Toyota Totaled by Tsunami: American Plants Warned Of Possible Shutdown (Other Car Companies Eying American Markets)

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Factories from California to Michigan have been ordered to prepare for shutdown.  As vital car parts that originate in Japan shrink in numbers new ones have yet to arrive from Japan. The Japanese tsunami killed thousands of civilians, triggered partial meltdowns at several nuclear reactors, and ravaged miles of Japan. [Please Help the Japanese People Recover, Donate Here Anytime]   Factories have been crippled in the island nation and the ports have been frozen except for food and medical supplies.  Car parts do not meet these strict requisites.  New parts will not be shipping soon, which has led to a stagnation of the assembly lines.

This has led to many factories having reduced production, however until the now 25,000 workers that work at the 13 plants have not been laid off, although they may be in the near future.  Furthermore, Toyota has promised to continue paying them regardless of the status of the plants and intends to employ them in community related activities, such as grass-roots marketing and social service.

Despite their token humanitarian efforts Toyota will be drastically set back by this tsunami.  While Toyota has recently dominated the upper tiers of the car market this shut down could easily allow other car companies, such as Ford or Volkswagen, to take control of swathes of American consumers.  The types of cars that everyone is driving will be slightly altered because of this tsunami, there will be many fewer Toyota’s and many more of everything else.

This directly relates to macroeconomics; the consumer price index of will be altered from consuming more Asian cars to more American and European cars.  This may not seem like a large difference, but it will translate into millions, if not billions, of American dollars ending up in different hands.  The contents of the average America’s financial basket will could change up to several hundred dollars.  Some of those funds will be used to help rebuild the decaying American car companies.  This may add thousands of jobs here in America, more if the European or Korean car companies set up new factories to replace the closed Toyota manufactures.

This illustrates just how interconnected the whole world is.  An earthquake in Japan triggers a long and painful domino effect that has recently resulted in 25,000 American workers receiving vacation with pay, while maintaining the possibility that they might lose their jobs.  Economically this is terrible in the short-term, but healthy for the American economy in the long-term.  It harms the American economy to allow foreign companies to invade our shores and steal the profits, millions of irretrievable dollars are being sent overseas.

This dangerous trend is one of the key reasons why Americans have to work harder today to maintain the same standard of living than they did forty years ago.  Back then they were chiefly working for American profits, which trickled back down into the community.  Today that money continues to trickle down, in China, Japan, and India.  This tsunami may have brought a small portion of America’s jobs back to America.

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The US Deficit: Expensive (In Painful Ways) Spending

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Obama is pushing legislation through that will repeal some excessive Bush tax cuts.  These taxes only applied to the richest Americans and saved the citizens 70 billion a year.  It turns out that this was not such a good idea for the American economy, the deficit widened and dollar weakened.  That costs you more taxes, yip-ee.

No. I'd say go back to Texas, but I'd feel bad for the Texans.

They tax cuts will give the American government those extra 70 billion dollars to work with.  This is good for almost everyone, and those that are hurt by this tax repeal have enough money to cope with the situation.  They will have to cut back on the money bathes.

Except her, she can have all the tax cuts she wants.

However, critics of this policy highlights that all politicians are still increasing the deficit with other tax cuts.  These cuts remain unopposed.  The politicians logic is that if these tax cuts were repealed it would knock the American, and the world, economy back into a recession.  Nobody wants that, excpet perhaps my Aunt Sally.  Bitch owns Walmart (well some stock in it).

No. You may not help me or anyone else. I'm going to therapy, be back in twenty years.

Therefore, they are extending them for the next couple of years.  The trade off is that the deficit increased and the American government loses 3 trillion dollars every year.  This is unacceptable.

The American government is an irresponsible teenager who just received his first credit card.  Now they have a new car, some very slick technology, and everything they could ever want.  That is when the bill turns up, for 13.4 trillion dollars. But, just like a teenager, the American government pays the bare minimum interest and returns to having fun.  Short term, this is a perfect cheap solution.  Long term, this becomes costly mistake.

The American deficit is money that we borrowed from other countries and private entities, that is being slowly paid back over several years in bonds.  Bonds should only be used in times of extreme need, in times of war or crises.  Using them to fund a government at any other point is simply irresponsible.  It is irresponsible because there is interest on the bonds, just like the credit cards.  The government loses money on every bond they sell.  Big no-no.

SANTA JACKED MY ATV!!! (it's okay, I got his sled)

The solution to this dilemma, stop increasing the deficit.  Across the board there must be cuts, with exceptional exceptions, to make America be able to fund the American budget.  The military spending should be cut back, it is unnecessary to maintain such a large army for a country in peace time.

The exceptions should be spending that will yield beneficial taxes in the long term.  Spend money to make money.  An expansion of NASA and the space program will increase science growth in every field, so there will be more things to tax long term.  Environmental protection programs should also be expanded; they always bring additional employment opportunities.  Parks need rangers, animals need vets, and endangered forests need scientists.  This program will increase the employment rates in America, therefore it will also be profitable or at least this program will pay for itself.  Americans need to wake up and take care of the national deficit, before it takes care of them.

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