A lot of conservative pundits have been pointing out that the Obama administration is taking us in a socialistic direction. Yes, they are right, but in many respects the United States is already more socialistic than other leftist nations around the globe. This is particularly true if we are to examine the government’s control over corporate America. Government policies and mandates are the real reason why unemployment is very high and will remain that way for a long time. It is also the main reason behind America’s demise as a global industrial leader. America has lost its way and now lags behind other developing nations such as China and India in terms of ingenuity and technology.
The United States was once the mighty nation leading the world into the industrial revolution. The U.S. was the leader in the development and manufacturing of automobiles, trains, planes, computers, televisions, and just about every electrical gadget. What has happened to cause American leadership, ingenuity, creativity, manufacturing, and overall knowhow to be stifled? The government! Our government controls the private sector with mandates, regulation, and high taxes that no other socialistic nation in the world has to face.
The American corporate tax rate is the second highest amongst developed nations at 39%. Ireland has the lowest corporate tax rate at 12%. Even China and other communistic states such as the Soviet Union have tax rates no higher than 25%. Socialized European governments in France, the United Kingdom, and Germany have significantly lower corporate tax rates. It should come as no surprise that many American corporations that compete with companies in these nations are continually losing market share.
Liberal backed unions are also a big reason why American corporations are losing ground. For example, the auto industry has collapsed because it costs American auto companies thousands of more dollars to make comparable cars as their global competition. American workers receive much higher salaries and receive gold plated benefits packages that their competition does not have to comply with. It should come as no surprise many industries, such as Boeing, are moving from heavily unionized states to union free states. It is no wonder American companies have to move manufacturing jobs overseas to take advantage of cheaper labor.
Government regulation, oversight, and mandates are also a major concern to American companies. This is especially true because their global competitors do not face the same government intervention into their businesses. Currently, the government is attempting to regulate pay scales, any thing that may effect the environment, carbon emissions, and other standards such as automobile gas mileage. And let’s not forget diversity policies such as affirmative action that are only promoting mediocrity and not excellence.
Education is also another problem. The United States has fallen way behind other nations in terms of literacy, math, and science. Thus, American companies have to rely on foreign students (taught in our institutions) to fill employment needs. At some point, many of these students take what they have learned in our colleges and companies back to their homeland and competing industries. Also, improving education would eliminate the need for diversity policies.
Face it; it is hard for any American company to compete when our socialistic hungry government is eating into their profit margins. Meanwhile their global competition faces much less government interference and scrutiny. Less profits means less money for research and development and to expand businesses to keep us with the ever changing business environment. The problem is that simple and it does not take a rocket scientist to figure out that while China’s economy is booming, United States corporations are stuck trying to navigate through a government maze of social policies including higher taxes, unions, regulation, and mandates.
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