Did Capitalism Fail?

Back by popular demand (thanks A.D.), I have returned to spew some knowledge and conspiracy theories. This one addresses one question: "Has capitalism failed?". Don't get me wrong, my favorite color is not red and I do not support Marx. However, is the goal to satisfy shareholders and maximize profit the key to the greater good? We've proven in theory and in reality that socialism and communism are doomed to fail, but is the stance we have taken on capitalism the correct path? Let's break it down in the simplest way possible. In order to maximize profit, you need to maximize revenue and minimize expense. If an American commands a salary of $50K per year and you can outsource that job to China for $5K per year, the logical solution would be to outsource the position. If you look at the big picture, everything is limited; there is only so much money in the world and only so many jobs. If you give a job away to another country, you eliminate a job at home. On a small scale, this is not a big deal, but on a larger scale, this not productive.

We can look at this in an extreme view. What if all jobs were outsourced? There would be no jobs in the US and everything would go to hell. We are the richest country in the world (for now), but we are giving away the house to other countries without even knowing what the hell we are doing. By outsourcing jobs, you are sending American money out of the country and limiting the purchasing power of Americans. There are very few American companies who have more than 50% of their sales take place outside of the US. So, if you are employing people outside of the country and leaving Americans unemployed, how can they purchase your products without any money? Once you employ someone abroad, they money you pay them will most likely never make its way back into the US. Again, if outsourcing were on a small scale, it wouldn't be a big deal, but because every company is trying to accomodate the shareholders, everyone else is expendable. The problem is these companies are hurting themeselves by minimizing expenses at the cost of revenue.

So, this situation begs the question, "Did Captialism fail?". In its current form,.....yes. Capitalism can succeed, if executed properly. The trickle down effect of what has been occurring over the past 50 years is being felt now. We are looking at an unemployment rate of 10%+ for at least the next decade. The next time you feel like complaining about your job, take a step back and be thankful that you have one and that it hasn't been outsourced.....yet.

So, what is the point of this discussion? Stockpile your money, because you never know when the rug will be pulled out from under you. You need to save and pay down your debt. If you owe someone money, they own you. Unfortunatley, you have to make your own way in today's world. No matter what your education is and who you know doesn't make a bit of difference. You have to prepare for the worst, because that is where we are headed. Create multiple streams of income and get your ducks in a row, because at the current rate, the mountain is going to be crashing down on us.

P.S.- As to not leave the stock market completely out of this, natural gas is out of favor in the market. I've been hyping TNH when it goes below $100 per share, however, it is sitting at $87.50 as of this time, but their typical 6%-7% dividend yield has been eliminated. If you are long on TNH, then now is the time buy big.