The current political-economic environment seems to be very similar to that of Russia at the beginning of the 20th century. Using the labor unions and a very favorable government, the proletariat has assumed, at least for now, the upper hand.
It disturbs me that the American people have a disdain for “big” business and favor instead “big” government. That seems to be a backward way of thinking.
Consider the role of capital: Were it not for capital investment, where would we get the expensive machinery to manufacture such modern marvels as the electronic micro-chips from which our computers, televisions, and digital cameras are made? You can assemble a computer in your home work shop, but you cannot make the parts from which it is made. You can put up a jar of canned tomatoes in your kitchen, but you cannot manufacture the glass jar.
The capital supports the jobs on which we rely and if it cannot receive a return here in America, it will flee to where it will receive a higher return. The labor unions would have you believe that they are “protecting” the average worker, but in reality they are destroying the opportunity for a job in the long run. Just look at the current situation with Chrysler and General Motors. Will Ford soon follow? The unions are forcing upon the American brand auto manufactures a labor cost much higher than the foreign brand auto manufacturers and we will all be the worse off because of it.
On the other hand “big” government brings us higher taxes if we pay now or higher inflation if we defer the payment along with the paralysis of burdensome regulation as unelected bureaucrats write the rules that press upon us all.
There is a calamitous disaster on the horizon that may be too late to avoid.
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