What Americans should understand that the state of them being the top dog in the World was not their manifest destiny but a historical accident thanks to Roosevelt and Churchill. The country has been slowly declining for the at least last 40 years and this decline was sometimes arrested as in the Clinton years, sometimes accelerated as in Reagan or baby Bush years, but was never reversed. MIT has been as guilty as others in contributing USA's insistence on putting appearance before the substance (Remember all the grandiose claims coming from MIT Media Lab).
It is very true and simple enough principle that the economy who produces; Grows, and the economy who only utilizes the produced things; falls, now we are to decide how much we can product to reduce the down fall of the economy.
The road back to prosperity will be hard for the US. Those among us who have benefited hugely from the suicidal trade with China and financial shenanigans in Wall St. will resist it at every step and use various spurious arguments to enroll even folks who have been hurt by them.
Here are some stats :
For the last 20 years China has bought only 20 % of what it exports to the US. China's trade surplus with the US is $ 300 billion per year.
China is doing what is good for them, it is up to the US to protect its self - interest.
Unlike Japan, nuclear armed China is simply too big and hungry. You cannot have "Free" trade with such a country.
When you add all the collateral damages from "free" trade with China :
1. loss of US technical competitiveness by xfer of US manufacturing technologies & infrastructure ( developed at US taxpayer & consumer expense )
2. open access given to Chinese students to best Universities and Labs which allows China to catch up in select Defense / weapons technologies ( Stealth, ballistic missiles capable of hitting US carriers )
3. rise in commodity prices ( oil, copper, food, )
4. rise in unemployment, benefit expenses, loss of taxes ( individual, corporate )
All this added up probably makes the net effect of trade deficit with China more like 1 trillion a year
Thats 7 % of current US GDP, added over last 20 years at least as much as current National Debt. If you work out the cost of re-employing even 50 % of the current unemployed in jobs lost to China, overall the US would still come out ahead.
Those who have made out like bandits by outsourcing to China would of course try to scare us about repercussions ( China withdrawing its "puny" 2 trillion investment in the US, trade war, higher price for consumer products, etc. )
Unfortunately there is no other choice
I agree. That's why we should dump the cheap pay job to oversea and we should keep the high pay job here. Let them suffer the enviroment problem there. The only problem is our Congress want to force China to raise the exchange rate. This dump move would push our living standard lower because they would not subside us as much. This Act would not get us job back because companies would find other low paying places to manufacture their products
I understand that education is a key point. However, where are the jobs? There are two issues here, first we lose the manufacturing jobs due to competition and companies profits. The second issue is due to poor government leadership. President Obama lead us into the this recession. We still can have jobs here if President Obama wants us to by reversing his job preference. The only real chance is use the supply and demand theory as what I have propoed to him back in 2009. We cannot afford to have both communist and capitalist in the recession time.
I agree, we as a country have preached "free trade" however we are the only nation that practices what we preach. Our free trade policies have are part of the reason that manufacturing has moved overseas. We as a nation need to reassess these policies and look in the mirror and decide what is best for the USA.
This is an issue. I only have some colledge yet have been in the electronics industry since 1984 and for the last 10yrs have been designing state of the art embedded communication boards and have a very good track record of successful designs yet never really get teh respect from my peers that have the MBAs yet have worst track records. The point here is that not everyone needs the ticket but does need to suck it up and possibly take that leser job to gain the experiance first, still need the assembliers, shippers, technicians, and even teh janitors to keep it all running.