hit the bottom can, with help, be lifted off the bottom of the lake when a ripple is over its gone for good. Now when you lift the rock it does provide some movement in the lake but to really get the water oxygenated you have to throw the rock again so new ripples can be formed. So if, for example, we call the big three auto makers really big rocks—boulders even—that were once thrown into Lake America and created not just ripples but waves of success and opportunity perhaps it becomes clear that in the near in future it is imperative not to let those rocks lie motionless on the lake floor but to lift those rocks and then get some real thrust behind them as they get thrown again into the water. All this to say the big three automakers must not perish. The only crane capable to begin lifting them is temporary federal financial support that makes requirements for performance, they have to re-tool—not to just match what foreign competitors have accomplished but to surpass them with even newer and more cutting edge products.
What are These Steps?
The CPP™ (figure 1) can basically be divided into three sections. Section One is made up of steps 1-8. These are all actions that drive the income and revenues necessary to meet the goal of step 9: keeping more revenue in the USA, not leaving the country, notably to China. Why is it important to keep revenue in the USA? Because when our money leaves the USA in support of another country’s economy unless it is returned by that country buying American produced products it is gone for good and no longer is recycled within our own country in the forms of income to citizens, investment for citizens, and tax base for local, state and federal budgets. Revenue leaving the country means job loss, companies failing, the credit market drying up, mortgage foreclosures, property devaluation . . ..
Section Two begins with step 9 of the CPP™ is what produces disposable income for spending, saving and investment (step 10). Only when we achieve steps 1-8 and are into steps 9 and 10 do we begin to see a strong economy. It is at this point that service sectors of the economy can take off. These include banking, real estate, construction, insurance, transportation, health care, education, distribution of goods, hospitality, tourism, restaurants, advertising, retail sales, and others. Achieving step 10 makes it possible to lower taxes because more revenue among more people and businesses means less needs to be taken from each. When people have lower incomes and companies have lower profits the shortfall causes taxes to rise in order to make up for budget shortfalls. When you and your neighbors make more money and when new business open and thrive your taxes can go down. Achieving step 10 lowers budget deficits and puts money in the bank accounts of individuals and the government. Each of the next steps of the CPP™, steps 11-13 all result from success and drive towards continued and increased success. Trust, confidence, pride and a better international image make for a more stable stock market, a better value for the dollar and lower trade deficits. Steps 11-13 bring higher return on investment (ROI) and encourage investments in step 14. And step 14 closes the circle and provides the investment capital, enthusiasm and creativity to continue the cycle of steps 1-14.
Section 3 is described in the column on the right of the CPP™ that describes the results of steps 1-14. This Strong Economy column outlining the end results of a well-managed and successful CPP™ can only be achieved by committing and executing step 1 of the CPP™. It all starts and ends right there. And the beat goes on and Americans and America thrives. When America thrives the world thrives. The world slips when America forfeits its position as the world’s preeminent product builder.
Eight Critical Conclusions
1. Only through success in the CPP™ can there be a strong economy. The failures of Banking and Real Estate with the massive numbers of foreclosures and deep recession are results of the failure to build products here and to keep jobs, income and profit in the USA.
2. Big product industries spawn small business.
3. Big and small businesses create service businesses.
4. Services: financial and government can’t ever on their own improve the economy.
5. Only through the product driven process can America avoid a long-term deepening of this recession, prevent a depression and revitalize America.
6. Borrowing massive amounts of money from China to finance our failures in the CPP™ must end.
7. The single most important cut in spending to restore the CPP™ must come from an end to massive war expenses and focus on peaceful progress toward a balanced budget, federal surpluses and innovative ways to resolve health care, Social Security and education.
8. Properly targeted tax cuts and incentives to productive industries to develop jobs AND to bring back outsourced jobs are very important.
Following is my article published in March 2007 by PrimeLife Magazine. This article provides a portfolio of 17 product areas—not just cars— that are a roadmap to executing step 1 of the Central Productive Process™. Each and every product area described is an area in which there is no doubt that American ingenuity can excel. Times are tough, but the future is in our own hands if we reach out and grab the challenge. It will take perseverance and courage. As a people and nation we have been generous to the world and we will continue to be. That future international generosity and support for others can, and should, only be fulfilled as we revitalize our economy by building products that enrich the coffers and heart of our own American family first. Then we are able to share our wealth and our strength with others to help them realize their dreams. That’s what America is all about.
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