From 1945 to 1980 the USA was manufacturer to the world. American capital was forced to "play ball" with American labor. Because of Labor and Trade laws, we had the highest paid middle class in history. And it paid off because when the middle class has money in their wallets, the capitalist must invest, innovate and add even more jobs to capture that money. It's called a virtual cycle. This is why the economic growth in the 50s and 60s was more robust than any time before or after.
Then came the oil shocks of the 70s and stagflation.
This gave big business and Ronald Reagan an opening. The gipper told us that we needed to unburden capital and provide more support to our suppliers. Specifically, he said we needed to free Capital to seek cheaper operating conditions, including cheaper labor. He said this would result in more jobs with higher wages and better benefits.
We fell for it.
And then our corporations spent the next 30 years shifting production to Asia. Put simply, Nike investors make more money when their goods are made in freedom-hating nations by sweatshop workers who make less than $5/day.
To make up for the loss of wages/benefits, we expanded credit, and the debt grew like a cancer around the purchasing power of the middle class.
So yes, China is emerging as a global leader and we are slowly dying. But make no mistake, our capitalists are doing better than ever - for they have partnered with Communist China. Where do you think the Waltons get over 20% of their goods made? Next time you're in Walmart, read the labels on the toasters, TVs and clothes.
Who knew that our greatest rightwing hero, John Galt, would sell the American worker down river?
We swallowed poison in 1980.
