Personal Steps Towards a Solution: Part 1

So what can we do to consume more stuff made in the USA? Well let's start with consumables. Stuff we use up once we purchase it. A simple one for me is cosmetics. I don't wear a ton of make-up, but like girls I do wear some, and I probably do more stuff FOR my skin as a result (cleaning, lotion, masks, etc.). So who makes stuff in the USA. I started using Mary Kay around the time of my wedding as a step up from my other makeup. Looking at all the make-up containers, I noticed that all the tubes said made in the USA. For me this is one step in the right direction. The stuff made in the USA, and the beauty consultants have a better job than if they were working in retail. Think how different life would be if more moms (or housewives, college girls, or whoever) could stay at home more, and just work side businesses. You are supporting a local person, and a USA industry. Mary Kay consultants can also help you get a product that matches your skin, not to mention you get to try it before you buy it!

Yes, their products are more expensive than stuff at Walgreen or Target, but it also is higher quality. I'm not saying you have to buy MK makeup, but just be aware of who you are employing when you buy cosmetics. It is something you will buy over, and over again. Instead of calling your congressman, vote with your money. Happy shopping!

The Source to the Source of our Problem

So I was planning for this next post to be about a solution to our problem... the importing one (if you have no clue what I'm talking about, read my previous post). It was going to be happy, about things are producing, and practical stuff we can buy, and we would all be on our merry way to a growing economy. Then we can make marshmallows, hold hands and sing "Kum Bi YA," but my guess is campfires will be illegal, so we would all be holding clammy-cold hands (gross!). So forget that.

I was going to start with telling you to buy Rainbow Flip-Flops. After all, they are expensive, last forever, are stylish and MADE IN AMERICA, right? WRONG! Not because rainbow manufacturers want export their business, but because they HAVE to, yes, that is right. This a prime example of the Government (I capitalized it, because they think they are a god) regulating an industry and strangling it till it decides to leave country. I still recommend you buy rainbow flip-flops for the reasons mentioned above, and you still have a 75% chance they are made in America. Read the article below for more information.

dontbuymadeinchina.com/3_4ths_of_Rainbows_Made_in_China

But, not is all at loss. Personally, I can't find more recent stuff about their off-shore production. If you want to buy a rainbow flip flop made in the USA just check under the rainbow tag, it will tell you were they are produced! Because of the current economy, you MUST do this, or you are a bad American.

Happy Shopping!

What IS the Source of Our Problems?

What do you think was the cause of this recession we're in?
I'm blaming our Export-Import ratio. Do you even know what the definition of GDP is? It kinda scares me that we have people voting, and they have NO CLUE how we assess the health of our economy! So today I will enlighten you, and tomorrow you need to enlighten your friends.... and just keep doing that. An easy way out is to just post my blog on your facebook wall.... Okay, so what is GDP?

GDP = C + Ig + G +Xn

Lets just look at that last figure, you don't need to know the others. Xn stands for Net Exports. X - M. X stands for Exports, M stands for Imports. Basically saying that when we produce crap that other countries use, we grow our economy at the expense of other countries consumption.  Our economy has been suffering because we have been growing other economies! For those of you that are mathematically inclined, when

M > X

That is a bad thing.SO just how much bigger is M than X right now?

 There you go. How are you feeling. Basically think of it that $50,000,000,000 worth of crap is brought in from other countries.

So what is my solution? It's not government regulation (hex, hex, hex on tariffs, tariffs are BAD!). My solution is DEregulation.  Why are we importing stuff from other countries, because it's CHEAP! Other counties can pay their workers $0.20 an hour, they have less paper work to deal with, less regulations. I just think its funny that we have a minimum wage set at $8.50 here in California, and then we import crap, and put our own citizens on welfare. Come on, really, how stupid are we! Oh we are, we are really that stupid. And we hide it behind "empathy" "being nice people." We don't want Johny to fail out of highschool (because he was talking the entire time to the blonde chick behind him) and then be stuck working at some factory and only making $2.00 hour... so instead Johny can't get a job, so we put him on food stamps, or leave him at home with his parents (so he can play video games) and we will pay someone else in another country $0.20 to do that instead.

I also blame the Great Depression generation's mentality that they have imposed on our society. Something about making the dollar stretch has prevented us from paying for quality of things here in the U.S.A.. Yes, spend money for things here made in America. We need to get our:

X - M = 0

Or think of it as

X= M

or could we even shoot for

X > M
 
 
We are on an uptrend. Do I think it's possible? I think yes.

Spending: What the heck is the Government doing?

We are in a recession, so what does the Government do? Spend more? Cut taxes? Have you ever though of why the Government thinks that will work? This theory stems from the Keynesian Economic Model. Spend more, then consumption will increase, which will increase demand, which will kick-spin supply and voila! The economy is back on its merry way to a recovery. So why didn't it work in 2009? Well the stupid Government should have thought a few things through before pushing a TON of money into the economy (inflation anyone?).

What do we spend our money on? Stuff that we produced? Services? Don't make me laugh! We buy crap! Lots and lots of cheaply made crap from other countries. I think it stems from our grandparents generation that was always looking for a good deal. As a result we have dug ourselves into a nice hole. A very BIG one at that!

Lets look at how much  our country puts out every year.  I assume this is not adjusted for inflation (it is just a few years, so not quite necessary).

 You can see that we went through a dip there for a while, but we are on our merry way to producing again. How do you feel? Good? So the stimulus work?

Well let's look at another happy graph.

 Okay, I lied, this is not a happy graph. This is our Debt to GDP ratio. What does it mean? in 2013 our U.S. National Debt is higher than our total output (GDP).  Now how are you feeling?

Well I'll leave this blog at this thought. If you feel really bad, take a look at this webpage, then you will feel worse. Happy Reading!

http://www.usdebtclock.org/

Caitlinnomics

Hi I'm Caitlin. I'm a very diverse individual who has all the solutions to the worlds problem . I studied Economics at UC Santa Barbara, and have studied a thousand other things on my own. This blog is an outlet for me to bring those two items together (Economics and the thousand other things). If you feel like the world is a hopeless place... or perhaps you feel like you have no control of this spinning world around you... then be sure to follow this blog! Where I can't stop the world from turning (nor would I want to, we would all go flying off the surface of the earth!), I can offer some insight on this crazy world around you, things perhaps you never thought of.

Up till now I really haven't enjoyed writing, but I feel it is time for me to fix the world; writing is a very effective modem. I am actually kinda scared a what wonderful-crazy-caitlinsih ideas that may come out of this! Stick around to see the discipline of Caitlinomics come to existence. Maybe one day I'll start my own college so I can brainwash young adults too!