MAFF

Guest Post by starfcker

OK, doomers, this is the big one I promised you. Fighter jet America is plunging to earth, engines aflame, all anybody can imagine is the big smoking crater when this bitch hits the ground. 18 trillion in debt, federal deficits as far as the eye can see, unfunded liabilities at as high a numbers as the scaremongers can imagine them, our very place in the world threatened by crushing debt and political ineptitude. America’s time has come and gone. Right, doomers?

Wrong. We’ve got one thing on our side. Math. All of our problems stem from one flawed premise. The flawed premise? Globalization. That we can’t make decisions in our own interest, that there is some greater good that we must sacrifice ourselves and our families and our country to. Horseshit. If you believe that, you are truly a brainwashed idiot. Each of us can change that right now, and as a country we can change that next November. Why is Donald Trump so confident that he can turn our economic trajectory on a dime? Because he can do the math. We have to start somewhere.

So let’s start at the same point as Trump. First, some baseline numbers, all from 2014. United States GDP, 17.4 trillion dollars. Total tax revenue, just over 3 trillion dollars, or about 17.5 % of GDP. Federal deficit, 483 billion dollars. National debt, 18 trillion dollars, more than 100% of GDP. Number of working age Americans not in the labor force, 94 million. Sounds pretty horrible, right? Not if we focus on the root of the problem. Globalization.

Let’s first define globalization for the purpose of this piece. Globalization on it’s face isn’t evil. It would be fine, were it to grow organically, on it’s own merit. I’m defining globalization as an organized criminal conspiracy, looters helping themselves to the intellectual property and life savings of an entire country. Last year, our trade deficit with china was 343 billion. It’s expected to rise about 20 billion this year. Let’s just round it to 350 billion for the sake of this discussion. That deficit is all Chinese doing jobs Americans used to do.

All those wages, gone, all those profits, gone, all those tax revenues gone. We run deficits with most other countries, but china is the biggest, and easily big enough to make my point. Think of our economy as a bucket of water. Every year, the Chinese leak in that bucket loses us 350 billion dollars. To refill the bucket, instead of producing new wealth, we counterfeit money.

In an earlier essay on this forum (the fruit company), I explained the concept of the multiplier effect, also called the velocity of money. In that example, I pared back the expectation to that the money might change hands 4 times a week. Today, I’m going to scale it back much, much further, to 10 times a year. Let’s just say we went cold turkey, and stopped trading with china. We would immediately stop losing a billion dollars a day.

Now let’s say we ramped up our own productive capabilities, which are the best in the history of the world, to replace the production stolen from us by china. We’re going to need a whole lot of those 94 million unemployed Americans, huh? Imagine what that would do to the welfare rolls. Imagine the taxes those re-employed workers would pay into social security. It would be rolling in dough.

Now let’s plug that x 10 multiplier into our 350 billion in savings. That’s 3.5 trillion dollars. Guess what, boys and girls, GDP just went up 20%. Now let’s tax that 3.5 trillion in new GDP at Trump’s 15% rate. You can kiss that federal deficit goodbye. Overly simple? Sure. I don’t care about china. I don’t care about the traitors that moved their production to china. Take away chinese slaves, and the big box monopolies lose their cost advantage.They can rot, I don’t care. Smooth transition? Probably smoother than you think. Upside for us? Yuuuuge.