Saturday, July 9, 2011

China’s Competitive Advantages Grow While the US Borrows War Bucks!

Writing in the current issue of the International Journal of Sustainable Strategic Management, Jack McCann of Lincoln Memorial University, in Tennessee, says that China has witnessed an average annual growth of about 10% for nearly two decades and has been uniquely stable in the present world economic crises. Indeed, China’s merchandise trade has been growing three times faster than world trade at about 14%. China currently produces nearly two thirds of the world’s bicycles, a third of its television sets and air conditioners, and half of the world’s microwave ovens. China has become the world’s second largest oil consumer after the US. McCann says:

On paper, globalization poses the long term potential to raise living standards and reduce the costs of goods and services for people everywhere. … China’s pool of cheap labor may dominate world labor markets for decades, giving it a monopoly on cheaply manufactured goods

Globalization has wrought new opportunities for many nations. China is no different from how the US was, and how any other nation is in attempting to make the most of its advantages, cultivating friendships with third party countries. Meanwhile shamelessly greedy US politicians try to support enormous war spending without frightening the rich with taxation! Instead the US trade deficit with China increases year after year into the hundreds of billions of dollars. What will happen if the Chinese decide to release the dollars they hold on to the market? The dollar will be devalued and the US bankrupted.

So tax the rich to pay US workers for what they do best—make excellent products that the world wants to buy. Rebuild our decaying cities and infrastructure. Use our technical knowledge to improve labor productivity at home, instead of outsourcing abroad! Compete!

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