THE BLOG

Duty

11/10/2011 01:03 pm ET | Updated Jan 10, 2012

As you enter the sally-port of Padgett-Thomas Barracks at The Citadel, one sees a plaque: "DUTY IS THE SUBLIMEST WORD IN THE ENGLISH LANGUAGE" - Robert E. Lee. The duty of Corporate America is to make a profit. The duty of the president and Congress is to develop a strong economy for the nation.

I've never met a stockholder that didn't want his or her corporation to make more profit. I've never met a stockholder that complained that his or her corporation off-shored to China. Corporate America will play the economy any way a free or communist nation fashions it. Our task is to fashion an economy strong enough to defend in globalization -- limit the off-shoring but not stop it.

The president and Congress can't create a strong economy with federal aid. It needs private investment, and this won't happen until Washington protects Corporate America's investment. The best thing about China is that it protects Corporate America's investment. China gives certainty. Fussing about the rich and regulations in Washington creates uncertainty. Borrowing a trillion dollars a year to keep the doors open tells Corporate America that its taxes will increase. Corporate America sits on $2 trillion waiting for the President and Congress to determine the increase.

Wall Street, the big banks, and Corporate America keep shouting "Free Trade," "Protectionism," to keep the China profits flowing from China's protected, closed market. The Wall Street crowd is the biggest contributor to the president and Congress; so the president refuses to enforce our trade laws, and Congress refuses to make our tax laws competitive. Former President Clinton on Morning Joe was just commenting how Germany did better than the United States on exports. True. Germany, with its 19% VAT rebated, exports to the United States tax free. The U.S. doesn't have a VAT, so its exports are levied a 19% VAT when they reach Germany. 141 countries with a VAT export tax free. The United States exports to 141 countries with its exports facing a VAT averaging 15%. Congress can make the United States competitive in globalization by taking the tax benefit to off-shore jobs and give it to Corporate America to on-shore jobs - replace the corporate tax with a 6% VAT. This tax cut gives instant tax reform, provides billions to pay down the debt, and millions of jobs.

Instead of giving Detroit a bailout, President Obama should have imposed a tariff on motor vehicles like Brazil. Instead of begging Russia for helicopters for Afghanistan, President Obama should enforce the Defense Production Act of 1950 like President Kennedy did for textiles in 1961. Instead of suffering damaging deficits in the balance of trade, President Obama should enforce our trade laws like President Nixon did in 1971 by imposing a 10% surcharge on imports. Instead of letting the economy go to pot, President Obama should enforce our trade laws like President Reagan did in 1984 to protect steel, motor vehicles, computers, and machine tools.

The financial elite want the president and Congress to do nothing to slow the off-shoring of production and jobs. So the President and Congress do nothing. They continue to subsidize the off-shoring or getting rid of jobs as they say their intent is to create jobs. They refuse to do their duty to develop a strong economy. Instead of paying for government, they keep kicking the can down the road. The Congress hasn't passed a budget in two years. All plans to pay for government are never this year, but for a later Congress to pay. Whatever the Super Committee agrees to or whatever spending cuts are triggered won't take place until 2013, which a later Congress can change or repeal. There is no pressure on the Super Committee. It's all theater - the biggest fraud ever. We can't keep doing this for another year.

As you enter the sally-port of Padgett-Thomas Barracks at The Citadel, one sees a plaque: "DUTY IS THE SUBLIMEST WORD IN THE ENGLISH LANGUAGE" - Robert E. Lee. The duty of Corporate America is to make a profit. The duty of the President and Congress is to develop a strong economy for the nation.

I've never met a stockholder that didn't want his or her corporation to make more profit. I've never met a stockholder that complained that his or her corporation off-shored to China. Corporate America will play the economy any way a free or communist nation fashions it. Our task is to fashion an economy strong enough to defend in globalization -- limit the off-shoring but not stop it.

The president and Congress can't create a strong economy with federal aid. It needs private investment, and this won't happen until Washington protects Corporate America's investment. The best thing about China is that it protects Corporate America's investment. China gives certainty. Fussing about the rich and regulations in Washington creates uncertainty. Borrowing a trillion dollars a year to keep the doors open tells Corporate America that its taxes will increase. Corporate America sits on $2 trillion waiting for the President and Congress to determine the increase.

Wall Street, the big banks, and Corporate America keep shouting "Free Trade," "Protectionism," to keep the China profits flowing from China's protected, closed market. The Wall Street crowd is the biggest contributor to the President and Congress; so the President refuses to enforce our trade laws, and Congress refuses to make our tax laws competitive. Former President Clinton on Morning Joe (11/8/11) was just commenting how Germany did better than the United States on exports. True. Germany, with its 19% VAT rebated, exports to the United States tax free. The U.S. doesn't have a VAT, so its exports are levied a 19% VAT when they reach Germany. 141 countries with a VAT export tax free. The United States exports to 141 countries with its exports facing a VAT averaging 15%. Congress can make the United States competitive in globalization by taking the tax benefit to off-shore jobs and give it to Corporate America to on-shore jobs - replace the corporate tax with a 6% VAT. This tax cut gives instant tax reform, provides billions to pay down the debt, and millions of jobs.

Instead of giving Detroit a bailout, President Obama should have imposed a tariff on motor vehicles like Brazil. Instead of begging Russia for helicopters for Afghanistan, President Obama should enforce the Defense Production Act of 1950 like President Kennedy did for textiles in 1961. Instead of suffering damaging deficits in the balance of trade, President Obama should enforce our trade laws like President Nixon did in 1971 by imposing a 10% surcharge on imports. Instead of letting the economy go to pot, President Obama should enforce our trade laws like President Reagan did in 1984 to protect steel, motor vehicles, computers, and machine tools.

The financial elite want the president and Congress to do nothing to slow the off-shoring of production and jobs. So the president and Congress do nothing. They continue to subsidize the off-shoring or getting rid of jobs as they say their intent is to create jobs. They refuse to do their duty to develop a strong economy. Instead of paying for government, they keep kicking the can down the road. The Congress hasn't passed a budget in two years. All plans to pay for government are never this year, but for a later Congress to pay. Whatever the Super Committee agrees to or whatever spending cuts are triggered won't take place until 2013, which a later Congress can change or repeal. There is no pressure on the super committee. It's all theater -- the biggest fraud ever. We can't keep doing this for another year.