Thankfully, the IMF Says Our Era is Over
The International Monetary Fund (IMF) has come out stating the dominance of the global economy that has been in the hands of The United States of America will soon transfer to the good people of China.
Personally, as a strategist, I couldn’t be happier!
China has entered the ring of economic superpower with a simple mission…WIN. Their number one target is the United States. They are projected to take over the number one spot in 2016. From a mathematical standpoint, it is justifiable to think that is the way it should be, they have an economy with 1.33 BILLION people. Economically, more people can be an asset, not the only factor of success, but an asset none the less. So large is this nation that they could lose the entire population the size of the United States and still have over a billion people.
They have been living, eating, and breathing financial success for a few decades now, and they do it with a methodic drive that has the precision of a machine.
Meanwhile, in America we have lost our will to fight. We have been so comfortable in our success that we have forgotten what it takes to win and have instead been gloating in our past success while allowing money changers and “economists” to take control of the system, a system they didn’t create and have no clue on how to develop. Entrepreneurship is dying in America, small business exists, but real, pure, creative entrepreneurship is not at a level which it once was and needs to be now.
Provided that it is not too late to reawaken the entrepreneurial spirit, this could be exactly what America needs. Just like a champion fighter who hasn’t faced a real challenger, we haven’t had to pull ourselves off the canvas in a very long time. Just like the fighter, if the will to win has not yet died, a trip to floor can be the spark that we need to knock out all comers who threaten our title.
This fight to maintain our title as the global economic champion is a winnable fight. In order to do so we need to look at some strengths and weaknesses in ourselves and in our competition.
China’s Glass Jaw: Communism and Capitalism cannot occupy the same space. China has grown to the level is has by allowing a sliver of capitalism. If China is going to reach its potential than they will need to let go of more communism and empower more private ownership and success. China’s hold to communism may move them to slow the progression of free enterprise in order to maintain control. Settle for a solid second and keep a high level of communism is a viable option.
If, however, the breath of freedom is taken by too many Chinese while the Party refuses to relinquish some communist strongholds, than a revolt the size we have never seen before is at their doorstep. Communism relies on a lack of understanding in the minds of the populace and with information systems growing as fast as they are, it will be impossible for Communism to keep that info flow closed for much longer. Revolt will result in economic turmoil which will take decades to rebound.
If they forfeit Communism for success, we are toast. If they reclaim Communism and suffocate capitalism, then we win by TKO.
Political Climate to Warrant Change: We have forfeited business creativity for business regulation. It has been said that under the current system companies like Apple, Ford, and others would not have been able to get their start.
I’m not saying that all regulation is bad, but what I am saying is that corporate conglomerates have worked with our government to implement regulations not to protect the people, but to stifle the rise of competition.
We also could use this bout to look at radical changes to the tax code. When the “Right” fights the “Left” over tax codes, America will lose. Fair Tax, Flat Tax, or some combination thereof needs to be implemented by 2014 in order to give us the ability to compete on a global scale.
Killing Outsourcing: When we outsource the people who benefit are not just the American businesses that are contracting these outsourced products or services, but also the country where those contracts are being carried out. From a national perspective, outsourcing hurts.
Killing outsourcing and bringing manufacturing back to America is not as hard as the companies who are outsourcing want you to believe.
If we tariff incoming products from other nations regardless of the company’s origin, we would eliminate a large percentage of this issue. Combine this with something like a Fair Tax to drop the cost of products and all of a sudden buying products from other nations isn’t the best priced option.
We could even go as far as having a higher sales tax on products made in other nations. That way the country profits from the sale of these products to offset the loss of revenue generated from manufacturing the product domestically. This would also encourage the consumer base to purchase domestically produced goods.
These systems, combined with tariffs on Chinese products, would slow China down to a crawl by 2014. Don’t forget, Communism in China has resulted in the majority of the population not being in a financial position to stimulate their economy.
The greatest thing we have going for us is that we are America. Our nation was founded on the system that China is now trying to use against us. America wouldn’t be here if it wasn’t for our entrepreneurial spirit. World relief wouldn’t be where it is at if it wasn’t for our capitalistic foundations.
If we decide to enter this fight, there is no competing. Yes, China has a population that is staggeringly large, but as we have proven time and again, population is no contender when it goes against the power of a dream, the pursuit of freedom, and the preservation of success.
Yes, the IMF has us hitting the canvas in 2016. The only question is, can Americans, down to the individual level, rally behind each other in order to promote the system which empowered us to become number one in the first place? Can we pull ourselves up from the ground and come up swinging?
Let us not forget that the same people at the IMF who are predicting the outcome of this fight are the some people who (on purpose or by accident) have been behind this global economic failure. The economy and its impacts are not exclusive to the global money changers. They are just “economists” who suffer from delusions for grandeur. The only thing they are good at is convincing us to believe in their delusions as well. The economy is us! The more success we have as individuals, the larger the economy gets. 1.33 billion people held to the success level allowed by their government stand no chance against even 100 million people who take personal success as a calling.
The IMF doesn’t know economics and they certainly don’t know America!
Josh Tolley is a business and behavioral strategist. His latest book, “Quit Your Job or Die: Discover the Importance of Self-Employment” has been a top ten best seller for over 16 weeks. He has been seen on NBC, CBS, on over 100 stations nationwide and he has been heard from coast to coast on the radio. His teachings have been implemented by hundreds of people and dozens of businesses around the globe. He is ranked as one of the top 100 business and personal growth trainers in the world and is the developer of many human interaction technologies and strategies. Josh does take on a VERY limited number of personal clients, to discuss this or to book Josh for an event in your area, contact Mike with The Annex Group at 626-893-4917 or firstname.lastname@example.org. You can also find out more about what Josh is up to at www.JoshTolley.com