From: s462075d@edinboro.edu
Newsgroups: sci.econ
Subject: Re: FAQ on the merits of Reagonomics
Date: 14 Dec 92 16:36:22 GMT
Organization: Edinboro University of PA

In article <1fsia8INN1q7@athena.sdsu.edu>, larryr@saturn.sdsu.edu (Larry Riedel) writes:
> s462075d@edinboro.edu wrote:
>> Well, Tom, I can tell you what I know about my area.  I grew up near 
>> Pittsburgh, and still live there when not at school.  The highest period
>> of employment occured there in the middle of 1979.  We almost got back
>> to that level (can't find latest local numbers with the Press on strike).
> 
> Are we talking about Reaganomics or about Pittsburgh?
> 
I'm talking about how Reaganomics affected me.  Wasn't the question something
like "Your views on Reaganomics?"


> It is of course a shame that the steel industry left Pittsburgh for
> Japan.  Are we now blaming the loss of the steel industry on Reagan?
> What was it about Reaganomics that caused us to lose the steel industry?

His refusal to recognize when our vital industries were "dumped" on.

> 
> 
>>                              And the jobs we lost paid very well.
> 
> Too well.  That's part of why the industry couldn't compete.  Perhaps
> without the exorbitant union wages the industry could have survived.
> 
Perhaps, too, if the steel companies invested in more modern equipment.  Have
you ever read "And The Wolf Finally Came?"  Its a good book on the decline of
the steel industry in America.  What it says can be translated into most of
the industries we lost, just change the speciffics.

It cracks me up when people say "exhorborant union wages/demands" when CEO's
seem to get paid without reguards to company performance.  

> 
>> I also look at our auto, TV, other consumer electronic industries and see
>> "Made in Japan" all over.
> 
> Which part of Reaganomics caused that?

His sticking his head in the sand and yelling "free trade", etc. when it was
clear we were at such a disadvantage it was impossible to compete.  Other
countries protect their basic industries, we didn't.  Now we have to play
catch-up.

> 
>> I can't see how good our prestige is when we have to ask for help to pay
>> for a war.
> 
> Why not think of it as a tax we impose on the rest of the world in
> exchange for providing a global police force?
> 

Think of it as you like, but the bottom line is that we footed the bill for
WWII, Korea, Vietnam, and some of WWI.  Now the country that made the world
safe for democracy many times cant even affoard to pay for a SMALL war due
to the deficits Reaganomics caused.

>>         What if we were fighting Japan?  Who would pay?
> 
> Japan would pay big-time if we went to war with them.
> 
So would we!  Even though we would win.

> Larry
=============================================================================
    1970's                                1980's
US #1 auto producer                 Japan #1 auto producer
VCR invented in USA                 USA imports 100% of all VCR's sold here
USA #1 creditor nation              USA #1 debtor nation
USA dominates computer chip market  Japan leads chip market
budget deficits @50 billion/yr      budget deficits @200 billion/yr
USA on moos (late '60's/70's)       USSR has first sustained, livable space
                                                                      station
_/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\_
|Shawn Duffy    Edinboro University of PA,     United States of America     | 
| s462075d@edinboro.edu/ A student in need of a job/Go Steelers-Cowher Power|
|               "We've upped our standards, so up yours."                   |
\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/
Xref: sparky sci.econ:9426 alt.amateur-comp:358 talk.politics.misc:64520 misc.misc:4071