Unlike the chatter amid most of the professional punditry we don’t view the Ted Cruz -v- Donald Trump debate confrontation as the most consequential part of the GOP debate in South Carolina.   The exchange between Donald Trump and Jeb Bush regarding China and trade economics was actually the most revealing.

Donald Trump pointed out because of the size of our market we have tremendous leverage on China; leverage we have failed to use for the past three decades.

trump vs bush

For the sake of brevity, I’m going to accept that most readers here are familiar with who is funding and directing Jeb Bush, and in larger, more consequential measures, the DC apparatchik in charge of U.S. Policy, ie. Wall street.

In retort to Trump pointing out a necessary shift in trade position (a shift to put American interests first – a shift to stop the dependency on cheap import goods – a shift to use China’s dependency on access to our market to OUR advantage) Jeb Bush came back with an example of Boeing manufacturing.

Donald Trump, responding to Jeb’s Boeing example, pointed out China is forcing Boeing to open a manufacturing plant in China.  As typical from a candidate who is unfamiliar and unbriefed on the issue Jeb looked back incredulously and said:

“C’mon man”…

There you have it.  There’s the disconnect.  Almost everyone missed it.  There, in that exact moment, is the spotlight upon all that is wrong with a professional political class; globalists dependent on Wall Street for their talking points.

Trump was 100% correct.

But the issue is bigger.

Not only is China demanding Boeing open a plant in China, the intent of such a plant provides an opportunity to explain why Trump is vitally important – and time is wasting.

China is refusing to trade with Boeing if the company does not move.  Why? It’s not about putting Chinese people to work, it’s about China importing their research and development, Boeing’s production secrets, into their country so they can learn, steal and begin to manufacture their own airliners.

This is just how China works.  In time, Comac, a state-owned, Shanghai-based aerospace company will then use the production secrets they have stolen, produce their own airliners, kick out Boeing, undercut the market, and sell cheaper manufactured airplanes to the global economy.

Boeing, the great American company that Jeb Bush thinks they are, becomes yet another notch on the Asian market belt.

All of those Boeing workers, those high-wage industrial skill jobs that support the American middle class, yeah – those jobs lost.   And the cycle continues.

Of course Wall Street will be invested in the cheaper Chinese aerospace manufacturing company Comac, as it emerges as a manufacturing power.

This reality within this story is a peek into the future of the fundamental disconnect between Wall Street (grows again) and Main Street (lost jobs/wages).   The reality within this example is exactly what has taken place over the past three decades.

Wall Street entities Goldman Sachs will be fine; Ted and Heidi Cruz will be fine; Jeb Bush, Marco Rubio, Nikki Haley, Carly Fiorina, Chris Christie, John Kasich will be fine – it’s middle America who suffers.  The economic consequence, yet again, creates disparity between those insulated by Wall Street and the rest of the U.S.

…. And so they will propose solutions, their solutions.

Meanwhile the non-import market, your visit to the grocery store, food, energy etc. sees prices increasing.  This is what happens when a production economy becomes a service economy.

trump hard hat

In 1984 a name brand polo shirt would cost around $45, a really good TV around $600 to $1,000, a decent couch $1500, and a pair of name brand sneakers around $100.  However, eggs (.49), milk ($1.79 gal), and store bread (2 loaves for $1).

Electric bill $100, water bill $20, phone bill $50.

In 2016 an imported name brand polo costs around $20, a really good TV $300 to $600, a couch for $500 and a pair of sneakers $50 – All imported, all Asian, all about half of of what they cost in 1984.

However, eggs ($1.99), Milk ($4.50+), and store bread ($2+ each).  All domestic products and all double or triple 1984.  Electric bill $250, Water bill $100, phone bill $100. Again domestic consumables, again double or triple.

egg prices

We consume and spend more on domestic goods such as food, energy, fuel, than we do purchasing imported durable goods.  As a consequence the net out-of-pocket is essentially the same to a little more.  However, the income opportunity, the jobs, the good paying jobs, well, those are gone because the durables are no longer part of the domestic production.

To keep the unemployed pitchforks at bay, government policy (now directed by Wall Street globalists and corporations) subsidize the income gap; EBT, WIC and food stamp assistance necessarily increasing.

Pitchforks dropped, but economic independence turns to dependence.   Government policy adjusted accordingly – deficits necessarily explode.

Yes, under Donald Trump’s proposal the cost of “durable” goods -at least those we import- will increase, your iPhone might cost $800 instead of $600.  However, the North Carolina apparel, clothing and furniture manufacturing market will have an opportunity to revitalize – and with it, jobs.

There’s going to be a period of pain as U.S. manufacturing finds it’s footing and begins to restart.  However, in the longer term it’s a shift from “dependency” to “independence”.

Those who were fully matriculated independent adults prior to 1984 know exactly what needs to be done.

Freedom is dependent upon it.

reagan trump 2ben shapiro

Meanwhile, Ben Shapiro was born in 1984 and necessarily views the world through the cost of his next iPhone.   A Wall Street supporter.  Ted Cruz was thirteen.

 

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