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April 4, 2008

Middle Class America; Down and Nearly Out:

By Mike Folkerth

Employers cut another 80,000 jobs in March. Outsourcing continues to replace Middle America. How long do we have before there is no Middle America? Ask Ron Paul, he's been trying to tell you.

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Good Morning Middle America, it's time for your King of Simple dose of reality. Swallow it now and it's the worst thing you'll have to face all day.

When NAFTA was first introduced, I was writing a weekly column and offered to eat a 10 pound crow on the court house steps if Middle America benefited from the agreement. All of my black feathered friends can rest easy; I'm not planning on dining on crow any time soon.

It's hard to believe that NAFTA was signed into law 14 years 3 months and 2 days ago; not that I'm counting. What is more difficult to believe is that just now some of our politicians are beginning to question the wisdom behind that agreement. The ones doing the questioning of NAFTA are running for president and need the votes of those who are unemployed because of the NAFTA .

Mr. William Jefferson Clinton put pen to paper on NAFTA and exactly 12 months later, autographed our entry into the World Trade Organization. Regardless of main stream economists spouting the benefits of both agreements, my personal studies and findings have never changed; these twin tornados leveled the lifestyle of Middle America...forever.

Most days I can quickly find a novel example in the news of the negative impact of foreign competition. Today, Dell Computers announced from Round Rock Texas, that it will cut more than the 8800 jobs previously announced; to remain competitive. This is the same Dell Computer who signed a $52 Billion deal with China for components; to remain competitive.

I'll interpret that last statement, "We can get this work done off shore for far less money than we can in the U.S.; Hasta Luego."

"The entire Dell leadership team is focused on addressing these opportunities and challenges," Michael Dell said. "We believe we've begun the journey to transform the company."

The part about opportunities and challenges means, our stock holders will have greater opportunity to make money and our former employee's will have challenges ever finding another job.

Is this Michael Dells fault? Hardly. Once your competition goes to China, you have two choices, go to China or go broke. U.S. workers cannot compete with Chinese workers earning as little as $.50 per hour. The only way that would be possible would be to lower our living standards to that of the Chinese; which is pretty much the plan.

So when did I come up with the idea that Middle America would be forced down and then out? Around 1980 it became crystal clear to me what was being done to our Middle Class. I made the comment many times that, "foreign standards can't possibly rise to our level, so that leaves us going down to theirs." That comment fell on deaf ears in 1980, but those folks hear me today.

America is in a mess, at least Middle America. Our leaders are either the best liars in the Universe, or truly barn broom dumb. In either case, we lose or we chose totally new leadership.

Why did Ron Paul seem to stick out like a sore thumb? Because he was different and had old ideas to solve new problems. Because he pointed out problems that besiege nations who refuse to follow their rule book. Because, unlike the others, reality and our Constitution are a part of his everyday life.

If I had one wish, it would be for everyone to see our economic future as clearly as I do. Talk to an unemployed Middle Class American who has just lost their job and now faces losing their home. Talk to a Middle Class American who lost their entire retirement to the likes of Bear Stearns or Enron. Ask them what they see, they now have 20-20 vision.



Authors Website: www.kingofsimple.com

Authors Bio:
Mike Folkerth is the author of "The Biggest Lie Ever Believed" and is not your run-of-the-mill author of finance and economics.

The former real estate broker, developer, private real estate fund manager, auctioneer, Alaskan bush pilot, restaurateur, U.S. Navy veteran, heavy equipment operator, taxi cab driver, fishing guide, horse packer and few jobs too embarrassing to mention, writes from experience and plain common sense.

Mike’s humorous systems of “Mikeronomics” and “Mikemathics” drastically simplify the economic and mathematic formulas commonly used by very smart, but terribly sheltered individuals.

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