The Tide Has Turned, The Future Beckons

By Cesar Fernando Lumba

When I started this blog in 2012, I felt like the legendary lone wolf voice in the wilderness. There were many readers who did in fact agree with me and even thanked me for voicing my opinions, but they were a mere handful in comparison to the total population of this, the greatest country in the universe.

Today, Hillary Clinton is saying it, Donald Trump is saying it, Bernie Sanders has said it, even Green Party candidate Jill Stein has a TV commercial that says it.

Every responsible politician in America now swears that he or she is in favor of bringing manufacturing back to America.  Everyone still agrees with President Obama that the country must work to be competitive in the manufacture of high-tech and new industries being created as the world marches toward artificial intelligence, the Internet of Things, the cities and products of tomorrow. No one disputes that America must lead in the manufacturing industries of the future.

But everyone is also now in agreement with the underlying premise of this blog:  that traditional manufacturing must be brought back to America.  From China.  From Mexico. From Bangladesh.  From third-world countries that have been the destination of factories that have fled America in recent decades.

Hillary Clinton’s approach is interesting. She will make sure that the rich people and corporations pay their “fair share” of taxes, insinuating that such people and corporations are not now paying their fair share, which generally means that they are not paying enough.  Which translates to higher taxes for the rich and the powerful corporations.

She will also impose an exit tax for corporations that leave America and transfer their factories to China, Mexico and other countries.

The tax money that is raised will finance job-creating projects like infrastructure repair and new factories that will employ millions of unemployed and underemployed Americans, especially those who saw their factories being closed in favor of cheap labor countries.

This approach is similar to what Bernie Sanders was advocating during his primary campaign for the presidency, signaling to the nation that Hillary has been Feeling the Bern.

Trump has no specifics in his promise to bring back manufacturing.  But he does claim that he will be the greatest job-creator ever and will bring back manufacturing from offshoring destinations China, Mexico and other countries. Because he has no specifics, we cannot take him seriously.

The Hillary Clinton plan does two things:  1) it does bring manufacturing back to the U.S. and 2) it tends to partially reverse the trend of more upward mobility for the rich and super-rich that started in the 1980s.  It reverses the wholesale transfer of wealth from the middle class to the top 1% of the American population.

The net result of the Hillary Clinton approach – if successfully passed in Congress – is that the American middle class will be rebuilt after years of neglect while our politicians coddled the rich and powerful.

How realistic are the chances of Hillary’s plan making it through Congress?  Right now, zero chance.  But, if Congress becomes Hillary-friendly, Hillary’s vision could become reality.  The U.S. Congress does not have to turn blue, meaning Democratic, for Hillary’s plan to succeed.  All that is required is for enough of the country’s lawmakers to be convinced that the Hillary solution is right for the country.

A tall order, considering how polarized the country is and that anything that comes out of a Hillary presidency is bound to be opposed by members of the opposite party.

Which brings us to the Trump campaign.  The Trump campaign is polarizing not only to the red-blue struggle in the country, it is polarizing within the Republican Party itself.  Out of the in-fighting and implosion in that political party can come – after the elections and assuming that Trump ultimately loses – a breakup of the Republican-Tea Party coalition, resulting in a smaller but tighter Republican Party that can actually work with a Democratic President.  A coalition of Democrats and enough Republicans who are willing to work with Hillary to put the country on a course correction can lead to legislation designed to bring manufacturing back from offshore and the creation of new high-tech industries that will manufacture the products of tomorrow.

Republicans and Democrats worked together in the past for the good of the country.  They can do so again if the Republican Party and the Tea Party obtain a divorce, albeit a rancorous one, and the remnant Republican Party sees the light and concentrates on helping the needy in the country instead of trying to torpedo a Hillary Clinton presidency.

What are the prospects of this happening?  Don’t bet your house on this.  But, as Obama says, there’s always the audacity of hope.  Let’s hope that Hillary Clinton becomes president and enough Republican members of Congress join with the Democrats for the good of the country and that the millions of American workers who saw their factories closed and manufacturing transferred abroad, mainly to China and Mexico, can look forward to working in the new, modernized factories that shall be built.

There is of course the alternative – one I’ve been advocating for years.  If Hillary can convince enough Republicans to work with Democrats, still assuming a Hillary victory in the Fall, they could adopt our proposal:  Congress and the President could forge a new doctrine that will guide all commerce and manufacturing in America not only today but down through the coming centuries.

The doctrine that says 51% of all manufactured products sold in the U.S. must be manufactured in the U.S.

Major manufacturers that make their products in foreign countries and sell those products in the U.S. will be given 5, 7 or 10 years to comply with that new doctrine, depending on the complexity of the production process. After such a system is installed in America, we will encourage other countries to adopt a variant of that system so that the wealth created by manufacturing will be shared by most industrialized countries in the world.

The net result will be the reawakening of Europe, Canada, Australia.  It will mean a more equitable distribution of wealth through manufacturing in Asia, especially Japan, South Korea and India.  It will mean the rise of many countries in Africa and South America as manufacturing centers in their regions of the world.

The Chinese, Mexican and Brazilian growth rates will slow down, but in their place will come a new world prosperity that will create wealth for most of the nearly 8 billion people in the world, including the Muslim world, which might succeed in reducing the number of Muslims who turn to radicalism because it beats being long-term unemployed and being disrespected because they are long-term unemployed.

The world will permanently bury the theory of comparative advantage, which the colonizers sold to their colonies to assure the perpetuation of colonial empires.

We do the manufacturing and mining, you plant the rice and bananas,” so said the colonial masters to their subjects.

And, “We do the manufacturing for the world, you take care of selling our cheap products to your people,” so say the Chinese to the rest of the world.

Both bold statements screamed into microphones at the altar of the principle of comparative advantage.

If the world ignores the theory of comparative advantage and adopts the policy of making sure that local populations have a hand in the manufacture of both traditional and futuristic products, every individual in the world will have a chance at a good life.

The dream of a truly United Nations shall be closer to reality.

(Cesar Fernando Lumba’s email is  You may either post your comments in the comments section of this blog, or you may email me any of your concerns or questions.)



The Future is Now – Hooray for Norway

(This article was first titled Welcome to the 21st Century)

By Cesar Fernando Lumba

The young ‘uns are a lucky bunch. They can hear the drumbeat of Tomorrowland… but wait, tomorrow is in their grasp and they won’t let go. They see an America becoming more like Europe and less like, well, like their parents’ America.

Imagine free college, if not for themselves certainly for their younger siblings and their children. Universal health care. A Social Security system that provides real security. Might as well throw in another entitlement that Europe provides its citizens: a very liberal annual vacation program.

And jobs. “We’re going to get back the jobs that the greedy capitalists have offshored to China, Mexico and other countries.” Providing jobs to America’s youth will now trump cheap prices. “We’d rather have good jobs for our people than worship at the altar of cheap prices.” Wait. Did somebody just say that? Could it be that Corporate America is really going to bring our jobs back and abandon the religion of cheap prices?

Bernie says this is possible. But Bernie is not going to be president. It’s going to be Hillary. Hillary will have to embrace Bernie’s ideas if she’s to win in the Fall. So yes, Bernie will indirectly bring jobs back to America.

How is that possible? By renegotiating trade deals. One constant in the new trade deals: Corporate America does not have the permission of the American people to dismantle our factories piece by piece and ship the factories and the jobs to other countries. In fact, Corporate America is on notice to start bringing manufacturing back to America because the alternative is an all-out trade war with our trading partners. And a trade war is bad for business.  So Corporate America, in the end, complies.

The top 1% represents a tiny, infinitesimal sector of the American citizenry. In a democracy, the majority rules. And the overwhelming majority of Americans want the return of manufacturing to our shores. If you’re a businessman, ignore this American want and yearning at your own risk.

So our young people will get better jobs in the near future. Will there be enough jobs to go around?

Welcome to our brave new world. An experiment was recently conducted by some robotics scientists involving the use of tiny robots to do jobs that used to require the use of huge machines. Six tiny robots, each weighing a few ounces, working in tandem, were able to pull a car weighing 3,900 pounds!

Welcome to the age of robots. More and more, our factories will be run by robots. Robots will do most of the work in our factories, supervised by humans, but what’s to prevent future robots from supervising subordinates that are also robots?

Or robots supervising humans? Scary.

While America is bringing back some lost manufacturing jobs, the robots are also taking over our factories. Are our young people’s minor victories destined to be short-lived and ephemeral? The long view is yes, in some spots in the manufacturing sector it is.

But aha, welcome to the world of the UBI. Sociologists have advanced the concept of the Uniform Basic Income. Saudi Arabia and other Gulf states provide their citizens with a minimum income from their oil earnings. Alaska provides its citizens with a share of the state’s income from oil.

Robotics will be treated by the U.S. same as oil. The income generated by the government through society’s use of robotics will finance the UBI, which will work like Social Security disability payments. The UBI will be determined by statistical analysis of what’s required to afford a decent standard of living for all those displaced by the use of robotics.

Those who want more income than the UBI provides would of course learn to build the robots. They could go into business, become entrepreneurs that will accelerate the process of taking America to science fiction territory. Flying cars, intelligent appliances, homes that produce their own energy, the Internet of Everything (squared).

Robots that teach students while the students are sleeping. Society will create many more geniuses. Geniuses will be required to figure out ways the human race can turn the Milky Way into our neighborhood.

“Cesar, Cesar…wake up. You’ve been dreaming.” Ah, Mildred, but it’s not a dream. It’s a vision of the future.Today’s robots will give birth to tomorrow’s robots with artificial intelligence. And those robots will take us farther than our limited imaginations can take us.

The signs are everywhere. Along with the philosophical and ideological paradigm shift (free college, universal health care, Norway in America), new scientific discoveries are changing our physical world.

The discovery of new materials used in the manufacture of solar panels has cut the cost of those panels by more than 90%. Anticipate the shift from oil to solar in the near future. Houses, glass panes, cars are on their way to becoming producers of energy through solar paint and solar windows. Saudi Arabia, which has the world’s biggest supply of sand, will shift from oil production to production of solar panels because the new panels use sand as one of its most important raw materials.

Liquefied Natural Gas (LNG), exported by America to European states, will free Europe from the asphyxiating bear hug of the Russian Bear.

There will be more energy produced each year than the industrialized world needs so all the excess energy will accelerate Africa’s industrialization.  Africa and other parts of our world previously bypassed by the march of civilization will be awash with energy that will enable those countries to make quantum leaps in their development.

But for all that to happen and happen quickly in our children’s lifetime, there must be that philosophical and ideological paradigm shift. There must be that new beginning that Bernie Sanders talks about constantly, incessantly.  There must be a dramatic change in the nation’s priorities.  From creation of fantastic wealth for the 1% to distribution of new and existing wealth to the middle and lower classes.

Free college. Universal health care. Cradle-to-grave security. Reform of Wall Street. Throw in reform of the pharmaceutical companies. End Citizens United.

Make government work for the people and not the 1%.

Hillary must pursue the policies espoused by Bernie.  Better: make Bernie the VP running mate.  Assign Bernie the task of going around the country spreading the gospel of Norway. Make America like Norway.

What America does, other countries will do. So the whole world becomes like Norway.

Reform the greedy capitalists by turning them into benefactors of our youth. How? By taxing them high enough so America can finance free college, universal health care, etc. that the new generations – the x generation, the “me” generation, the millennial generation all want.

Make the top 1% pay for all these mind-blowing beneficial changes that society wants for its citizens. It’s about time they contributed to social revival, about time they pay back the country that allowed them to stink up the world with their ostentatious display of newly minted gold coins.  Palatial yachts. Corporate jets. The Donald Trumps bragging about their billions.

About time.

(The author may be reached at

The Revolutions

By Cesar Fernando Lumba

Look closely. Observe the characters on stage. The current turmoil in our political landscape is not just the keystone cops in a Chinese fire drill on steroids.  Trump is shouting down the people he brands as the establishment. Cruz and Rubio are shouting back.  Bernie Sanders says he wants to sponsor and train people to become revolutionaries in a political revolution that America needs.  Trump and Sanders are forming armies of passionate warriors. Warriors for the cause of tearing down highly infected institutions. Beneath the hollering, cursing and stomping of feet, it’s really serious business.

But no, Trump.  And no, Bernie. The revolutions you are both talking about are not in the distant future. The revolutions are here. Now.

Will the revolutions succeed? Let us examine the Trumpian version. He wants to make a mockery of the First Amendment. He’s targeting Muslims because he knows that if there are people who will succeed in burning down America and blasting their way into our homes, schools and public places, it will be Muslims. This is not the America of our Founding Fathers, say Trump critics. Trump doesn’t care about our Founding Fathers. He only listens to the voice in his head and the echoes in his heart’s chambers. He wants to build a wall to keep Mexicans out of the country, round up 11 million illegals and ship them on cattle trains back to Mexico, just like the Nazis did to the Jews who had been tagged for concentration camps. He wants to bring back factories to America (everyone in America wants this to happen) by erecting un-scaleable tariffs. Right goal, Trumpy, but not the right solution.  Will go back to this.

Millions of Americans are applauding Trump’s every word. Millions more are forgiving his excesses and his words that drip with hatred.

People want to listen to those with conviction and who are telling the truth, even if the truth hurts for a lot of people.

On the other side, Bernie Sanders wants to stand the capitalist system on its head. Free college tuition in public universities and colleges. Medicare for all. A Robin Hood-style taxing of the rich and giving the money to the poor and the middle class. Asking the rich to finance the remaking of America.

Young people, parents of children suffocating under the weight of student loans. Older people who are concerned for the new generations of Americans whose standard of living is destined to be below that of their parents. For the first time, young Americans are no longer confident that they will do better than their parents. For the first time in our history this is happening.

Young people and their allies want two revolutions that will compete for prominence. They are not aware that the revolutions have begun.

Will the revolutions succeed?

It depends on one’s time line. The Bernie Sanders revolution will eventually be successful. His ideas are what people want in this country. Eventually we will have free tuition in public colleges and universities, Medicare for all and a strengthened Social Security system; a country that takes care of its citizens from cradle to grave. Just as a billionaire family takes care of all the children and close relatives, this country – worth trillions upon trillions – will take care of all its family members – U.S. citizens and nationals. It’s natural. It’s bound to happen. It will happen.


On the Trump side, will we ever build that wall? I don’t think so. Will we deport 11 million illegals? No, nyet. Will we ban Muslims from coming to America? We can’t and we won’t.

What about bringing jobs back to America? This will happen. It will be the cornerstone of the rebuilding of our factories, of giving good jobs to our young people. Good jobs for the 50-year-old Americans whose jobs have been shipped to China and who have been told, harshly in my opinion, by opinion makers like Tom Friedman that they have to go back to school, learn new tricks, so they can qualify for the new kinds of jobs that American industry is creating. Really? We’re asking fifty-year-old people to go back to school so they can find work again?

Not gonna happen. What will happen is the gradual, phased-in return of some manufacturing to America so that our young people and our fifty-year-olds who are being forced to retire early because no one will hire them, not even McDonalds, will get decent jobs again.

When we give the new generations good jobs, they will not have to boomerang back to their parents’ houses because rent is too expensive for them. A government led by Sanders would be able to come up with a plan to help our young people buy condos under very favorable, easy terms. There will be a boom in condos. In cheap and moderately-priced condos. There will be schools in the midst of the high-rise buildings that will mushroom all over the American landscape. Along with flying cars and intelligent home appliances, a society that encourages city living as opposed to suburban sprawl will sprout thousands of urban centers. Gone will be the McMansions of the billionaire class, because there will be a premium on lifting all boats as opposed to the triumph of a few actors who have cornered most of the wealth of America. Wealth will be spread out more fairly in an economy that is un-rigged.

Sounds like the future? Yes, this is our future. And the seeds of this new world are being planted today. Changes made by Sanders’ revolutionary army.  But not by Sanders.

Sanders is not our next president.  Unfortunately for many young ‘uns, no. Not by a long shot. For the youth of America, Sanders is the man of the hour. The man with the ideas whose time has come. But for most Americans, it’s way too early for his ideas. And he strikes a lot of grown-ups as a dangerous man.  Socialist?  Our president a socialist?

Not gonna happen.

America wants a transitional phase, a getting-used-to-the-idea-of-socialism transitional period.. Alongside the revolution that has already started but will fizzle temporarily after the November elections this year, there is a quiet evolution that must go on.

This evolution is being led by a woman who appears to be destined for the presidency. Hillary Clinton is always the adult in the room.  Everywhere she goes. She too wants what Sanders wants for America’s youth. She too wants jobs back from China as much as Trump wants those jobs. But her response is not to seize our institutions and stand them on their head, not to hold the billionaires by their ankles over a balcony and watch the gold coins drop out of the billionaire’s pockets in a monumental shakedown. She wants to do things gradually, evolutionarily. Will her approach work? Well, consider this: most changes occur through evolution. Rarely do we see major overnight changes in society like the French Revolution, or the American Revolution.

But evolution takes a long time.  Glacial speed.  So Hillary must blow the whistle in an accelerated cadence.  Double time.  Changes must come quickly, or the fire in the youth’s belly will be gone.

And if the speeded-up evolution is not enough, then Hillary must take out the feather duster and resuscitate the Sanders revolution that is happening now but will be shelved after Sanders’ defeat in November.

Free college tuition in state colleges and universities.  Medicare for all.  A living wage for all that work for a living.  The return of manufacturing.  Redistribution of income away from the billionaire and multimillionaire class to the middle classes.  The breakup of too-big-to-fail banks.

There will be cries to go slowly.  We evolve, plants evolve, animals evolve – the argument goes.

But are we going to evolve fast enough and are we going to evolve into a society according to Sanders’ and Trump’s visions?  If recent history is our guide, I don’t think so.

And there’s the Reagan evolution that is going on as we speak. We’re in the midst of an evolution that is transferring most of America’s wealth to the coffers of America’s billionaires. We are creating tens of thousands of millionaires each year and a few dozen billionaires to boot.

The only way to stop this process is not by a counter-evolution. It is by revolution.

Hillary will win this year’s election because there are more people in this country who want evolution and not a revolution. Realistically, however, there is no way to stop the massive transfer of wealth from the middle classes to the billionaire and multi-millionaire class, except by revolution.

Stop the damned process on its tracks. Force the gears to go into reverse!

Hillary.  Who is also a revolutionary in the sense that she wants the ultimate female empowerment on her watch, with her becoming the first woman president and the most qualified and the most obviously knowledgeable about the issues that everyday Americans face. She knows in her heart that only a revolution will do the trick. So that’s in the back of her mind.

Hillary campaigns this year as the Evolution president, but in 2020 – when she runs for re-election – she will be the Revolution president.

I look for her to start adopting the goals set by Sanders and by Trump. When she becomes president. Not IF. When.

Reagan said that with his entry into the presidential race in 1980, it was morning in America. The truth? Reagan’s policies were the opening salvo for the nightmarish transfer of wealth from the middle classes to the billionaire and multi-millionaire class. Now Marco Rubio is using the same line – Morning in America – to signify that he will give the billionaire class more tax breaks, accelerating the process of the continuing transfer of wealth.

But the true morning in America will happen when a woman becomes our president and the woman adopts the goals and policies of the man that she will have defeated because that man’s policies, vision and dreams make a lot of sense for today’s young generations and generations still to be born.  Not just make sense for them – it’s their only hope.

Hillary will probably win the presidency, but the true winner will be Sanders’ ideas and one Trump vision – the return of manufacturing to America.

Incidentally, that last part – the return of manufacturing – can best be accomplished through the adoption of my Proposed American Doctrine: 51% of all goods manufactured by major manufacturers that are intended for the American market must be made in America. Unscaleable tariffs, Trump’s plan, must be the last resort.

My email address is

Red Wing Boots and the Disappearing White Working-Class Male

By Cesar Fernando Lumba

A fashion statement? Red Wing Boots are now a fashion statement?

To understand how this metamorphosis has come to pass, we are again shunted towards the sorry state of American manufacturing. Once upon a time in America, the lunch-pail crowd parked their recent-model cars and pickup trucks in company parking lots all over the industrial Midwest at the break of dawn and trudged on Red Wing boots to the muscular factories that dotted America’s rust belt like giant smokestacks humming with beehive noise to produce everything that America and even many foreign countries needed – from paper clips to International Harvester backhoes.

Now the prairies are reclaiming the abandoned factories and the white working-class males who used to punch their time cards in those factories are sitting at home, idled by the furious flight of factories to the Sirens’ shores of China.

People still wear Red Wing Boots, because they are of exceptional quality, but no longer mainly for use on factory floors. They have become fashion statements of choice of well-heeled technology-savvy workers. An average work boot that is really not used as a boot now costs $250 and up.

Americans love the Red Wing. And this love affair with the Red Wing promises to grow.

Back to the white working-class males who used to work in the factories but are now sitting at home, forced into early retirement: what’s so unusual about them? They are dying. Dying younger and younger. The white working-class male’s life expectancy is now comparable to that of blacks in the 1960s.

While black, Hispanic and minority life expectancies are rising, white working class male life expectancy is declining. The sociologists who discovered this phenomenon are alarmed.  Certainly because of the decline, but also because of the known reasons for the decline.

Since the 1990s, when the current trend first came on the scene as a mere hint or whisper, white working-class males have been dying younger and younger. Lately, the problem has become an epidemic. Researchers have found that the main cause of this epidemic is the loss of status of white-working class males. Ripped away from factory jobs that they thought they could retire from, jobs that were mainly shipped to China, many white working-class males could not find jobs that would allow them to maintain their middle class lifestyles. Often they were relegated to second-class status in their own houses, where their wives became, by necessity, the main breadwinners because women are generally better suited for many of the service jobs that were being created by the U.S. economy to replace the lost manufacturing jobs.

The Cadillac health insurance policies were gone – health insurance policies won through muscular union-management negotiations. The men could no longer count on the usual doctor visits and periodic checkups. Their health took a nosedive. Many turned to drugs and alcohol. Many became irritable and quick-tempered, leading to elevated blood pressures. And to diabetes and other chronic diseases. A significant number turned to the ultimate solution – they committed suicide.

The life expectancy decline among white working-class males has been so huge that the overall life expectancy of the white middle class – including both women and men – has been falling.

Thus goes the tale of the Red Wing boots becoming a fashion statement. Fewer people need them as work boots, so the company has tapped a new market: the tech savvy yuppies who wear the boots as a statement of their income and virility.

Meanwhile, our white middle-class neighbors are dying off, falling like flies sprayed with a made-in-China can of Raid.

If we don’t bring manufacturing back to the U.S. – at the very least 51% of all manufactured products that we consume – the browning of America will not happen in the 2050s. It will happen a lot sooner, as white working-class males continue to descend to desperate straits while the minorities take over as the new majority coalition.

No wonder there’s a Tea Party. Their methods are abhorrent in the extreme, intolerable on most days. They want to fight the government, which they accuse of doing it to them. They should actually be fighting Big Business, Big Oil, Big Pharma, Big Bigs, etc. Instead they are allied with the richest corporations and individuals who are pulling the marionette strings.

The white working-class males should be screaming for a return of their jobs while they are still alive and not while at their deathbeds, because that would mean that the ones who shall reap the benefit of manufacturing’s return shall be the minority males.

They should cut the marionette strings that the Big Bigs are using to dominate their thoughts and manage their actions.  It’s a matter of life and death.

(You may reach the author at If you email the author he will provide you with a phone number you may wish to call.)

Feel the Bern

By Cesar Fernando Lumba

This journey that you, American consumers, and I have taken realistically cannot be completed without the help of our elected politicians. Without their help, we are merely shadow boxing.  We cannot hope to bring manufacturing back to America without the help and active participation of our politician class.

That is why the upcoming elections are extremely important to our cause. All elections are important, but 2016 is much more important than all the recent presidential elections we’ve held.

Here’s why: for the first time since 1964, and before that for the first time since 1932, the elections of 2016 are fast becoming a potential game changer that will determine the fate of our capitalist system that rewards the top 1% of our population with breathtaking levels of wealth gains while the bottom 99% struggle to make ends meet.

It is a sign of our times that one of the leading contenders for the presidency is an avowed socialist. Bernie Sanders, the 75-year-old Independent senator from Vermont, who is running for the nomination in the Democratic Party, is leading Hillary Clinton in the two earliest primary states – Iowa and New Hampshire – and is fast gaining on Mrs. Clinton in other states, such as Oregon and California.

This is an earth-shaking development. A socialist is close to becoming the standard-bearer for a major political party, the oldest political party that dates back to the Founders’ days.

Who would have thunk?

You can’t comprehend what is happening in this great country of ours, the bastion of democracy in our great world, unless you understand what Bernie Sanders, the Socialist, represents.

These are what Bernie is for: 1) Redistribution of income so that the bottom 99% of Americans get a bigger slice of the benefits of the fully-functioning American economy, which today rewards the top 1% of Americans and says “sorry” to everyone else.

2) Health care for all. Bernie, like many Americans, are wondering why America – the richest country in the history of man – does not have Medicare for all when all the advanced countries in the world have it. He suggests that it is because the power brokers in this country cater to the greedy rich, who resist any new initiatives that will result in those super-rich individuals and families paying more in taxes.

3. He favors increasing Social Security benefits and raising the minimum wage.

4. He champions huge investments in infrastructure repair and improvement.

5. He is for Federal legalization of marijuana, gay rights and preservation of women’s health programs.

6. He is at the forefront of the fight against global warming.

7. He is for a free college education for everyone who wants to go to college.

Many observers of Sanders’ career have pigeonholed him as an admirer of the Scandinavian countries’ cradle-to-grave security for their citizens. Bernie Sanders has frequently pointed out that the Scandinavian countries have some of the highest per-capita income in the world in economic systems that are sometimes described as socialistic. But the reality is that Scandinavian countries are big on capitalism, which means that in the truest sense of the word, the economies of the Scandinavian countries are not “socialistic.”  They are instead welfare states with a passionate embrace of the capitalist economic system.

Lately, Sanders has taken to describing himself as a progressive, and not a true socialist, because he does not favor government ownership of businesses.

Surprisingly, Sanders has not advocated the return of manufacturing to America. That line of attack on the status quo is for Mr. Trump to champion.

From our vantage point here in – The American Consumer – Sanders’ plan for America is incomplete because he does not champion the return of manufacturing to America. But to an increasing number of Americans, he is the real deal. Sanders is now being mobbed everywhere he goes – like a rock star.

The phenomenon of Sanders and Trump being mobbed on both sides of the political spectrum must be an indication that America has changed. We do not feel secure in the feeling that our government is taking care of us. We feel, instead, that the government takes care of the billionaire class and has neglected to take care of our families’ needs. We are questioning why of all the rich countries in the world we are the only ones who do not have guaranteed health care for all citizens. Perhaps because we Americans are aging – more and more baby boomers are retiring and living longer than ever before – health care has become one of the most important issues of the day, if not the most important.

Our young people want a clean world, a future that is not wrecked by monstrous storms and the melting of polar ice caps. To the young people of America, global warming is a very serious issue. Another reason for the young people’s embrace of Bernie Sanders: his proposal for free college education at public universities.

There is much to like about Bernie Sanders’ political agenda and people are ignoring the fact that the man is an announced socialist, as if to say, “If Sanders’ philosophy is socialistic, then we are all socialists, because we like all these things that Sanders is talking about.”

Progressive, my friends. Sanders is calling his program progressive, not socialist. He is a socialist, but his platform is progressive.

The reality is that America has become progressive. And America has become very impatient with the traditional politicians in both the Republican and Democratic parties. That is why we are witness to the spectacle of the leaders of both parties being outmaneuvered by insurgent campaigns. Trump, Dr. Carson and Fiorina account for more than half of the Republican voters’ preferences, while Sanders is beating Hillary in the first two primary states.

We voters have no truck for the traditional politicians in this country. All they do is raise money so they can win in the next election. They don’t legislate. They just put a monkey wrench in the opposite party’s governing plans. The result is stalemate. The result is government shutdowns. The result is more than 300 million Americans waiting for something good to happen in America. And it’s like waiting for Godot, the man who will never come because he is either dead or has no intention of honoring a commitment to come.

We Americans are tired of it all. Next year, 2016, we will go to the polls and show to the world that we – not the 1% billionaire class, not the politicians, not the businessmen and women who have shipped jobs to China because they are unwilling to pay American workers a living wage, not the foreigners who routinely goad America to go to war on their behalf – we the frustrated Americans, the inheritors of the grand union forged centuries ago by Jefferson, Madison, Adams and other Founding Fathers, are the true bosses in this country.

We are disgusted by, we are impatient with, we are resentful of the greedy politicians and billionaire class who refuse to either legislate much-needed taxes or pay their fair share of taxes and who have employed geniuses whose sole raison d’etre is how to figure out ways for the billionaire class to avoid paying their fair share of taxes.

Feel the Bern, we say. Hold your noses, because Trump has good intentions. Embrace the laconic Dr. Carson, forgive his obvious faults – because he is not a traditional politician.

In the Philippines, traditional politicians are called “trapos” for short. In the Philippine language (Tagalog), trapo means a dirty rag.

Traditional politicians are despised in that country. It could be that in America we are starting to despise our traditional politicians.

What does this all mean? Will we have Sanders or Trump or Carson as our next president? Not necessarily. The elections of 2016 are still fourteen months away.

Some of the traditional politicians in both parties, Hillary Clinton foremost among them, could make a sharp turn to the left.  Hillary has the shortest distance to travel from her left-of-center position.  She is after all close to Sanders on many issues – and with her huge advantage in money and organization she could still upend the Sanders train, overtaking him in the bigger, more industrialized states than Iowa and New Hampshire.

On the Republican side, Mr. Trump may be hard to stop.  His rivals don’t seem to get it. They think that the way to the nomination is pleasing the billionaires who finance their campaigns.

Anyone who doesn’t think that America has changed is in denial. We Americans are sick and tired of our traditional politicians.

We are mad as hell. We won’t take it anymore.

(The writer’s contact email address is:  If you wish to contact the administrator of this blog, call 702-891-5442 and ask for Cesar.)

Trump Gets It

By Cesar Fernando Lumba

I never dreamed that I would ever agree with Republican presidential candidate Donald Trump. The man is just plain extreme in his views. He is a boor, a narcissist and a bigot.

At the gut level, however, many Americans – still a growing number – do agree with him.

I particularly like his pugnacity when pointing out that the Chinese have stolen from us not only our technology, they have stolen the lifeblood of our economy, which is our manufacturing base. When I read and hear his comments about why we must get our manufacturing back, I can’t help but wonder if he or his advisers are regular readers of my blog posts. Trump has never mentioned how exactly he is going to take some of our manufacturing back from China but if he ever mentions my 51% solution, or its variant, in his speeches, it becomes unmistakably clear that he or his advisers have been reading my posts here in

I like his idea of taxing the rich more. When the top tax rate in America was 91%, the country was the strongest country in the world, the strongest and richest in history. There was nothing we could not do when we put our mind to it. Kennedy reduced the top rate to 70%, a huge reduction, but the country remained strong, strong enough to take on Russia and demolish it.

When Reagan reduced the top tax rate to 35%, he unwittingly sent the country spiraling downward. Suddenly the country could no longer afford the huge ambitious projects that would have allowed us to keep pace with Japan and other countries that were modernizing. Suddenly, our sovereign debts ballooned and everyone was talking of how to make government smaller, less robust, less powerful because we could no longer afford to be an even greater country that in the 20th century we felt we were destined to become.

Because of much lower taxes, the rich and super rich get to keep more and more of their earnings. They keep getting fantastically richer by the minute. The rest of the country? The 98% of Americans? The rest of the country has stood still. Many have slipped backwards and are now part of the huge poverty-stricken underclass.

Trump, who is one of the super-rich individuals, wants to tax himself and others in that super-rich class a whole lot more. He wants a strong America and he knows America cannot regain her former glory unless there is money to spend on infrastructure repair and the creation of a 21st century infrastructure. Bullet trains. A nationwide network of filling stations for electric cars. New carport-airports for cars that fly. New space exploration projects. New innovative ways to desalinate water. Super WiFi and broadband.  The Internet of Everything.  Artificial Intelligence.

The government needs money to do all these things, and it won’t have money unless the super-rich who have amassed fantastic fortunes because of the low tax rates movement in this country start to pay more in taxes.

And then there’s the single-payer health care system. Trump is in favor of Medicare for All. Like most progressives in this country, I dream of an America that takes care of every citizen from cradle to grave. We Americans will continue to work hard, we will fight for our country and offer our lives, our limbs, our eyesight, but in return, I want our country to take care of us and our children.  That’s the Grand Bargain.

I want an America that makes it its number one priority to make sure that our young people have good jobs and a good secure future. I want an America that is great again, with its people achieving greatness not only in the field of battles in foreign countries, but also in the fields of science, math, literature, the arts.

Trump seems to share this vision. He hasn’t actually articulated it the same way, but the underlying philosophy of his new vision for America seems to be congruent with mine and with that of most Americans who love this country.

Unfortunately, Trump is also Mr. Hyde. He wants to round up 15 million undocumented aliens in this country and ship them all back to their home countries. It’s an impossible task, bordering on the cuckoo. He wants to build a wall to extend from Texas to California – all paid for by the Mexican government. That’s definitely cuckoo. Never going to happen.

He says most undocumented Mexican immigrants who cross the border are criminals and rapists. Shades of Hitler blaming the Jews for everything going wrong in Europe.

I will never vote for Trump because of his extreme views. But if he backtracks on his extreme comments about undocumented aliens, if he admits that he is wrong to adopt the position that all undocumented aliens must be rounded up and deported back to their home countries, if he becomes more rational on the issue of border enforcement of U.S. laws, if he apologizes to all the women he has insulted, then I might consider supporting him. Despite the fact that he is a Republican while I’m an unabashed liberal and Democrat.

I would prefer that the Democratic front-runner Hillary Clinton starts sounding like Donald Trump because I, after all, am a card-carrying member of the Democratic Party. I like the ideas of Bernie Sanders, but I can’t support him because I think in the general election he will spontaneously combust and what will be left of him is a small heap of dust and a distant memory.

I’ve been blogging about the need to bring manufacturing back to America since 2012. I would be foolish not to support someone who shares my views, especially someone who passionately shares my views. There’s a strong chance that Trump will come to adopt my 51% solution if he becomes personally aware of that solution. He is for single-payer health insurance. He wants to tax the rich to solve the budget shortfall problems in this country. He hasn’t actually come around to supporting the idea of asking the rich to pay more into the Social Security system to further bolster it; in fact, he like most Republicans tends to think that the solution is to delay Social Security entitlement for most Americans. This “solution” is a bummer because, as Paul Krugman has time and again pointed out, a lot of Americans are tired and sickly (diabetes, heart disease, cancer) because of the high obesity rates in America and because manual labor really exacts a heavy toll on people’s bodies by the time they hit 65.

But the basic thrust of Trump’s candidacy is positive news for most Americans, especially those who feel that they’ve long been getting the short end of the stick in this country.

(The writer may be reached by email:

The Wise Men and Women of China

By Cesar Fernando Lumba

They’re all dead.  Yes, all the wise men and women in China are dead. Killed. Eliminated a long time ago by the communists.  Tens of thousands, hundreds of thousands, millions even – wiped out by the communists.

There were a few remaining in the late 1980s.  In the late 1980s Chinese spring happened – similar to the People Power revolution in the Philippines, after which the Chinese spring had been patterned.  The stark image of one Chinese man, demanding democracy from the communist overlords, fought a standoff with muscular tanks on Tiananmen Square as the world watched on television screens. .

The man was arrested, never heard from again.  Not a peep from democracy advocates since.  The Chinese spring – long forgotten.

The real China, emboldened, went to work.  The country attracted manufacturing from all over the world, exploiting its enormous advantage of coolie wages, and now the world sees the real reason China was willing to sacrifice the health and sanity of its people in its pursuit of manufacturing preeminence: China is in a long-term push toward world domination.

It’s all about China becoming the greatest power in the universe, replacing the United States.

It has started.  Through island and resource-grabbing in the South China Sea, China is building fortifications in seized islands and atolls in the Spratlys that are clearly intended for use as a base in further conquests in that sea that China claims it owns.  90% of the sea it claims it owns.

Having shown their true colors, the Chinese are repulsing former trade partners Japan, South Korea and Taiwan.  So far the Japanese are the most willing to transfer their manufacturing plants to friendly countries, their new allies Vietnam and the Philippines.  Taiwan is doing the same to a limited extent.

The world is waiting for American companies to start dismantling their factories in China and transferring manufacturing operations back to the U.S., or Mexico, or Vietnam, or the Philippines, or Bangladesh, or Indonesia, or Malaysia, or Singapore – any country except China.

Even the greedy American industrialists who long ago abandoned American workers in favor of the coolie workers in China have sat up and taken notice.  The Chinese do not just want America’s manufacturing industries, they also want to strip America of its power because America is standing in the way of Chinese world domination.  In commerce as well as in military terms.

That is the ultimate Chinese goal.  Every GE TV, every Apple i-phone, every Shimano motor, every Boeing airplane part, every Caterpillar tractor made in China brings the Chinese closer to its ultimate goal, which is to overtake the U.S. economically and to defeat the U.S. in a cold war, and if necessary, in a real (hot) war.

If the war were fought today, China would lose.  If the war were fought twenty years from now, China would lose.

Every Chinese wise man would know this.  But the Chinese wise men – and women – are long gone.  Dead.  Murdered.  Tortured by the communists.

Now imbeciles and reality deniers rule China.  Already these not-so-funny clowns have miscalculated.  They never imagined that the whole world would respond with apocalyptic negativity to their island building in the Spratlys.  They never imagined that the whole world would be united in condemning Chinese island and atoll-grabbing in the Spratlys.

They never imagined the world’s reaction because there are no longer any wise men (and women) in China.  They’re all dead.  Mudered.  Tortured by the communists.

China is a rogue country.  The world has started to treat it as such.  And because there are no longer any wise men (and women) in China, it will not understand that it has brought this pariah status to itself.  And so it will indignantly insist that it is right and that justice is on its side.

It will think that having Russia as an ally will give it strength.  The truth? China;s military is no match against the South China Sea natural allies: the U.S., Japan, Australia, Vietnam, the Philippines, Indonesia, Malaysia, Taiwan, South Korea.  The NATO powers (Germany, France, Britain, Italy, etc.) can neutralize Russia.

China will be all alone trying to defend its so-called islands in the Spratlys. After witnessing the sinking of its lone aircraft carrier, China will retreat back behind its Great Wall, daring any power to come and invade it and engage in street fighting against its teeming masses, that will scatter willy-nilly when they see squadrons upon squadrons of drones that are unleashing a fury on military targets.

(You may contact the author by email –





The Trade War with China

By Cesar Fernando Lumba

We Americans, especially our government officials, have our heads in the sand when it comes to the raging trade war with China. How could we be at war with China, we ask, when China is one of our biggest trading partners, if not already the biggest?

Yes, the trade war doesn’t seem to make sense on the surface. If we look deeper, however, we realize that the trade war is in fact ongoing and intensifying.

First, look at what happened to our manufacturing. Before China awoke from its deep 500-year slumber, the U.S. was the acknowledged premier manufacturing country in the world – the biggest since the beginning of time.

Now, with hundreds of thousands of our factories having closed down and our manufacturing transferred to China over the past two to three decades, we have slipped to second place. China is the premier manufacturing country.  What Japan and South Korea could not do, China has done.  China has managed to destroy our manufacturing base and rebuild its own – at our expense, and at the expense of Europe, Canada, Japan and Australia.

Strategically, the single most important sector of the American economy just happens to be manufacturing. Recall that in the Second World War, our superiority in manufacturing over Germany and Japan was decisive in winning that war. Now, because China has a bigger manufacturing base, it will have a distinct advantage over us should a military conflict break out between our two countries.

Second, China is dictating the terms of trade between them and us. They tell us what we can and cannot do in their country, and they tell us what they can do in our country.  That is because they have a hybrid economy. On the export side, China is a free economy.  On the import side, it is a managed economy, managed by a communist regime that is wily, cunning and focused on eventual world domination.  Sorry if my plain speak offends anyone, but that is the truth. Because of their hybrid nature, they have a huge advantage over us in the trade war.  And this shows every year and has shown every year for more than two decades now, in our balance of trade..

The balance of trade is the indicator of who is winning the trade war – the war that decides who exports more and who exports less.  And that balance of trade has been won by China for many, many years.

In 2012, the balance of trade was 315 billion dollars in favor of China; the following year it was up at 319 billion.  A trade imbalance as large as that is not trade, it is a war with a spectacular winner and a spectacular loser.  Just focus on the winner, friends, don’t even look at the loser.

Third, China has laid claim to 90% of the South China Sea, which on the face of it is a direct challenge to the United States’ ability to navigate the waters in that region of the world.  China is on pace to be able to declare no-fly zones over the South China Sea and demand that all foreign ships must get permission from China in order to sail in that sea, which is becoming the single, most important body of water in the world.  If China wins – and it’s winning – the U.S. will be on the outside looking in in that region of the world.

China is preparing to build a base in the Spratly islands by enlarging the islands that it controls through land reclamation. Pretty soon there will be an airbase that can be militarized. The Spratlys just happen to be close to the Philippines, Malaysia, Vietnam, Indonesia and Taiwan. The potential military threat against those countries is growing, threatening to pull the U.S. into a major confrontation with China in the near future, a confrontation that the U.S. can easily lose because of an overwhelming Chinese presence in the area.

With China dictating to the U.S. in trade, it is also seeking to dictate to us militarily in that part of the world.

We all know that the U.S. owes more than $1 trillion to China through China’s ownership of our treasuries. All that China has to do is call the treasuries and the U.S. economy would go into a tailspin.  China, therefore, has a sword of Damocles over our heads.

Is all lost?  Are we destined to be China’s punching bag in the future?  Are we destined to become the old punch-drunk has-been that China will beat up on?

We cannot and should not think that all is lost. We can fight back by reversing the process that has allowed China to surpass us in manufacturing and which has resulted in the U.S. losing the trade war, which in turn has caused us to lose the financial war, which in turn has caused us to be at a huge disadvantage in the looming military conflict in the Asian-Pacific region.

We must start by bringing some of our manufacturing back to America. Let us build things again.  So what if the products will be more expensive than the Chinese ones?  We know that the quality will be better than the quality of Chinese goods, which break down easily.  Remember the refrigerators, the stereos, the TVs in our bygone era, when those things were built in the U.S.?  Those things lasted a long time.  Nowadays, because they are built in China we have to buy extended warranty contracts because the Chinese products break down so easily.

Finally, let us not be afraid of higher prices.  With Americans working in factories again, more Americans will be making more money and they will be able to afford higher prices.  Recall that in the 1950s, 1960s and 1970s, most of our American-made products were expensive yet we were able to afford them.  Why?  Because we had good, solid manufacturing jobs, jobs that paid us decent wages, not WalMart and McDonalds type jobs.



The Coming Manufacturing Renaissance

By Cesar Fernando Lumba

A few years ago I came across a report that said the U.S. was sitting on oil deposits so huge we would someday dwarf even Saudi Arabia.

I did not give that report much credence, knowing that the U.S. is the number one land of the too-good-to-be-true stories.  Well, what do you know?  Today, the U.S. is on its way to becoming the number one producer of oil and gas in the world – if it is not as yet.  And we’re barely scratching the surface.

In Texas, Pennsylvania, North Dakota, in Louisiana and the common boundaries of Utah, Colorado and Wyoming, there are shale oil discoveries that dwarf even our most expansive imaginations.

What will this do for American business in general and manufacturing in particular?  Manufacturing will return to the U.S.  No doubt about it now.

Energy is one of the major costs in any manufacturing operation, and with the cost of energy in the U.S. headed for their near-historic nadir in real dollars, the U.S. suddenly finds itself with a huge advantage over manufacturing competitors such as China, South Korea, Taiwan, Japan, Germany, Italy, etc.

The major manufacturers that fled the U.S. at the turn of the century and well into the Bush, Jr. presidency have cast a fond gaze at the land they abandoned only a few years ago.  While it’s not as yet a stampede, there’s no question that the U.S. government can help the formation of one by providing financial incentives to come back to America.

Here’s my proposal.  Those companies sitting on huge profits overseas and are reluctant to bring the profits home to America because of our high corporate tax rates should be allowed to bring those profits into the country at a reduced flat rate of 15% provided that the money is used to build or renovate their abandoned factories in the U.S.

This simple, straightforward quid pro quo between the U.S. Congress and American multinational businesses will put America on track to become the most muscular manufacturing power once again.

The benefits are huge.  Americans will once again have jobs that pay decent wages, not the McDonald’s and Walmart type jobs.  The American middle class will be revived and strengthened. Those who immigrate to the U.S. will find good jobs and contribute to the Social Security and Medicare systems.

There will be more money available for the repair and maintenance of the crumbling U.S. roads and bridges, ports and airports.

There will be more money for research and development.  Currently there are companies that are set to manufacture vehicles that double as cars and airplanes. Of them all I like Gilo Industries’ Parajet SkyRunner the best.  Don’t ask me why, I just like the way it looks.

It’s a British company, but there are American companies also on the forefront of the revolution.

A major American manufacturing renaissance will lead directly to innovations that existed at one time only in science fiction.

That’s our brave new world.  And in this brave new world, we are under severe stress to change our concept of free trade. No country, no manufacturer has a right to dismantle our manufacturing base and ship it to other countries.

What happens to our proposal to require major manufacturers to make 51% of products intended for the U.S. market within the boundaries of the United States?  It will gain an even stronger headwind. There will be less economic reasons to oppose such a requirement

We will protect our manufacturing because it is not only the industries that we shall be protecting, it is the future of our children and the future of Americans yet to be born.

And this takes us back to what we have been suggesting in this blog all along: a revolution in economic thought, specifically in the way at we look at manufacturing.

Footnote:  Historically, according to Tyler Duden in What Pickety Didn’t Say…about Economics:  “Britain had the most protected economy in the capitalist world in the late 18th and the early 19th century. Much of this protection was provided in order to promote British manufacturers against superior foreign competitors in Europe, the Low Countries (what are Belgium and the Netherlands today) in particular.

“The US went even further. Taking inspiration from British protectionist policy, Alexander Hamilton, the first Treasury Secretary of the US (that’s the guy on the ten-dollar bill) developed a theory called the ‘infant industry argument’ – the view that the government of an economically backward nation should protect and nurture its young industries until they ‘grow up’ and can compete in the world market. Hamilton died in 1804 in a pistol duel, but the US adopted protectionism in the 1820s and remained the most protected economy in the world for most of the next century.”

Protectionism was the correct American trade posture in those days, it is the correct posture once again.  But with a very, very important twist.  Today we will encourage all nations in the world to protect their manufacturing sectors.  America will not preach free trade outside the U.S. but practice protectionism at home. We will not be the world’s number one hypocrite.

If nearly all countries protect their manufacturers by requiring that most products sold in their countries are made within their territories, the result will be a world-wide boom in manufacturing and construction the world has never seen – ever.

(You may contact the author by email at and by Twitter at @morningcall11.)




Employnomics – The Antidote to Globalization

By Cesar Fernando Lumba

The English Industrial Revolution commenced in late 18th century, some say earlier, and by the end of the 19th century it was well spent. America had become a muscular superpower and had taken over. But America’s reign has not been without any challengers. The Japanese threatened to overtake us at the end of the last century, and now the Chinese are being predicted to overtake us at some point in this, the 21st century. And after China, there’s India waiting in the wings.

And who knows what comes after that?

Let me introduce you to the concept of Entropy (From Google).

a thermodynamic quantity representing the unavailability of a system’s thermal energy for conversion into mechanical work, often interpreted as the degree of disorder or randomness in the system.
lack of order or predictability; gradual decline into disorder.
“a marketplace where entropy reigns supreme”
synonyms: deterioration, degeneration, crumbling, decline, degradation, decomposition, breaking down, collapse;

Entropy is a concept found in thermodynamics. Yes, I know. I was terrified of the term thermodynamics while in college. Thermodynamics, however, is a very simple concept. It is the science of heat. And this science says that energy or heat tends to dissipate into its surroundings, or environment.

Thus, if you boil water in a casserole and leave the casserole alone, the heat will dissipate into its immediate surroundings and eventually the air in the room and the casserole and the water will all have the same temperature.

The second rule in thermodynamics is that once energy or heat is lost, it is gone forever.

How does this relate to our discussion of Economics, or more appropriately, Employnomics?

It is exactly the reason why economic superpowers rise and fall.

At the beginning of its industrial revolution, a great country reaches the critical mass of energy or heat. Just as some ladies are hot, a great country becomes superhot. Its heat radiates, its economic engines are working full time and in full throttle. It is the envy of the whole world. Once the heat slows down, the heat is transferred to its surroundings and both its surroundings and the once-great country cool off.

That is what happened to England and what is happening to America, and what is happening to Japan.

There is another law in the universe, however, and that is, nothing that is lost in one area is completely lost. It shows up in another area. That’s because the universe is a closed system.

So the heat that is lost in America is enough to light a fire in China and China itself is now generating its own super heat. Japan’s lost heat, or energy has also dissipated into China, making the Chinese energy really, really super hot.

And how is this heat, this energy lost from the U.S. and transferred to China? This has been accomplished through the price mechanism.

Cheap goods. Yes, the Chinese can make goods of a quality similar to America’s and Japan’s at much cheaper prices.

It’s all about the price.

It’s the way the cookie crumbles.

Nobody has questioned this process through the centuries. Until now.

Based on the reaction of thousands of readers of this blog, there are a lot of Americans and many in foreign countries, who are rebelling against the idea that through economic entropy, economic energy must be transferred from the advanced countries such as the U.S., Europe, Japan, Canada and Australia to China and the developing world.

Why must development of the developing world be at the expense of the advanced albeit aging economies?

Why can’t economic development take place with the developing and advanced economies marching in lockstep?

It can be. And the way to accomplish this is to change the focus of economic planning.

Today, economists see cheap goods as the way to spread the wealth and the good life around. The cheaper the goods, the more people can afford to buy the things that they need to live a good, comfortable life.

This may be good in theory. But in practice, we have seen what happens when the world’s eyes are trained only on cheap prices. Countries such as China have booming economies while Europe, the United States, Australia go into recession.

The fallout from such recessions are serious drawbacks from which many in the U.S. and in Europe can never recover without dramatic intervention. And without that intervention the human cost is too steep.

Enter Employnomics, or Employment Economics. This economic theory posits that employment stability is the single most important factor in economic planning. The theory posits that countries have a right to manage their economies in a way that protects their citizens from wholesale job losses that destabilize their societies. And this right includes the right to insist that products intended for sale in their markets must be made inside their territories so that their citizens can keep their good-paying manufacturing jobs.

We have proposed a new American doctrine: 51% of all products made by major manufacturers intended for sale in the United States and its territories must be made in the United States. The other 49% can be made anywhere else for all we care; they can in fact be made in Timbuktu.

And if every advanced country adopts the same or a similar policy, the economic entropy of advanced countries in Europe, in the Americas and in Australia will be halted and eventually reversed.

China and other developing countries will still be able to grow, but their growth will be tempered and be less dislocating for the countries that they are currently driving out of business.

Would such a system not lead to a global recession, a depression even? Well it would if the proposed new American doctrine is adopted overnight. We are not recommending such a course. We feel that there must be a transition period of 5, 7 or 10 years, depending on the complexity of the manufacturing processes involved.

We will give multinational companies such as Apple, GE, etc. enough time to reopen the U.S. plants that they abandoned in America during the mass exodus of manufacturing to China and other countries. Chinese, Japanese, Korean, etc. companies will have the same amount of time to transition some of their manufacturing operations to the U.S.

Will this not lead to higher prices? Of course it will, but it is not such a bad thing. The greatest threat to the world economy, according to Nobel prize-winning economist Paul Krugman is deflation, not inflation. So some inflation is not necessarily a bad outcome.

Besides, with an anticipated more widespread use of robotics, the impact of higher U.S. labor costs will be minimized.

Finally, because of competition companies that manufacture in the U.S. will not be able to raise their prices too significantly and will likely absorb their higher costs, which means that their profits will be reduced.

And that’s not a bad thing. Currently, because of cheap products from China and other countries, the Wall Street darlings are reporting unbelievably huge profits and the CEOs and other plutocrats are getting a bonanza through high salaries and huge stock options. While the middle class ranks are thinning because they are being pile-driven below the poverty line.

This country must stop producing super-rich individuals and families and concentrate instead on bolstering the middle class by raising people out of poverty.

And the only proven way to do this is by giving Americans a chance to earn high-paying manufacturing jobs. And, may I add, construction jobs that will surely be created because of the factory building and renovation boom that will occur all over this land.

(The author may be reached at He occasionally tweets as @morningcall11.)