by Bob Luddy
The dictatorial, repugnant, and repressive Chinese government has ended freedom in Hong Kong. Now it threatens Taiwan, the most important producer of semiconductors for American products — jeopardizing America and her prosperity.
Most American producers are suffering shortages of semiconductors, and if China prevails in its quest to take Taiwan, China will be positioned to shut down American industry by refusing to ship semiconductors to the United States. A Sino-American embargo would precipitate the shuttering of automobile, appliance, and military equipment production, the internet, and processors in virtually every product and industry.
With laser focus, China’s government strengthens its military and economy, as our federal government officials — the most mendacious and incompetent since the FDR depression — weaken American manufacturing and commerce, subvert truth, and squander time and resources on the vacuous follies of gender politics and climate change.
Green energy in California and Texas have caused blackouts and increased the cost of energy, which is imperative for a thriving economy.
The potential semiconductor crisis proves that Jean Baptiste-Say was correct in 1803 when he surmised that supply creates demand. When John Maynard Keynes reversed this truth with the specious theory that demand creates supply, it unleashed a lunacy that is manifesting itself in harsh economic reality today:
- An acute American worker shortage, sponsored by federal unemployment benefits, is undermining every industry from food service to critical industrial components. Over nine million jobs are waiting to be filled.
- U.S. ports, rail cars, and trucks are at full capacity. They do not have the manpower to distribute resources. As a result, supplies and critical parts are delayed for weeks on end in harbors, railway cars, and storage units.
- Increased tariffs put taxes on the users, undermine free markets, drive up costs, restrict supply, and make indigenous industries weaker.
- Federal spending exceeds 31 percent of the GDP, causing inflation and shortages and undermining the producers. As a result, the Producer Price Index (PPI) is up 6.6 percent in the last 12 months, and the Consumer Price Index (CPI) increased 5 percent in May. But government officials deny the data with the term “transitory inflation” — though “transitory” could mean 10 months or 10 years.
America must protect Taiwan and refocus national priorities to develop a robust economy based on investment and production, not government largesse, which undermines people’s work ethic and creates massive deficits and debt.
Freedom, truth, morality, work ethic, and market-based economics created “American exceptionalism.” So it’s time to ignore the malcontents and barbarians who are destroying our cities and refocus on the basics by respecting and embracing the contributions of hard-working producers of goods and services.
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Recognizing the demand for a quality manufacturer of commercial kitchen ventilation equipment, Bob Luddy purchased a sheet metal shop in 1981 and transformed it into CaptiveAire Systems. Today, CaptiveAire employs over 1,400 individuals, with 90 sales offices and six manufacturing facilities nationwide, and sales over $500 million in 2019. A strong advocate of excellent education, Bob establishes schools that help youth develop good character and reasoning skills. In 1998, Bob established Franklin Academy, a public charter school in Wake Forest, which now serves over 1,600 K-12 students. In 2001, Bob founded St. Thomas More Academy, a classical, college preparatory high school in Raleigh. In 2007, Bob opened Thales Academy, a network of private schools offering a high quality Pre-K-12 education at an affordable tuition. The Luddy Schools are quickly growing, with over 5,000 students enrolled throughout North Carolina, Tennessee, and Virginia. Bob is an avid supporter of entrepreneurs and the free market system, and published his book, “Entrepreneurial Life: The Path from Startup to Market Leader,” in 2018.