Web Letters: Meltdown: Economic Collapse and Recovery

While this panel had some bright people on it, they only understood aspects of the problem, and sought to solve this economic mess based on ideological preconceptions instead of analysis. They confused ordinary consumers with the conspicuous consumption of Veblen's leisure class.

The basic point is that ordinary consumers support two thirds of the economy and, without their high wages, the economy collapses. By outsourcing the jobs and the industries that support them overseas, they can no longer support the American economy. You destroy the American market though outsourcing.

The same process is also occurring in the other formerly developed nations. As we have seen, sourcing cheap labor is a waste of time, since their jobs have been outsourced too. They used to get $9.00 an hour in California, but working for the same farmer in Mexico they get $11.00 a day. Oddly enough the border they had to run protected their wages in the U.S. "Free Trade" and "globalization" has been successful in driving down wages, but the unforeseen circumstances were that it has destroyed markets and wealth.

While Mexico recently imposed tariffs in a fit of pique, it is probably the best economic decision they have made in years. A nation's internal development only occurs behind trade barriers.

Pervis James Casey

Riverside, CA