Our Fundamental Truth about …
As I was about to begin writing this piece, the melody of the unforgettable theme song of that classic movie ‘Casablanca’ drifted up from my memory and mingled with the subject of what I was about to write: ‘It’s now an old, old story, a love for profit’s glory, a case of do or die; the fundamental truth of life … in USA … ’ (‘As Time Goes By.’)
As you may remember, the movie theme dealt with the reality of “woman needs man, and man must have his mate, that no one can deny….” All of which made perfect sense to me for dealing with truth in the topic of this article.
Every month, some American businesses move their operations and jobs out of the US to some low wage country. Why do they do this? It’s easy to understand.
When employers face unrelenting competition from foreign companies who are able to market equivalent goods or services using their native workers to do the same work in ten, twelve or more hours per day, six days per week, without US job safety regulations, worker compensation, pensions, and spend only a small fraction of the wages that US employers pay American workers to do the same work; then US based employers are faced with a sink or swim dilemma. US law allows foreign companies to export many goods and services to the US consumer market without imposing any import tariffs.
Foreign-made products can be sold in the US for a lower price than equivalent products produced in the US. A US-based company faces two options to survive, - move and setup their operations to produce goods or services outside of the US; then export their products to the US and sell them to US customers, or go out of business. The result is a loss of jobs either way for US workers. It is workers, who create America’s potential.
When the wages of unemployed workers disappear, the incomes of merchants disappear. In a money economy, it is absolutely important to maintain the circle of income for workers, whose wages are spent to purchase goods and services they need. Those purchases provide the incomes that businesses use to pay the costs and wages of other workers, who produce yet other goods and services that other workers and businesses need to continue their pursuit of life. It is not difficult to understand that relationship.
Because we need a solution to the immanent collapse of the US economy, let’s consider the essence of what we suggested in an Open Letter to President Obama, shortly after he was inaugurated. The letter is listed below.
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“February 12, 2009
“President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
“Congratulations, Mr. President
“Please read this suggestion. It could solve what you are trying to do.
“The rejuvenation of the economy would be possible if Congress enabled the federal government, instead of employers, to assume the responsibility to pay the wages of all workers nationwide.
“Doing this would enable employers to invest in upgrading workers’ skills to use efficient cutting-edge technology and research to make US employers the foremost providers of quality goods and services. The employers of industries and businesses would be happy to focus those savings on optimizing their processes.
“The government would be able to recover the cost of paying the wages of all workers in the US by taxing the profits of employers, but would allow employers to deduct the costs of adopting appropriate technologies and research efforts that enhance their operations.
“Workers would again be spending their wages to purchase the goods and services from industry and business.
“The government would also be able to tax the income of all workers, but would allow their appropriate deductions.
“The Bureau of Labor Statistics shows that the total wages paid to all US workers during the years 2002 through 2007 ranged from $1,182 trillion to $1.532 trillion dollars per year.
“The 2009 bank bailouts will exceed the total wages paid in 2007.
“If the federal government were to pay the 2009 wages of all workers; it would be less than what is spent for the bailouts of failed loans by banks.
When workers can become customers, they spur continuing improvement in the production and distribution of goods and services.
“The government would secure our unalienable Rights, as described so well in the second paragraph of the Declaration.
“God bless your wishes,
“Wilfred Mische”
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Now, let’s look at a very important portion of the second paragraph of the Declaration of Independence:
“We hold these truths to be elf-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.”
This tells us that governments are instituted by people to secure those unalienable Rights. That means that the purpose of our federal and state governments is to secure what makes it possible for the people of the United States to have the liberty to pursue their life in happiness. What is required for the American people to secure their pursuit of happiness and other unalienable Rights?
In our money-based system, people need to be employed to earn the financial income with which they purchase the goods and services that they consume to satisfy their standard of living.
Merchants and farmers depend on those purchases for an income to pay their costs to produce and distribute goods and services for their customers and also to maintain their personal lively-hoods.
In the times past and the present, merchants of all types employed workers to do the work of producing and distributing the goods and services that consumers purchase. Since most of the consumers are workers or are related to workers, the survival of industry and business depends on the consumption of workers who earn wages that enable them to purchase the goods and services of an appropriate standard of living. The generator of prosperity, in a money-based society, is the opportunity and ability of workers to earn a wage that can purchase an appropriate standard of living. If workers are unable to purchase goods and services, merchants are unable to sell goods and services.
In the USA, our federal government has allowed the products and services of foreign businesses to enter the US consumer market without tariffs and to be sold in competition with US made goods and services. The competition impels US manufacturers to produce or service goods that excel in quality at the most cost efficient and appropriate design. But, foreign manufacturers can employ workers at a fraction of US production costs to do the same thing with an advantage, because foreign manufacturers are free of the labor and regulation costs required of US manufacturers. Foreign manufacturers can thereby afford to offer their product at a significantly lower sale price that cannot be matched or beat by an equivalent product offered by US manufacturers on the US consumer market.
Our suggestion to President Obama can enable a true solution and genuine stimulus for US-based manufacturers and service businesses that choose to remain in the USA. The Declaration of Independence said in its second paragraph, that the purpose of our federal government is to secure the rights of American people; which includes those who are involved in the processes of US-based industry and business. The proposal urges Congress and the President to pass legislation to authorize and appropriate the funds for the federal government to assume the responsibility of paying the wages of all employees of US-based business and industry. Such a law will enable US employers to produce, distribute and market their goods and services for sale in the US consumer market without incurring the cost of labor. With that law, we the people of the United States will be able to preserve and improve our industrial and business prosperity.
Might other nations adopt a similar process for their markets? Yes, but America has a huge and sophisticated consumer market, which has been lost to foreign manufacturers. By having our government assume the role of paying the wages of all US-based employers, we will recover the loss of our US consumer market and enable American industry, business and formal education to concentrate our attention on innovating cutting edge technology in the production and distribution of goods and services for Americans.
If you have questions, take a look at the letter we sent to President Obama. We did receive a letter from his office, which thanked us for sending the letter. If you agree with the proposal, write him; we can’t afford to lose the blessing of our consumer market, its industry and jobs, and needlessly go down the drain as a nation.
May God help us.



