Change Daily? Yes We Can.

I want to ask you an intimate question: Where was your underwear made?

One of the punch lines for “fair tax” is that it will lower the prices drastically. But is it really so?

It just occurred to me this morning, while dressing, to look at what am I wearing. More specifically, where is it made. Underpants – India, jeans – Mexico, shirt – Haiti (imported via Mexico), shoes – China. Luckily, weather is warm so I don’t need sweater and coat. Also, socks had no tag, which made my day and gave me a little bit of (likely false) hope.

What has happened over the last decade is we have exported our production facilities, alongside with our monetary inflation. We have imported a lot of junk – big-screen TVs, iPods, toys, … borrowing a lot of money in the process, privately and publicly. Not good. Peter Schiff explains:

“Trade deficits are OK under certain circumstance. 1. An emerging nation imports capital goods necessary to enhance its productivity. 2. A developed nation, with a current account surplus, uses some of its investment income to finance the purchases of additional consumer goods from abroad.

While it’s true that removing corporate taxes would stimulate the production in the right direction, such process takes significant time and is not at all likely to have predicted impact in the highly toxic and chaotic financial environment. In the meantime, how is sales tax going to make foreign-made goods and domestic services cheaper, remains to be seen.

I’d like to hear from folks who, while reading this, identify a piece of clothes Made in U.S.A. on them. Let us know the brand of the patriotic company.

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