About 20% of any population will have the mental aptitude to train for the higher skill sets you refer to. What will the other 80% do? will you genetically alter them to make them smarter? Over time, if 20% of Chinese Billion and the Indian Billion population acquire the skill sets you refer to, how will you compete with them when you pay inflated wages? Intellectual work is becoming easier to out source. Ask the IBM engineers being layed off.
You need to learn about the difference between domestic comsumer nations and exporters. The US produces a LOT but mostly its consumed internally as a result it doesnt create the mercantillistic pride of saying 'hey we export more shyt than everybody else'. The manufacturing in america is suffering from competition so fking what. There is plenty of other industries doing well but even in the manufacturing side try getting a plane with the quality of boeing 747 in china, you cant do that. For that matter try getting an operating system out of china, try getting a college degree in china, try getting microprocessors and chips in china, they might not be made in the US but its uncle sam who takes the check of the final good 'we produce nothing'?Have about the most liquid and broad stock markets in the world and the services related to them?The most liquid bond market in the world(which is a HUGE 'export' to asian nations).think again.
Inflation? Never heard of it? Look at a chart of the USD v. EUR or USD v. GBP and also add in the DJIA...you'll see the indices have gone almost nowhere.
In the long run, it's ALL about productivity and productivity growth. And right now, we're turning out HS grads by the carload that simply can't compete with Maziar and Chung, and colleges are turning out far fewer engineers than we need. Our productivity growth is doomed to suffer the consequences.
i guess you would make more due to inflation if you were a long term trader or rather a long term investor, that invests in products that are correlated with the economy. most of us are short term traders, if not daytraders. inflation is not going to help us catch 2 more points on a short term move. if i long crude contracts because of tension with iran, it isnt inflation that is driving up the price of oil. if i short the home builders because the housing market is overbought and overpriced, it isnt inflation that is making the housing market crash. most traders will make the same amount with or without inflation. but once you factor in inflation, our profits are worth less. but my point is that we dont make more because of inflation.
you cant be serious can you? you really think 80% of a given population is genetically incompetent and incapable of higher learning? if that is true then we should not defend and support that 80% and let them get phased out. let the competent 20% continue to prosper and reproduce and after several generations, our country will have 80% genetically competent people and only 20% stupid people. unfortunately, i have a hard time believing that 80% of the population is genetically too stupid to get a higher degree and obtain high skilled jobs. dont get me wrong, there are alot of stupid people out there but the 80% who have low skilled jobs are where they are because they choose to be there. in other words, they are lazy and they dont want to work hard, get an education and work towards getting a higher skilled job.
If you go by IQ distribution, then only 1% have an IQ over 130 which is about min needed to be a Doctor. The average IQ of blacks is about 80 which is 1.1 standard deviations below the average white. The races in order of IQ is Near East Asians, Jews, Whites, Hispanics, Blacks. This is well documented and has been borne out by over 100 years of testing. Within 20 years we will find the gene that handles IQ and in about 100 years we will upgrade the human race. John
I dispute the premise of the rest of your post but as far as the part quoted above, it can't come soon enough. Keep in mind though that the people who conceived of and executed the strategy in Iraq probably all have IQs well over 130. My guess is that Hitler, Stalin, and Mao all had IQs of at least 130.
If only OUR leaders had the God given sense to see that all they will be leaving their children as a legacy is an insurmountable mountain of debt. If they wouldn't try to live beyond their means all the time, they wouldn't be continuously borrowing more, and countries like China would have to buy things from us with the dollars instead of lending them back to us.
As someone pointed out, the import to US from China is only 16% of all imports, Canada is the #1 importer to US. So China is only a marginal importer. What is the real reason of the trade inbalance? Why cannot US export to China? One reason is that US companies cannot export high tech to China due to its own government restrictions. One of the main competitive advantages of US is in high-tech, but they cannot be exported to China. High speed computers and anything high-tech that has potential military implication are highly restricted (they can be exported to other countries). US needs to know what other countries want to buy, but most US companies looked down on developing markets in addition to government restrictions. Of course, there are a few exceptions. GM is such an exception, GM China is a huge success.