AMERICA'S TWINKIE ECONOMY...!

THE RECENT BANKRUPTCY OF HOSTESS AND THE TWINKIE BRAND...IS A MICROECONOMIC VIEW OF WHAT IS HAPPENING AT A MACRO LEVEL IN THE US...

LARGE COMPANIES...MOSTLY UNIONIZED....HAVE DEVELOPED OVER MANY DECADES ICONIC BRANDS OF GLOBAL SCOPE...

BUT NOW WITH THE DEPRESSION CAUSED BY GLOBALISM AND LOW WAGES.....THE PENSION AND WAGE BURDENS ON THESE "LEGACY" COMPANIES IN THE US ARE OVERWHELMING THEM...

HENCE THE NEED FOR BANKRUPTCY TO "SHED" THESE "LEGACY COSTS"...

IT HAPPEN AT GM...AND AT OTHER LARGE US COMPANIES...

IN A WORLD WHERE LOW WAGES RULE...LEGACY COSTS OF UNION PENSIONS AND WAGES ARE NOT SUSTAINABLE...

NOW...PERHAPS... A CHINESE COMPANY WILL COME IN AND BUY THE HOSTESS BRANDS...AND MARKET THESE PRODUCTS GLOBALLY...

THE WORLD WILL NEVER BUY CHINESE OR ASIA "BRAND" PRODUCTS...BUT THEY DON'T HAVE TO....AMERICA WILL SELL THEIR GLOBAL BRANDS TO CHINA...AS THEY GO BANKRUPT...

IT IS POSSIBLE THAT UNIONS HAVE BECOME OBSOLETE...AND THAT THEY HAVE BEEN REPLACED BY THE POST WAR WELFARE STATE...

WHAT DOES THIS ALL MEAN...LONG TERM...?

PROBABLY THAT WE WILL ALL BE WORKING FOR $3 PER HOUR 50 YEARS FROM NOW...