What if the economy collapses?  My definition of a collapse is that the stock market collapses and/or the dollar suddenly loses its value and is no longer used as the reserve currency in international trade.  In these cases, many but not all economists predict panic and massive loss of wealth possibly triggering years of depression.  Not being an economist, I am not sure that I agree.

Remember that this country is huge and God has blessed us with many natural resources.  For many years, this country had high tariffs to protect domestic industries and the country prospered.  Am I suggesting we return to that era?  No, but I am suggesting we should remember that we functioned quite well without a lot of international trade.

Major differences between then and now are that we formerly had many basic industries which produced goods.  Many if not most of these industries were exported to countries where their labor costs were much lower than ours.  But remember, much of that was done before our technology became as sophisticated as it is today and we were exchanging low labor dollars for high labor dollars.  With automation in many industries, much of the manual labor has been turned over to programmed machines.  This requires a more capital intensive company with high per employee production to become and stay competitive.  Without a properly structured tax code and favorable regulations, this type of company would not be possible.  One simple way to handle taxes is to repeal the current tax code and replace it with a 17% income tax for everyone—businesses and people.  Regulation nation is another issue.

What I am suggesting is that we start programs to return to the United States many of those industries lost.  By the way, the persons who will have to make the sophisticated machines must have high technical skills to manufacture, program and maintain those machines.  These will be high dollar per hour jobs better than those lost when much basic manufacturing moved abroad and much better than most service industry jobs.  The people who will be needed for these jobs will be a mixture of college graduates and skilled non college workers.  The future is with those industries that use technology to produce a product—and only if the business owners are stupid will those jobs then be exported.  Based on history, it would seem that only smaller companies would abide by this rule because the huge companies want to be international.  If the labor unions used their millions of dollars from dues to help create these new small technology companies and retrain their members to staff those companies instead of buying politicians, everyone would be better off.  If the technology must be exported—only much older and outdated versions must be sent.

From what I can see, this consumer economy that everyone seems to love is a millstone around our necks.  Did any of those economists predict where the consumers were going to get the jobs they need to earn the money to spend and support the consumer economy?   Do the economists think that low wage jobs, unemployment insurance and welfare payments will do the job?  I doubt it.  Maybe some of them do.

So what happens if the dollar crashes and all imports become very expensive?  This nation has been a food exporter for years, so if a country does not want to pay what would be considered a fair price or exchange for something needed here, we do not export food.  We will find a way to help the food producers—maybe canning and freeze-drying—which by the way would generate jobs.

We have imported oil for many years, but, if necessary, conservation of this resource and sacrifice will get us through it.   If we produce enough energy, sacrifice may not be necessary and we can export energy.

What about the raw materials we need for our industries?  Raw material commodities such as metals and minerals could present a problem in keeping our industries supplied.  Most industrial raw materials are available in this country but maybe not at the quantity needed.

If China and Korea stopped sending new cell phones to us, do you think we can survive?  You just have to use the older phone longer.

What about the cheap clothes that we import.  We tighten our belts and make it.  The domestic industries in those areas will have to be restarted or expanded.  As long as the dollar is used domestically, any inflationary or possibly deflationary impacts can be managed.

To meet the demand businesses will be started up to meet the need—providing the federal, state and local government regulations don’t prevent them.

If necessary as I note in my book, there is always barter.  Barter has been used in trade for thousands of years.  It would not be easy, but “where there is a will, there is a way”.

Do these brief descriptions of possible solutions solve the problem?  No way.  My intention is to plant the seed to start everyone thinking on how some of these problems might be solved now—not after disaster strikes.  And if disaster does not strike, these problem solving lessons will be used elsewhere.

It has been reported in the news that no company in this country can manufacture the large electrical transformers we would need if the national power grid is sabotaged.  Who in business and government let his happen?   Were they brain dead?

One last thing.  Don’t ever expect your government to solve these problems.  Politics always gets in the way.  Governments are good at spending your tax monies, but they are no good at solving problems.

Furthermore, every politician and bureaucrat is a cost paid for by you and they do not produce a single salable product and in most cases very little service to the public—an exception being the first responders.  Politicians worry only about their next election.  Their love for our country seems to slowly diminish with each re-election.