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IMG2

the Failure of American model

jim mullen

1/31/2012 7:47 PM EST

So far the focus of conversations about the troubled US economy has been on many front including Foxconn working condition, tax code etc.

Here I need to enlight all of you the fundamental cause of this situation -- the failure of american model.

what's american model of a average factory?
500-2000 employees, living within 100 miles from the factory.
each will have a 3-5 bedroom house made of wood board.
everyday they have to drive in and off travelling 50-200 miles with 2-3 tons of metal.
Their house will burn tons of electricity or gas to keep warm/cool in winter, summer.

so .. this is the bottom line of american model.

This works cool in the 70s/80s while oil is plenty and internet didn't exist. It helps to drive up american consumption and GDP.

But it makes american 's cost of manufacturing soar at the same time.

When the era of globalization looms in, americans are doomed to fail.

while ppl in singapore lives in high rise apt, commutes with rail/bus. the energy footprint is far less than their us counterparts.

Some exceptional americans such as bill gates could still find a niche to prosper but most average americans just can't help been squeezed out of the competition...






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