Posted by Edd in KY on November 03, 2013 at 18:37:08 from (98.23.26.110):
In Reply to: Re: American ingenutiy posted by oldtanker on November 03, 2013 at 07:57:07:
Actually American companies wanted to move prodution overseas so they could make products with cheaper labor and bring them back to America and sell them at a higher profit. They lobbied congress and got it approved piece by piece..slowly. Consumers loved it because the prices were lower.
Turned out it was very short sighted. A double/triple whammy.
Eventually so many jobs were shipped overseas that the American middle class took a big hit and purchasing power and thus sales fell drastically. Final whammy...all those middle class tax payers... now out of work, quit paying taxes...and WENT ON UNEMPLOYMENT AND FOOD STAMPS.
Tax inflow ceased and then turned into government program outflow. Equals deficits.
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