by individual stockholders; those individuals are part of the world economy. They have no tie to any state, and they’re there to make a profit where they see fit, so whether it’s in China, Japan, Haiti or Africa, makes absolutely no difference to them.
We can encourage green energy manufactures to built factories in Haiti as a mean to raise the minimum wage of the poor to a level that is above their current living standard. As Americans, it is only when we have a stake in a country that we become concerned with their conduct of operations. Why? because we care about our investments.
As a Haitian patriot, I believe that you have to give to receive, so for that we’re willing to welcome foreign investors in Haiti. We encourage them to built resorts that are affordable and not exclusive to anyone. Hire Haitian residents to work at these resorts, build schools and restaurants while educating local citizens for these types of services.
To reduce the trade deficit in the US, government should act as a corporation looking for return on investment where they see fit. China is successful because they’re one of the biggest corporations in the world. As you clearly stated “they’re not a democratic society, so they don't debate". Although we do like our democracy, but I understand your point since too much debates tends to slow progress. But this is also part of the reason why they're not wasting any time. They export a great amount of their products, by creating partnerships across the globe as a mean to move their product faster while minimizing on import.
So it is true, the New York Time was right “China is not waiting, it is moving" They send their affiliates to other countries to produce markets for China to sell to. As you can see MR. President this is why we need to re-evaluate ourselves and implement suitable measures to counteract, if we must continue riding this economic wave.
Build partnerships across the country, tie in our economy with theirs, and build a relationship on mutual ground. That is to say we’re not looking to take advantage of the small countries, but making them partners so that we can rebuild our economy from the bottom up.
Since their treasures are our treasures, we must help elevate their economy to show gratitude and respect. Their citizens should not have to come to the US looking for a job. This is globalization, if the loop we’re creating has no brake runs along the tracks their economy and ours will intertwine, making it possible for anyone to live the American dream.
The result of the loop would have distributed wealth across the globe, the land of opportunity wouldn’t necessarily seize the most middle class people, and other developing countries would have also given rise to their own middle class group. This in effect will cause Americans to be skeptic about globalization for the reason being that it offers advantages to all upper class society regardless the country.
Why do I talk about this? Well, as a parent and tax payer, I am a stakeholder and so are many Americans like myself who have come to accept this country as our home. In order to make the United States a bread winning state in the future economy it must create an economic loop and be incorporated.
United States incorporated during business in the world economy as a separate entity, where the stakeholders are citizens of the world economy. Some may refer to it as a socialist idea, but others will see it as an opportunity for US to regain leverage in the world economy. The United States doing business as a corporation will help reduce the trade deficit while creating a loop to keep the money re-circulating into the country.
Edited by Nadine Sellers