Lot, Let me ask you a personal question. Have you ever owned a business of your own?
The reason I ask you this question, because you labour for years (Tinkering as you call it), but that one year creates more profit then you have worked for an employer can pay for a lifetime.
You have answered the question right about debt of US around WWII, and by the way it was before entering and at the time of fighting the war. Look at the graph after the war where US tinkered for years to bring it down, and that downward trend was not based on Gov't spending, but more so of economy growing based on not only by manufacturing but by technology also, a perfect example is Japaniese products in late 80's and 90's.
The high horse that the Chinese are snorting is not based on technology development but by merely economic scale of production. Believe me, if any first world country has to compet based on economic scale value of manufacturing it can outdue Chinese model at any perspective.
The solutions to America's problem of growth that you speak about is not manufacturing jobs, it is more in perspective of taxation and gov't control. Majority of Blue chip companies of American are manufacturing in third world countries, but headquatered in US, where major taxation and gov't control applies to them....
Thanks....
Actually I do run my own business, that's why I am located here in the UK and not in China. There is no need to inform me about working life and life savings etc
Worker's mentality simply cannot be compared with someone who runs their own businesses. They work to save where as we employ, work invest and grow. Of course the success would depend a lot on the nature of the business and the way you run it.
When you talk about the history of the American economy especially in the times post WWII. You have to consider how the rest of the world was affected and they had to recover from the effects of the war. America on the other hand was different. Not only did they survive without scratches in its home, they've also brought in many German engineers to work for them. Hence technologically, they grew at a phenomenal pace with little competition elsewhere around the world. However, technology alone will not save the economy, just look at Japan now and you will see.
The high horse you so conveniently spoke of needs to be praised. How many would have imagined it to be in China? Regardless of China's economy being based on industrialization or not, that matters not a lot. What matters are, China took their chances and they made use of it well. Just like what America did post WWII. When you said "if any first world country has to compete based on economic scale value of manufacturing it can outdue Chinese model at any perspective." It made me wonder, which first world country in its present state of economy are able to come out and compete with China? and if so how? and why not do so now to safe their ailing economy?
Lets not forget that cost of labour, material, available infrastructures, business networks are already in established in China. Sometimes you just have to admit what is lost will not come back. When China finally moves on to other sectors of the economy, then these manufacturing jobs will most likely go to countries such as India or Vietnam, not back to the first world countries. Asof now, there is simply no other country who can match China's production output due to it's currency and low cost of production. Moreover they are not in debt and have $3 trillion foreign exchange reserve to invest in.
In regards to the blue chip companies and taxation. You would have to consider the cost of labour and production output. My guesses are little to non are Government-owned means there is little they could do to persuade them to come back, as a matter of fact, they may even end up driving them out altogether if they don't play their cards right. I've already said earlier that America's society and structure is different. Unless there is a surge of Americans looking for cheap manufacturing jobs and companies willing to employ, they are unlikely to compete with present China who's minimal wage structure would be too silly to be placed upon the table for comparisons. Can you see Americans working for a dollar an hour with unpaid over time?
Taxation can only do so much, but it will not be able to solve the present American fiscal crisis.
You are welcome.
