Manufacturing Job Losses and Causes

 Manufacturing Job Losses and Causes

Manufacturing jobs in the U.S. have generally declined over the decades, peaking at about 19.6 million in June 1979 and falling to approximately 12.8 million by June 2019. As of late 2025, there are nearly 13 million manufacturing workers, reflecting a slight recovery but still below historical highs.

There are multiple causes for this declining trend. Automation is a factor but failure to automate would raise costs and prices and therefore put us at a disadvantage to other nations who do automate while reducing our standard of living due to higher costs to purchase the things that we want.

Another major factor is tariffs. For decades, other nations have had much higher tariffs on us than we did on them. Those higher tariffs caused more products to be produced by other nations and less products to be produced here in America as our overseas export sales were reduced by these tariffs which made our products more expensive to purchase by foreign nations. The Trump targeted tariffs against those who have dealt unfairly with us is already starting to result in more fair trade.

Another major factor in the reduction in American manufacturing exports is unfair trading practices, particularly by China. Through slave labor and government subsidies, China has made many of their products cheaper than they would have been. Why would they do that? Doesn't that hurt them? China's goal is to put competitor foreign manufacturers out of business. Once they accomplish that, then they can raise prices while dominating the market. That is the same strategy that our domestic monopolists utilized in the 1800s when monopolies were still legal. They were big enough to absorb losses from selling under cost for a short period of time to put smaller companies of the same product out of business. Then they would raise prices very significantly after those competitors were out of business. That is why Trump putting some extreme tariffs on China to combat their very unfair trading practices. Initially, there would be some pricing pain for us on some products, but long term we will be much better off as China would be forced to abandon their unfair trading practices with America. However, you can bet that they will continue these unfair trading practices with other nations, especially developing nations.

Sole Owner 401K Contribution Limits 2026

A sole owner of a business can take out two kinds of 401Ks, each with very high maximum contribution limits:

1. As "sole owner" of the business - "Solo 401K" - Employer Non-Elective Compensation.

Maximum contribution to a "Solo 401K" in 2026 is up to 25% of compensation to a maximum of $72,000 each year, or if 50 or over, a maximum of $80,000 each year.

2. As an "employee" of the business - "401K" - Elective Deferrals

Maximum contribution to a "401K" in 2026 is $24,500, or $32,500 if 50 or over.

3. Total combined 401K maximums each year are $97,000, or $112,500 if over 50!!

Be smart and make sure both the solo 401K and the 401K are Roth 401Ks, not Traditional 401Ks. Otherwise you will pay a fortune in Federal income taxes and in some cases state income taxes when your Traditional 401Ks are withdrawn in retirement as these annual contributions, if invested in the stock market, are likely to average double in value every 7 years. With Roth 401Ks, you will not pay taxes on withdrawals in retirement.

4. Plus do not forget that you can still take out IRAs annually too, Again, always invest in Roth IRAs, not Traditional IRAs. Annual 2026 IRA contribution limits are $7,500, or if 50 or over 50, $8,600 a year.

How to Save Lots of Money on Mortgages

How to Save Lots of Money on Mortgages

Want to save a lot of money on a new mortgage? Get a 15 year home mortgage instead of a 25 or 30 year mortgage. As an example, Let's take each of those mortgages at a 5% interest rate for a $100,000 mortgage and compare:

1. Monthly mortgage payments (without property taxes included) would be $536.82 (30 year), $584.59 (25 year) and $790.79 (15 year). Therefore cutting your 30 year mortgage lifetime in half for a 15 year lifetime mortgage is much less than double the 30 year mortgage monthly payment.

2. Lifetime out of pocket mortgage money you pay is $193,255 (30 year), $175,377 (25 year) and $142,343 (15 year. Therefore a 15 year mortgage saves you almost $50,000 in out of pocket lifetime monthly payments versus a 30 year mortgage and over $33,000 versus a 25 year mortgage on a $100,000 mortgage.

3. If you sell your house before the mortgage is paid off, a 15 year mortgage will have paid off much more mortgage principal than a 25 or 30 year mortgage. Therefore, you will have much more money left over after you pay your mortgage balance with a 15 year mortgage than with a 25 or 30 year mortgage.

Here's a link to a free mortgage calculator to help you determine the costs and savings using mortgage loan balances and interest rates that apply to your circumstances.

https://www.mortgagecalculator.org/

Self Employed with High Earnings and a Non-Working Spouse

 

Self Employed with High Earnings and a Non-Working Spouse

Let's say you are self employed with a non-working spouse and making at least double the maximum taxed Social Security limit of $176,000 (in 2025; normally increases each year).

If you hire your spouse as a stay at home worker and give her/him little or nothing to do, but pay her at least $176,000, then:

1. The spouse would pay the SS tax on $176,000 and when you both retire, your SS income would be 33% greater that it would have been. Though it did cost you extra SS taxes of about $12,000 per year.

2. Your combined 401K contributions and therefore tax exemptions could be as much as $23,000 to $31,000 (age 50 and over), saving you substantial tax dollars.

3. Your combined IRA contributions would be double, saving you more tax dollars.

4. Though your self -employed income would now be less, your combined total income would be the same, costing you no extra taxes nor loss of total income.

5. Even if not making double the Social Security maximum but making more than the maximum, implementing this idea on a partial basis could still be beneficial.

Income Inequality In America Is Justified and Good

 Per news reports, income inequality is an important issue for many American voters. Just proves that You Can't Fix Stupid!! Here's why income inequality is fair and good:

1. People with higher education levels on average earn more money, For example, college graduates earn more on average than high school dropouts. That's fair.

2. Skilled workers earn more than unskilled workers. That's fair.

3. People who have been working for decades earn more than people who haven't been working very long. That's fair.

4. People who have been working for decades have had more time to save and invest thus building more total income, plus pay off house mortgages than people who haven't been working nearly as long. That's fair.

5. People who are frugal with their money normally have more income saved than people who spend most or all of their income or more than their income. That's fair.

6. People in the same jobs, whether they are men or women, earn the same amount of money. That's fair and also has been the law for over 50 years.

7. People who work harder, longer, and smarter than their peers generally earn more and get more job promotions. That's fair.

8. People who are willing to endure longer commutes to work, especially if they work in big cities, can find cheaper homes and rentals than those who choose to live in the city where available land and housing is more limited. Thus their residences are larger and nicer, plus they can save and invest more income. That's fair.

9. People who have less or no children, have lower expenses, more money saved and invested, and a higher standard of living than people who earn the same amount of money but have more children. That's a choice that is both understandable and fair.

10. 50% of single parent households live in poverty versus only 10% of married households with children living in poverty. Very understandable and fair. Two potential income earners and babysitters versus one. To deliberately become a single parent household instead of getting married first is the height of stupidity.

11. Divorced people have lower income standards and savings than their married peers. Understandable and fair. Two residences to support for divorced people versus one residence to support for their married peers.

Now there are Communist and heavily socialist nations where there is more income equality than America. However, they pay a very heavy price for it. They are much poorer and have much lower living standards than Capitalist nations. For example, the average European in a heavily socialist nation pay 40 to 60% income taxes, plus a hidden 25% national sales tax called a Value Added Tax so that their net income does not go very far. Consequently their average residence is 600 to 800 square feet with only one bathroom compared to the average American with 2,000 square foot residence with multiple bathrooms. Plus their medical services are "rationed" as they have far less doctors, hospitals, and medical equipment such as medical scanners and CRTs per equal population size than America. Why would you want that?