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george.leopold
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re: Despite obstacles, experts say China continues to innovate
george.leopold   5/11/2012 1:05:19 AM
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Danny Breznitz of Georgia Tech has an extremely clear-eyed view of what's happening on the ground in China and the real implications of globalization for American manufacturing and our evolving relationship with China. We will continue to follow him.

Bert22306
User Rank
CEO
re: Despite obstacles, experts say China continues to innovate
Bert22306   5/11/2012 7:47:33 PM
NO RATINGS
I agree with the way this article describes the situation wrt US manufacturing. And I also believe that this is the root cause of the divergence between the rich and the poor in the US. This divergence is not caused by "trickly down doesn't work," which sounds absurd on the face of it. It is caused instead by the fact that "trickle down" DOES work, except it's trickling down into the Chinese economy, and not the US economy. The business strategists in the US make decisions whose objective is to maximize their companies' profits. To achieve their goals, they need to keep production costs as low as possible. So they export manufacturing, and they also export design. The investments of the venture capitalists and the corporate executives give them hansome returns (all we need to do is look at Apple), but the expected trickly down flow has been diverted way over to the East.



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