The lesson: Sometimes when you let your capabilities get away, you give up not only one industry but all its progeny.
Amazon’s Kindle e-reader cannot be manufactured in the U.S. and that’s a cause for concern.
Even though the Kindle’s key innovation — its electronic ink — was invented and is being made, at least for now, in the U.S., Asian manufacturers are capturing the vast majority of the value added by manufacturing the e-reader itself. Even more worrisome, the U.S. is almost certain to lose control of the e-paper display technology and the future innovations that spring from it.
Government power is growing, and unless President Barack Obama and the majority in Congress have a libertarian epiphany, it will continue to grow for years.
Obama’s 2010 budget will come in at more than $3.4 trillion, with a deficit of well over $1 trillion. Though the deficit will decline — if the administration’s dubious projections of economic growth and war spending are correct — it will remain high, at about $1 trillion a year. The Congressional Budget Office sees $2.3 trillion more in deficits over the next decade than Obama anticipates. The main reason for the CBO’s disagreement is that it believes Obama is understating spending, by $1.7 trillion. That will bring spending to more than a quarter of GDP before falling to 23-24 percent. This is high even by recent standards.
BRUSSELS — China invoked defense of its “public morals” in appealing a World Trade Organization ruling against restrictions on distribution of Hollywood movies and other Western media, according to a copy of the appeal seen by The Wall Street Journal.
The move reflects escalating trade tensions between the two trading partners ahead of the Group of 20 summit in Pittsburgh starting Thursday. This month, the U.S. slapped tariffs of 25% to 35% on imports of Chinese tires. Beijing retaliated by opening probes into imports from the U.S. poultry products and auto parts.
The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice.
A document outlining the U.S. position ahead of the September 24-25 Group of 20 summit in Pittsburgh said exporters, which include China, Germany and Japan, should consume more, while debtors like the United States ought to boost savings.
“The world will face anemic growth if adjustments in one part of the global economy are not matched by offsetting adjustments in other parts,” said the document, which was obtained by Reuters on Monday.
Down at the Chinese outlet store in Albany known as Wal-Mart, Chinese tires have so successfully undercut U.S.-made tires that the Cooper Tire factory in that south Georgia town had to shut down.
Twenty-one hundred Georgians lost their jobs.
The tale of Cooper Tire and what it portends is told in last week’s Washington Post by Peter Whoriskey. [As Cheaper Chinese Tires Roll In, Obama Faces an Early Trade Test, September 8, 2009]
How could tires made on the other side of the world, then shipped to Albany, be sold for less than tires made in Albany?
“Bush Boom Continues” trilled the headline over the Lawrence Kudlow column, as George W. Bush closed out his seventh year in office.
“You can call it Goldilocks 2.0,” purred Kudlow.
Yes, you could. But what a difference 12 months can make.
Final returns are now in on the eight years of George Bush. Charles McMillion of MBG Information Services has crunched the numbers. And, pace Kudlow, the only relevant comparison is to Herbert Hoover.
“British jobs for British workers!” thundered Gordon Brown, as he emerged from the shadow of Tony Blair to become prime minister.
His populist sloganeering has now come back to bite him.
Across Britain, thousands laid down tools in wildcat strikes in solidarity with a walkout from a French-owned oil refinery in North Killinghome — to protest a $300 million contract to an Italian company that plans to bring in 400 Italian and Portuguese workers to fulfill it.
As Brown pleaded from the World Economic Forum in Davos, Switzerland, that Britain must not retreat into “protectionism,” strikes spread to Scotland, Wales and Ulster.
“I’ve abandoned free-market principles to save the free-market system,” President Bush told CNN, defending his offer of $17 billion in loans to the Big Three “to make sure the economy doesn’t collapse.”
Thus did Bush concede that protectionism, if a critical U.S. industry is in peril, must trump free-trade ideology. For in offering the bailout to GM, Ford and Chrysler, Bush, by omission, excluded BMW, Mercedes, Honda, Toyota, Nissan and Hyundai — though all operate auto plants here in the United States and all are feeling the same sales slump.
So may have read the headline Friday, had not President Bush stepped in to save GM, Ford and Chrysler, which Senate Republicans had just voted to send to the knacker’s yard.
What are Republicans thinking of, pulling the plug, at Christmas, on GM, risking swift death for the greatest manufacturing company in American history, a strategic asset and pillar of the U.S. economy.
To hear the media tell it, arrogant corporate chiefs failed to foresee the demand for small, fuel-efficient cars and made gas-guzzling road-hog SUVs no one wanted, while the clever, far-sighted Japanese, Germans and Koreans prepared and built for the future.
I dissent. What killed Detroit was Washington, the government of the United States, politicians, journalists and muckrakers who have long harbored a deep animus against the manufacturing class that ran the smokestack industries that won World War II.
When Hank Paulson demanded $700 billion to haul away the trash in the dumpsters of JPMorgan Chase and Goldman Sachs — assuring us we could hold a garage sale of the junk — they rebelled. They acted as the nation, by 100 to one, demanded. They killed the Wall Street bailout.
The Dow quickly sank another 1,000 points, and, charged with criminal irresponsibility by the elites, the GOP buckled, reversed itself, rescued the bailout — and was wiped out on Nov. 4.
“Laissez-faire is finished, the all-powerful market that is always right, that’s finished,” said Nicholas Sarkozy, speaking ex cathedra, last month.
As a result, said the diminutive French president, it is “necessary to rebuild the entire global financial and monetary system from the bottom up, the way it was done at Bretton Woods after World War II.”
Sarky’s history is a bit off. The Bretton Woods Agreements were actually signed in July 1944, when German troops still occupied Paris, a month before France was liberated by the Americans, who let Charles de Gaulle and the Free French do the honors.
For decades, before a heedless congregation, some of us have preached the old Hamiltonian gospel.
Great nations do not have trade partners. They have trade competitors and rivals. Trade surpluses are superior to trade deficits. Tariffs on foreign goods are preferable to taxes on U.S. producers. Manufacturing, not finance, is the muscle of the nation.
Economic independence is vital to political independence.
Following Hamiltonian precepts, the United States grew from 13 rural and agricultural colonies into the greatest industrial power in all history, producing 42 percent of the world’s manufactured goods. We were the awe and envy of mankind, the self-sufficient republic, maker of half of the armaments produced by all the nations in World War II.
The lesson: Sometimes when you let your capabilities get away, you give up not only one industry but all its progeny.
BRUSSELS — China invoked defense of its “public morals” in appealing a World Trade Organization ruling against restrictions on distribution of Hollywood movies and other Western media, according to a copy of the appeal seen by The Wall Street Journal.
The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice.
Down at the Chinese outlet store in Albany known as Wal-Mart, Chinese tires have so successfully undercut U.S.-made tires that the Cooper Tire factory in that south Georgia town had to shut down.
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