How to Resolve Our Economic Crisis, Stop Illegal Immigration and Bring Back Manufacturing All in One Day

Return to a Sustainable Economy

THE SOLUTION: Create an "Economic Industrial Zone" along the border and Build Factories.
There are no short or long term solutions to curbing the illegal immigration problem or bringing back manufacturing. If we were to all agree on this (let the debate begin); then we need to create a separate industrial zone along the border and build incubator factories for would be illegal immigrants. Start with building factories that produce Household Textile Products. Invite would be illegal immigrants to apply for jobs with average hourly wages in the $3.00 range. They must agree to work at these factories for a five year term. Build residential complexes next to the factories. Feed them, house them, teach them English, and most importantly treat these future citizens with respect. Upon successful completion of their five year term we hand them a Visa granting them full legal immigration status and welcome them into the United States of America. The land where dreams come true (if you sleep on a comfortable mattress).
SUMMARY: Why this makes sense…
Regardless of your political views, any administration could start the process of building factories and filling them with landed immigrants. The illegal immigration problem would be solved and the country would return to manufacturing and selling products for a profit thus returning us to a sustainable economy.
In my next blog I will talk about how the Chinese government created industrial economic zones. This is where all the factories that produce the products that we consume are located. I know this because I own a company that manufactures and imports these products to the USA.
You can say what you want about "Made in China" but we are just now starting to learn how smart the Chinese really are.

THE PROBLEM: part ii. Illegal Immigration
It is estimated that half a million immigrants enter into the United States illegally each year. The Illegal immigrant population living and working in the United States is now pegged at 11 million people. This is down from a historic peak of 12.5 million people in 2007. The breakdown goes something like this: 57% of illegal immigrants were from Mexico, 24% were from other Latin American countries, 9% come from Asia, 6% come from Canada and Europe, and 4% come from somewhere else on the planet.
The illegal immigration problem is not going to go away. In fact the Mexican government issues handbooks and maps that coach would be illegal immigrants on how to cross our borders, how to remain undetected, where to find health care, how to get their kids into U.S. schools and even how to send money back home.
The economic incentive that motivates immigrants to enter illegally is matched by US employers willing t o hire them as low-cost laborers. If you have traveled to countries outside the United States you will know why these people want to live here.

We lost our manufacturing and we have a major problem with illegal immigration. What is the solution?

THE PROBLEM: part i. Loss of Manufacturing
This country became great due to the modernization of our industrial economy. In the late 19th century (1865-1901) hard working Americans and immigrants worked side by side building new factories which produced new, innovative products. Good, bad or indifferent; the "robber barons'" who built these factories also created our national transportation and communication network; building blocks that contributed to our current superpower status. What happened?
Over the last 4 decades the United States morphed from being a manufacturing based economy to a consumer based economy. What does that mean? In 1965 we manufactured 95% of all textiles bought by US consumers. In 2007 that number dropped to 5%. If you don't like statistics drive around "any city USA" and count the empty mills, vacant factories and depressed main streets. It means we don't make anything anymore. Our new economy works only when we buy things (consume) and since we don't like to pay cash for these "things" we created a system that allows consumers to "buy things" on credit. Even your cat can get a credit card further demonstrating how defective the credit system is. Throw in greed and avarice at the CEO level and you have the ingredients for what the economists call an "unsustainable" economy. What does all this mean? It means this country is now in the same downward spiral as Britain in the early 20th Century. We all know how that ended.

Difficulty: Challenging