Want to know an easy way to destroy the healthiest and most powerful economy in the world and turn it into a mere import market highly dependent on governmental stimulus with the highest trade deficit in the world ? Easy, try the American Business Model.
While in the rest of the world, regular economies are based on a cooperative patriotic model that we will call “regular model” for short, we in America being very ethnomasochist have developed what is called the American Business Model.
The purpose of this American Business Model, advocated by multiple political personalities such as George W. Bush, Barack Obama and Ron Paul, is to screw Americans out of business, weaken our economic security, destroy our financial independence as well as our sovereignty, and all in the name of less profit.
Yes you heard me right, you will have LESS profit than if you followed the traditional cooperative patriotic model, the regular model if you will. The beauty of the American Business Model is that it’s so ahead of the curve that it will give you as least profit as possible while effectively ruining your country.
Of course, the American Business Model comes in pair with ethnomasochism, concept which has, I believe, vastly inspired it.
American Business Model vs Regular Model
For the rest of this article, we will use the examples of Walmart and its foreign competitors to illustrate the power, or lack of, the American Business Model over the regular model.
In the process of selling goods, for example in a retail store like Walmart, there are three factors to into account. These three factors represent each financial transfer, and are of course the production costs, the transfer costs and the purchasing costs.
The first one involves the costs of the production at the factory. It’s beneficial for the workers and their country, not so much for the factory that produces the goods.
The second involves the retail store buying from the factory. The cost is higher than the one of the production, so it’s beneficial for the factory, not so much for the retail store.
The third involves the customer buying from the retail store. The cost is higher than the one of the transfer, so it’s beneficial for the retail store, not so much for the customer.
All this to learn that the customer is losing money when he buys something, but the customer can become a worker himself. I added “and their country” on the first case, but virtually it’s beneficial for the country of anyone winning money so it also applies for the other two. Simultaneously, we could argue that it’s detrimental for the countries of the buyers who lose money on their purchases.
In the regular business model, let’s take the example of a retail store of a foreign country F. If the CEO of this store wants to make money by selling goods, he needs to have these goods produced first.
1. Usually he will address a local manufacturing company, in the same country F, and start selling to the local market. For the moment, there are only financial transfers inside the country F, F is neither benefiting neither losing from these transfers.
2. If he wants more money, he will try to export the goods to the rest of the world. This means more money for the retail store, and more money for the manufacturing company because they will have more commands. The country F is exponentially beneficial, because they “win” not only from the retail stores income but also from the factory’s labor.
Now let’s have a look at the American business model. The CEO of a retail store in the USA wants to make money by selling products.
1. Being a good ethnomasochist he will try to outsource to a manufacturing company in a foreign country and start selling on his local market, the US market. For the moment, there are only unilateral financial transfers from the USA to the foreign where the factory is located.
2. If he wants more money, he won’t try to export. He will try to find more foreign and “exotic” products to bring to the US market, even more losses for the USA. There being a constant stimulus of money from the Fed in many forms, there will always be enough money on the US territory, only its weakening even more our economy.
I took the example of Walmart because they serve as a good example, but there are even more extreme cases of the American Business Model.
But take Walmart and its competitor Carrefour, which is french. Walmart imports products from China and sells to exhaustion to the US market and a few other markets. Carrefour sells almost exclusively French made products around the world, even to China.
As long as American companies continue with this unsustainable business model,
As long as American companies search to bring foreign products into the US market instead of trying to export US products,
As long as American companies, in order to make more money, will try to make product cheaper instead of trying to export,
the United States will continue down the same road.