Claiming there is an inherent conflict between classes, it creates classes and puts them into conflict.<\/p>\n

Central planning specifically, and socialism generally, sets man against man. Claiming there is an inherent conflict between classes, it creates classes and puts them into conflict. So not only does socialism and its central planning impoverish people, but it stokes their anger and gives them reason to direct their anger at members of other groups in society.<\/p>\n

This is a dynamic system, much like the monetary system, with positive feedback loops. First, one group gets control over the levers of power. And uses it to direct other people\u2019s wealth to its members. Then another group gets control, and does not remove government from its role of economic planner, but merely seeks to benefit from the looting.<\/p>\n

With each cycle, new precedents are set, and the level of resentment rises. Few can understand why members of other groups\u2014whom they now hate\u2014are angry. Only their own anger is justified. Others are to be demonized, which is a prelude to committing atrocities against them. If this sounds far-fetched, we encourage you to read about the rise of the Nazi party in Germany.<\/p>\n

Making Winners and Losers<\/h4>\n

It is in this light that we look at President Trump\u2019s \u201corder\u201d to American companies to move their operations and manufacturing home. This move will make a few businesses, particularly those that can supply components that are currently being supplied by Chinese firms. And it may bid up wages for workers to make these products.<\/p>\n

However, it will impose massive losses on every firm forced to move its manufacturing to the U.S. And on every firm who supported them operating offshore. This includes obviously Chinese firms, but also American shipping & logistics firms and consultants.<\/p>\n

And there will be exemptions. It will prove to be impossible for some manufacturers to move on command. This will be either due to the lack of factories in America that have the capabilities and skills, or the lack of a massive workforce trained and willing to do the technical but tedious tasks required. Unlike in China, there are not a million people in America that can be hired to perform a circuit board assembly.<\/p>\n

Some of these companies will have a compelling argument and\/or good media presence and well-connected lobbyists. They will demand\u2014and get\u2014special permission to keep operating as they do now. Others will fail to get such permission, and be forced to suffer losses including to going out of business.<\/p>\n

Such a new economic directive would make some and break others. And cause strife between groups who previously had no reason to hate one another. Consider those who are broken by this demand. When they get their mogul into power sometime in the future, what new policies will they want to impose? One thing is virtually certain: the new mogul won\u2019t roll back the government\u2019s power and try to return to a freer market. He will seek to impose some new injustice, to compensate for the prior injustice and also simply to take what\u2019s there for the taking.<\/p>\n

And when he\u2019s out of power, the cycle continues. Or perhaps more accurately, the downward spiral from free markets and prosperity, to more controls, more poverty, and hence more group conflict. It takes on a life of its own, with its own momentum and inertia.<\/p>\n

Trump said, \u201cThis is a GREAT [emphasis in original] opportunity for the United States.\u201d<\/p>\n

There are few cases where all 300 million Americans have a common interest (e.g., an invasion). This is not one of them. For example, the wage-earner who can afford a smart phone at $500, but not one priced at $2,500, does not have a common interest with the U.S. circuit board soldering company. So it is not true that it is a great opportunity for \u201cAmerica.\u201d It is a good opportunity for those who would seek the power to decide who is made and who is broken.<\/p>\n

It is a great opportunity for the gold speculators, who plan to sell their gold for more dollars. And it is a great opportunity for the bond speculators. Just on Friday alone, not counting the move it\u2019s been making since November last year, the 10-year Treasury yield fell another 5%. This is delivering big capital gains to those who plan to sell their bonds for more dollars.<\/p>\n

It is a good opportunity for those who would seek to profiteer on the back of every government program. It is a good opportunity for the vultures, and the cockroaches who will feast on the spoils of our once-great civilization, now carelessly spilled onto the floor.<\/p>\n

For the love of America, if you are an American, and for the sake of civilization itself, we hope you will oppose this ill-conceived move to take control of a major part of the economy, to force American manufacturing to \u201ccome home.\u201d<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s ominous that POTUS thinks he can \u201corder\u201d American companies to move their manufacturing bases.<\/p>\n","protected":false},"author":30,"featured_media":5970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[8,9],"tags":[310,101,488,533,465,501],"class_list":["post-5971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commerce","category-politics","tag-atlas-shrugged","tag-economics","tag-finance","tag-gold-standard","tag-monetary-policy","tag-trump"],"acf":[],"_links":{"self":[{"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/posts\/5971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/comments?post=5971"}],"version-history":[{"count":5,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/posts\/5971\/revisions"}],"predecessor-version":[{"id":5980,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/posts\/5971\/revisions\/5980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/media\/5970"}],"wp:attachment":[{"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/media?parent=5971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/categories?post=5971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesavvystreet.com\/wp-json\/wp\/v2\/tags?post=5971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}