Friday, September 6, 2013

On Grounds of National Security #G20 Summit


On Grounds of National Security

   Our enemies, most notably Al-Qaeda, but also gamut of geo-political adversaries have identified America's Economy as its center of gravity.  Al-Qaeda has spelled out a strategy of 1000 cuts to slowly bleed our economy into bankruptcy.  The open market system of the United States of America has been pushed with excessive optimism and limited regard for maintaining our domestic manufacturing and labor pool necessary to maintain military dominance.  Multi-national companies, many with little or no national loyalty and recognition of the China model have been working together to deliberate weaken America, by undermining its Industrial base.  The products made in other countries may be cheaper, but the long term costs to the American economy have been exposed.   Corporations take American Citizen's cash in exchange for necessary products and services and use it to buy a plethora of products, but in dispositional amounts, Saudi Arabian Oil and Chinese Manufactured products.  Classically, the Saudi's take the cash and invest it back into US corporations while the Chinese Government uses the money to buy Government Bonds.  This complex interdependence is good in that it helps make the economy more efficient and reduces the likely hood of armed conflict between these nations; however, there is a tipping point America needs to be weary of and position itself to maintain economic dominance and ensure America has the adequate domestic industrial production base and labor pool to maintain such dominance in the event of war.  

    I am not championing a retreat from globalization, turning inward or the abandonment of global leadership and belief in the modern market system we've created; however, I am suggesting the American Government has the legal authority on grounds of national security to order corporations and banks to maintain certain organization priorities.   The simplest way to address these concerns with minimal intrusiveness is to require the department and super-stores providing American consumers their products to reserve 50% of their shelf space for Domestically manufactured products across the range of products lines so that America has competitors in each and every field.  Furthermore, as vulnerabilities to our international supply chains and routes persist, portions should also be preserved for regionally produced goods as a security measure for a regional self-sufficiency in the event of a break down of the global trade system.  

    Coordination between the banks, business schools and businesses can help facilitate investment in the development of these regional and domestic producers.  Doing such can guarantee America's long term independence and strengthen working conditions and employment levels for future generations.   Aggressive social marketing campaigns should be launched to encourage consumption of domestic manufactured products as a patriotic duty and a new virtue of conscientious consumerism needs to become a socially enforced norm, with all current free trade agreements being amended with fair trade agreements requiring living wages and minimal human rights protections for continued participation in the global economic system.  I'm not expecting China, Saudi Arabia, or for that matter even America at times, to be perfect overnight, but we need to set realistic benchmarks that shift the economy away from deprived race to the bottom by narrow click of sociopaths to a sustainable growth trajectory elevating the standard of living and quality of life for its participants.  This is going to require stronger government and a more active role of government in the economy that is capable of helping employers adapt to new changes without driving them out of business or fostering unbearable levels of intense and unlimited competition.    

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