The fix for the economy

       Alexander Hamilton, (Ten dollar bill dude) is credited as being the first American protectionism theorist. Let's look at some of his ideas.

1. "Protecting duties." (Tariffs.)
2. "Prohibition of rival articles or duties equivalent to prohibitions." (Outright import bans.)
3. "Prohibition of the exportation of the materials of manufactures." (Export bans on raw materials needed for industrialization here at home.)
4. "Pecuniary bounties." (Export subsidies, like those provided today by the Export-Import Bank and other programs.)
5. "Premiums." (Subsidies for key innovations. Today, we would call them research and development tax credits.)
6. "The exemption of the materials of manufactures from duty." (Import liberalization for industrial inputs, so some other country can be the raw materials exporter and we can industrialize.)
7. "Drawbacks of the duties which are imposed on the materials of manufactures." (Same idea, by means of tax rebates.)
8. "The encouragement of new inventions and discoveries at home, .and of the introduction into the United States of such as may have been made in other countries; particularly those, which relate to machinery." (Prizes for inventions and, more importantly, patents.)
9. "Judicious regulations for the inspection of manufactured commodities." (Regulation of product standards, as the USDA and FDA do today.)
10. "The facilitating of pecuniary remittances from place to place." (A sophisticated financial system.)
11. "The facilitating of the transportation of commodities." (Good infrastructure.)

(http://www.huffingtonpost.com/ian-fletcher/america-was-founded-as-a_b_713521.html)

       The basic idea here is to make sure American industry was given preference.  We forgot about that in the 80's.  In the 90's the factory workers, who now had no factories to work in, switched to construction jobs.  In the 00's those jobs began to dry up, as an economy that produces nothing cannot support itself.  So far, in the 10's we are seeing crippling unemployment, and the jobs that are being created don't pay as well as what was lost.  What do we do about it?

       Well, we begin by reinstating Hamilton's brilliant ideas.  That action alone will not immediately fix everything, but needs to be done.  Then we begin to assist the growth of companies that make pre-fabricated and modular homes.  Our workers mostly came from factories and switched to construction, and so are uniquely qualified for this.  The homes, or modules, are the same size as a standard shipping container.  This allows easy transport by road, rail, or ship.

       But to whom do we sell?  Our trade partners in Europe have regulations about historic areas, and their own protectionist policies.  But, much of India and Africa have a need.  We could provide them expertly built and wired homes, giving them no need to develop that particular set of skills domestically, and perpetuating the need to import homes from us.

       We would have a great export business for homes going in no time.  It would be a status symbol to have an "American Style" house.  This would set up further demand for American built goods.

       Once these trade partners are cemented, longing for the good stuff America can provide them, we leverage our true strength.  Food Production.  We do it better.  We do it cheaper.  We do it so well, we pay farmers to not grow food, just to keep the prices up.  Those prices are still a fraction of what the same food would cost in Europe.  

   

       I would point out, as well, that protecting American interests should not ever be a partisan issue.  Many say protectionism is something that the right disdains, as it hurts trade; and the left embraces, because it helps unions.  If it helps unions, that is only because they are covered under the broader category of "American".  If it hurts trade, the trade being hurt was not to our advantage anyway, so let it be hurt.  American dollars for sub-standard foreign goods is never a good trade.  

       Of course this idea is expressed facetiously.  Well halfway facetiously.  We do need to protect our interests better.  

This is theft

       I just wanted a York Peppermint Patty.  I went to the machine at work and paid my 95 cent for a 60 cent candy.  The candy was dispensed, but rather than release my nickel, which in retrospect, I'm not sure I have ever seen this machine do, it told me I had a credit.
       A credit.  So now my options were to, A: Buy another overpriced candy, or B: wait for someone else to, and hope they have a nickel, or C: walk away.
       This is petty theft, and it happens every day.

       Technically it is not theft, though.  The next person will get your nickel.  It's only an extra 5% over the 50% markup you've already paid.  (or 10% of the 50% markup).  The next person will just get back a Dime as change.

       It's not theft, technically it's an involuntary redistribution of wealth.  I'm surprised government hasn't put a stop to this, after all they had the market cornered.

"B" Ark. Problem solved.

       "Yes, so anyway," he resumed, "the idea was that into the first ship, the 'A' ship, would go all the brilliant leaders, the scientists, the great artists, you know, all the achievers; and into the third, or 'C' ship, would go all the people who did the actual work, who made things and did things, and then into the `B' ship - that's us - would go everyone else, the middlemen you see."


He smiled happily at them.


"And we were sent off first," he concluded..."


..."It's a funny thing you know," said the Captain at last, "but now that I actually come to tell the story to someone else ..."


-Douglas Adams-
The Restaurant at the End of the Universe


       If the world only worked that way.  Send all the middlemen into space.  I would be happier.  See it all goes back about a year ago... (fade to one year ago with tinkly music...)


       There I was, beginning a book.  Not my Magnum Opus.  Not the first great novel of the new millennium.  Just a novel set in Chicago by someone who actually lived there, or you know, had seen it once.  Unlike most other books set in Chicago.  I worked on it sporadically; adding bits here and there.


       I got to a point where I'm about half done and learned, by reading about such things, that most people pitch a new story idea before they ever begin writing.  I went on to learn how the publishing industry works.  


       Mostly there are a series of shysters who try to steal from people who have done the actual work.  Just like the patent system.  Unlike the patent system, no publisher will even accept a manuscript, (the patent office will), unless it comes from a literary agent.  


       We are forced to deal with middlemen.  


       In my line of work there are companies who will not sell supplies directly to a hospital, because they have a contract with a distribution company.  (I'm looking at you Welch Allyn)  Naturally there is a mark up involved.  (For the record, the Affordable Care Act fails to address this.  Sad, as this one is an easy fix).  


       It may not solve every problem, to eliminate the middlemen, and some are actually quite necessary.  But would it hurt to just get rid of the ones that don't need to be here.  I'll donate some time to help build the rocket.  (And add Rocket Scientist to my Resume)