Do Foreigners Care For the US Economy?

I've been working for an engineering firm for over 6 years. The original company has been bought out and is now owned by a foreign firm residing in Germany. I might add, it's owned by the Germans.

I came on board right when the whole transaction was taking place - 6 years ago. Since then, a very noticeable trend has been noticed by the employees hired before the transition - or what was left of them. As the American employees were leaving the company for one reason or another, they were being replaced by German employees. Also, as new positions were opened, most of the positions were filled with; who else but German individuals. 6 years after the buy-out of the American firm, the ratio of the American employees vs. German employees has increased to around 50/50. The total amount of people in the company didn't change much, but the ratio changed drastically.

Back in November of 2001 when the massive layoffs were happening around the country, over 100 people lost their jobs in one day. They were let go. The reason - bad economy. Well, the economy has picked up since then, at least for this company, but the people were never called back. Their positions were filled in with; yes you guessed it right - non American people for the most part.

Toward the end of 2004, a major change occurred in our department. All of the American "chiefs" were replaced by German "chiefs." And then, we had a group meeting where the "biggest German chief" addressed us. At the meeting we were told that, quote: "We have too many American Suppliers." Their goal was to outsource the work to foreign companies for cheaper labor. That meant getting rid of the "American Suppliers." More American people losing work and even their jobs. The term "We have too many American Suppliers," was mentioned several times by the biggest German "chief" at that meeting.

At the same meeting we were also notified that "they" were going to close an assembly plant providing incomes to several hundred American families. The work was going to be transferred to Mexico for cheaper labor. Well, the plant in Mexico was already built, and by the end of that year, around 400 people lost their jobs in one day.

The company is still experimenting with third world countries for outsourcing even more work. The company's stock has been soaring for the past 6 years. From what started out as $7 per share, it's now over $100 per share. The company is raking in tremendous profits each year.

And where does that money go?

Well, the mother company outside the US is accumulating all that wealth while boosting their economy.

And, what about the U.S. economy?

It has become a nationwide trend for foreign companies to come in and buy out American companies. But then, the foreign company has to pay the U.S. workers in U.S. dollars. That money converted to their native monetary ends up costing them much more than what they would pay their own people in their homeland. Or, the alternative would be to bring in their own people in place of the American workers. And the rest, well, ship the work to third world countries for cheaper labor.

The company now ends up generating an enormous profit since the expenses are significantly lower than what they were with the American Owned company. Low paid foreign employees working on U.S. soil and not paying taxes, supported by cheap labor from the third world countries. And what happens to the American families caught in the middle of this economic shift?

America is known to be providing relief to disaster areas and providing support to countries in trouble. But who is providing relief to the American Families in great need? Who is providing relief to the American families buried in financial debt? Who is providing relief to the American people who have lost their jobs because their work was shipped over to third world countries for cheaper labor?

Who is providing relief to the over-exhausted father that I bumped into while doing my grocery shopping? He was so tired he could hardly keep his eyes open. We attend the same church. I said "Hi" to him as he tried to force a smile onto his face. He could hardly talk. I kept my conversation short. He was let go from his job several weeks ago. Now he works 14 hours a day at two odd jobs, while trying to bring in the same income that he used to bring to support his wife and two children.

Who is going to provide relief to the overworked parents that had to pull their 17 year-old daughter from school? They both worked at the same job and they both lost their jobs after their shift was completely eliminated. The work was transferred to Mexico. Now they both have to work for a measly $7 an hour while having their 17 year-old daughter watching her 2 younger siblings. The mom asked my sister to help her find a better paying job.

Who is going to provide relief to the father who has to work in a different state? He was let go from his job after it was bought out by - gues who - a foreign company. He couldn't find another job for 8 months. His family ran out of money and they came to ask us for some financial help. He finally did find another job, but in a different state. On Sunday evening, he leaves his wife and two little daughters, and drives away. On Friday, late in the evening, he comes back home to spend only two days of the week with his loved ones.

Who is going to provide relief to the cashier at the local food market that couldn't stop begging me to take his resume and pass it around? He lost his job because his position was eliminated and outsourced. Now he works as a cashier while passing his resume to as many customers as he can at the check out.

Who is going to provide relief to my friend who lost his job because the company that he worked for was bought out by - a foreign company? The reorganization did not include him as well as many of his coworkers. He never got his job back so now he has to work for half of what he used to make while trying to provide for his wife, two little girls and his elderly mother.

Who is going to provide relief to all the people who lost their jobs because their positions were transferred over to a third world country for cheaper labor? How are they going to feed their families? Can they find other jobs that pay the same money or maybe more?

As I drive around town, I continue to see foreign flags popping out in front of many local firms. What's the message? The firms have been bought out by the foreign company that the flag represents.

I continue to talk to local people who are telling me the same stories. They're losing their jobs because their positions are either being transferred to a third world country such as Mexico, India and China for cheaper labor, or they're being replaced with foreign workers on a working visa.

American people are continuing to lose their jobs or being forced to work for less money while getting deeper and deeper in debt. The foreign companies are continuing to buy out American companies, while doing anything to increase their profit - even if they have to get rid of the American Employees from what was previously an American Owned company on American soil.

The former American companies now owned by foreign companies are continuing to generate enormous profits because of the lower expenses (work force) combined with the profit from their sales. That money is continuing to boost the economy of the country that the mother company is from.

Meantime, the American economy is continuing to ride the roller coaster.

The cost of living is rising at a frightening rate, but the American people aren't getting any major adjustments to their salaries. The bankruptcies are at an all time high. The credit card debt is reaching alarming heights. The foreign flags are continuing to wave proudly next to the American flag; line-in-line; on American soil.

But how much do these foreigners really care for the American economy?

True Cost Economics   

True Cost Economics

What's the price of your lifestyle? Is your living room furnished in blood, or your wardrobe woven of pain and suffering? How about your body - are you fed with diminishment and despair? Every piece of merchandise we buy costs a set amount of work, energy and resources. What we pay for it in cash may - or may not - reflect what went into its making. If we buy cheaply, at a discount store where prices are kept artificially low, then the price is paid by others who have to suffer to make up for the portion of the price we refused to pay. If we allow others to negotiate for costs that leave too small of a margin for fair wages or adequate health concerns, then the price is paid by the destablization of the land and the people and the societies that produce it. But our bargain hunting gets us nowhere. In the end, we pay the full price, with interest - in wars brought about by people pushed too far, by terrorism and riots sparked by those who feel (often rightly) that their people and their land are being drained of life so that the rest of us can buy or drive cheap toys that we don't even appreciate, by environmental degradation that affects us all perpetrated by those simply too powerful to be stopped or too poor to care as long as they can eat and live. We must all face the inevitable fact that human suffering doesn't stop at the suffering human in question, but ripples out to all of us. No matter what the actual price tag says we pay in full measure for what we buy and use, either in cash or in kind. By choosing to buy less and choose more wisely, we allow ourselves the financial breathing space to afford the better, fairer-priced option, and we step away from supplying the negative cycles of economic hardship. Our actions heal rather than harm, support rather than undermine. And in the end, by working together we can give birth to positive, more equitable cycles where everybody benefits fairly and justly and where everyone gets a chance to demand as well as supply. Yes, this does mean that we can't load our carts, our houses and our bodies to overflowing every time we step outside our door. But by choosing quality over quantity, we create better health and a better world for those around us and for ourselves. And that's priceless.

True Cost Economics   

Economics - Psychology's Neglected Branch

"It is impossible to describe any human action if one does not refer to the meaning the actor sees in the stimulus as well as in the end his response is aiming at." --Ludwig von Mises

Economics - to the great dismay of economists - is merely a branch of psychology. It deals with individual behaviour and with mass behaviour. Many of its practitioners sought to disguise its nature as a social science by applying complex mathematics where common sense and direct experimentation would have yielded far better results.

The outcome has been an embarrassing divorce between economic theory and its subjects.

The economic actor is assumed to be constantly engaged in the rational pursuit of self interest. This is not a realistic model - merely a useful approximation. According to this latter day - rational - version of the dismal science, people refrain from repeating their mistakes systematically. They seek to optimize their preferences. Altruism can be such a preference, as well.

Still, many people are non-rational or only nearly rational in certain situations. And the definition of "self-interest" as the pursuit of the fulfillment of preferences is a tautology.

The theory fails to predict important phenomena such as "strong reciprocity" - the propensity to "irrationally" sacrifice resources to reward forthcoming collaborators and punish free-riders. It even fails to account for simpler forms of apparent selflessness, such as reciprocal altruism (motivated by hopes of reciprocal benevolent treatment in the future).

Even the authoritative and mainstream 1995 "Handbook of Experimental Economics", by John Hagel and Alvin Roth (eds.) admits that people do not behave in accordance with the predictions of basic economic theories, such as the standard theory of utility and the theory of general equilibrium. Irritatingly for economists, people change their preferences mysteriously and irrationally. This is called "preference reversals".

Moreover, people's preferences, as evidenced by their choices and decisions in carefully controlled experiments, are inconsistent. They tend to lose control of their actions or procrastinate because they place greater importance (i.e., greater "weight") on the present and the near future than on the far future. This makes most people both irrational and unpredictable.

Either one cannot design an experiment to rigorously and validly test theorems and conjectures in economics - or something is very flawed with the intellectual pillars and models of this field.

Neo-classical economics has failed on several fronts simultaneously. This multiple failure led to despair and the re-examination of basic precepts and tenets.

Consider this sample of outstanding issues:

Unlike other economic actors and agents, governments are accorded a special status and receive special treatment in economic theory. Government is alternately cast as a saint, seeking to selflessly maximize social welfare - or as the villain, seeking to perpetuate and increase its power ruthlessly, as per public choice theories.

Both views are caricatures of reality. Governments indeed seek to perpetuate their clout and increase it - but they do so mostly in order to redistribute income and rarely for self-enrichment.

Economics also failed until recently to account for the role of innovation in growth and development. The discipline often ignored the specific nature of knowledge industries (where returns increase rather than diminish and network effects prevail). Thus, current economic thinking is woefully inadequate to deal with information monopolies (such as Microsoft), path dependence, and pervasive externalities.

Classic cost/benefit analyses fail to tackle very long term investment horizons (i.e., periods). Their underlying assumption - the opportunity cost of delayed consumption - fails when applied beyond the investor's useful economic life expectancy. People care less about their grandchildren's future than about their own. This is because predictions concerned with the far future are highly uncertain and investors refuse to base current decisions on fuzzy "what ifs".

This is a problem because many current investments, such as the fight against global warming, are likely to yield results only decades hence. There is no effective method of cost/benefit analysis applicable to such time horizons.

How are consumer choices influenced by advertising and by pricing? No one seems to have a clear answer. Advertising is concerned with the dissemination of information. Yet it is also a signal sent to consumers that a certain product is useful and qualitative and that the advertiser's stability, longevity, and profitability are secure. Advertising communicates a long term commitment to a winning product by a firm with deep pockets. This is why patrons react to the level of visual exposure to advertising - regardless of its content.

Humans may be too multi-dimensional and hyper-complex to be usefully captured by econometric models. These either lack predictive powers or lapse into logical fallacies, such as the "omitted variable bias" or "reverse causality". The former is concerned with important variables unaccounted for - the latter with reciprocal causation, when every cause is also caused by its own effect.

These are symptoms of an all-pervasive malaise. Economists are simply not sure what precisely constitutes their subject matter. Is economics about the construction and testing of models in accordance with certain basic assumptions? Or should it revolve around the mining of data for emerging patterns, rules, and "laws"?

On the one hand, patterns based on limited - or, worse, non-recurrent - sets of data form a questionable foundation for any kind of "science". On the other hand, models based on assumptions are also in doubt because they are bound to be replaced by new models with new, hopefully improved, assumptions.

One way around this apparent quagmire is to put human cognition (i.e., psychology) at the heart of economics. Assuming that being human is an immutable and knowable constant - it should be amenable to scientific treatment. "Prospect theory", "bounded rationality theories", and the study of "hindsight bias" as well as other cognitive deficiencies are the outcomes of this approach.

To qualify as science, economic theory must satisfy the following cumulative conditions:

All-inclusiveness (anamnetic) - It must encompass, integrate, and incorporate all the facts known about economic behaviour.

Coherence - It must be chronological, structured and causal. It must explain, for instance, why a certain economic policy leads to specific economic outcomes - and why.

Consistency - It must be self-consistent. Its sub-"units" cannot contradict one another or go against the grain of the main "theory". It must also be consistent with the observed phenomena, both those related to economics and those pertaining to non-economic human behaviour. It must adequately cope with irrationality and cognitive deficits.

Logical compatibility - It must not violate the laws of its internal logic and the rules of logic "out there", in the real world.

Insightfulness - It must cast the familiar in a new light, mine patterns and rules from big bodies of data ("data mining"). Its insights must be the inevitable conclusion of the logic, the language, and the evolution of the theory.

Aesthetic - Economic theory must be both plausible and "right", beautiful (aesthetic), not cumbersome, not awkward, not discontinuous, smooth, and so on.

Parsimony - The theory must employ a minimum number of assumptions and entities to explain the maximum number of observed economic behaviours.

Explanatory Powers - It must explain the behaviour of economic actors, their decisions, and why economic events develop the way they do.

Predictive (prognostic) Powers - Economic theory must be able to predict future economic events and trends as well as the future behaviour of economic actors.

Prescriptive Powers - The theory must yield policy prescriptions, much like physics yields technology. Economists must develop "economic technology" - a set of tools, blueprints, rules of thumb, and mechanisms with the power to change the " economic world".

Imposing - It must be regarded by society as the preferable and guiding organizing principle in the economic sphere of human behaviour.

Elasticity - Economic theory must possess the intrinsic abilities to self organize, reorganize, give room to emerging order, accommodate new data comfortably, and avoid rigid reactions to attacks from within and from without.

Many current economic theories do not meet these cumulative criteria and are, thus, merely glorified narratives.

But meeting the above conditions is not enough. Scientific theories must also pass the crucial hurdles of testability, verifiability, refutability, falsifiability, and repeatability. Yet, many economists go as far as to argue that no experiments can be designed to test the statements of economic theories.

It is difficult - perhaps impossible - to test hypotheses in economics for four reasons.

Ethical - Experiments would have to involve human subjects, ignorant of the reasons for the experiments and their aims. Sometimes even the very existence of an experiment will have to remain a secret (as with double blind experiments). Some experiments may involve unpleasant experiences. This is ethically unacceptable.

Design Problems - The design of experiments in economics is awkward and difficult. Mistakes are often inevitable, however careful and meticulous the designer of the experiment is.

The Psychological Uncertainty Principle - The current mental state of a human subject can be (theoretically) fully known. But the passage of time and, sometimes, the experiment itself, influence the subject and alter his or her mental state - a problem known in economic literature as "time inconsistencies". The very processes of measurement and observation influence the subject and change it.

Uniqueness - Experiments in economics, therefore, tend to be unique. They cannot be repeated even when the SAME subjects are involved, simply because no human subject remains the same for long. Repeating the experiments with other subjects casts in doubt the scientific value of the results.

The undergeneration of testable hypotheses - Economic theories do not generate a sufficient number of hypotheses, which can be subjected to scientific testing. This has to do with the fabulous (i.e., storytelling) nature of the discipline.

In a way, economics has an affinity with some private languages. It is a form of art and, as such, it is self-sufficient and self-contained. If certain structural, internal constraints and requirements are met - a statement in economics is deemed to be true even if it does not satisfy external (scientific) requirements. Thus, the standard theory of utility is considered valid in economics despite overwhelming empirical evidence to the contrary - simply because it is aesthetic and mathematically convenient.

So, what are economic "theories" good for?

Economic "theories" and

Casino's Popping Up Leads To Negative Impact on Economy

Casinos and other forms of gambling are popping up in almost every state. Every other day you hear of a new Indian Tribe that is looking for recognition. Once they receive their recognition, investors look to back these people up and in turn a new Casino is born. People all over the United States are using their paychecks for a chance to win big. In turn all of the local businesses are suffering to the point where they are now starting to file bankruptcy. Eventually, someone in political power will finally admit that the amount of money taken in from taxes on gambling is significantly less than the hardship created with the economy. Most states take in millions of dollars from their casinos, scratch tickets and lotto, but they don’t want to deal with the negative impact on the local businesses. Everyone knows there is a problem, but no one wants to face it.

People have no problem in spending hundreds and thousands of dollars at the Casino's but will quickly get upset when gas rises ten cents per gallon or their child needs more school supplies. One mother told me she was very upset that the school system did not completely cover a field trip and that it would cost her $15.00 for each of her two children. She called the school and complained. This same person had no problem the night before losing $1,300.00 at the local casino. There's no logic to this situation. In another situation, a person would steal sweet and low, butter and rolls from her local diner. She had money in her wallet but that was reserved for gambling. In both of these situations family members knew they had a gambling problem only after they noticed their quality of life was changing.

Everyone now knows someone who has a gambling problem. They don’t understand how this has happed to a loved one, but they know something has to change. The same situation occurs when you find out your brother is an alcoholic. You can’t close down every bar and you can’t bring back prohibition. You have to face it head on and look for alternatives to help your brother.

People now are beginning to speak out as the epidemic continues. A lot of people don’t even realize they have this addiction until their resources run out. Gamblers tell their friends I won $2000.00 at the Casino on Saturday, but they neglect to tell them they lost $5000.00 and the week before. Bad information is being spread in turn the recipients of this information head to the casino in an attempt to win big. If everyone won Casino’s would be out of business.

I have seen thousands of gambler’s lives destroyed because they do not know how to quit. Through education we can succeed at finding alternatives to help these people. You may find the following websites helpful:

I Stopped Gambling So Can You http://www.istoppedgambling.com/

Stop Gambling Books

[http://www.stopgamblinginformation.com/][http://www.stop-gambling-books.com/]

Compulsive Gambling Addiction

[http://www.compulsive-gambling-addiction.org/][http://www.compulsive-gambling-addiction.org/]

True Cost Economics   

Do Foreigners Care For the US Economy?

I've been working for an engineering firm for over 6 years. The original company has been bought out and is now owned by a foreign firm residing in Germany. I might add, it's owned by the Germans.

I came on board right when the whole transaction was taking place - 6 years ago. Since then, a very noticeable trend has been noticed by the employees hired before the transition - or what was left of them. As the American employees were leaving the company for one reason or another, they were being replaced by German employees. Also, as new positions were opened, most of the positions were filled with; who else but German individuals. 6 years after the buy-out of the American firm, the ratio of the American employees vs. German employees has increased to around 50/50. The total amount of people in the company didn't change much, but the ratio changed drastically.

Back in November of 2001 when the massive layoffs were happening around the country, over 100 people lost their jobs in one day. They were let go. The reason - bad economy. Well, the economy has picked up since then, at least for this company, but the people were never called back. Their positions were filled in with; yes you guessed it right - non American people for the most part.

Toward the end of 2004, a major change occurred in our department. All of the American "chiefs" were replaced by German "chiefs." And then, we had a group meeting where the "biggest German chief" addressed us. At the meeting we were told that, quote: "We have too many American Suppliers." Their goal was to outsource the work to foreign companies for cheaper labor. That meant getting rid of the "American Suppliers." More American people losing work and even their jobs. The term "We have too many American Suppliers," was mentioned several times by the biggest German "chief" at that meeting.

At the same meeting we were also notified that "they" were going to close an assembly plant providing incomes to several hundred American families. The work was going to be transferred to Mexico for cheaper labor. Well, the plant in Mexico was already built, and by the end of that year, around 400 people lost their jobs in one day.

The company is still experimenting with third world countries for outsourcing even more work. The company's stock has been soaring for the past 6 years. From what started out as $7 per share, it's now over $100 per share. The company is raking in tremendous profits each year.

And where does that money go?

Well, the mother company outside the US is accumulating all that wealth while boosting their economy.

And, what about the U.S. economy?

It has become a nationwide trend for foreign companies to come in and buy out American companies. But then, the foreign company has to pay the U.S. workers in U.S. dollars. That money converted to their native monetary ends up costing them much more than what they would pay their own people in their homeland. Or, the alternative would be to bring in their own people in place of the American workers. And the rest, well, ship the work to third world countries for cheaper labor.

The company now ends up generating an enormous profit since the expenses are significantly lower than what they were with the American Owned company. Low paid foreign employees working on U.S. soil and not paying taxes, supported by cheap labor from the third world countries. And what happens to the American families caught in the middle of this economic shift?

America is known to be providing relief to disaster areas and providing support to countries in trouble. But who is providing relief to the American Families in great need? Who is providing relief to the American families buried in financial debt? Who is providing relief to the American people who have lost their jobs because their work was shipped over to third world countries for cheaper labor?

Who is providing relief to the over-exhausted father that I bumped into while doing my grocery shopping? He was so tired he could hardly keep his eyes open. We attend the same church. I said "Hi" to him as he tried to force a smile onto his face. He could hardly talk. I kept my conversation short. He was let go from his job several weeks ago. Now he works 14 hours a day at two odd jobs, while trying to bring in the same income that he used to bring to support his wife and two children.

Who is going to provide relief to the overworked parents that had to pull their 17 year-old daughter from school? They both worked at the same job and they both lost their jobs after their shift was completely eliminated. The work was transferred to Mexico. Now they both have to work for a measly $7 an hour while having their 17 year-old daughter watching her 2 younger siblings. The mom asked my sister to help her find a better paying job.

Who is going to provide relief to the father who has to work in a different state? He was let go from his job after it was bought out by - gues who - a foreign company. He couldn't find another job for 8 months. His family ran out of money and they came to ask us for some financial help. He finally did find another job, but in a different state. On Sunday evening, he leaves his wife and two little daughters, and drives away. On Friday, late in the evening, he comes back home to spend only two days of the week with his loved ones.

Who is going to provide relief to the cashier at the local food market that couldn't stop begging me to take his resume and pass it around? He lost his job because his position was eliminated and outsourced. Now he works as a cashier while passing his resume to as many customers as he can at the check out.

Who is going to provide relief to my friend who lost his job because the company that he worked for was bought out by - a foreign company? The reorganization did not include him as well as many of his coworkers. He never got his job back so now he has to work for half of what he used to make while trying to provide for his wife, two little girls and his elderly mother.

Who is going to provide relief to all the people who lost their jobs because their positions were transferred over to a third world country for cheaper labor? How are they going to feed their families? Can they find other jobs that pay the same money or maybe more?

As I drive around town, I continue to see foreign flags popping out in front of many local firms. What's the message? The firms have been bought out by the foreign company that the flag represents.

I continue to talk to local people who are telling me the same stories. They're losing their jobs because their positions are either being transferred to a third world country such as Mexico, India and China for cheaper labor, or they're being replaced with foreign workers on a working visa.

American people are continuing to lose their jobs or being forced to work for less money while getting deeper and deeper in debt. The foreign companies are continuing to buy out American companies, while doing anything to increase their profit - even if they have to get rid of the American Employees from what was previously an American Owned company on American soil.

The former American companies now owned by foreign companies are continuing to generate enormous profits because of the lower expenses (work force) combined with the profit from their sales. That money is continuing to boost the economy of the country that the mother company is from.

Meantime, the American economy is continuing to ride the roller coaster.

The cost of living is rising at a frightening rate, but the American people aren't getting any major adjustments to their salaries. The bankruptcies are at an all time high. The credit card debt is reaching alarming heights. The foreign flags are continuing to wave proudly next to the American flag; line-in-line; on American soil.

But how much do these foreigners really care for the American economy?

True Cost Economics   

Do Foreigners Care For the US Economy?

I've been working for an engineering firm for over 6 years. The original company has been bought out and is now owned by a foreign firm residing in Germany. I might add, it's owned by the Germans.

I came on board right when the whole transaction was taking place - 6 years ago. Since then, a very noticeable trend has been noticed by the employees hired before the transition - or what was left of them. As the American employees were leaving the company for one reason or another, they were being replaced by German employees. Also, as new positions were opened, most of the positions were filled with; who else but German individuals. 6 years after the buy-out of the American firm, the ratio of the American employees vs. German employees has increased to around 50/50. The total amount of people in the company didn't change much, but the ratio changed drastically.

Back in November of 2001 when the massive layoffs were happening around the country, over 100 people lost their jobs in one day. They were let go. The reason - bad economy. Well, the economy has picked up since then, at least for this company, but the people were never called back. Their positions were filled in with; yes you guessed it right - non American people for the most part.

Toward the end of 2004, a major change occurred in our department. All of the American "chiefs" were replaced by German "chiefs." And then, we had a group meeting where the "biggest German chief" addressed us. At the meeting we were told that, quote: "We have too many American Suppliers." Their goal was to outsource the work to foreign companies for cheaper labor. That meant getting rid of the "American Suppliers." More American people losing work and even their jobs. The term "We have too many American Suppliers," was mentioned several times by the biggest German "chief" at that meeting.

At the same meeting we were also notified that "they" were going to close an assembly plant providing incomes to several hundred American families. The work was going to be transferred to Mexico for cheaper labor. Well, the plant in Mexico was already built, and by the end of that year, around 400 people lost their jobs in one day.

The company is still experimenting with third world countries for outsourcing even more work. The company's stock has been soaring for the past 6 years. From what started out as $7 per share, it's now over $100 per share. The company is raking in tremendous profits each year.

And where does that money go?

Well, the mother company outside the US is accumulating all that wealth while boosting their economy.

And, what about the U.S. economy?

It has become a nationwide trend for foreign companies to come in and buy out American companies. But then, the foreign company has to pay the U.S. workers in U.S. dollars. That money converted to their native monetary ends up costing them much more than what they would pay their own people in their homeland. Or, the alternative would be to bring in their own people in place of the American workers. And the rest, well, ship the work to third world countries for cheaper labor.

The company now ends up generating an enormous profit since the expenses are significantly lower than what they were with the American Owned company. Low paid foreign employees working on U.S. soil and not paying taxes, supported by cheap labor from the third world countries. And what happens to the American families caught in the middle of this economic shift?

America is known to be providing relief to disaster areas and providing support to countries in trouble. But who is providing relief to the American Families in great need? Who is providing relief to the American families buried in financial debt? Who is providing relief to the American people who have lost their jobs because their work was shipped over to third world countries for cheaper labor?

Who is providing relief to the over-exhausted father that I bumped into while doing my grocery shopping? He was so tired he could hardly keep his eyes open. We attend the same church. I said "Hi" to him as he tried to force a smile onto his face. He could hardly talk. I kept my conversation short. He was let go from his job several weeks ago. Now he works 14 hours a day at two odd jobs, while trying to bring in the same income that he used to bring to support his wife and two children.

Who is going to provide relief to the overworked parents that had to pull their 17 year-old daughter from school? They both worked at the same job and they both lost their jobs after their shift was completely eliminated. The work was transferred to Mexico. Now they both have to work for a measly $7 an hour while having their 17 year-old daughter watching her 2 younger siblings. The mom asked my sister to help her find a better paying job.

Who is going to provide relief to the father who has to work in a different state? He was let go from his job after it was bought out by - gues who - a foreign company. He couldn't find another job for 8 months. His family ran out of money and they came to ask us for some financial help. He finally did find another job, but in a different state. On Sunday evening, he leaves his wife and two little daughters, and drives away. On Friday, late in the evening, he comes back home to spend only two days of the week with his loved ones.

Who is going to provide relief to the cashier at the local food market that couldn't stop begging me to take his resume and pass it around? He lost his job because his position was eliminated and outsourced. Now he works as a cashier while passing his resume to as many customers as he can at the check out.

Who is going to provide relief to my friend who lost his job because the company that he worked for was bought out by - a foreign company? The reorganization did not include him as well as many of his coworkers. He never got his job back so now he has to work for half of what he used to make while trying to provide for his wife, two little girls and his elderly mother.

Who is going to provide relief to all the people who lost their jobs because their positions were transferred over to a third world country for cheaper labor? How are they going to feed their families? Can they find other jobs that pay the same money or maybe more?

As I drive around town, I continue to see foreign flags popping out in front of many local firms. What's the message? The firms have been bought out by the foreign company that the flag represents.

I continue to talk to local people who are telling me the same stories. They're losing their jobs because their positions are either being transferred to a third world country such as Mexico, India and China for cheaper labor, or they're being replaced with foreign workers on a working visa.

American people are continuing to lose their jobs or being forced to work for less money while getting deeper and deeper in debt. The foreign companies are continuing to buy out American companies, while doing anything to increase their profit - even if they have to get rid of the American Employees from what was previously an American Owned company on American soil.

The former American companies now owned by foreign companies are continuing to generate enormous profits because of the lower expenses (work force) combined with the profit from their sales. That money is continuing to boost the economy of the country that the mother company is from.

Meantime, the American economy is continuing to ride the roller coaster.

The cost of living is rising at a frightening rate, but the American people aren't getting any major adjustments to their salaries. The bankruptcies are at an all time high. The credit card debt is reaching alarming heights. The foreign flags are continuing to wave proudly next to the American flag; line-in-line; on American soil.

But how much do these foreigners really care for the American economy?

True Cost Economics