I read with inteerst and amusement Obama's statements about US competitveness vs India and China..
Interest is because I worked and studied in the US for 7 years. Further to that I have resided in Asia for the better part of 18 years. I'm in Singapore currently.
I mean no insult to the president who I have repect for, but I was rather amused that he made such a statement. Why? Well, the obviousness of it all. If I had the opportunity to speak to him, I might ask. "Did you just realize that or did you think the rest of the world does not know" Either way, he was stating the blatantly obvious.
Unfortunately , depending on who you support, the US has priced themselves out of competitiveness. However, the Human rights that they exercise in the US without going into exceptions , are admirable
Whate are these exceptions by the way? Guantanamo bay for one, Airport humiliating searches of Arabs and other minoriities, and the patriot act. well, I guess no one is perfect, but .I digress.
So the Americans are good at paying decent wages and miniimum wage laws. They are good at giving people the opoprtunity to have a life outside of work. They are most good at freedom of expression. Their services are good, and their tecnology admirable.
So what's the problem. Well the cost of living is so high that all the labor of America has priced itself out of competitiveness. In addition to that , the American population can't possible grow to tthe scale of India or China. The wealth would dissapear on social maintenance.
How then are China and India in a better state.
For one thing,they have phenomenally large populations that are willing to work for low wages. These same populations create great internal demand.
Secondly, they seem to be gaining as far as technology is concerned. The Japenese for example are fantastic at copy cat.They have perfected that since the 70's. They take American products.copy them, improve upon them, and sell them at a lower price.
Thirdly, the US, a great specialist in services, has a lack of natural resources., comparatively speaking .
People buy from Asia, sell to Asia, produce in Asia, and perhaps retire there as well.
Its cheaperr; pure and simple.
The economic woes, the debt crisis, the housing market, and the protracted war on terrorism, have all been nails in the coffin. Too much money is flowing out, mostly o Asia What have they left for the poor American people.
On another note,we can't blame Obama. He's only tryiing to fix the damage created by his predecessors.
Trade will continue to be in Asia as I see it. They are a great supply chain for the West. How long will that last? Well as long as US incomes are high. The jury is still out on that one.
