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It's a vicious feedback loop that arguably does involve Amazon and other global retailers / manufacturing chains - although I wouldn't say they're at fault. Co
by losteric 9y ago
It's a vicious feedback loop that arguably does involve Amazon and other global retailers / manufacturing chains - although I wouldn't say they're at fault.
Consumers are locally optimal buyers, we go for the cheapest goods on the market. Over time, international imports have been undercutting America-produced goods. At first, it was American companies that simply outsourced raw materials... then manufacturing, assembly, service centers, and now even R&D. All because consumers were chasing the locally optimal ROI.
Rational consumers were undercutting their employers, which in turn forced their employers to cut labor, wages, or automate. That steadily drives down the purchasing freedom of employees, like a frog in a slowly warming pot of water.
In turn, consumers are even more driven to seek out the cheapest goods, which are still international, and which continue the feedback loop that ultimately undercuts themselves. Eventually, we end up with an economy that cannot distribute wealth among the middle/lower classes due to large labor market inefficiencies (such as the difficulty adults face cross-training into/between knowledge-based fields)... All while the 1% and 0.1% continued building up tremendous wealth, buying a disproportionately loud voice in politics and public opinion.
Amazon and Walmart are centralized manifestations of this issue, but no one person is to blame. This problem has been building for decades as America has refused to publicly invest in itself.
As I see it, we need significant public investment in order to get back on track:
* Infrastructure (water, energy, transportation esp. light rail), creating short-term jobs that improve regional economic competitiveness and reduce consumer debt
* Higher education + adult cross training, restoring an efficient free labor market and voter literacy
* Advanced R&D (incl. but not limited to space+energy), researching and commercializing new fields of industry to replace automated/exported ones
We don't need to raise taxes. Start by cutting back excessive military funding.
For perspective, we just spent ~$17.5 billion/10 years on one ship -
the USS Gerald Ford supercarrier. Its defense ROI is questionable; counter-terror operations and force-projection against lesser states does not warrant a supercarrier (renovated carriers / allied regional airbases are sufficient), and potential threats punching at our level (China, Russia) would employee asymmetric warfare that makes carriers irrelevant (think: smart missile barrage, fast attack submarines, or maybe just propaganda).
$17,500,000,000 could put 523,000 Americans through a 4 year private education or 1,750,000 through public state colleges. This sum is also equivalent to 30 years of fusion research funding, tripling the Seattle Link network, and 8x the the BART expansion to Santa Clara.
Perhaps you have better examples, but these already offer better ROI than a war ship. There's plenty of fat that can be trimmed or reallocated from our $598,000,000,000 / year federal military budget.
- jjoonathan 9y agoOur military is a training and infrastructure / R&D investment. Redirecting that into education won't create jobs, it'll just train more people for jobs that don't exist, in some cases because they've recently been cut.
- losteric 9y agoMilitary is a very inefficient and focused r&d investment, it is definitely not a public infrastructure investment. Redirecting to education will lower barriers of entry to high-skill labor, eg helping welders cross-train into software. This is not a proposal for free education for everyone to study anything... i said public investment, not donations
- zeckalpha 9y ago> welders cross-train into software From what I've seen, software engineers cross-training into welding would have a better ROI. What's a welder who can program's hourly rate look like? Better than a programmer who can weld.
- crispyambulance 9y agoA welder "who can program" could be a skilled CNC operator. It isn't necessary to completely take "fish out of water" to train for other skills. Putting a web-developer who barely knows what a screwdriver is in front of giant lathe isn't going to have a good ROI either.
- zeckalpha 9y ago> Putting a web-developer who barely knows what a screwdriver is in front of giant lathe isn't going to have a good ROI either. No, but they might make more money.
- brianwawok 9y agoJust sending 2 million people to college does nothing. If you are of average or below IQ, you still will be when you have a degree. And then what? Every human cannot be a knowledge worker. Some will be bad at knowledge work. Just slapping a college degree on someone who used to work in a factory can often be totally useless. Obviously there are some that can benefit. But many cannot.