A few weeks ago when President Obama announced the tariffs on Chinese tires, Larry “Favela” Kudlow said that it was a bad policy because a trade war with China would jeopardize thousands of dock-worker jobs at the Port of Los Angeles.
But Kudlow has it backwards. Imagine what would happen if, instead of worrying about the dock-workers, you put a barbed-wire fence around the port and turned it into a maximum security prison. No ships could be unloaded, and no products could be imported from across the ocean.
How long would it be before Walmart’s shelves were bare? Eventually, they would have to break down and actually order products from American companies. And those companies would have to build more factories and hire more Americans to meet the increased demand. The American economy might actually start to work again for the average Joe instead of just the fat cats like Larry Kudlow’s clientele.
And make no mistake, Kudlow and his ilk no not want to see the factories brought back home. They do not want to see Detroiters building cars again. They most certainly do not want to see GM laying off 2-dollar-an-hour Mexicans and replacing them with 20-dollar-an-hour Americans.
That would cut profits by $18 per head, right? That would mean that the fat cats would have to cut back to only one private jet.
Brazil is the “B” in “BRIC”, and they have achieved that lofty status while riddled with favelas. The fact is that Corporate Amerika can thrive with mass unemployment in the USA. And that is the plan; it is official federal economic policy supported by both Republicans and Democrats.
But we won’t have Brazilian-style favelas here. Ironically, the moronic housing bubble that Alan Greenspan kicked off with his foolish low-interest policy during the last recession has given us a massive housing glut. So, there are plenty of vacant houses for the unemployed to squat in, and we don’t need to construct any new shanty towns.
But don’t think that favelas wouldn’t be welcomed, and approved of, here by the Kudlows of this nation.
Thank God for Alan Greenspan.
Note: one of the primary differences between a favela and a regular slum is that the favala has only footpaths and you can’t drive a car inside of them.