November 15, 2009

China and US: Economic Futures

China rising. Having China's economy grow should be good, yet, when it comes home, as Krugman says, there are some things to worry about.

So picture this: month after month of headlines juxtaposing soaring U.S. trade deficits and Chinese trade surpluses with the suffering of unemployed American workers. If I were the Chinese government, I’d be really worried about that prospect.

Unfortunately, the Chinese don’t seem to get it: rather than face up to the need to change their currency policy, they’ve taken to lecturing the United States, telling us to raise interest rates and curb fiscal deficits — that is, to make our unemployment problem even worse.

One of the other things I'd worry about is from the NPR story:

"Why is America's economy so good?" he says. "The first is education. The world's best universities are in America."

The second advantage, Yi says: The U.S. has the best high-tech talent in the world.

Finally, Yi concludes, "you have a good political system: democracy" — one that Yi says allows the U.S. to solve problems quickly.

One could only wish that was true. But with our fiscal policies and priorities throwing out education with the bathwater, the exporting of high-tech jobs overseas and the watching sausage get made for "solving problems quickly" to provide healthcare for all, one has to wonder.

Posted by Mary at November 15, 2009 10:15 PM | Economy | Technorati links |

I'm not sure I understand why we should spend any more money to educate people for a future in technology. Those jobs don't go to U.S. citizens, they go overseas where the labor is cheap. How does more education help us compete with that?

Posted by: Flo at November 16, 2009 01:19 PM

China has got huge capabilities in manufacturing sector and one day it may dominate the globe.

Posted by: vijy at November 17, 2009 04:38 AM

You can't outsource everything. We still have offices here in the US, and those offices need on-staff people who are educated in technology. When smoke is coming out of your workstation, the helpdesk in India isn't going to be of much use.

new shirts

Posted by: Ross at November 17, 2009 12:54 PM

Meanwhile over in Europe the headline is:

Obama Has Failed the World on Climate Change

By Christian Schwägerl

From Spiegel online quite a comment leveled at our president.

"Obama Lied to the Europeans"

"Obama's announcement at the APEC summit that it was no longer possible to secure a binding treaty in Copenhagen is the result of his own negligence. China, India and other emerging economies have always spoken openly about the fact that the US, as the world's largest emitter of CO2, has to be proactive in commiting itself to targets agreed on by way of international negotiation. But that is not America's style. The US is quite happy to see itself as the leader of the Western world. But when it comes to climate change, America has once again failed miserably -- for the umpteenth time."

Earth isn't in the balance anyway, so who cares what the Europeans thinks.

Posted by: peter at November 17, 2009 09:38 PM

we need to bring manufacturing jobs back to the US and level the playing field against countries that rely on cheap labor.
Only then will we escape the financial bondage we are currently in.

Posted by: bondage at November 19, 2009 07:48 AM

Its a nice read. Thanks for sharing the information.

Posted by: Belinda at November 20, 2009 03:43 AM