The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.
As recently as 2000, we produced nearly three times as much as the Chinese.
To put the numbers slightly differently, China now accounts for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the U.S.
This latest economic earthquake follows the development last year when China surpassed the U.S. for the first time in terms of global trade.
Are you sure it didn’t happen years ago? How long has it been since big companies decided to no longer buy domestically union made products and send their money over to red China? As someone else said, products have said “Made in China” for decades.
Give thanks to cheap and greedy North American business executives for this and no one else. Now all of North America is without the industrial infrastructure it once had and relies on someone else to manufacture its goods. I wonder what will happen when they’re not so willing to send us goods on a promissory note anymore and are demanding the debts be paid?
Manufacturing fled this country because of overregulation by the federal Govt. Move you plant to Mexico and you don’t have to put up with the EPA, OSHA, or any of the multitude of Govt agencies who’s sole purpose is to harass companies.
Is that supposed to mean that somehow Republicans must remain silent when the current administration takes, say, EPA regulation far beyond what anyone imagined when it was instituted? Who, for example, would have imagined in 1970 that a future administration would use it to purposely make energy bills “skyrocket”; to put coal miners out of work and to divert North American petroleum resources to China?
I’m sure nobody did other than perhaps those progressives of the time who thought if they ever got power they could turn the U.S. into another gray state in which the only use the elites had for the people would be to occasionally solicit their votes with promises never intended to be kept.
I think this states it excessively, though there is some truth to it.
There is actually a great deal of manufacturing in the U.S. It’s just different stuff from what it used to be. That could go sour, and that’s true. But there are certain things that are difficult to manufacture abroad and bring here. Not far from where I sit are some manufactories. One makes very large, bulky but precision-made equipment. That product is a net export. It’s almost impossible for another country to make it and ship it here without adding so much to the cost that it just isn’t competitive. Another makes very complex aluminum commercial windows that it ships all over the country, to Canada and Mexico, and has no serious foreign competition. Part of that is due to shipping costs and the hazards of shipping. Part of it is due to “just in time” needs of large construction projects. Part of it is just plain better engineering.
But I will agree with those who say this government has a tendency to discourage or do away with natural advantages this country has. Inexpensive energy is most definitely one of those. We’re shipping our coal to industry support in China, for goodness sake, while the EPA is making it almost impossible to use for energy generation here. All industry uses energy in one way or another, and some use a lot of it. We also have at least a potentially skilled and centralized workforce, while the bulk of China’s population lives out in the countryside and doesn’t know how to do anything but farm a tiny farm.
And as to that, China is mostly mountains and deserts (some newly created) while most of the U.S. consists in the best agricultural and grassland on earth. Agriculture doesn’t only produce food. It produces a lot of other products as well. What, one may ask, is the compelling reason why this government has put every stream, low spot and farm pond under the jurisdiction of EPA and the U.S. Army Corps of Engineers? Can a farmer correct a ditch on his property because he knows how to do it? Not after the new regulation, he can’t. He’ll have to apply to the Corps for permission so they can send out someone who will tell the farmer he can only do it the “government way” and, by the way, take out this fence and that drainage ditch because of such and such, and perhaps terrace if he wants to continue farming at all.
And why in the world is the government granting work permits to 5 million foreigners so they can compete with the unemployed or underemployed here? Do we not want chicken to cost a little more so citizens can get paid a little more for working in the poultry processing facilities? Why do we import, e.g., Somalis to do that (which we do); so McNuggets won’t cost an additional 25 cents? Do we not want aluminum casting facilities to pay a little higher wage, or is it really so important that we don’t pay an additional $100 for transmission housings that we import foreigners to do the work?
And, of course, why is it vitally important that we continue to run deficits so we have to rely on foreign investors to buy our bonds AND rob savers of any return in order to keep interest rates so low we can actually afford to pay the interest on that debt?
I personally think unions have had their day. I don’t think the lack of union labor is what’s keeping American wages from rising. The unions, after all, support importation of labor because they charge dues to low paid workers as well as high paid workers. The numbers are more important to them than the wages.