America’s manufacturing losing out to finance

America’s manufacturing losing out to finance: In the 1980s General Electric CEO Jack Welch turned his multi-billion dollar corporation away from manufacturing appliances and lighting to financial investment, including what turned out to be a major cause of the Great Republican Recession, the Prime Lending Mortgage Fraud. Millions of dollars––half normally invested in product R&D engineering––was allocated to a new corporation, GE Capital Finance, and directed at consumer lending, credit cards, leasing, real estate, and leveraged buyouts. Unlike banks, GE Capital was not as regulated. In a decade, GE went from a major manufacturer to a major financing business. By the 2000s more than half of GE profits came from non-labor manufacturing operations. Anti-government regulations became the byword and making something, unimportant. GE’s Jack Walsh was emulated by CEOs across the nation. Jobs in manufacturing died up, the market crashed, and 600 million Americans were out of work. Unlike manufacturing, finance is a risky business, especially if you are unregulated. When business and banks failed, consumer taxpayers were left to pay for their failures. Twenty five years of disinterest in manufacturing has resulted in two trillion dollars in lost product output. Manufacturing, not finance, had previously been the major innovator of new product development. Short term profit and greed replaced American know how and marketing. We learned nothing from the Crash. House Republicans are already dismantling regulations put in place to kill, “Too Big To Fail.” Big investors continue to dominate the stock market. Wealth increasingly dominates politics. CEOs and Hedge Fund Managers are making more bonus money now than ever. The economic gap is widening. The middle class is no longer essential. A good education is over priced. Less young marrieds can afford a new home. New jobs at good pay are hard to find. Manufacturing will continue to decline as long as Capitalism is unregulated and quick profits reign supreme. America will never again be the world’s greatest growing economy until it starts listening to Main Street not Wall Street. Richard Dorsey, Hacienda Heights, CA

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