It Doesn’t Cost Less at Wal-Mart

by Brian on June 9, 2011

If there is an item that is $8.99 at Wal-Mart that was made in China and a very similar item at the local General Store is $10.99 but it was Made in the U.S.A… which is cheaper?

Our entire economy and monetary system are getting ready to take a huge dump on us… I believe the only way for the U.S. to pull up before we crash is for EVERYONE in the U.S. to buy everything locally… or at least in the U.S.

I feel large companies (like Wal-Mart, K-Mart, Target and so on) that distribute products primarily from overseas are hurting the U.S. economy severely.

If everyone in the U.S. made a conscious decision to buy Made in the U.S.A. the only way these large retailers would last in the U.S. is if they changed their ways.

So let’s take a look (in a nutshell) what happens when you buy Made in the U.S.A.

  • Product is made by U.S. Manufacturer and distributed in the U.S.
    • U.S. Manufacturer gets paid
    • U.S. Manufacturer spends money on parts from other U.S. Manufacturers
    • U.S. Manufacturer pays U.S. employees
    • U.S. employees spend their money locally
  • Product is distributed by U.S. Distributor in the U.S.
    • U.S. Distributor gets paid
    • U.S. Distributor pays U.S. employees
    • U.S. employees spend their money locally
  • Product is sold by U.S. Retailer in the U.S.
    • U.S. Retailer gets paid
    • U.S. Retailer pays U.S. employees
    • U.S. employees spend their money locally

This is an example of a ‘closed economy.’ The U.S. makes it’s own goods and sells it to it’s people. There is a LOT more that goes into the economic growth of a country… But if our economy stayed closed, it would be VERY hard for it to collapse because all of our money is staying here.

Now let’s take a look at what happens when you buy overseas (I’m going to use China as an example, because we’re their biggest importer).

  • Product is made by a Chinese Manufacturer and distributed in the U.S.
    • Chinese Manufacturer gets paid
    • Chinese Manufacturer spends money on parts from other Chinese Manufacturers
    • Chinese Manufacturer pays Chinese employees
    • Chinese employees spend their money locally in China
  • Product is distributed by Chinese Distributor to the U.S.
    • Chinese Distributor gets paid
    • Chinese Distributor pays Chinese employees
    • Chinese Distributor pays U.S. employees
    • Chinese employees spend their money locally in China
    • U.S. employees spend their money locally in U.S.
  • Product is sold by U.S. Retailer in the U.S.
    • U.S. Retailer gets paid
    • U.S. Retailer pays U.S. employees
    • U.S. employees spend their money locally

This is an example of an open economy. Which would be a perfectly fine way to trade IF the U.S. manufactured and exported goods around the world at a rate equal to or greater than at the rate we consume. But, the U.S. is a nation of consumers who want cheap products now and it doesn’t take a rocket scientist or even a degree to see the U.S. is NOT a manufacturing nation as it once was.

So people can argue back and forth about what type of economic system is best for world trade and blah blah blah. Who cares?

My Opinion is What Matters

The reality is, the U.S. is in a dire economic situation. This stems directly from the bad decisions the U.S. government has made with trading partners, funding illegal wars, over-spending and treading upon the words of our Constitution.

So in the above scenario… It may seem the product from China is less expensive… But it’s not. To use an Obamaism; buying good/ commodities from any other country but our own is “spreading the wealth” around with the world.

While “spreading the wealth around” sounds great in theory… What it is doing and has done is kill U.S. jobs and our economy.

The U.S. used to be the Super Power of the world… Now it’s not… China is the Super Power of the world…

Don’t Believe Me?

A solid way to tell how rich or poor a country is, is to look at the CIA’s “Current Account Balance” of countries.

What’s the “Current Account Balance?”

“This entry records a country’s net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net transfer payments (such as pension funds and worker remittances) to and from the rest of the world during the period specified. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.” – CIA

China has an account balance of $272,500,000,000 (2010)

The U.S. has an account balance of NEGATIVE $561,000,000,000 (2010)… This puts the U.S. in LAST PLACE IN THE WORLD, as far as account balances go. In fact, the next runner up with a negative account balance is Spain with negative -$66,740,000 (our account balance is negative 9 times greater than the next poorest country in the world).

You can check out the entire list of account balances on the CIA website here… it’s a sobering reality of where we “the U.S.” stand.

China is in the works with our government to bring “special economic zones” to the U.S. and establish huge (50 square mile cities) in the U.S. too. This is similar to what China has done in Africa...

What a lot of people don’t realize is… These “special economic zones” in the U.S. will be given to the Chinese government (a company owned by the Chinese government that is).  In addition; in Africa, China has imported MILLIONS of Chinese workers to come work in the “special economic zones.” While there are a few local jobs created around these “special economic zones” the majority of new jobs are filled by the Chinese.

How can you help save our country?

Buy locally… Buy U.S…. and don’t support another country to be given “special economic zones” in our country.

The MOST IMPORTANT thing you can do… VOTE… Vote the crooked/ corrupt bastards in our government out of office. Just don’t be an idiot and replace the crooked bastards more crooked bastards.

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