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Originally Posted by thommy
that is definately correct and one of the facts what are never discussed in this kind of populism.
to understand the REAL situation you have to understand that USA have the highest dept all over the planet. and not only the country is in dept, the citizens are also. an average family of 4 people have a dept of 160.000 dollars and i canīt find an answer to the follwoing questions:
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Because the US imports too much and exports too little. Throwing people out of work is very expensive.
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1. how can this familiy survive if goods are becomming more expensive because they are produced in USA ? By more jobs ???? That would result in....
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higher wages, taxes and less government spending
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2. How can production inside USA result in a better income or more jobs if there are no outside buyers for this products and the inside buyers canīt afford to buy them?
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Via automation.
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3. When US-citicens do not get any other products then american with WHAT do they buy it? With more dept?
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If that was true, the US would never have got so powerful.
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4. Increasing prices automaticly have a decrease of consumption as a result. To WHO are american factories sell the produced goods if the own citizens canīt or wonīt buy them?
that will lead to...
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It's all about $$$ spent. Not number of items bought.
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5. less production, lower prices and a dramaticly value lost of the dollar. Even products what CAN NOT be made in USA will be more expensive because of a low dollar value.
and this low dollar value canīt even help america to EXPORT because they are in war with potencial buyers....
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No higher production as companies come back to the West.
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to understand worldwide economy means to understand that a global market is the one and only chance for a country to get over bad times because there is always someone out there who have good times and can buy and invest.
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Then why are all the fastest growing economies outside thwe West?
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a successful business (and a country) can be driven 2 ways:
a. robbing others til they do not have anything left - thatīs than the end of the game
or
b. accepting that business (and human existence) is a mix of giving and taking. there canīt be ANYONE first.
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China and the Third World is now robbing the West of jobs, replacing them with jobs on a wage too low to buy as much as they sell. So you're right on (a) and wrong on (b) because there is no give and take.
With respect, research the flow of wealth from the First World to the Third. Look at the incomes of most in the Third World. Then look at the growing poverty, low wages, unemployment and reliance on the State in the first.
Look at the trends and then project them forward by 20 years. The essential element for the future is whether the automated factories of the future are where they are, what country they contribute wealth to.
Then will China take over as the centre for financial industries? The West loses that and it's game over.