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As the word "nation" becomes equated to the hardworking, law abiding, consumers that drive the workforce and the economy of a country, recognizing a strong nation verses a weak nation becomes easy to do. In order to maintain a strong nation, political leaders must stand as sentinels between the people, industry, crime and greed. They must work to ensure that those hardworking, law abiding consumers remain safe, healthy and prosperous.
That simple truth can get lost in the haze and result in the destruction of a nation. The current economic state of this, our country is no accident. It was not a series of unforeseeable circumstances or calamities that could not have been avoided. Back in late nineteen seventies, under Nixon, this country began printing money in excess of the gold reserves. The move resulted in inflation. Following Nixon, there was a massive deregulation of industry. Though there were positive aspects of the deregulation it also had some negative affect on the hardworking, law abiding consumer as businesses were freed to chase the dollar with greater fervor, some unscrupulously. Prior to that period, a single breadwinner could work their way up in a company and support a family on one income. That reality was replaced by the hiring of college graduates tasked with improving profitability. One of the biggest recommendations that came from the new mindset was to cut payroll; a conclusion that didn't require much innovation or education, just indifference to the welfare of employees. What followed was the replacement of high seniority workers with part time, non benefited low paid workers. It was a way for business to reap greater prophets so the layoffs began. The cuts in payroll came at the expense of hardworking, law abiding consumers. After fifteen and twenty years of helping build companies through their loyal service, the leaders of families were laid off, further chipping away at the foundation of this nation. Both parents of families were forced to work. The stability of family structure was lost and the crime rate soared as children attempted to raise themselves yet the movement to cut payroll continued forward and became a national trend. There was short term gain but in the long run, these companies were adversely affecting the lives of their customers. That reality has caught up to them now.
Right now, many companies restrict all employees to thirty eight hour weeks. That two hour restriction allows employers to stop employees from receiving valuable and needed benefits due to full time employees. People are spending thirty eight hours per week working for a company yet have no medical, vision, dental, retirement or vacation benefits. It is another place where only government intervention can regulate employers into doing what their collective conscience does not.
Further, the "at will" work status prevalent in the job sector has removed any and all job security from the average American worker. Taking an example from the Netherlands; employees deserve a system through which; after having been on a job for a specified time period, permission from a government appointed agency is required to remove that employee from their job and the request must be supported by documented behavioral or performance issues. Of course, necessary group layoffs would be exempt from the system but the American public currently has no job security whatsoever and that is not the way to build a strong nation. For that to happen, employers cannot be allowed to continue throwing away employees on whims, for personal reasons or because they spoke out against things like harassment or unfair practices.
The American automakers that are in trouble now are those which did not embrace fuel efficiency or product dependability through the years. They made great television commercials and continuously introduced new models with novel features but the lack fuel efficiency and excessive mechanical problems hurt many people, increasingly pushing the country towards foreign automakers. Note that those foreign automakers are currently not in financial crisis.
Leaders in the credit industry were hard at work. They wanted laws changed so they could raise interest rates to levels that were previously illegal. Eventually they found just the right puppets and pulled just the right strings until that which was once illegal became the new industry standard. They even got the nations ability to escape the inflated debt through bankruptcy, removed. It worked great for the credit business for a while but again, it hurt the people of nation, further deteriorating the strength of the nation.
In 2003, a wave of home purchases began in which critical information like negative amortization and rate caps was not clearly explained and considered during the loan evaluation process. The cost of real estate quadrupled in a couple of years. Everyone owned a home and anyone involved in the real estate or lending businesses made a ton of money but the reality was that they were scamming the nation and just like a jet that takes off at too steep of an altitude, the industry fell from the sky.
So many people couldn't afford their loans anymore and the foreclosures became so numerous that businesses suffered. Many people could no longer afford to shop, eat out, buy new furniture, buy new cars or to build new homes. Creditors, banks, mortgage companies, automakers, real estate companies and many other businesses began to drown. Even the almighty secondary market that held everything together by purchasing the debt began to drown too. The failures caused job losses which further fueled the downward spiral. The people unable to spend money could not support the businesses and without customers, the businesses could no longer employ the people.
During those critical times as the foundation of the entire structure began to sway, false information was fed to the public to justify entering into a war that continues even now to cost the nation billions upon billions of dollars as it destroys tens of thousands of lives, families and mental states, consuming the resources that fueled a healthy nation.
Finally, once teetering on the brink of bankruptcy, the leaders of the nation realized that which has been on the horizon since the late 1970's and raised the alarm, "We've got to save the nation's industries or we're doomed!" They made big plans to bail out the drowning creditors, banks, mortgage companies, automakers, real estate agents, brokers and other companies. So while hard working, law abiding consumers move their families from their homes into their cars, explain to their children that they've lost their jobs and live without medical care or much hope, businesses, many of which are in their current financial circumstances as the result of indifference to the plight of the American people are being bailed out.
It was not the prosperity of industry that preserved the nation; it was the prosperity of the nation that preserved industry and even if all of the money being used to prop up industry was put directly into the hands of the people, recovery would still leave an economic shift with some once prosperous businesses left out. Fuel efficient cars are still being purchased and discount stores are still reaching sales quotas. The people of the nation haven't stopped spending, they're are putting money into different businesses; those that are doing more for them and charging them less. Propping up business that the people do not want anymore would be a misplacement of precious resources.
Another devastating factor to the nation is the current trend of offshoring American jobs to countries with lower labor rates. This practice circumvents and is in direct violation of most of the worlds immigration policies which do not allow jobs to be given to non citizens of most nations unless no citizens are able or willing to do the job or there is are special skills particular to the individual making them key a company. Thousands of American jobs and dollars are walking across the water causing immense cracks in the foundation of our country's economy.
It is not just an ideal that a great nation exists by and for the people of that nation. Existing by and for the people is a requirement of remaining great nation. When the hardworking, law abiding consumer is bailed out of their troubles, when they can afford to provide clothing, cars, furniture, food and homes for their families, when they can sleep at night with some measure of job security, when they can sit down with lenders that actually act in good faith, when interest on credit isn't so high that consumers are unfairly locked into debt and when they can see doctors if they don't feel well, there will be hope again.
If the health, well being and prosperity of the hardworking, law abiding consumer becomes the primary concern of the leaders of the nation, the nation might even eventually thrive again. It took forty years of disregarding the people to bring our nation to the brink of ruin. If available resources were channeled into propping up businesses that provide significant employment and value to the nation's consumers while simultaneously propping up the nation's consumers and employees, restoring their ability to shop and sleep without so much worry over money and the constant threat of job loss, the economy will turn around and stabilize.
Mark
