The Pauperization of the USA

The Pauperization of the USA

By: Erreh Svaia

“The peso has fallen a lot mainly because of the fear of what will happen with Nafta. I believe that if we and the Mexicans make a very sensible trade agreement, the Mexican peso will recover quite a lot"

Willbur Ross

Just think about it for a second, Donald Trump says he wants to "make America great again", he wants to bring the factories, that moved to Asia and Mexico back to the USA, Trump's government is trying to dismantle Obamacare, he is pushing an agenda to reduce USA commercial deficit towards Mexico, that means buying less Mexican exports, and Mexico buying more USA stuff, buy American, remember, America first said Trump.

To make America great again, Trump's rationale tells him to bring back manufacture, most of it done this days overseas, in China, México or India, even Japan, the reason? Those countries manufacture industry is a lot cheaper than the USA 's the reason? Less educated workers, a consequence of less educated work force, workers lacking healthcare systems because they aren't part of the formal industry, in Japan for a while it was a strong work ethic focused on quality, the better they turned at work, the expensive their work force turned to be, the Japanese car industry destroyed USA 's, not Mexico's, without Mexico, GM, Ford and others would have disappeared from the face of the earth in the 2008 global crisis, enter China, Mexico and India, China and India knows how to get costs down, their workers are not too far from slavery, as Japan's workforce turned expensive, they moved their factories to Mexico, South Korea and Germany did that too.

China's impressive growths from the last decade had a Japan like effect, the middle class grew, better educated and demanding better conditions, China's manufacture industry became expensive, they even made the Yuan cheaper in order to remain competitive, but Mexico won, Mexicans must question themselves why education is not a priority in the country? why it's middle class is constantly crushed by tax reforms? why the informal sector keeps growing? why the peso keeps getting cheaper and cheaper? After Mexico's future as an oil giant started to fade away in the 90s, even creating big damage in what's called "the lost decade", a decade of historic global economic growth in which the Mexican economy sank, a new strategy started to be created in the government, to move towards the manufacture sector in order to take advantage of onscreen booming demographic bonus, it worked for the country, as Brazil, Venezuela and Argentina suffered as the raw matters sector crashed, Mexico stood strong, with a small, but constant economic growth.

Now, what does "make America great again" means? Why so much hatred against Mexico from Trump's government and why Trump accuses Mexico of being abusive towards the USA? Well, we must look at what the Trump administration is looking forwards to achieve...bring back the factories, dismantle the health care system, dismantle education, creating a cheaper workforce for the returning factories, and if that wasn't enough, they are making the dollar cheaper, just listen to Secretary of Commerce Willbur Ross talking about Trade War, cheaper dollars, because you can't be competitive in the global market with a strong dollar, Trump wants to turn the USA into a new China, that´s what Stephen Bannon means when he says the USA will surely be in war with China, or perhaps better, a new Mexico with a cheap workforce of uneducated Americans, yes, that's why Trump said he loved the uneducated, that's how Trump plans to sell more American goods to Mexico, Oh! And if Americans don't like it and want to leave the country, there will be a wall, remember that the Berlin Wall was claimed by the communists as a protection from West influence? Well, the truth it's was made for avoid people to leave the communist system, Trump's wall might not be to avoid Mexicans from getting in, but to avoid Americans from getting out....