Disclaimer: I’m known to say things that come off brazenly harsh. Yeah.
As some of you should know (that’s to say, you’re following the YouTube series, HL™ Startup Chronicles), I was recently in the Big Apple last month in May, attending a private equity conference that was hosted at the Yale Club right off of East 44th in Midtown Manhattan. I was there in the form of a “non-presenting” entrepreneur, and needless to say, I was surrounded by people who supposedly had deep pockets. At least, that was the initial preconceived impression I harbored.
I was expecting to learn something from these people, but I didn’t–and of course, I’m referring to some of the other entrepreneurs that were in attendance of the event. None of them came equipped with anything that would’ve triggered my interest had I’d been an anxious investor myself. You had entrepreneurs who paid damn near $19,000 just to get up onstage in the front of the Grand Ballroom for only a few minutes to make their presentation to prospective investors sitting at the various roundtables, positioned awkwardly, almost suggestively, in a way just enough to be the causality of anguish and despair whenever someone would get up to use the gentlemen’s room in the rear (nh @ “the gentlemen’s room in the rear“). Patience was driven to nil as most of the presenting entrepreneurs were muppet-like in temperament despite being polite and somewhat eloquent. The investors weren’t exactly absent-minded, however, quite a few of them were afraid that I might fall into the grips of paroxysms and start spewing pro-Black vitriol. I’m not that kind of guy, though I will say that a small percentage of the investors, established CEOs and what have you were kind of shaky, to say the least, equipped with other characteristics of your typical crusty, Upper East Side-residing ilk such as being somewhat solipsistic, gray-complected and commonly disagreeable.
With the exception of…well, we’ll call him “Ron” and a few other investors [they made the experience of being at the Yale Club tolerable…and I stay in contact with “Ron” to this very day]. The day wasn’t entirely boring, but I will say that you’re not going to change the world “for the better” by selling electric bikes or electric cars. Some of the presentations by the varied money-seeking entrepreneurs were seemingly diluted in delivery. Others were inexcusably “late-to-the-party” [see “you’re not going to change the world ‘for the better’ by selling electric bikes or electric cars“].
For instance, as an entrepreneur that’s in need of capital to initiate the most proper use of scientific research, I know better than to try and launch a company centered around “energy” (yawn). No way on Earth would I get up in a crowd of investors and try to pitch the need for money in order to conduct research on “energy” (yawn). Only an idiot would utter, “Energy is limitless due to the Sun, maaaan…“. For the investors who, presumably, may be reading this, I’ll do you a favor and educate you on “solar energy” (yawn). Um, “your” Sun provides “energy” (yawn) in the form of Ultra-Violet A, Ultra-Violet B and soft X-rays. However, you still require natural gas and various grades of oils ranging from heavy oils to very light oils. 2015, and beyond, you still do not have the technology to produce sufficient amounts of solar cells to harness the Sun’s radiation. In addition, to not having the technology, you don’t have the resources–nor the space–and you certainly do not have the “intellectual prowess” to even make the slightest, realistic approach.
Your collective ineptitude fails to consider the possibility of a Krakatoa, or Toba-like event, volcanic out-gassings or even a small asteroid impact. I mean, did it ever occur to any of you “Pro Solar!” types that particulate matter is ejected into the stratosphere and mesophere, reflecting UV-A, UV-B and soft X-rays away from Earth and those cute little solar power cells of yours [that cost millions of $$$]?
I, for one, wasn’t necessarily a knockout of a non-presenting entrepreneur, after quickly finding myself trapped, spinning in the re-iteration continuum of echoing the same “elevator” pitch, so watching the presentations and taking note of how other non-presenting entrepreneurs introduced themselves to prospective investors prove sort of beneficial. Purportedly, it was suppose to be a learning experience, but there was a cloud, or aire rather, of disinterest that quickly followed me around as the event went on. Not necessarily about the nature of HL™ in particular, but more or so, me. Then again, I’m not on that self-conscious tip, so the hell with them.
Quite a few executive summaries were passed around (mines included) however, there was one in particular, that could’ve been considered downright intellectually dishonest–and, from a personal observation–disturbing–damn near spiritually disturbing.
That brings us to Mr. James A. Stuber, J.D.; president/CEO of Alltham, P.B.C. As the title hints at, Mr. Stuber is a prime example of what’s wrong with the U.S., this country’s outcry for the “return” of manufacturing to U.S. shores is frightening, and I’m blaming it entirely on the mis-education of the American masses–who are exclusively ignorant and blatantly stupid when it comes to understanding the laws of economics, which are no different from the laws of physics. Here, I am going to quote a few excerpts from a jacket copy of Mr. Stuber’s What If Things Were Made In America Again just so the [American] youth can see why their generation is so fucked up.
What If Things Were Made In America Again is must reading for every American. Eschewing jingoistic entreaties to ‘buy American’, author Jim Stuber offers a lucid, reasoned and comprehensive inquiry into the questions that are on many Americans’ minds: Why does it seem like everything is made somewhere else, especially in China? Is that causing a problem? If it is, can anything be done about it?
“must reading” is exactly how it’s written in the jacket copy and I’m going to leave it as so in the quote because I want to show all of you how dumb some of the uppity, bland Bourgeoisie can be–and already Mr. Stuber’s showcasing his stupidity with that typical, signature bigoted-American ethnocentrism but, let us continue…
In answering these questions, Stuber takes the measure of the jobs sent overseas, especially during the “jobless recoveries” of the 2001 and 2008 recessions, traces them to the five major mercantilist countries, especially China, and explores how the loss of those jobs has contributed to the larger problem of the low price, low wage, “hourglass” economy and the hollowing out of the middle class.
When Mr. Stuber and Company finally get up to speed, they’ll learn that “jobs sent overseas” is exactly what’s suppose to happen when the cost to manufacture/produce exceeds revenue. For example, if HL™ benefits and/or generates a higher profit by producing its products overseas, then why the fuck would I run a crybaby campaign to bring manufacturing back to the U.S. if the costs to manufacture widgets and whatnot in the U.S. remain exceedingly high? This is what he’s hinting at with the claim “how the loss of those jobs has contributed to the larger problem of the low price, low wage, ‘hourglass’ economy and the hollowing out of the middle class“. Mr. Stuber must believe that the U.S. Dollar will remain de facto the international currency for the foreseeable future–or something. This mawfucka is on heroin (allegedly). Also, you have to realize how ethnocentric his viewpoint on Chinese workers shines forth. Do any of you have an inkling of exactly how “low” the wage is over in China? Answer: No where near as “low” as you’d expect. Take a factory worker over in Romania, where the minimum wage is $1.40/hour. You all do realize that on a minimum wage of $1.40/hour, Romanians can pay rent, shit, they can even afford a mortgage on an hourly wage of just $1.40/hour. Question: Can self-entitled, bitch-ass Americans, who think the world revolves around them, get a mortgage on $1.40/hour? Answer: No. The key to understanding why is a little thing called purchasing power.
Let us venture further into Mr. Stuber’s Bizarro World…
Exploding popular misconceptions of a win-win from free trade, Stuber shines a light on the one-sided nature of our trade relationships and, surprisingly, the leading role of American companies in creating them. Stuber recounts how companies like Wal-Mart, Amazon, and Nike have created a new “gulag archipelago” of sweatshops, in which American consumers are unwittingly complicit, and how companies like Ford, GM and Boeing are transferring to China major portions of their supply chains, along with their highest technologies. He also refutes notions of a resurgence of American manufacturing, documenting the continuing rush of American companies, low- and high-tech alike, to source product overseas.
You have to admire the use of the adverb “surprisingly“, out of context, of course. I say that because for people like myself who have a knack for comprehending economics, “surprisingly” is only fitting for the dumb and weak. I have stated ad nauseam that manufacturing, as we know it, is 2nd-Level Economy activity. China is getting ready to enter its 3rd-Level Economy, meaning 2nd-Level Economy activity is getting ready to shift elsewhere (in this case, India, as it transitions into its 2nd-Level Economy). I mean, you all do recall Ford opening up a new factory over in India years ago, correct? So, for a country that was to have supposedly enter its 5th-Level Economy back in the 1990s, why all of the fuss over manufacturing? And, on top of all that, we have Mr. Stuber waxing poetic about corporations creating their versions of forced labor camp systems for workers overseas (the term “gulag archipelago” is a lazy reference to experimental, forced labor-intensive imprisonment constructed by a Russian government agency between 1918-1956).
Question Time for Americans: How does the population of the U.S. compare to that of the rest of the world?
There are, what, ~ 7 billion people on Earth, correct?
And nearly 318,000,000 self-entitled Americans, right?
Therefore, 318,000,000/7,000,000,000 = 4.54% of the world’s population.
There are, what, ~ 1,500,000,000 actually hard-working Chinese people on Earth, correct? You all do realize that if just 300,000,000 actually hard-working Chinese start living their lives the same way Borg-like locust Americans live their lives that would justify a U.S. corporation the likes of Ford, GM and Boeing, to say the least, to manufacture their products over there (you know, this is where “jobs sent overseas” chimes in), right? Absolutely right. I mean, why not? As an employer, I’m going to go where not only the demand for my product lies, but also those who have the means to purchase my supply are. You see, catering to a market of 300,000,000 actually hard-working Chinese people completely overlaps any American market since the population of China eclipses the population of the U.S. This is why “your” (yawn) jobs have gone overseas, in preference of the Chinese–and afterwards, “your” (yawn) jobs (that 2nd-Level Economy activity) will make their way to India–and afterwards, “your” (yawn) jobs will make their way to Central Asia–and afterwards, “your” (yawn) jobs will make their way to Eastern Europe–and afterwards, “your” (one last yawn) jobs will make their way to sub-Saharan Africa and then establish an equilibrium–a worldwide equilibrium [which is what the laws of economics is all about].
Looking to the future, Stuber foresees continued stagnation and economic decline, with consequences not only for Americans but for the world order. In contrast, he offers a better vision of America’s future, with the American dream restored for a vibrant middle class. What sets his book apart is a specific and realistic way to get there, beginning with consumers shifting $500 billion of their spending to products made in communities across America, creating nearly six million jobs. Stuber shows how this shift can be the first step in a ‘virtuous cycle’ in which Americans do a better job of looking out for each other, with mutual benefits for individuals, families, and communities.
Bitch please…..bitch please. That’s the last little excerpt I’m quoting from this moron. I’ve had enough. Folks, to give you all a better perspective on Mr. Stuber, this man holds a juris doctorate from Georgetown University Law Center and a Bachelor’s in political science from the University of Pennsylvania and a Master’s in political science from Columbia University. Yet, his stupidity is only matched by that of Peter Thiel, a well-known pseudo-contrarian venture garbage-alist from Silicon Valley who more than likely shaves with an Epilady.
In reference to the “American dream” being restored for a “vibrant middle class”, I’ll make GM and Chrysler an example. If GM and Chrysler had gone out of business, it would be due to the irrefutable fact that both businesses had violated the three laws of business. What are those three laws, you college-educated mawfuckas ask of?
- You must produce a product or offer a service that is in demand; and
- The product or service you offer must be of the highest quality relative to price; and
- Your product or service must be competitively priced
Both General Motors and Chrysler violated all three laws.
The cars they made were shit and looked as if they were designed by beer-swiggling, man-loving hicks; the cars were recalled every other day; and they were not competitively priced. In accordance to the principles of Stuber’s Bizarro World, the rest of the world has to suffer perpetual poverty and suffering and be bled dry of their natural resources [capital] so Americans can justify standing in line overnight for the latest “smartphones” and “tablets” while more capital is used to bankroll American manufacturers to keep them in business, because, you know, no other companies will replace the ones who go out of business, in spite of the fact that they shouldn’t be in business in the first place.
When General Motors and Chrysler finally succumb to global economic progress (outside of the U.S.), that will free up so much capital to be used in other sectors of the domestic economy. But, then again, I have to be cognizant of those reading this blog–mostly young, self-conscious, self-entitled, video game-playing, “Caitlyn-loving”, impressionable ne’er-do-wells who can barely count from 0 to 10 in less than three minutes, who have no idea of how their world functions. On the plus side, you can’t blame them since you have absent-minded, “Go America!”-types like Stuber. Had you all moved into your 5th-Level Economy back in the 1990s like you should have, the capital from the defunct General Motors and Chrysler could be used to expand 5th-Level Economy, creating high-paying R&D jobs. But you mawfuckas would rather be paid $25/hour instead of $45+/hour. And I’m talking far more than “six million jobs”. Kindly explain to me how what these “six million jobs”, referred to, presumably in Stuber’s book, are. We talking part-time, full-time, here or what?
So, when will the U.S. enter its 5th-Level Economy?
Answer: To answer the inquiry, the U.S. will need to have a come-to-Jesus meeting and realize that there was a time before when the U.S. was cranking out engineers, mathematicians and scientists–of all flavors (i.e., Black scientists who focused on inventions of “things practical“). Those people led the U.S. out of the 2nd-Level Economy (heavy manufacturing) into the 3rd-Level Economy (“the light industry”)–this would’ve been the 1950s–into the 4th-Level Economy (technology)–this would’ve been the 1970s. A more direct answer to the question would be–40-45 years. That’s about how long it will take for [Conservative] policies to be restored to the flailing U.S. education system. To break it down even further, it will take 20 years just to educate the people who will teach the people who will lead you into the 5th-Level Economy (which is R&D) and then about another 20-25 years to teach the people who will actually take you there.
Bear in mind, that both China and India will be in their 5th-Level Economies, respectively, before the U.S. gets there–if it ever does.
This is a hard pill for the misguided, cartilage-cranium Stuberites to swallow but manufacturing jobs are not coming back to the U.S., but then again, the U.S. has been ran by the “you-Harvards” since about the 1930s, no? This inquiry relates back to my time with the investors at the Yale Club–a bunch of Ivy League-grads. The “Go America!” types need a dose of reality; no business can violate the aforementioned three laws, and succeed, without external support–and that support always comes in the form of government subsidies and/or regulations. If you were to sense the foul odor of monopoly, you wouldn’t be far off the tracks from catching the hunt. The Stuberites fail to comprehend that under normal economic conditions, it would be impossible for a monopoly to even form.
I implore all of the readers of this blog to study history–economic history, that is. In the U.S., you will see that every single monopoly, that ever existed, only existed because of government subsidies or government regulations or other interference by government, such as abusing power of government to harass competitors and drive them out of business. AT&T is a good example of a business entity utilizing the vehicle of government abusively.
AT&T operates monopoly telephone systems in U.S. “slave States” in the 2nd, 3rd and 4th world. AT&T price-gouges, but even more so, it also avoids paying any taxes. And how so, you may ask? Do know that the U.S. government has repeatedly overthrown any non-Anglo/non-Western European government that have ever attempted to tax U.S. corporations [think of the Honduran government being overthrown back in 2009 during the Obama presidency]. How else do you think AT&T was/is able to have such an unfair advantage over its domestic competitors? Good business ethics? Answer: No.
Meanwhile, the rest of the world has to subsidizes telephone service for Americans who use AT&T, allowing those customers [of AT&T] to pay lower monthly rates than the rates charged by its domestic competitors. That’s the “unfair competitive advantage” referenced earlier.
See folks, the extra monies from price-gouging and tax-avoidance gives AT&T a humongous amount of cash [and credit] to buy up domestic competitors. Subsequently, that increases AT&T’s profits, which drives up the price of AT&T’s stocks, which, in turn, brings in more and more investors, providing AT&T with the capital it needs to continue buying-out its domestic competitors.
I mean, how else do you think Facebook, Google and the like can acquire their would-be competitors? How many times have I stated that the only way to prevent a buy-out, a forced merger and acquisition or a hostile takeover is for a business to hoard as much cash as possible?