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Posts Tagged ‘Wal Mart’

Trump Therapy

August 18th, 2015 No comments

link: Trump driving migrant debate among GOP field – The Washington Post

Donald Trump continues to dominate the news headlines with his populist rants about what ails the nation.  As noted in earlier pieces, the fact that these numerous festering issues have been brought forward for public discussion is a refreshing change from the PC sensibilities of both political parties and the media in general.

Until Trump, public figures were unable to speak candidly about numerous social and economic topics for fear of negative media characterization.  It’s as if someone had imposed an omerta edict, banning honest discussions on key social issues that could be spoken of in polite company.  Immigration, unemployment and the general fecklessness of the  sitting administration and congress are issues which affect most every citizen. Many likely feel that the America they’ve known is disappearing because of problems created by ill conceived policies.  Until Trump, no one had the cojones to talk about solutions for them in blunt unvarnished terms.  Indeed, at this point in the election process, the combatants appear to be less Republicans vs Democrats and more of the people vs Washington elites.  Trump’s great feat is that he’s able to discern that people hate all politicians,  tapping into that antipathy to become the de-facto spokesman for the silent majority.  Imagine that, Trump speaking for the common man!

Many of his proposed solutions resonate with the average guy since they seem to have some basis of common sense.  Building a wall to protect the southern border may have populist appeal, but we’re not sure if he can do that without hiring low cost Mexican workers.  Union labor rates would cripple the project.  On that note, one of Trump’s other populist notions is to bring back jobs from China.  Hmm…not sure he’s thought this one through.

Over the past few generations, the manufacture and fabrication of virtually all consumer goods has been ceded to China.  Why? Because workers there are cheap, plain and simple.  The result is that the west has grown accustomed to cheap clothes, cheap electronics, cheap iPhones, cheap furniture, even cheap rocks.  So now, that’s Americans’ favorite price point, cheap. But now, let’s say we could mandate that companies use only domestic labor for manufacturing.  That means that the price of everything skyrockets.  Wal Mart would go bust.  So would Costco.  No more buying one suit, getting 3 free at Joseph.A.Banks.

What Trump likely knows and is not revealing is that the real way to rebuild wealth in the west is not to bring back low wage jobs. How much can you pay someone to  put the caps on toothpaste? It’s only by dismantling the obstacles and regulations and taxation constraints that stymie business formation and growth that wealth creation can happen.  The villains aren’t in China or Mexico.  The guys with the twirly mustaches sit in government offices in state and federal capitols in the USA!  If Trump doesn’t make that point clear, then he is catering to populist sensibilities….like the politicians he claims to loathe.

Still, Trump is the right man at the right time. The pendulum of political correctness and progressive policies has swung so far to the left that a catalyst was needed to swing it back.  Trump is like chemo therapy for a cancer patient; strong medicine for a severe ailment.

 

Next, A Tax On The Stupid

May 5th, 2011 No comments

link Obama floats plan to tax cars by the mile – The Hills Floor Action.

I don’t know the veracity of this story, but if true, it would open up vast new horizons of revenue for governments.    Many eco-nazis would be pleased to see this new method of taxation implemented because in their minds, this saves the planet.    Never able to project the consequences of their actions beyond their juvenile ideals, if this plan is implemented, these greenies would in fact preside over the total downtick of civilization.   

This statement is hardly hyperbole since if people stopped to think of it, the entire foundation of civilization rests on the ability for man to transport goods over far distances.   The world would be reduced to unconnected villages of tribal influence if the ability of transportation of goods and movement of people were curtailed by prohibitive costs.   Proponents of the ‘less cars is more’ viewpoint would rather society revert back to greener modes of transportation.  Horses and donkeys perhaps. 

As is the case with most taxes, the supposed beneficiaries, the poor, will suffer the most.  People with means will be able to pay the tax and businesses will simply pass on the tax to the consumer.  Imagine the circumstance of a laborer who has to commute long distances to his job.  More of a tax on the miles he drives will either disqualify him from taking the job, or else wages will have to go up to offset the additional transportation cost.  If the wages go up, the cost of goods produced by his employer goes up, which is subsequently passed on the consumer.  The consumer either reduces his consumption, or shops elsewhere.   Very simplistically, this is how Wal Mart and other big box stores came into existence.  They were able to exploit both cheap sourcing and manageable transportation costs.  If a per mile tax were imposed, the impact will not only be on the consumer, but also on Wal Mart’s ability to offer inexpensive goods.  Net result, prices go up.

For some reason, government mindsets over the past few generations have focused on milking the populace rather than encourage their productivity.  The momentum of innovation and progress, hallmarks of an advancing civilization have been attacked and perhaps even stopped by the combinations of frivolous lawsuits, unreasonable regulation and red tape and of course by short sighted taxation.  This is analogous to cutting off parts of a steamboat to fuel the engines as the vessel slows down.  Onerous taxation is cannibalizing western society in the same way.

I suggest a far more efficient tax be levied instead.  How about a tax on politicians by the words they utter?  If they are caught uttering outright fibs, then the tax triples.  Al Gore could be the national benefactor, finally doing something useful for the nation.   In fact, with the kind of non sensical rhetoric being spewed daily by the present administration,  any budget deficits could be paid off within a generation.