Mythbusting…or not

Some joker with a PhD in Economics Masters degree in Studies of the Future (WTF) explains the Top 5 Myths About the U.S. Economy:

Myth #1: America is broke.

America’s private sector is in better shape than it’s been in years, and the American consumer is healthier than she or he has been in the past 35 years, says Kurtzman. “On the private side of the balance sheet America is doing just fine,” says Kurtzman. The public side is another story, but it’s improving. The money America uses to pay its debt has been declining as a portion of GDP every year, “and it’s very manageable,” says Kurtzman.

I want some of what Kurtzman is smoking.  Real income has fallen since 1973.  Record numbers of people have given up on finding a job and have dropped out of the workforce.

Employment RateAnd there is no way in hell that debt has been declining as a portion of GDP every year, and it’s not ‘manageable’.  Congress just agreed to raise the debt ceiling, which was $17.2 trillion.  And interest on the national debt is projected to almost quadruple in the next 10 years:

140204182551-interest-costs-debt-620xaAdd to this the fact that student loan debt is now over $1 trillion, and you can only conclude that America is broke.

Myth #2: High unemployment rates are here to stay.

Kurtzman says the high jobless rate is concentrated in people without a college education and those under 25. The unemployment rate for someone over 25 who’s college educated has held steady at around 4%.

Yes, that’s what this report shows.  However, that report is contradicted on another page at the BLS website:

BLSIn October 2011, the unemployment rate for 20- to 29-year-olds who had graduated from college in 2011 was 12.6 percent. The rate was 13.5 percent for those who recently had earned bachelor’s degrees and 8.6 percent for those who recently had earned advanced degrees. Despite modest improvement since the most recent peak in October 2009, the unemployment rates of recent college graduates remained above the rates prior to the 2007–2009 recession.

Economic schizophrenia strikes again.  While this doesn’t entirely refute Mr. Kurtzman’s statement, it does provide reasonable doubt about it.

Myth #3: China is ascending while America is declining.

China’s strategy involves having 200 million people a decade  working in manufacturing, says Kurtzman. “They can’t accommodate that,” says Kurtzman. The U.S., meanwhile, has moved from a manufacturing-centric economy to a service-focused one…

China holds $1.37 trillion in U.S. debt.

Manufacturing jobs pay more than service jobs, according to the U.S. Deparment of Commerce.

Q.E.D.

Myth #4: America is a spent power.

Kurtzman says the U.S. is in a great position for growth because it remains the world’s leading military and manufacturing power, has trillions of dollars in capital to deploy and is now less dependent on imported oil given the development of its own energy reserves.

I don’t see the link between those statements and the idea that ‘America is a spent power.’  What the hell does that even mean? I guess it’s great that we can use drones to blow stuff up overseas.  But how does that help our economy?

And I love the related link:

Related: Welcome to our new low-paying, highly-subsidized economic reality: Karabell

Myth #5: America doesn’t make anything anymore.

This is simply not true, says Kurtzman. America is the dominant manufacturing power in the world if you include what we make overseas. But if you just look at just what we make in America, we make 20% of everything produced. That’s about the same as China but China makes low value-added products such as towels and clothing. We make airplanes, radar, turbines — the big expensive stuff.

We make ‘the big, expensive stuff’?  So what?  According to U.S. manufacturing guidelines, up to 40% of the ‘big, expensive stuff’ that we make here can be manufactured in another country, sent here to be assembled, and then we can still stamp that stuff ‘Made in America’.  From the Federal Trade Commission:

What factors does the Commission consider to determine whether a product is “all or virtually all” made in the U.S.?

The product’s final assembly or processing must take place in the U.S. The Commission then considers other factors, including how much of the product’s total manufacturing costs can be assigned to U.S. parts and processing, and how far removed any foreign content is from the finished product.

***

What is a qualified Made in USA claim?

A qualified Made in USA claim describes the extent, amount or type of a product’s domestic content or processing; it indicates that the product isn’t entirely of domestic origin.

Example: “60% U.S. content.” “Made in USA of U.S. and imported parts.” “Couch assembled in USA from Italian Leather and Mexican Frame.”

NAFTA guidelines specify that if a product assembled in the U.S. does not contain more than 40% imported parts, then import tariffs are not applied.  That’s the origin for the ‘60% U.S. content’ example. Such a product is considered to have been ‘Made in America’.

Why should we include stuff that is made overseas?  It doesn’t add to U.S. GDP. It doesn’t employ American workers.  And it doesn’t help our economy, it helps the economy of whatever country the manufacturing is taking place in.

Kurtzman is just another globalist shill for the multinational corporations.  Anything he says or writes should be taken with a grain of salt.

On second thought, it shouldn’t be taken at all…

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Categories: All is well!!!, Debt, Depression, Globaloney, Good News Everyone!, Liars, Outsourcing, Stupid People

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