Wednesday, February 16, 2011

TRADE WITH CHINA --- GOOD OR BAD?

There are many working class Americans who have lost their jobs because of China’s ability to manufacture durable goods at a cost that is less than we can produce those goods. So, is trade with China a bad thing for our country? Maybe for the short term but trade with China is a necessary and good thing for the future of our country. The trend towards a global economy is unstoppable. Trade protection and tariffs are short term remedies that will quickly fail and be bad for the future of the U.S.A.  History proves they do not work.
The U.S. led the world through the industrial era and it will lead the world through the information era. Technology and ingenuity were important for the age of machines and manufacturing. But now, they are even more important for the vanguard of the information era. Overall, we are currently a net exporter of services with a surplus of $136 billion. Now, our most important product is intellectual property. In spite of the recession, exports of financial services were $230 billion last year. Microsoft, Google, Apple, Amazon, Facebook, and Twitter, shows that we are now the technological leader of the world. Imagination and knowledge will continue to be our strength in the future. Our present economic migration from a material- based industry to a knowledge economy of intangible goods such as, software, design, and media products is a realty that we all must get on with in order to survive. We are no longer the cheapest producers of physical products!

4 comments:

  1. I'm moderately skeptical on this. Still rational and civil is a you wrote good. That's being lost too. Thanks talk radio.

    ReplyDelete
  2. Wow! A new visitor. Thanks for stopping by. Not sure I understood your comments but I am happy to receive them. Looking forward to more of your "code word" comments!

    ReplyDelete
  3. It's difficult for those caught in the undertow to appreciate the long-term bennies of globalization. Understandable and exceedingly unfortunate. Of course, a lot of this pain can be laid at the doorsteps of our so-called leaders who failed to see and prepare for the economic revolution. So, here we are scrambling to catch up at the expense of the U.S. worker. Nevertheless, as you predict, we will catch up and be stronger than ever going forward. Notice that China has entered the inflation stage of their economic trip: prices will rise, wages will rise, and other still-poor countries will enter the fray, probably African countries. And so it goes....................
    TsarPat

    ReplyDelete
  4. You are right! That's why I am working on fund raising so we can get you elected as President.

    PS: to all the millions of readers of my blog. Send a check, today! Let's put a Tsar in the White House.

    ReplyDelete