It is obvious that the workers of America have been fooled. While they live in a capitalist country, many don’t understand how capitalism works. Business are created to make a profit, and to survive in a world economy, the business must continue to make a profit regardless of the impact of tariffs, worker wages, taxes, regulation or other economic weather that buffets it.
Recently managers at a factory in the rust belt indicated that in order for the business to survive it would move its manufacturing arm to Mexico. While this may be a sound move financially, American workers just didn’t get it. They were upset and wanted to keep their jobs. Into this decision making process comes a politician. The timing is just right to make some sort of move to “save” some of the jobs.
What they hear from the Donald is that he will save them. He will save them from the “regulation”, tax treatment, or whatever, that has forced it to move its manufacturing location to remain fiscally sound.
But wait, the only way Donald can “save” these jobs is to do something that will make the business profitable again. How does the Donald do this, because he only has a couple of levers he can pull — taxes and “regulation”.
Here is where the worker gets tricked.
If Donald reduces the businesses taxes to keep the business profitable, the worker gets hurt, because someone is going to make up those lost tax dollars that would have come from the business and those dollars will most likely come from the middle class worker, because Donald is not going to tax his rich friends. So the worker takes a hit as his taxes go up. He kept his job, but at reduced wages.
If Donald reduces regulations, the worker loses again, because he will be exposed to what ever the regulation protected him from, including everything from safety at the workplace to short or long term exposure to bad actors.
So where does that leave our American worker? Like it or not, the American worker is competing on the world stage. Their wages must match those of others everywhere or their productivity must increase so that they produce more for those same wages. Profitability produced for a company solely through Presidential actions does not manage real economic change. And it is change the worker is railing against and does not understand.
The next four years are going to see higher taxes on the middle class, jobs going to the place that keeps the business profitable, and changes that we can not foresee today. But there will be change. Don’t be fooled into thinking it will not come, it always does.