a history lesson

A HISTORY LESSON

The following took place in the 1960’s.

“Despite this prosperity, major shifts were occurring in American business and the workforce. Preexisting corporations were merging and becoming larger, more powerful conglomerates. Consumers increasingly were doing their shopping at discount chain stores and dining at inexpensive fast-food restaurants, leading to a decrease in the number of single-proprietor businesses. Small farms, and a cherished American way of life, were becoming extinct. Larger, often corporate-owned, farms were replacing family farms, and newly developed farm technology was increasing farm output. Meanwhile, manufacturers were relocating from the Northeast and Midwest to nonunion Southern states, taking jobs with them and robbing industrial cities of their vitality. Manufacturers also were opening factories in foreign countries to take further advantage of cheap labor.”

What you have just read is information that I located on the internet. It is just one paragraph of a longer article of what took place back then. Ultimately the factories that existed in the Southern states closed as the production they were responsible for also moved to foreign countries.

I lived through this time period and saw all the skiwear and outerwear production leave the country, that was my customer base.  Where it went, I do not know but this predated China, so I know it did not go there. Where it went is not important.

What is important is the fact that tax revenue disappeared. It has taken many years for the current situation to come about. I am sure many other industries followed suit. I am in the textile business, so I know what happened.

Over the course of 50 years things have changed. New factories have not been built in the garment manufacturing sector because it wasn’t necessary. Even if you wanted to build one where you will get the workforce, sewing operators, cutters, mechanics to mention a few who do not exist. When we had these factories, we had apprentices to learn trade.

Another point to understand took place when the government said to industry to look at developing jobs in poor foreign countries to help the population upgrade themselves earning money to keep the communists out. I believe this took place during the Kenndy administration.  This is where we built factories.

Businesses have costs of manufacturing or buying finished products. If you are a manufacturer and a component comes from a foreign country you pay an import duty [ tax]. If it is 10% of the cost of the item imported, you add that new cost to the product you are making. Your product becomes more expensive, so you sell it for a higher price.

If you buy a finished product, you do the same thing.

The import duty [tax] goes to the government. If a country wants to increase the tariff on merchandise entering the country, why don’t they say import duty or tax, it is all the same. The money collected goes to the government.

It is all well and good to have more production in the country that will generate more taxes like payroll taxes for the government. Certainly, more factories will employ more people but how long will it take for new factories to come online[?].

I have listened to all the talking heads, and I know not one of them has had to do what I have done. They like to comment on what they hear but they do not know what it takes to make a business work, and the extra taxes imposed will only make things more difficult. This is on top of the many rules and regulations now in place.

When I sold my boat and was living in S.C. I lived on credit cards to pay bills and eat food and pay rent. I had to do whatever I could to survive. I know for a fact that I was not alone living this way. When I moved from S.C to Grand Junction I had to take a partner and we still struggled for 10 or more years. Finally, after 30 years the Wiggy reputation took hold, so we are finally okay. Things would have been better if the US military chose to buy USA-made sleeping bags that are the absolute best in the world versus accepting imported trash, but they didn’t.

At the time i opened Wiggy's we had sewing operators here from Marmot and cutters and of course my partner Kok was/is an excellent mechanic.

I did pay off all of the credit cards, so they never lost a penny on me!

Will that change[?] your guess is as good as mine.