Wednesday, February 20, 2008

Wal-mart (Made in China)

Content edited from a comment previously posted by an anonymous contributer

Multinational Corporations have no loyalty to any one Nation. They only desire the fruits of their capital. Thus, they invest where the capital bears the most return. Today that is not America, but China and India and the Far East. They need to expand into the new markets.

American business doesn't need the US consumer anymore. There are geographical boundaries which require them to locate their production or operations here. They can go anywhere. It doesn't even make sense to be incorporated in the USA; too many regulations and taxes.

Much of the U.S. economy is based on consumer spending. But consumers are out of money. Better to save and do without. Maybe you can put enough away to pay for one semester of insanely expensive college tuition...or maybe just some books.

There are fundamental macro economic changes taking place. Remember England at the end of the last century. The sun never set on British soil. They had it all and watched it slip from their fingers into nothing. Is that what lies ahead here; the only jobs available to the masses will be working at Wal-Mart selling each other Chinese made goods?

It's a new paradigm...one of diminished importance of the American consumer.

3 comments:

SACKERSON said...

A pessimism also reflected here:

http://www.financialsense.com/fsu/editorials/2008/0220.html

But I think there will always be winners and losers, as I say here:

http://theylaughedatnoah.blogspot.com/2008/02/cut-and-run.html

Jim in San Marcos said...

Hi Sack

The first link didn't quite copy right. I can't get to it. Can you repost it?

SACKERSON said...

Hi Jim

You can access it through the link contained in my post (second address).