For to win one hundred victories in one hundred battles is not the acme of skill. To subdue the enemy without fighting is the acme of skill.
Sun Tzu

HOW TO WIN A WAR 101........Destroy a nations manufacturing base.

Intelligence Community Fears U.S. Manufacturing Decline
Feb. 14 2011 Forbes By LOREN THOMPSON

****The manufacturing decline has now progressed to a point where the U.S. intelligence community has become concerned. Richard McCormack reported in Manufacturing & Technology News on February 3 that the Director of National Intelligence has initiated preparation of a National Intelligence Estimate to assess the security implications of waning manufacturing activity in America. National Intelligence Estimates are the most authoritative analyses prepared by the intelligence community, definitive interagency products typically reserved for the most serious threats. So the fact that the nation’s top intelligence official thinks a National Intelligence Estimate is needed for manufacturing isn’t a good sign. It suggests that America’s industrial decline is approaching the status of a crisis.****
How Can America Create Wealth If Our Industrial Base Is Destroyed? 50,000 Manufacturing Jobs Have Been Lost Every Month Since 2001

How Can America Create Wealth If Our Industrial Base Is Destroyed? 50,000 Manufacturing Jobs Have Been Lost Every Month Since China joined the WTO in 2001.

HERE IS THE SKINNY

According to the U.S. Department of Commerce, the U.S. trade deficit for the month of March 2011 was $48.2 billion. That was up from $45.4 billion in February.
#2 The United States has had a negative trade balance every single yearsince 1976.
#3 Between December 2000 and December 2010, the U.S. ran a total trade deficit of 6.1 trillion dollars.
#4 The U.S. trade deficit with China in March was $18.1 billion. This is money that is not going to support U.S. businesses and U.S. workers. If that money was actually going to our businesses and to our workers it would increase tax revenues.
#5 Since China entered the WTO in 2001, the U.S. trade deficit with China has grown by an average of 18% per year.
#6 During 2010, we spent $365 billion on goods and services from China while they only spent $92 billion on goods and services from us.
#7 Since 2005, Americans have gobbled up Chinese products and services totaling $1.1 trillion, but the Chinese have only spent $272 billion on American goods and services.
#8 The U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.
#9 According to a recent report from the Economic Policy Institute, between 2001 and 2008 the United States lost 2.4 million jobs due to the growing trade deficit with China. Every single state in America experienced a net job loss due to our trade deficit with China during that time period.
#10 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
#11 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.
#12 Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.
#13 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.
#14 China produced 19.8 percent of all the goods consumed in the world last year. The United States only produced 19.4 percent.
#15 According to the IMF, China is going to have the largest economy in the world by 2016.
#16 Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.
#17 Back in 1998, the United States had 25 percent of the world's high tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China's share had soared to 20 percent.
#18 Manufacturing employment in the U.S. computer industry was actually lower in 2010 than it was in 1975.
#19 In 2002, the United States had a trade deficit in "advanced technology products" of $16 billion with the rest of the world. In 2010, that number skyrocketed to $82 billion.
#20 Last year, China produced 11 times as much steel as the United States did.
#21 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe? Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.
#22 In 2010, South Korea exported 12 times as many automobiles, trucks and parts to us as we exported to them.
#23 According to one recent study, China could become the global leader in patent filings by next year.
#24 China is now the number one supplier of components that are critical to the operation of U.S. defense systems.
#25 In 2010, the number one U.S. export to China was "scrap and trash".
#26 Thanks to our exploding trade deficit with China, the Chinese have accumulated nearly 3 trillion dollars in foreign currency reserves. That is the largest stockpile of foreign currency reserves on the entire globe.
#27 The amount of the trade deficit that can be attributed to foreign oil is at the highest level that we have seen since 2008.
#28 It is being projected that for the first time ever, the OPEC nations are going to bring in over a trillion dollars from exporting oil this year. Their biggest customer is the United States.

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GET LOTS MORE INFO HERE

 

THE ECONOMIC SYSTEM WE HAVE EMBRACED

The Chicago school of economics describes a neoclassical school of thought within the academic community of economists. The neoclassic approach included the work of Adam Smith.

Although neoclassical theory dominates the economics discipline it is actually a psychological theory:.................

At the core of the theory is a specific reductionist theory of human decision making and rationality that is then applied to economic (and other) phenomena.

**** All human decision making is assumed to be driven by the pursuit of individual pleasure/happiness.***

This pleasure is defined, within the theory, as utility. Thus, the economic man (homo economicus) is a utility maximizer. Market exchanges are defined as simple trades between equally powerless economic men trying to maximize their individual pleasure.

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"Consumption is the sole end and purpose of all production; and the interest of the ****PRODUCER (manufacturing jobs)**** ought to be attended to only so far as it may be necessary for promoting that of the consumer.

The maxim is so perfectly self evident that it would be absurd to attempt to prove it. But in the mercantile system ****the interest of the consumer is almost constantly sacrificed to that of the producer; as the ultimate end and object of all industry and commerce."

Adam Smith, The Wealth of Nations, 1776

IN OTHER WORDS

Protecting American jobs from outsourcing IS BAD & cheap Chinese products due the cost cutting of eliminating good paying American jobs IS GOOD.

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The economic system we ABANDONED

The American School’s key elements were promoted by John Q. Adams and his National Republican Party, Henry Clay and the Whig Party, and Abraham Lincoln through the early Republican Party which embraced, implemented, and maintained this economic system.

During its American System period the United States grew into the largest economy in the world with the highest standard of living, surpassing the British Empire by the 1880s……..

It is a capitalist economic school based on the Hamiltonian economic program. The American School of capitalism was intended to allow the United States to become economically independent and nationally self-sufficient.

As we peer into society’s future, we — you and I, and our government — must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.

Dwight D. Eisenhower