May I cite FED´s Fisher on this issue : " An excess of savings around the world is helping the U.S. to spend more than it earns. To cover the deficit, ``we have to remain a magnet for that surplus capital.'' Financial markets recycle ``what we pay out to make purchases abroad back into our economy in the form of investments that make us still richer and stronger,'' he said. Fisher, responding to a question, said he doesn't expect the U.S. personal savings rate to stay negative ``for long.'' The savings rate as a percentage of disposable income fell to minus 0.5 percent last year, the Commerce Department said Jan. 30, the first negative figure since the Great Depression.
A TON of jobs are outsourced to the U.S. The Japanese autoworker who used to build Camry's in Yokohama (or wherever ) has seen his job outsourced to the U.S. Who the fuck cares if a call center is out sourced? Are we concerned about losing a generation of reservation clerks? Do you pay up on your commissions or out of benevolence do you pay an extra quarter freakin' penny a share so that your firm can OVER PAY secretaries and compliance officers? Doubtful. It's the American CONSUMER who slit the throat of many high paid U.S. jobs. It's the American consumer who goes to 50 auto dealers skimming deals but then pays $75 to see a major league baseball game. Thus we have $19 an hour Maxima builders and $25mil a year athletes. So no bub, it's YOU who thinks he's more privileged than the masses. It's YOU who thinks "I'm American and I should chop wood for $20 an hour while a Chinese builds computers for $20 a month." It's the Left who're the old school exploiters of third world resources while providing NOTHING in return. Face it: you favor economic apartheid. You wish China was still dirt roads with folks starving in rice patties. All so some bloated unionized fuck can make in one week what 50 people over there could live on. My "world" extends beyond the closed factory in Asbury Park.
Hey Pabst - what will you say when (or if, if you prefer) China, with its undemocratic and totalitarian government, possesses military parity with the United States (or passes us), threatens U.S. strategic interests, and no longer relies on American consumers to grow its economy? Will this be good for our children in the U.S. when (or if, if you prefer) this day comes?
I think China could be a big problem when the inevitable trade war comes down. It is what it is. One things clear. There's more American's who want to buy a $9 pair of shoes (as opposed to the 1930's when shoes were a weeks wages) than American's who want to manufacture cheap shoes.
Jack up interest rates to prevent stupid people from buying so much imported garbage on credit. Introduce other incentives to SAVE and not just measure the size of the fucking economy by how much is CONSUMED! Today's metrics in terms of the health of the economy emphasize CONSUMPTION up the wazoo. Perhaps even penalize asshole employers who move their plants overseas to save a buck no matter at what cost. Make them share the burden not just the savings! Educate the population about the problems of beings a "throw away" society. It may cost less in the short term but the long term effects of so many resources being used up will be immense. FYI: Europeans, for example produce a LOT less trash when comparing household vs. household. Quit this bullshit promotion crap of SAVE!SAVE! at retail stores when all people are doing is shopping till they drop. Maybe a HIGH value-added-tax on merchandise (maybe not groceries) to curb so much unnecessary consumption. I'm sure many of these measures would get the country on the right track in no time! What's with the craze about owning a McMansion nowadays? A big house really benefits just about nobody. More resources used, bigger loan/more borrowing increasing interest rates. More crap to import in order to fill it with cute Asian junk. Put some damn penalty on that too (like getting rid of the interest deduction).
I'm not talking trade war - I'm speaking of war. Do we, as a nation, have a strategic vision that encompasses the possibility, maybe even inevitability, that if the status quo of U.S. economic policy stays intact, China may likely exceed our military capability?
No I'm speaking of military action caused by protectionism. What other impetus would there be? Oh, "they don't like our freedoms".....lol.
----- I agree with most of what you are saying. As for the our educational system, it is a freaking nightmare. It will change in the future because it has to. Also, we will put a higher emphasis on highly skilled workers in the coming years. If you listen to Newt Gingrich, he talks about these issues and has a vision for correcting them. I'm not sure if he will end up running in 08 or even if he is electable, but I sure do like the way he doesn't just point out problems, but also has introduces solutions.
I can think of a few - Taiwan, natural resources such as oil, a strategic alliance with Russia, an overall confidence that they won't be told who they can and can't share advanced military technology with. Those are just appetizers. Are you saying China and the U.S. have aligned interests, long term?
On the issue of education, we need to set up compounds in the U.S. where children begin formal education at the age of 4, and literally live on school campus from the age of 7 forward. They can have weekends off only if they obtain the highest benchmark scores in science, math and reading comprehension. Teachers who obtain excellent results will be paid large bonuses. Those that don't will be penalized. A militaristic approach to education is the only way to foster competitiveness with foreign nations, because of the fact that the U.S. is so large and non-homogeneous, and because so many parents have no control or concern over the welfare of their children in the U.S. The education of our youth is a matter of national security and should be treated as such.