America in general is feeling that same pinch and like Starbucks, seems to be surprised. I also do Mikemathics to simplify macro-economic problems. If a Mexican auto assembly worker makes $1.25 an hour and a Detroit auto worker makes $1.25 a minute, which one can produce a car cheaper?
The former Big Three are still tying to figure out the answer to that question. And, while not down the drain, are certainly working on the issue from that end of the tub.
The Mexicans in the mean time are trying to determine whether a $1.25 per hour worker can compete with a $.30 per hour Chinese worker and are expected to have an answer later this year.
NAFTA and the World Trade Organization attempted to level the playing field for world commerce and both agreements are doing a commendable job of just that.
The concepts of both agreements were mathematically ludicrous, and regardless of which mathematical persuasion that you adhere to, these agreements double guaranteed the fall of Middle America.
American manufacturer Dell Computers announced that it has entered into an agreement to purchase $52 billion in components from the Chinese over the next 24 months in an effort to cut costs. In the mean time the U.S. is in recession.
Once the playing field is successfully leveled and Middle America accepts their role as a true peon class, only then, will things start to get better for the Kings and Queens.
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