The Bishop and the Butterfly: Murder, Politics, and the End of the Jazz Age
    Decader's picture

    The Left Has No Foreign Policy

    I guess that's not a surprise.

    But after several years of blogging, with Dems in control for quite a bit of it, it's frustrating to see that we don't have an alternative to up-and-down in the Middle East.

    My biggest issue is NAFTA and China. Are they related? Kinda sorta. Mostly they're the swamp of our attention. (I saw House of Spirits last night, but won't bore you with where *THAT* takes me).

    Principally, NAFTA is the left's spiders & snakes. China is its bug-bear. You'd be hard-pressed to get acknowledgment that manufacturing would have shifted away from industrialized countries no matter who was in charge or what was done.

    NAFTA? A wash - trade has improved with Mexico on both sides. Sure, conditions aren't as good as they should be, and that has a lot to do with who was president from 2001-2009. But most of our manufacturing didn't go there, of course, it's a red herring. It went to....

    China. My God, bigger & bigger container ships, better containers, faster shipping time - the Pacific Ocean has never looked so small.

    1) The US could never have built such a necessary manufacturing base on our limited human resources - the next step of efficiency required an absurd number of hired hands. China has numours cities more populous than most of our states - and you can't run a plant with people commutning across Wyoming.

    2) What about the 3rd World? Every time a leftie talks about saving our jobs, they're also saying "screw the poor Chinese" and of course the rest of the world's poor schmoes, unless they have a strategy to do both.

    Yeah, the world's poorer spots will prosper through trade and markets, not through handouts. China growth spills over to SE Asia - it's the one strong example where Domino Theory and Reagan's trickle down effect actually play out nicely.

    But rich spoiled Americans always play the "me first card", whether on the left or right. The fact of the matter is if we want to lead, we have to stop being the first to complain. Our economic engine drives the world's, and if every time there's a problem, we cut the world off at its knees to save our own position, well, there will be repercussions.

    Like what? For one, between poor reactions of both Bush & Obama, the rest of the world is figuring out how to do its own stimulus, how to take care of itself during bad times. When the crisis hit, we should have been working with China to keep our partnership solvent, flawed & currency-rigged as it was. Instead, we pursued separate policies.

    So now we've fractured our Middle East partnerships due to war mongering, and our Asian partnerships and many European ones by cutting them off at first trouble - more and more they're figuring out they don't need us.

    Sure, we'll get to play world's policeman for some time - not many people grow up wanting to be cops. But in terms of pro-actively working on Africa's economy, working better with the EU, and most importantly harnassing the exposive growth in Asia, we're focused on our own domestic squabbles.

    There's a lot more money to be made in Asia than we've lost in the housing collapse. By not just taking care of the problem quickly, by continuing to blame China for *gasp* wanting to earn a living, but just not coming up with a pro-growth, pro-innovation, pro-worker, pro-higher level skills & management, we're just meeting the future with a back-to-the-fifties mindset.

    Yeah, there are bad trade deals - Korea's sounds like it really stinks - and I personally have been burned by overoptimism about China's markets. But in the end, Asia's where the people are, the new markets, the new growth & innovation. Thinking we're going to re-create our prosperity based on retrenching to our railroad-fed conquering of the West, or that there was something overtly special to America's growth that we re-create by closing our borders & looking inword? Foolishness.

    And since the right isn't going to do it, the left has to develop a pro-growth policy that figures what America's value-add is for the world in the decades going forward - and it's not rolling our own steel mills in vastly more quantities. (Mao tried to get every peasant producing pig iron in their backyards in his "Great Leap Forward" - that killed off millions. Do we need to emulate?)

    That doesn't mean I'm down on manufacturing - Detroit & other US-based car plants were/are great - we see how hard it is to *MARKET* cars well along with making cars, and frankly, for the track record no one does it better for as long. Marcie Wheeler talks about GM & the side of Wagoner that most people don't realize. Yeah, the money guys from Wall Street hadn't a clue, and worse, they didn't even talk to Detroit about health care, the biggest structural imbalance in the industry, the 800-pound gorilla in the living room.

    Both of these articles give an idea of *WHERE* US has value-add in manufacturing and what the problem that should have been solved is. But of course there's a lot more value add in other areas. What we're going to find is that we no longer have a monopoly on capital-intensive projects - our NASA and Manhattan projects, or the hey-day of turning GM into tank factories.

    Our value add is still our penchant for innovation and flexibility - a combination of markets, financing, ability to risk, realign our society, get resources to the right place, organize effectively from top to bottom.

    That value has taken a hit with the criminal financial mis-management - if the scale is tipped by hoodlums, it's hard to trust it for anything important - but it may come back, or the rest of the world will figure out a more acceptable second-best without the corruption - though even with our robber barons, there aren't that many places in the world where they don't have worse.

    In any case, our future is not to be peasant farmers or line-workers on an assembly line. Any effective foreign policy has to be jobs & growth based for the rest of the world or it's a non-starter - we'll just be competing for resources. So that means forget protecting jobs, and figure out the ones we can grow, how to keep our system more effectively adapting.

    China will continue to be able to throw money at large infrastructure problems, build fancy new bullet trains, et al., because of its more dictatorial authoritarian government structure. But that also means it can be less efficient too - like the Japanese pouring useless concrete for a decade, the Chinese have built unused buildings for a decade. Nevertheless, the Chinese are a lot better adapting than the Chinese.

    And then those other countries - Indonesia, Pakistan (yeah, the huge one with people who need jobs, not just the terrorist-ringed borderlands where we send drones), India, Vietnam, Nigeria, Egypt....

    An "America First" retrenchment will screw all the workers of these other countries. Aside from a need for return to diplomacy (not just lining up sources for troops in our adventures) is figuring out how fair trade means dual-growth. And as long as the left resists fair trade at all, that won't happen.

    Update: Somewhere it should be acknowledged that even if China were "completely" democratic this second, they would have huge growing pains to constrain their actions. They're moving from a rural to urban economy, their pollution issues make my memories of South LA 30 years ago pale, they're more than aware that their scramble for natural resources has a natural limit. Certainly Mao's increase-the-population plan was the worst of his megalomaniac misadventures, overshadowing the several times he caused millions of people's deaths. [At least not many worship Mao these days, and with Deng Xiao Peng's memory fading, I no longer get irked that people don't know Mr. Capitalism was also the guy who occupied Tibet & Xinjiang].

    I recall amusingly a woman shopping: "I don't buy Nike because they exploit workers in Vietnam". As she turned around and bought some underwear from China. As if worker exploitation is/was better there - how's that Gulag sweatshop labor working out for you? But many of these issues get better, not worse, through engagement. The worst issues with NAFTA came about because we elected a president in 2000 who decided business runs itself without any oversight from government. And that cronyism was a feature, not a bug.

     

    Comments

    These "economic engines" you speak of are owned by corporations run by people whose job is to maximise profits. These corporations have created the means of production now in place. Any significant change in the system of exchange will require a significant curtailment of the power these corporations posess to reproduce the world that is best for them.

    The global integration of the financial market is complete. China is holding a vast amount of U.S. debt that allows us to print money. When you speak of "negotiating" with China, that is something that happens in the context of the overriding context of the financial market. The way you put it makes it sounds like it is the other way around. The situation is well past the point where trade protectionism by itself is a means to secure "our" prosperity at the expense of others.

    Rather than say that the "Left" has no foreign policy, I think it would be more accurate to say that there is no Left left.

    The desire for one still exists.


    Can't quite fathom what you're saying.

    I want there to be more corporates maximizing profits, but competing so the market minimizes costs.

    I want there to be higher production so there's more innovation, increased efficiency, decreased unemployment, higher standards of living. Of course I want reasonable controls on business so that improvements don't come at the expense of hyper-pollution, slave labor, environmental destruction. As for labor, the increased demand for labor has had steadily increasing effect on wages in both China & India.

    Additionally, "In thirty years time, 27% of China’s population will be aged 60 and over (26% in Japan in 2005) and the median age will be 43, like Japan in 2005. The under-15s will represent only 16% of the population (14% in Japan today)." So the window of opportunity to use China for world growth is limited. The gender ratio: 110-115 boys/100 girls - will also affect possibilities when the population is moving into old age - with fewer women, harder to encourage population replacement, and with that large a population, unlike say US, you won't substitute immigrant population for lower fertility.

    Whatever US debt China holds is a mixed blessing - how well were Arabs able to parlay their vast US real estate holdings in the 90's into durable gains? We play this game every decade. It's not like China can just grab Arizona and move it. There are repercussions, but the bigger worry is simply the US will stop competing effectively, not that China will just take its money and go home - we're China's main market - they've leveraged their production against us.


    I understand that China can't just take their ball and go home. But we can't either. It is the interdependency of the economies that makes me question your premise when you say: "Every time a leftie talks about saving our jobs, they're also saying "screw the poor Chinese" and of course the rest of the world's poor schmoes, unless they have a strategy to do both." Before I can follow the idea of a strategy that "does both", I need to understand what just saving jobs here looks like first. You say yourself that isolation would not bring it about. Therefore the choice you offer is not really one of choosing between two different possible outcomes.

    What you have presented in your post is basically the model of neo-Liberalism espoused by Hayek, the Friedmans (Milton and Thomas) and Fukuyama . The general idea of the expansion of markets as a means of sharing prosperity is a well established idea. These gentlemen are not representitives of any Left that I am aware of.

    When I think of a leftist point of view about trade, criticisms of NAFTA like this one come to mind: http://www.policyinnovations.org/ideas/commentary/data/000192, where the opening of Haiti's market destroyed their rice growing industry.


    I'm more partial to Martin Wolf (Financial Times), since I actually haven't read the others.

    My points tend to be that we don't consider what a US economy without China & NAFTA trade would have actually looked at (and what other countries would have done in our absence). We complain about job loss from transfer of manufacturing jobs, but we don't appreciate how we have helped poor countries lift all boats (one of the few ways we actually have).

    So, is our foreign policy "let the Chinese people starve in the country; protect ancient US industries above all cost"?

    Haiti is a basket case. Yeah, you can't open every country to free trade if they're not prepared in the slightest. No big amazement here.


    I think you are ignoring reality in many of these places - painting a false picture of a rising ship that simply does not match reality on the ground. China has sort of been hurt least by this because they have enough people to enslave half of 'em and still have a large population that nominally benefits. But even there economic disparity on the rise, not retreat, and ultimately the bulk of the benefit is expropriated to markets with a more affluent consumer base creating a class of plutocrats offered membership in the larger system of plutocracy we are implementing on a global scale. It is a system which by design is shifting the wealth into the hands of the few and sticking the many with all risk.

    I don't want to speak for others, but I believe that's what Moat is talking about.

     


    From 2002 through 2007, wages were rising annually at 6% to 13.5% depending on the jobs sector (high-skilled vs. migrant labor). I simply don't see the accomodation of workers moving around with steady wage growth as "slave labor".

    30% of the Chinese labor force is still in agriculture, a major barrier to transitioning to a well-rewarded, more modern economy. But certainly Chinese buying power has drastically improved as well as government services provided and availability of goods (one area China still needs to improve is internal purchas of goods vs. exports, but that seems to be happening). So yeah, it's a positive situation that the economic crisis hasn't helped.


    The lack of discussion in comments kind of proves the accusation in your title, eh? Bring up Israel and everyone has something to say. Bring up reality-based challenges to knee-jerk anti-free-tradeism and there's a lot of silence.

    I liked reading your refreshing take on the topic (if a bit depressing at the same time) and hope you'll consider continuing to share your thoughts on a topic you've obviously thought long and hard about, even if you don't get a lot of feedback. I think the silence is the proof of something good--many don't know what to say because the usual screeds have already been challenged in the initial post.

    I am reminded of all the charades played by Obama and Hillary in the Pennsylvania primary--the scrambling to look anti-free-trade when they really were not, because they too know a reality that many just aren't ready to accept.


    What, am I chopped liver?


    Ack, it's just that it seems to me one can often find a comment by you on an "esoteric" and unpopular thread, you're part of that whole scenery.  Laughing


    Look at the name - just a body of water with snapping alligators waiting for a drawbridge. Snap!


    No offense taken. I guess moats are about margins.


    Try this, ArtA. Maybe people failed to comment because people they felt the post was dribble. And maybe the very title showed this person was just trying to crank up a debate by attacking people.

    When did you get so dumb? OPeople didn't comment on a poor quality, inflammatory blog, and that shows the writer must be right? Damn. They must've hit all your favourite prejudices, eh?

    Just take these 3 statements. Personally, I'm not sure how to respond, other than with sarcasm. Maybe others can try. I know that would make ME happy.

    "1) The US could never have built such a necessary manufacturing base on our limited human resources - the next step of efficiency required an absurd number of hired hands. China has numours cities more populous than most of our states - and you can't run a plant with people commutning across Wyoming." Really? The US being the world's 3rd most populous country, and that wasn't enough? Just a plain ole shortage of people, that's the problem we faced, huh. Okay. 

    2. "When the crisis hit, we should have been working with China to keep our partnership solvent, flawed & currency-rigged as it was. Instead, we pursued separate policies." Really. Is that what happened? Wow. Somebody, quick, tell Geithner and Krugman. 

    3. "(Mao tried to get every peasant producing pig iron in their backyards in his "Great Leap Forward" - that killed off millions. Do we need to emulate?)" Ummmm. Probably, yes. This is what SO many people I know think. "Great Leap Forward, Q. that's what we need. I hear that a lot.


    Now ... I went and removed all the "this is total dribble" stuff from my reply. But yeah. This is some fluff-headed nonsense stacked on top of a bunch of mischaracterizations or flat out, dare I say demonstratively, wrong statements.


    Funny, I read it in Krugman.


    And yes, China having 4 1/2 times the population was much more suitable for this kind of massive production. Isn't that obvious? The people I know in offshoring are doing it more to have a stead supply of workers they need to expand, whether as programmers or other tasks. It becomes hard to talk like "I need to line up 1000 programmers for the next 6 months projects" in the US. This is more possible in China & India. Wages affect availability and the effectiveness of this strategy as well, and then there's often an upper limit to productivity for these workers, so for high quality work there's often an incentive to keep work close to home - paid well, managed well.


    I figured it was a slow Sunday, or they didn't realize I was Des so my usual daemons could show up to torment my days misparsing basic sentences.

    But I appreciate Moat's response, and it's nice to have a counter of how many people actually read the article rather than the meaningless "recommended" over at TPM.

    Your description of the charades is apt. Kind of like the charade about PAC money - who in their right mind is really going to give up special interest money? Oh yeah, call it something else, like we now call combat troops in Iraq "policing" units.

    I'm hoping the meme sticks out of this election - "Americans care about jobs and don't care how they get them". Results over process. Similar too the real kicker: "it doesn't matter how many jobs you lost - it's your net job gain that matters." Okay, the turmoil can be painful, and you want your new jobs to be minimum as economically beneficial as the lost ones. But that's it. Health Care's issues were about 1) cost to average people, and 2) effect on jobs - both personal and for companies - especially those Detroit Bad Boy 3, plus 3) whether insurance companies actually deliver the goods. Slice & dice it all you want, all the other spin is lost on people. "Can I switch or lose my job and still keep insurance? Can I afford to pay  it? Will the insurance company cut me off?"

    The other aspect I can never get people to engage on is that China goods create lower costs - that means money saved plus taxes that would have been paid. That's a regressive savings - unemployed people are saving cost difference plus sales tax. If I lose 100 jobs to China and price levels go down 5%, then our replacement jobs might have to only pay 98% of previous ones to achieve parity. The math isn't that tough.


    or they didn't realize I was Des  Cool

    well, I for one didn't.Wink


    I don't buy it. The real Desidero would have an ass-kicking avatar.


    At least AA gave me the cool Ray-Bans


    China bashing has become a bipartisan sport this election season. But if the bashers won’t heed the economic case for not knocking down America' second largest trading partner, they ought to consider the political one: Even if they get into office by peddling false economic theories, in order to stay there they will have to produce the right results. This protectionism never has – and never will – deliver....

    continued @

    http://blogs.forbes.com/shikhadalmia/2010/10/21/china-bashing-is-for-los...

    and BTW, Krugman's latest rant on the issue is about the "artificial trade surplus," not real trade, and a "temporary tariff" to correct, not a permanent one:

    ....any country running an artificial trade surplus is depriving other nations of much-needed sales and jobs. Again, anyone who asserts otherwise is claiming that China is somehow exempt from the economic logic that has always applied to everyone else. So what should we be doing? U.S. officials have tried to reason with their Chinese counterparts, arguing that a stronger currency would be in China’s own interest.....

    So what should we be doing? U.S. officials have tried to reason with their Chinese counterparts, arguing that a stronger currency would be in China’s own interest. They’re right about that: an undervalued currency promotes inflation, erodes the real wages of Chinese workers and squanders Chinese resources. But while currency manipulation is bad for China as a whole, it’s good for politically influential Chinese companies — many of them state-owned. And so the currency manipulation goes on.

    ....Clearly, nothing will happen until or unless the United States shows that it’s willing to do what it normally does when another country subsidizes its exports: impose a temporary tariff that offsets the subsidy. So why has such action never been on the table?....

    in full @

    http://www.nytimes.com/2010/09/13/opinion/13krugman.html?_r=2&ref=opinion


    What specifically could Bush have done differently in regards to NAFTA? Name the precise oversight allowed under that law which Bush did not carry out.

    "NAFTA" has become a term that encompasses all the associated free-trade agreements and their ilk ... much of it implemented through the WTO these days. You realize that the same basic philosophy implemented in agreements under different names are why we are now able to establish defacto slave colonies in places like China ... right?

    In order for there to be a thriving market for American goods in China, the Chinese people have to actually EARN enough money to purchase our products. And if we continue a system that rewards the powerful in China for maintaining these slaves on our behalf, the market will never be as big as it could be if we insisted on labor parity. They need access to our markets to survive at this point because you can't have a population that are both consumers and slaves.

    America had the manufacturing base already, it's not something that needed creation. That's why the stuff Marcy highlights was possible. It is being dismantled and shipped on those fast container ships TO FUCKING CHINA on their return trips. We just tossed a bunch of people out of work last year locally. You know where the milling equipment that used to run our local industry went? On a boat to China. Literally. You know why ... because the ability to use slaves offsets the cost of shipping and we refuse to address this with tariffs or any number of other tools at our disposal; let alone having set the system up to provide a HUGE tax advantage for doing this shit.

    Have you actually looked at the impact of the currently implemented policy on "third world" places like Honduras and such? Maybe you should. Because it is at the heart of the huge influx of economic refugees we enjoy vilifying as "illegal aliens". The net result is lower wages and spiking costs for the basic commodities required for life in these "third world" places. Why do you think Chavez has been so effective? He's using oil wealth to help offset these impacts in exchange for political influence.

    I don't disagree that we need to continue to innovate. But until we demand that our own labor force be protected and well paid and that our trading partners offer equivalent protections to their workers along with penalties for companies and nations that try to avoid the standards, the system is broken. I don't see how to accomplish that without a certain retreat inwards to reestablish the standards followed by a global reengagement on more equitable terms. And we might want to consider doing it while the world is dependent on access to our markets ... because the American consumer is about toast and best I can tell, consumption is our only real export these days.

     


    Haven't looked at Honduras - have looked at Mexico. The imports & exports are basically a draw between us, and steadily expanding. I've seen critiques before on Bush's lack of enforcement of labor & environmental from within NAFTA agreement, and certainly with Bush's record he didn't do anything beyond the agreement.

    Tell me what part of our labor force should be protected? Protecting Wall Street bankers during the tanking of our economy was the worst mistake we made - we should have purged those bastards. Under a progressive government, we wouldn't have approached GM & Chrysler with such schadenfreud, and Marcie Wheeler's comments on Wagoner apply across the industry - there is complex manufacturing that can and should be done domestically. Finding the right balance is largely up to businesses themselves, though government can help to improve the structural setting (such as fixing health care, making sure roads & housing's available, making it easier for companies to get parts, and of course not going to war in Iraq to spike oil prices and bottom out auto demand).

    You can call China labor "slave labor", and that's part of how the left ham-handedly ignores the problems & the solutions. It's not slave labor for at least 95%+. It's about poor people having new job opportunities that pay a lot less than us - but their wages have been increasing quickly, and for a long time due to increasing demand and normal economic rules for wages vs. demand. So China's building up its 3rd World economy into a 1st World one - gravely uneven development, but still amazing development, and improving the lot of 1.4 billion people. That's a great thing. That's a fantastic thing. 1.4 billion who aren't on high priority UN relief plans.


    I'm having trouble with this whole discussion. You must realize that at the same time we protected "Wall Street bankers" they were throwing tens of thousands of financial services WORKERS off the job. Maybe talk to someone from Manhattan about how all that worked out. It just feels like you don't even have the most basic understanding of deliniations between workers, management, executive officers and shareholders.

    And where did you get this at "least 95%+" figure for China? You pulled it out of your ass. Truth is that Chinese people employed by places like Foxconn make less than $4 daily while being forced to labor 16 hours every day, live in barrack-stlye on site housing and eat jailhouse-quality food provided in mass cafaterias. That's their whole life. And they are increasingly choosing to END that by killing themselves rather than continue. And those are the ones who have it GOOD. Then there is the literal slavery ... people kidnapped from thier villages and forced to work in mines and shit - with the owners giving kickbacks to local party officials to keep the whole thing greased. If they ever get media attention the officials are often executed, but their crime is embarrasing the government not promoting slavery. So they are quickly replaced by another set of officials who keep the system rolling right along. Economic opportunity is such that acquiring one of these positions is well worth the minor risk of losing one's life if ever exposed to Western consumers. Those resources go into the products we buy and are a big reason they can be produced so inexpensively. All this is well documented if you bothered to do even the most rudimetary reasearch before posting.

    I don't doubt that you are well meaning. But you are regurgitating the most superficial of meda propeganda and adding in a bunch of stuff you really believe, I don't doubt, but that is ultimately total bullshit. When you can actually articulate the critiques with Bush's record that you have "seen" then it might be more appropriate to revisit this subject from a position of actual knowledge.

    And maybe learn a bit about me before lumping me in with the "ham-handed left" as a group.


    I brought up the bit about Wall Street. It wasn't even protecting Wall Street - it was straight-ahead theft, an unearned money transfer that basically took money from average people and gave it to the elite.

    Taxation and government services is one basic way for distributing profit, for keeping the market functional. We've screwed that. How our highway robbery condemns the model of offshoring to China, I don't know. If someone steals my car, I shouldn't have held a job to pay for it?

    In terms of "pulling out of your ass", I have typical wage increases from articles over several years. You use one anecdote for Foxconn as your whole argument. $4 daily? What's Price Purchasing Parity? Here's a 2007 article noting that that $8 daily wage was a 40% increase and they couldn't get enough workers:

    http://www.businessweek.com/magazine/content/06_13/b3977049.htm

    Another showing some garment workers making $220/month - say $10/day - in 2010:

    http://www.oregonlive.com/business/index.ssf/2010/03/chinese_factory_wor...

    while others put total migrant labor at avg $1500/year this year - $125 /month or $5/day.

    I lived in Albania when wages were about $40/month, about $2/day, and they didn't have government services like decent health care and good roads to stretch that ridiculous pay into something useful. So go ahead, pull out an item that's supposed to shock - this is why we never have the conversation - liberals just want to say "China, bad bad bad" with absolutely no solution or recognition that things are going in the right direction. Farm income is average $200/year in China, so yeah, these stories of $125-$220/month are like gold to them - do you think we should guarantee them a $5/hour minimum wage?

    Here's a good chart on China's wage growth over the years.

    http://china.thomsonreuters.com/yuan/2010/06/03/wage-growth-in-china-and...

    There's absolutely no policy we could implement towards China that would help the average person that they're not already doing. (Yeah, there might be, but we're incompetent at even doing a jobs program in this country, so in practice, no, they're getting there alright by themselves).


    And i should note that if you look at trade figures, our export growth has been very very strong for the last decade - just those profits aren't getting distributed equally. You might look at the 2001 tax cuts as one reason for this. But the only reason China's "taking away jobs" is because the normal growth of the US economy that would follow (related jobs, side-effect jobs, jobs from the whole economy growing) is being pushed to a lucky few, and the increased benefits that would accrue to the economy as a whole are lacking because of Gordon Nyquist & friends' obsession with "shrinking government so you can drown it in a bathtub". Unfortunately, Obama has signed onto this idea, and is letting his gurus ponder how to dismantle Social Security and try another "private investment account" Ponzi schemes. And when you pull $2 trillion of a decade's hard-earned tax revenue and just pass it over to Wall Street, well, that's a bit hard to create jobs then. That would be $20K for 100 million families. Horrifying to imagine. don't blame China there - blame the banks, blame Bush/Obama.


    So your premise is that if we were taxing corporations that the money collected would equal jobs? Taxation is not the mechanism by which a capitalist economy equitably distributes profits. Tax revenue is only required to make jobs in the event that the economy is so completely broken that the capitalists who are supposed to drive employment are no longer performing this function. You realize that even if the government collects all that revenue - and I agree that they should -  nobody is going to be cutting a check to 100 million families for $20K.

    The reason the money is being pushed to a lucky few is because they no longer have to pay workers to produce the products. They then move these products across the borders tarriff-free and sell them to American consumers at just a tich below what the American-made goods cost and pocket the difference as massive profits ... putting the producers of goods made in America out of business in the process. Look into WalMart ghost towns for an example of the dynamic.

    I can't do this anymore. Quinn is right. people are ignoring this thread for a good reason.


    What bullshit - of course taxes redistribute wealth and provide services. That's why the EU's functional right now and the US not.

    That's certainly not the only way it happens, but government direct & indirect payments and maintaining the market so it's not corrupt and tilted are an important part of any modern economy.


    I like some of what you say, but the framing seems a bit off, and also some of the partially veiled moral judgments you're making about American workers. the free trade deal within most of the developed world has involved greater pre-tax inequality which then gets fixed by the tax system. I.e. free trade benefits the rich and hurts the workers, but if you calibrate the redistribution of income, then everyone does indeed benefit. In the US, the tax system remained bizarrely regressive so workers didn't benefit as promised. So they were indeed screwed, and are right to feel screwed. You can't expect them to be on board with the free-trade program if they see everyone around them - the rich, their counterparts in the developing world - all gaining at their expense. Selfless charity has its limits, especially when your charity is going in part to the rich.

    Another part of the 'free-trade' scam, as Dean Baker outlines from time to time, is that manufacturing workers are exposed to international competition whereas high-end jobs aren't threatened by competition. So professional services remain nicely protected by national barriers. So, again, sweat and tears for the workers, cushy sinecures for the professional class.

    A third part of the problem concerns the faux-outrage about China's currency manipulation. The Chinese sell their product to the US, and keep their money invested in the US. 2.5 trillion dollars and counting. It's not any kind of sinister imbalance in trade barriers. Everyone should be thrilled. They hand over 2.5 trillion for the government to invest, and instead it is squandered on - yup - tax cuts for the rich, and a couple of recreational ME wars. I.e. the US government blew it. Totally blew it. The US could have been the envy of the world in transportation and green energy infrastructure, but no. The rich demanded a third, fourth house in the Hamptons. China didn't screw anyone. But they are a convenient scapegoat for a government which doesn't want to admit how badly they messed it up.

    So is free trade something the left should get behind? Of course not, not under these conditions. All the gains go to the rich, and a few more gains are squeezed out of an unwitting working class.

    p.s. I like the numbers you provide in the comments. Do you have any links?


    Very well said, obey. Thanks for this response.

    I have trouble taking anyone seriously who supports our present trade policy with an admonishment that the critics be "less protective" of their position vis a vis labor standards and wages and benefits. Don't we understand that the workers in these other countries deserve the blessings of free market capitalism, too?

    It is ludicrous to propose that there is anything in these trade agreements that targets benefits to the workers in the developing countries. Indeed, whatever benefits are enumerated always fall under the category of accidental consequences of the rich getting richer.

    I covered this perspective in an old blog. I point especially to the discussion of Nicholas Kristof's essay wherein he virtually states that sweatshops are a magnificent step up for the dump scavengers of Pnnom Penh. Indeed, says Kristof, "the central challenge in the poorest countries is not that sweatshops exploit too many people, but that they don't exploit enough."

    Telling the American worker that he needs to take a reduction in wages and increase productivity to "remain competitive" with workers in Cambodia drives home one simple point: This trade policy is designed for the benefit of someone, but it sure as hell ain't me! And it sure as hell ain't intended to significantly improve the lot of the other schmuck in this equation, either.


    Man, I hate to rain on a  particular source, but Nicholas Kristof is a schmuck. Pure sensationalist goo, no real analysis.

    If people are starting off as $200/year peasants and they've gotten up to $150/month factory workers with wages still growing, yeah, that's improvement almost no matter what the conditions - presuming they get to keep the money/send it home. The Vietnamese couple across the street works from 7am to 11pm every day - no one forces them to do it, but they keep expanding their shop/moving it every 2 years. It's a grueling life, but it has promise and hope.

    That doesn't mean ignore worker conditions, but I'm pretty sick of just dissing 3rd world factories from the outset just because they're long hours and low pay - of course they are - that's why they got the job order. Otherwise, those 5000 people would be back trying to find a pig to slop. Humanity is in a mess - this is ugly but it's progress.


    I watched some Cambodian workers in field behind my 5-star-hotel (it's a beauty what drug lords can build in a dilapidated country) and couldn't believe my eyes - workers rolling their own re-bar.

    If American workers can't find something to do of more value than Cambodian workers, yes, we're extremely fucked up.

    But they're not. Here's a chart showing US export growth since 1950:

    http://forecast-chart.com/graph-us-exports.html

    Except for a few hiccups, going into the clouds. We can export basic jobs to India and we replace them with more complicated local jobs (ones that require better communication, more hands-on, less management overhead). We export manufacturing jobs to China and we replace with value-add service jobs, finance jobs, what-all. Or we should.

    The sad fact is we're not learning lessons from this.

    Here's a few I take away - the management of these services are requiring less and less overhead, so the number of spin-off jobs is decreasing. I can start up my own distribution company in 3 days with someone else handling all my packaging - all outsourced, product offshored. So I can run a rather big business with say 3 people.

    Energy trading - I know some guys in a reasonably large energy trading company - 3rd largest in a country. And they have fewer than 200 people - maybe 20 in IT - and their profits are quite huge. Great for investors, but not a lot of jobs.

    At a very superficial level, that would make social security reform tied into personal investment accounts a great idea - except the average person can't manage those investments, and seemingly even some very very smart people can't either - except for the ones who have both palms on the scale.

    We've continuously gone for the "more science, more computer jobs" nonsense, without thinking that computer training is one of the most mobile occupations possible - plug in the internet and you're working from Bali. There's plenty of analysis and field-specific training that can add to it though to make it location specific, to give the US an advantage (if we're going to leverage education, access to resources, etc.)

    While most mobile phones are *MADE* in China, they're overall US, European and Korean companies that develop, run and market them. Apple's success comes in part from understanding the US market very very well. (They're pretty crap at the rest of the world, and Jobs doesn't seem to mind, nor do his stockholders). The only successful Chinese contender in upper end IT is Lenovo, and that's the Chinese buying an IBM division - but warn you, doing a good job of it, better customer service & satisfaction than I would have suspected.

    What the hell is Google? Pure innovation. Came out of nowhere. All American. (Almost) anyone can do this.

    One of the worst things of feeding all the profits back to the rich is that much of American innovation comes from personal accounts - and not just the banker's son (Bill Gates?). It can be the beauty salon, the mail order company, the electronics shop, the yard services company, or people coming up with a good patent idea and developing or selling it. Just a few.

    But if there's no house left to mortgage, no savings left to dip into, that basic action isn't going to happen. The US is perhaps the easiest place on earth to start a business and get investment (EU way too conservative). But we're stifling this flexibility, and then we're blaming China for it. Chinese development is very ham-handed throw army-backed money at it, with poor planning - a lot of "me-too" production  - suddenly 1000 copy-cat products appear if there's one success. So that's how we compete - and compete very lucratively - if we can get our government & infrastructure back in line, serving people PLUS *ALL* companies, and not just a few cronies.


    But Obey, you're basically saying "good, free trade works, but we need to keep profits distributed equitably or our workers will feel screwed". The Chinese are even handling this - why can't we? Well, the Chinese are afraid of their workers & peasants revolting. The US isn't  - we have a highly evolved propaganda machine that keeps the people at the bottom always pissed at someone else at the bottom. That has workers thinking that an extra buck in the paycheck from lower taxes is better than $5000 in extra services.

    So why don't we have any liberals effectively arguing for 1) pro-business trade and 2) effective re-distribution of profits? Oh, that would be socialist. We give away the argument day one. Except of course that's not socialism - we have private enterprise, and we tax enough for an effective government, not as totalitarian control. But that's how our Tea Party debate goes.

    Yes, intellectual jobs will remain safer than menial jobs, except for menial jobs that have to be done local - physical therapy, gardening, beauty salon, highway construction - or have a high transportation cost - auto plants. So that's why I scoff at the idea of reviving our TV manufacturing industries, etc.

    So we have to aim our jobs programs and planning at those areas that are sustainable with increased international pressure. I will confess I was rather deluded about how much value financial traders were adding with their trade more & faster programs that turned out to be shell games - more Buffett & Soros basic industry analysis, less getting away with burning Aunt Millie with another cooked offering and no government oversight.

    So a good liberal platform would be pro-trade, reasonable redistribution through appropriate taxes, and universal health care that helps both business and individuals.

    Re: my numbers, just Googling in 30 seconds, nothing special - "china average factory wage" for example.


    Shit. sounds like we agree...

    Like I said, my problem was more with the way you seemed to be framing it. As for reviving the manufacturing sector, I think a smarter industrial policy can do alot. I haven't dug into the details, but there are probably lessons to be learned from Germany's strong high-end manufacturing sector, and Denmark replacing their pig farms with windmill factories. I look at stuff like Mexican workers being as productive at half the cost, but no one mentions the fact that unit labor costs are a tiny fraction of what goes into overall production costs. All kinds of other factors will determine where to build your factory - infrastructure, incentives, regulatory environment, ... infrastructure!


    I can't help but notice sizable numbers of Mexicans seem to prefer ... not being in Mexico. Now I'm not sure of the correlation here, but I am hearing that an increasing number of Americans are learning first hand being forced to produce twice as much for half the pay .... kind of sucks.

    I, for one, did address one aspect of labor being only a small part of overall production costs upthread. Using the China case I noted that while Foxconn uses "well paid" labor @ ~$3.50 a day, the people lower on the food chain who mine their resources (for example) are subject to conditions dipping into literal slavery (using literal correctly here). That seems to be reducing the cost of raw materials to graft and bit of gruel. I reference China as an example because it is easier to discuss the issue using a place where (a) the entire range of issues manifests in one nation and (b) combines all the "bugaboos" this post tries to make distinct issues.

    I don't think we can discount the fact that the EU has basically formed into what we *used* to be in terms of international trade and labor. In other words, while there is an illusion that they've embraced "free trade agreements", it's basically all between member states. As far as the rest of the world is concerned, they have a comparatively protectionist policy. Combined with a strong labor movement they offer pretty substantial protections to both their workforce and the global competitiveness of their member states. I don't see how we can ignore the nature of their entire system when looking to their individual member nations in imagining how to reinvigorate our own industrial/manufacturing sector.

    We do ourselves somewhat of a disservice by no longer treating our member states as separate entities with local needs unified in common interest. It really makes comparisons to any one EU zone nation apples and oranges. We should be comparing Germany to Texas, and comparing how EU policy promotes or impedes their success with US policies at the Federal level.

     


    Perhaps you should realize as just one example, that Foxconn raised minimum wage this summer to $140/month, and then a month ago increased it to about $300/month.

    Now that's international PR, but there are other wage pressures at work, including what the next factory pays. It's not a completely mobile workforce, but quite a lot of mobility.

    EU protectionism is partly required because the population will be shrinking rather soon, especially Bulgaria, Slovakia, the Baltics plus large chunks of former East Germany.

    Perhaps it was in the period when the US was adding new states that it worried about states' rights. Though in general, that was pretty well gone by the remnants of the Civil War, and later by the interstate, strip mall, 50's suburbia and B&W TV.

    The Iron Curtain at least kept Europe divided for a few more decades, leaving some regional differences to contemplate - otherwise it's pretty depressing driving from Amsterdam to Barcelona or Marseilles.


    Honda also just settled a labor dispute with new minimum wage >$280/month - $3360 per year, while average wage growth is 17% this year with new minimum wages across 11 provinces.

    Re: Foxconn conditions, they house 300,000 people and 12 committed suicide. Much lower rate than Gitmo and likely the US Army, or even the population of UK or North Dakota. Have to put things in perspective.


    The discussion here got me interested in looking for more photos of the Foxconn campus than the just the single one with the suicide safety nets that was getting all the media play.

    What I found tells me this story has been misrepresented:

    http://gizmodo.com/5679706/exclusive-look-living-at-foxconn

    http://gizmodo.com/5678732/exclusive-look-where-the-workers-who-made-you...

    I don't doubt that there's misery there--just the facts of separation of sexes, living in a world created by your employer with no easy escape from it, and living without a lot of personal space (tho a reminder that that's common in places like Japan,) are enough. It doesn't exactly look as Dickensenian as it's being made out to be, though, maybe a bit more like Stepford of the famous horror movie, more psychological torture than poor physical treatment. We've got high suicide rates in some of big impersonal high schools and college campuses--not to mention people with low income gone stir crazy forced to live in tiny spaces in the biggest cities.

    Don't get me wrong, it definitely looks creepy and mentally unhealthy to me, but it's also definitely not the simplistic slave labor situation it's being made out to be,.More like a cross between white collar prison and a reallly yucky college campus that goes on for miles. (The dorm room reminds me very much of my own at UW in the early 70's, cinderblock and about 3 square feet of your own space outside a smaller-than-twin bed, and yes, it was damn depressing, no sink, no water, that was way down the hall, and none of us could afford our own TV's or little refrigerators.) But did they ever hear of planting trees and having a bit of park here and there? Those cheap flourescent lights alone combined with the low ceilings, if that's all you see, can drive one mad, so could that  X-box gaming area, it's like bad sci-fi. And I wonder if it would work to treat the workers like grownups and not in loco parentis? Looks like they want to exploit youth--what do they do once they grow up and want to be married, throw them out the door and get a new set of young kids from the country?


    I guess there has to be some understanding of where the rest of Chinese live, which are these cramped high-rises. It's not healthy, but that's the state of all of them. Of course if you live in your own apartment, you make it much nicer than these dorms, but they're used to a whole lot less space.


    You should recognize that this does not appear to actually have occurred at Foxconn.

     


    No, it's "there is some doubt as to whether this has happened". A preliminary leak on a report to be released with unnamed witnesses with no verification of the accusations - well, it's not a slam dunk, is it?

    And if you go from "oh, the dorm rooms are so bad" to "hey, and they do corporal abuse" - well, come on, that's two very different things. If they're actually held and beaten, talk about that. That's serious. Quit acting like a small barren dorm room is the worst thing that ever happened to people - crap, they could be living in trash in a typical Bombay rundown neighborhood playing Million Dollar Slumdog instead of that dry room with a job.


    And the last paragraph about whether the government plus the paper are working together for some political purpose - to drag more benefits out of Foxconn, perhaps, or else Foxconn didn't play the right political game with the high muckety mucks?


    I remember a Bush II-era American Prospect cover on Dem foreign policy titled "Between Chomsky and Cheney".  It's true one can find almost any foreign policy one wants to among Democrats, even among elected Dem officials. 


    I loves me some Des, but this was just a wander through the gardens, picking flowers at the Earl's expense. Which would normally be fine, but titled as it was, it stuck in my craw. Lemme put it this way: how's that Rightwinger foreign policy working out for ya? Unless you count "Hulk Smash" and "Rich Want More" as policies the Left needs to work hard to catch up to. Add to that the ability of actual Rightwingers to say anything, then reverse it, then contradict both with a 3rd public statement, and you pretty much have what we're up against.

    And the China stuff just sounds to me like... a random collection of thoughts. Sorry, but Great Leap Forward? I get that you're still pissed, but can we not have to smack this one down? And how we should have worked on policy coordination with China? If I recall, China was one of the first calls we made when the crisis hit, precisely because they were up to their asses in institutions going under, and had been told they were safe as houses. As for US policy since then, you telling me that Timmy Mini-Mandarin Geithner is anti-China? Gee. Seems to me that what Krugman's been saying isn't that there are two opposed policies, it's that the US has basically agreed to (or succumbed) to one, but that the policy we're jointly implementing ISN'T WORKING FOR AMERICA. Anyone really think there isn't some serious succumbing going on?  

    Now, I'm also glad and all that I get to read sooooo much about how this policy is a "partnership" and how together the US and China are gonna make beautiful music together baby, and how the Chinese don't dare pull their money out and so on. And then I wake up, and laugh and laugh and laugh. People really can believe the most incredible things before breakfast! Like, they give us stuff, and we give them nothing, and then they give us our money back to start over, and this can continue forever, it's like a TEAM! 

    For starters, why not really look at what the US is selling to China. Ag products, sure. Anybody wanna guess after that? Because after aerospace, I believe #2 is.... raw materials for recycling. i.e. Old cardboard boxes and newspapers and scrap metal. So, Top 3 US exports to
    China, we see two that are massive state-backed (aerospace and agriculture) and a backhaul trade in the empty containers China's stuff came in. Cool! Sounds like the power of free trade to me! 

    And in 2009, China sold the US more SHOES than any category the US sold to China. YEAH BABY, WORK THOSE EXPORT ENGINES!Stick as many fancy words as you want on that, and what you still have is a lot of old cobblers. (Yeah baby, pun intended! Shoes... cobblers! Woo hoo!)

    Then there's biffle about how the US just needs to do more infrastructure and green jobs. To which - WOW! Has anybody here thought more than 10 minutes about this? Cause I've spent 20+ years thinking about this, and I don't see it. At all. Crumbling infrastructure being replaced doesn't add all that much to productivity. It stops future collapses, which is nice, but not much beyond that. How many of you believe that expanding our road network, on most of the projects being targeted, is gonna do great things for productivity? Go on, hit me with the just-in-time stick. And you'll still be a giddy lil thing who's fallen prey to the grand cement-pouring iron triangle of America. And Green Jobs? Nice, but a few million jobs, max. MAX. 

    Big picture? The Western Industrialized World has never seen a movement of this scale and power. If you think the old theories still hold, all I can say is... "Shame on you." There are - from a North America's point of view - an endless stream of highly-motivated, increasingly-educated, deeply-needy competing workers launching down the pike. If you believe what the overlords tell you about how this is all gonna work out, with training and cheaper consumer goods and flexible exchange rates, then you may just deserve to die.

    Cause I can walk across the Western world - literally - and show you not just dead companies, but dead towns, cities, regions and nations. Many of them have never come back. Do you get this? MUCH smaller shifts have left regions to die for decades upon decades. Don't think anything's big enough to knock the US onto the floor? Wakey wakey, kids.

    For instance and for starters, China doesn't yet export cars to the US. If you thought Japan did damage, you're gonna adore China.


    Lessee, we called China, but we didn't say, "Let's synchronize stimulus policies to keep us both from falling over". It seemed to be more "you guys keep on keeping on, otay?" from what I recall.

    Now, are we having trouble exporting? If not, why do I give a shit whether China buys our stuff or not? Yeah, theoretically somewhere in the future it will make a difference - but at the moment it doesn't really as long as our exports are growing. The point is, the craft store sells me canvas & paints to do my artwork - do I complain they don't buy my paintings? Yeah, we'd like 2-way trade in general, and a level playing field. On the other hand, the migrant fruit pickers gathering the grapes didn't buy a lot of that bottled wine, did they?

    Quinn, Pittsburgh lost its steel population quite some time ago - blame it on Brazil, blame it on Japan, blame it on China. Hell, I blame it on Bruce Springsteen. Whaling isn't coming back to Nova Scotia either. What is our forward-looking policy? We're supposed to be compassionate liberals, looking out for the poor downtrodden masses around the world, but we're just as uptight about sharing the wealth as conservatives are when it comes down to it.

    If the Chinese really opened their doors to us, they'd have to be prepared for our onslaught - and that would be as heinous and ruthless as our usual approach, say that careful considerate tap-dancing we did on the way into Baghdad. It's a 2-way street, but we managed to close our borders to Brazilian ethanol when that became trendy - gotta protect Midwestern farmers in an election cycle.

    The head of Airbus was pretty forthright the other day - "of course both Airbus & Boeing get a huge amount of subsidies, so we should stop this trade fuss. And things are going to get a lot more difficult once the Chinese enter the airplane manufacturing business."

    Good thing that China's not very good at marketing anything complex to the west. If it weren't huge government subsidies, Huawei wouldn't be making any headway in telecom, but when everything's below cost, well, hard to pass up. But if they do get good at it - and Lenovo's a case where they may be turning a corner - we might be really in for some heavy trade combat.

    But all of this is far past the usual "oh-wo-wo, we never should have done NAFTA, we never should have moved jobs to China" which seems to be the only bit of foreign policy we discuss these days (except for AIDS in Africa and those pesky Muslim terrorists).

    Obama's off pushing exports in India - he wants to double them by 2015 or some such crap - great, the only way we can grow jobs is to double-down exports yet again? Let me guess, someone still needs more tanks and ballistic missiles somewhere, that's a growth field.

    Really, we should be discussing where our next generation of jobs are going to be - how we tie in with the green energy work the Chinese are doing (and in that case also, what to do to push into that vertical on the mainland - not quite recycling products if you look here: http://www.uschina.org/statistics/tradetable.html).

    Intellectual property theft is one of the more difficult issues leading up to entering the Chinese market, and while some say "protect your IP be having a local presence", it's hard to say whether it matters whether they steal from your foreign market or your local Beijing release - you still lose, and the courts still aren't very effective.

    So I'm sympathetic to a number of issues - just not sympathetic to the nostalgia that we should have stayed out of China. That container ship's already left harbor.


    Jesus man, when you just throw every goddamn thought you've got into the stew, some of it is just such shit it ruins the entire meal. "We're just as uptight about sharing the wealth as the conservatives." Really? REALLY? I read that and I get a bit upset, you know. As in, there's at least 20% SERIOUS goddamn unemployment wandering around out there, including all through my family. And they are cutting off and carving off the benefits a fast as they're damned well able. And a lot of people have drained everything they had. Health care ain't no walk in the park either. And not sure you've noticed but the shits that just arrived in town want to kill health care help, want to cut back on money for jobs, cut taxes for the rich, and kill all those other extra benefits. So I got suffering right across my family, and huge amounts of stress, and sure, maybe I can handle it, maybe you can handle it, but there's a lot of Joe Schmoe's out there, without education, without easy mobility, and they're damn sure not thriving.

    So maybe try not to say stuff like "we" aren't into sharing the wealth, just like the Conservatives, lest I tell you that, personally, that's real hard for people to take right now. And... up yours. Because the people I'm seeing in hard times have zero net assets, zero net wealth, zero safety margin, zero employment. And any frigging Conservative I've heard bleating on about trade with China being important to help their starving millions is talking out their incredibly rich, greedy, gun-toting, God-swilling, scientice-hating ass. So yeah, like I said. This kind of statement is irritating, offensive, nonsense. IMHO.

    *

    Ok. Trade. I think the American political-level argument around this stuff is straight out asinine. Like watching idiots batter one another. FREE TRADEZ!!!1 PROTECTIONZ!!!!1+1 I mean, holy shit or what. Crap. And then this races off, as we often get here, into a lot of crap about who wants to save the world. SAVEZ THE PORE CHINESE FELLERS!!!!1+1+1!

    But just for the moment, let's drop the grand talk about the American consumer or worker or corporation or trade saving the world, eh? And figure out how to save the US without dooming the world. 

    I really find individual-firm-based talk to be almost useless, most particularly where we get highblown examples about some company that's doing X or Y. Much of it is Business School mumbo-jumbo, but hey, we all love them examples about entrepreneurial firms and go gettem kid and save the world through innovation and global, but... BLARG. Cause then we all have to listen to a whole new generation of equally cack-handed lefties to go out and discover child labour and double-dealing and hello Naomi Klein.

    The other route seems to be the grand abstractions, where it's all about 150 year history and exchange rates and gains from trade and such, and how nice the world would be if we were all angels and had wings. I mean....BLARGX2? Who believes this stuff? Sorry kids, but if Governments don't do the right thing, or you miss a step, and don't have that road or university or capital or tax rate in place at the right time, and you miss a generation of local economic expansion, you really DO die and go to hell. Pittsburgh's success notwithstanding.

    Where I'd rather look is, on the production end, at whole sectors. Which sectors can we grow. And how? And to recognize that most of the world's great trading nations have actually been built with MASSIVE PUBLIC-PRIVATE SUBSIDIES, INVESTMENTS & UMBRELLAS TO KEY SECTORS. And that means looking at the level in-between that of the individual magical CEO-led God-loving private firm and that of the grand national abstraction.

    That's the only way I find I can really make sense of it, and also, I think it is - realistically, practically, actually and factually - how the world works. You can go in, short-term,, and distort policy for one company - hell, even send in gunboats to help em out - but you ned Industrial Strategy. And in the US right now, I don't see much of that. 

    And I have no idea where sectoral-level industrial strategizing has gone, in this world of grand global statements about whether we have the Chinese by the balls or vice-versa, and who hates Chinese children more, us or them? The Dems need to be on this ground, and own it.

    *

    As for ME, I don't think any of this is enough. And yes, I DO think people that think the US can waddle and befuddle its way through this mess, with conventional policies, are deluded. There just is NOT any way the American consumer can somehow revive national consumption spending, pay down personal debt, handle rising health costs, oil price difficulties, put more aside for future retirement, handle the inevitable future Federal tax increases, plus knock down the trade deficit by increasing their production and tightening their consumption, all the time while facing absolute breathtaking waves of powerful and capable new foreign competitors AND while handling the enormous income and wealth differentials in the US today.

    Sorry. It's not on. There is no magic math that makes this work. And so, this kindof debate bugs me, carried out as is. Debated as "China" versus "the US," it just makes me think of kids trading baseball cards, you know? For myself, I'm pondering ways to do the inevitable - enable the working and middle classes to build down wasteful consumption. So they can meet their needs, but with reduced debt, less vulnerability to global shifts, reduced imports, and increased employment, at least in the short-term. But for Dems - and our political debate today - that sort of thing gets very little grip. Politically, there's a consensus that we're not going to get into the business of shaping our consumption choices - which we've equated with "freedom." Which strikes me as hilarious, when we're up against CHINA - as though they've been shy about shaping consumption policies! Anyway, I'll just leave that there, as a debate we're not gonna have in advance, but rather, we're just gonna push enormous reductions in consumption and welfare on the weakest and hey, they shouldn't have been in whaling anyway. 


    Well, maybe *this* time things are really that bad, but every time there's a contraction, it's those foreign workers, immigrants, shut the border, forget H-1B's, stop offshoring, let's play smashball....

    Yes, we seem to be unable to formulate actual strategy, rather than platitudes.

    All of the questions and issues you bring up are what we should be discussing. But instead any talk of labor is about Chinese gulags and 10-year-old data on Nike tennis shoes or something else irrelevant.

    And we've had a lost decade of dealing with China in a serious way - all backburnered for our war on terruh.


    Hey Q, reading this I get the feeling I'm probably one of the sleeping babes who deserve to die here. I'm also probably an idiot, but I don't see where you're coming from or going with this. I see countries who do have what seems to be a mutually beneficial trade relationship with China. OR is that just a mirage as well? And I like what I see in terms of vastly improved standards of living in East Asia over the last 20 years. OR is that a mirage as well? OR even... a bad thing?!

    As for the green energy and infrastructure stuff, I wasn't personally thinking in terms of the jobs involved in building/maintaining it. I had in mind the numbers on the percentage of income - 20-30-40% of income - that working class households dedicate to their car budget, and I think having a decent public transport network would be nice and vastly improve standards of living. I was thinking of how a greater proportion of energy coming from renewable sources would help mitigate the obvious bottle-necks being caused by peak oil. I was thinking it might be nice for renewable energy to be an export industry for the US rather than the reverse, because it looks like a nice growth industry there.

    Anyhow, just a babe who'd prefer not to die from the stoopid...

    ;0)


    It would be nice for us to tell the Middle East including Israel to go fuck itself, that we're downgrading our diplomatic corps there to 1 person per country, and instead we're going to focus on trade, new industry, energy innovation, and relations with the rest of the world that we've ignored for 10 years now.

    Which includes another comment for Quinn - I'm certainly not recommending tried-and-true old remedies for dealing with China or new areas like ballooning green energy efforts. Some old lessons may apply, but certainly we've never faced a demographic challenge like China despite certain similarities with other issues.


    Let me just take the green/infrastructure stuff.

    1. I'm not in any way convinced public transit does it for the U.S. Now, I've never owned a car, always used feet and transit, so I'm not kneejerk against it. But American housing and employment patterns make any significant shift of share to transit tough. As in, we're just not going to see more than 10% of trips shift in my lifetime - and that's way more than most aggressive plans call for. Nope, we're in cars.

    And that's a desperate place to be. Because, for starters, as the US devalues, the cost of oil/gas is gonna rise, right? We're sneaking back up on $100/bbl. Obama had the right response, which is electric vehicles, and in particular, plug-in hybrids like the Volt or the Plug-In Prius. But with the failure of Washington-level policy and spending, the roll-out has just walked itself onto a huge patch of ice. Ultimately, it gets us OFF OIL though, so that's grand.

    2. But the main problem, long-term? Ummmm, China, frankly. EVs and PHEVs can do the trick we need, in terms of getting us off oil and cutting carbon. That's clear. But EVs and PHEVs also quite effectively melt down traditional auto parts supply chains - the Japanese are stressing about this right now. Which means China no longer faces some of the barriers to entry it used to. The big part in the future is batteries baby, that's the show. And China can just ignore robots and automation in this and throw huge hand-assembly labour at it, dirt and dangers and pollution and all.

    Now, if China's gearing up to export cars anyway, what will this do? Well... we've just removed a huge value and quality and supply chain advantage we had. And EVs and PHEVs are gonna face one consumer barrier - namely, the extra price of having a battery. So, we can get out of oil, away from those carbon emissions, and we WOULD make huge trade gains, except that China's gonna come eat our lunch on that front. Ouch. 

    3. It's similar sets of problems on wind, and yeah, I guess it's begun to bug me. Cause we've all worked like crazy to develop wind, right? So we can get off oil,  cut carbon etc. And now? We can. It's damned cheap, for huge tranches of the country. However, because of Reagan and his idiocy, most of the technology wandered to Europe, especially Denmark. And as a complete fluke of history, GE ended up buying the major remaining US-based firm, because it got rubbled by Enron. And GE is fighting using every trade-related move it can, to keep global wind firms from locating plants in the US.

    Anyhoo, so firms are now beginning to build the hardest-to-ship components in the US - the blades and the towers. Which is nice. Success right? But the guts of the turbine, the gears and such tucked up inside the nacelle, are still largely manufactured globally. And it's damned difficult to see us starting plants making these, and winning them back from the Germans.

    4. Meanwhile, China is going berserk laying out wind. And feeling no qualms about taking other people's technology. So now, with state-subsidies that are somewhat beyond belief, they're growing firms that we have NO chance of beating, if and as they choose to pump up the export volumes on these finer parts. 

    So what we're gonna be left with is towers and probably blades. Plus, we get the construction jobs (that move as teams across the continent, like grain harvesters.) And a small number of operations jobs.

    Conclusion: This still makes wind better than coal, yes. Like the Volt is better than a Malibu. But. While I'm primarily a Green at heart, and this cheers me up, I've always worked the economic development, jobs and trade end of things. Mr Green Jobs, from 1990. And so, it's very very VERY hard to see how the US gains any major exports in EVs/PHEVs, Wind, Solar, etc. In fact, it's hard to see how it even makes it up to PAR in these fields, in terms of trade. The US runs a deficit on Green Products right now, and I'd say, it's actually going to INCREASE in the future.  It would be doable, to fight the Germans and Danes and Japanese - and I can go through this, firm by firm, Vestas and Mitsubishi and Honda and BMW and all - but with China coming IN just now, it's disheartening as hell. 


    Well, all fine and well - you're discussing important issues, not "why we shouldn't have done NAFTA" or "why we shold block Chinese imports to protect US jobs" - that of course won't work if they have the car-tech of the future that we need or die.

    Whether Obama was really supporting electric cars or it was an opportune way to pretend his GM takeover with 100% on the dollar for the investors was a good deal - I have people pretending that we're going to make money on that investment.


    Just on the later, to give him his due, Obama was on of the first - and most prominent - Senate backers of plug-ins and EVs and related grid expansions and such. I'd say he has the best understanding of this of any major politician. 


    Sadly it doesn't matter if it's not on his radar, and the way he treated Wagoner et al., vs. his finance buddies, makes it even less relevant - it's like that Iraq speech he made long ago - could have made a difference, but didn't.


    You touch on a few technologies here, but just addressing wind. Back in the day, we'd address the dynamic you describe by slapping tariffs on the guts that we wish would be manufacturing at home thereby punishing GE for their practices. I was under the impression that the EU does this from time to time ... am I off base in this perception?

    If we have the capacity build it, use it, and benefit from it locally (and we do seem have an entire continent's worth of resources to make this happen, including a the world's third largest labor force AND robots) isn't what we are really talking about protecting an expanding system of globalism for the sake of globalism that has turned harshly against our interests (unless one happens to be a member of a very small plutocracy sitting atop the whole mess)?


    It's a real big question what we're able to "use" efficiently in this area - our spread out, not-so-dense country has trouble building economies of scale in some areas. Plus, we have trouble issuing dogmatic orders for confiscation of land for green energy adventures as China might. As Quinn mentions about Amtrak - we're a car country and we'll stay a car country. China can't afford to do that for a variety of reasons.


    You could build out 10's of 000's of MW's of new wind-farms on the Northern Great Plains, with absolutely NO local opposition, in fact, you'd manage to save thousands of remote farmers from financial death.

    You could structure the procurement to ensure a rising percentage of US-manufacturing content, just as Quebec and others are doing. You could cut out a share for newer wind turbine models - like Clipper, a US start-up - so they got a share.

    The generation cost would be rock bottom, this stuff is so cheap in the Plains. Say, 4 cents/kwh.

    You then require each state to supply a certain % of renewable energy, and not allow state vs state barriers.

    You then use the Federal power for the one job that would actually require some heavy lifting - getting transmission line capacity into the bigger Central and Eastern cities, from Chicago, KC and St Louis East (or further out West.) The Feds own incredible amounts of land, and... remember the railroads.

    You then give the big Eastern and Southern utilities a choice - either buy the juice and let it in, or pay for the offshore stuff, unsubsidized. Boom. It'd happen.

    You then take a sensible, staged approach to the offshore build-up, and not just thrown billions at high high cost projects - like say 15 cents/kwh, which is what a lot of it would run these days.

    Every other country in the world is doing this shit, with the US easily the most scrambled of the lot. Hell, China's finding ways to hand over URBAN land to its wind manufacturers, to boost their asset base and position them for global competition. Sweet, eh?


    Sorry, I probably didn't describe the dynamic well enough. GE is blocking other wind manufacturers from locating new wind manufacturing plants IN THE USA. So GE AS A FIRM probably gets a larger market share in the US - by promoting its US content - but by blocking others from building in the US, the overall trade and employment industries of the COUNTRY are damaged.

    The US has enormous tools its various levels of government have been using to drive wind to the point where it's competitive. National production tax credits being one. State-level RPS requiring/mandating a certain % of wind in utilities supply mix. etc. But I can tell you from at least halfway inside that industry that this mix of tools is a completely balls-up, designed to help particular firms. For instance, instead of paying each wind turbine you a straight-up production credit, it's a TAX credit. Which means a couple of major US utilities are positioned to reap the lion's share - FPL, for instance. WHY is this nonsense done? Then, the politicians keep turning the credit on, then off, then on, then off - as part of their political games. Which means the industry keeps being crashed, and which means new wind-farm developers have to game their guesses of when to go ahead with projects. Nationally, no national RPS is brought in, because of the coal states. and even though building massive Central Plains wind farms and then expanded transmission grids to the big cities makes the most economic sense, the East Coast governors get pressured by their local utilities and such, and decide to push for offshore wind - even though the cost will be enormously higher.

    So what we really see is GE screwing up one feature... the FPL and similar utilities screwing up another.... East Coast utilities screwing up another... the coal utilities foreclosing another.... and then the politicians yanking the levers like mad to try and look good. In short - firm or business-based policy-making absolutely destroying the interests of the sector, and of the nation as a whole. 

    INDIVIDUAL CORPORATE POWER DOES NOT EQUAL THE BEST OUTCOME FOR THE ECONOMY. 


    Lame. Thanks for the explanation.


    Thanks Q, for this and the other comments. Pretty depressing stuff.

    So what's the silver lining? ... there is a silver lining, right...?!


    Silver lining for me is when I take the really long view, and think just in terms of humanity (i.e. no local or temporal particular attachments allowed!) When I do that then, I think... bloody hell, imagine all the genius the children of Asia are gonna produce. The incredible inventions, the scientific progress, the art... it's gonna be incredible. Partly because, with literally billions of people raised out of the mainstream/lockstep of our worldview, with so much desire and drive, so many perspectives developed from the "margins" (from our point of view), there are gonna be things that blow our minds and change the world. THAT, i'm thankful for. As well as the incredible gains in personal quality of life so many are gonna make.

    And I think this aspect is actually gonna come fast. I mean, China ALREADY is driving the wagon ahead, on solar and wind and electric vehicles. The world's green technologies are going to unfold incredibly faster because of them. (To some degree, India is also contributing, though not as much yet.)

    http://en.wikipedia.org/wiki/List_of_wind_turbine_manufacturers

    http://en.wikipedia.org/wiki/List_of_photovoltaics_companies

    It's the transition that's gonna be ugly.  Wink


    Another point in China's Smarter Strategies: instead of waging endless wars for control of resources, what they've done is to wait things out, say, in Iraq, and be the highest bidder for the oil fields and production; sponsor pipelines across vast reaches of land for oil and natural gas.  Pretty wiley of them, as we go broke doing th military adventure thing.


    Ironically, there has beem more than a little speculation that this was just the sort of situation we wanted to take control of Iraq to prevent.


    Haven't had time to keep up with all the comments here, but I did notice a lot of attention has been paid to rising economic and income figures in China, and implied benefits in Mexico (don't remember about Central America.  But I think the stories from indigenous people whose lives have been affected by trade policies matter more than balance sheets might show.

    I googled for some stories and opinions, and emerging labor groups who feel that their lives are worse in many ways now--oops--should have said 'found' instances.  Pages of articles and groups meeting to fight back. 

    I think that the many people in Mexico, Guatemala, China, who were thrown off their agricultural land: generations of self-sustaining small cooperatives, using proven models of farming and food delivery, trading for other necessary items produced locally, etc., being replaced by factory agriculture using pesticides and herbicides and gen-modified seed, leaching petro-chemical fertilizers into water supplies...all that has been deleterious as it was in small African communities that survived well before 'modernity' f'ed things up.

    The globalist factory expansions spurred by the trade policies also increase other toxic chemicals: look at China's rivers; some are so toxic now just living near one is hazardous to one's health. 

    I can't remember what governmental policy first drove the Chinese people off the land into the cities to live in the ant-colony factories with cramped dormitories above them, but many returned to the land, where they may have starved, trather than live in those conditions.  Sorry: no citations, but you all must have read the chronicles.

    Unless trade policies are FAIR to the people in this country and the signatories, they ain't some big bonus to the 'liberal idea of raising up the poor of the world', or whatever the dude in the Raybans maintains.  More later, with links, if I can find the time.  ;o)  Hey, Des.

    And yeah; China has been made a fall guy this election cycle, no doubt about it; but still...

    I also can locate again a piece i read at Global Researc.ca concerning the major move to form a Global Central Bank and create a different default currency; if I find it. I'll post it.  Y'all will be able to make more of it than I can, but at first blush reading it, I didn't get the feeling IT WOULD BE  a move than would help any of the workers of the world, including ours.


    Stardust's back in town, wo wo wo, Stardust's back in town,wo wo wo.....


    Shhhhh...I've been trying to stay away from this site; seems mainly what I do here is piss off management AND my friends, wo wo wo...   ;o)


    30% of China is dependent on agriculture, that's about 400 million people earning $200 a year. Those people will be affected, and we can pretend they're keeping a sustainable life style, but it's a pretty tenuous existence - much more than those $1800/year  factory jobs however cramped they are. It's the same reason Mexicans come to the US despite our lack of appreciation.

    Obviously there has to be some consideration somewhere for countries packed to the gills with people and those sparsely populated, and try to maintain some variation of approaches for both development & assistance. On the other hand, Guatemala's population was less than a million in 1900 and almost 13 million today plus over a million in the US - if the people are going to overpopulate, there's going to be disruption of traditional ways of life, whatever their wishes.

    Re: China's toxic rivers & air, well, the push to over-populate in the 1950's just to be the biggest was bound to bring negative consequences in some fashion or other as well. Blame it on modern times, or simply stupid planning by a brash leader?


    Here's a good background piece on NAFTA and some of the collateral effects on Mexico that don't go into the official analysis:  http://chris-floyd.com/articles/1-latest-news/2039-manufacturing-mayhem-...


    Great link, Miguel, and more succinct than the ones I'd found.  Jeez:

    Now the Economic War experienced a great "surge" under those fightin' progressives, NAFTA-men Bill Clinton and Al Gore:

    The broader effects of NAFTA and the reforms that accompanied it were more diffuse and far more destructive. A constitutional amendment passed as a precondition for the trade pact did away with the legislation that since the 1930s had forbidden the private sale of communally held farmland. Now cheap and highly subsidised American corn flooded the Mexican market. Local farmers were unable to compete: 1.1 million small farmers and 1.4 million others dependent on the agricultural sector lost their livelihoods. Campesinos left ancestral holdings, forced into the uncertainties of migrancy, both within Mexico and abroad. Villages were left almost abandoned. In a few short years, extraordinary wealth was concentrated in the hands of a tiny minority while the dream of an agrarian republic that had sustained the country for most of the 20th century collapsed. The anticipated shift to export-oriented manufacturing was a failure. Few of the promised jobs in the foreign-owned assembly plants known as maquiladoras materialised. The ones that did soon vanished as companies pursued still cheaper labour in China.

    As a result of the "reforms" of the progressive duo, almost a third of the Mexican people have been forced into penurious, petty hustling and scrabbling to eke out an existence on the margins of modernity:

    Nearly 30 per cent of the population now works in the informal economy – washing car windows on street corners, selling tacos, sodas, DVDs. Cuts to education have helped create a new class of young people: the 7.5 million so-called ninis who aren’t in school and don’t have jobs (‘ni estudian ni trabajan’). The minimum wage has lost two thirds of its buying power and nearly half the population lives in poverty. In his book on the epidemic of murders of young women in Ciudad Juárez, Huesos en el desierto (‘Bones in the Desert’, 2002), González Rodríguez wrote of the vast new class of the uprooted and excluded, poor migrants from the countryside who now find themselves wandering in a ‘vertiginous universe of technology and productivity, merchandise and calculation’.

    In the 1990s, "neoliberals" -- i.e., ball-crushing boardroom Bolsheviks committed to the crony capitalism knownlaughingly as "free trade" -- took power in Mexico, with predictable 'shock doctrine' results: " and on into the nightmares...

    Here's the Global Central Bank link; ususally war reporting stories get me linked to this site, so I don't know if it's legitimate site with legitimate opinion or not.


    http://www.globalresearch.ca/index.php?context=va&aid=21504


    And just a little bit of our very-caring-concern for Chinese workers (or not so much), we seem to be one of the only nations not signing the Basel Convention, agreeing to not ship our e-waste to other nations: Hint: it's killing the people cannibalizing the computers for fun and profit:

    Greenpeace reports say 80 percent of Guiyu's children suffer from respiratory disease, and a report from nearby Shantou University said Guiyu has the highest level of cancer-causing dioxins in the world and an elevated rate of miscarriages.

    "Guiyu was the earliest and biggest e-waste dismantling place in China. They are dealing with 21st century waste via 19th century technology," said Lai Yun, Toxics Campaign director of Greenpeace China.

    Not all the e-waste comes from the domestic market. According to a report jointly released by US environmental groups Basel Action Network and Silicon Valley Toxics Coalition and Greenpeace in China, 50 to 80 percent of e-waste from the United States is shipped to India, China and Pakistan via containers. Most of the containers (up to 90 percent) end up in China.

    Every day, Americans throw out more than 350,000 cell phones and 130,000 computers, according Time Magazine.

    The United States is the only industrialized country that refused to ratify the 19-year-old Basel Convention, an international treaty designed to regulate the export of hazardous waste to developing nations, said Time.

    http://www.ban.org/ban_news/2009/090323_hazardous_industry_proving_difficult.html


    A bit of a different view:

    The ejidal system includes roughly three-quarters of Mexico's 5.4 million farmers and one half of the nation's farmland. Ejido farmers are among the poorest of Mexico's lot, with many working small plots of corn and beans, growing barely enough to eat, let alone sell.

    The redistribution of land was considered a major accomplishment of the Revolution, but today it appears an unworkable relic to many. Small plots have grown smaller, as generations have divided their share of the land among their children.

    The promoters of Mexico's liberalization of the agricultural sector hoped that free market forces would redesign the campo for the better. Investments would flow to the most productive areas, and farmers working uncompetitive crops would move onto new produce, or find new jobs.

    But what may have been promising on paper has proven much rougher in reality, according to Jose Luis Calva, an economics professor specializing in agriculture at the National Autonomous University of Mexico (UNAM).

    In jumping into the free trade pool, Mexico found many of its producers unprepared to compete in an open global market. Mexico harvests 2.4 tons of corn per hectare compared to 8.4 tons in the United States. The per capita output of Mexican agricultural workers was US$3,759 in 2001 compared to the US$67,871 per U.S. farmer, according to research by Calva.

    Given such a productivity breach, prices for commodities have steadily fallen. UNAM studies say the value of Mexican corn is down 37% from 1993, the year before the North American Free Trade Agreement took effect, and 2002. (For commentary on why Mexico should stop growing corn, see page 64.)


    On top of the drop in crop prices was added the government's abrupt withdrawal of many of its previous supports to farmers. According to Calva, public investment in rural development projects fell over 73% between 1993 and 2002. Total aid to the sector fell nearly 20% over the same period.

    For the policy architects who dismantled Mexico's protectionist trade barriers and paternalistic farm aid programs, the flood of imports was supposed to lower consumer prices.

    "Increased imports have pressured primary agricultural prices more than consumer prices, which keep going up," said the CNC's Ramirez.

    http://www.thefreelibrary.com/Living+off+the+land,+barely%3A+extended+de...

    It continues on why Mexicans aren't thrilled with $4/day to farm, vs. sneaking into the US for 10 times as much.

    I'm also not sure what effect the 1994 crash of the peso had in the same year that NAFTA started - not an auspicious beginning, and likely didn't help keep up agricultural subsidies or give Mexico an upper-hand either in trading with the US or competing with China.


    Guess we could keep trading 'facts' and opinions on this all night long.  I'm not so sure that the last three graphs you psted don't prove my point.  But.OK.

    What the hell is a 'Decader' anyway?  This, with one wrong letter, Monsieur Decoder?

    Like this:

    http://socialistworker.org/2008/03/14/nafta-and-democrats

    You may just spend the remainder of your life arguing Clinton Trade deals were great.  Guess it depends on the Angle of View...

     


    I don't *refute* you - just add to & deepen the look at what you write, which is all negative from an anti-NAFTA view. Yes, it's negative, yes it was going to happen anyway - indians will lose their little place in the sun, it's happened all over the world - and Mexican policies of 1921 are going to eventually change. But yours describes the upheaval, and whether NAFTA could have accounted for that should be considered.

    Kinda like Art Appraisers deeper look at FoxConn - in ways doesn't look too bad, in ways looks rather 1984'ish. We have to get past the 1-sided talking points that are designed to spin every situation one direction only. Global change is complicated.

    For the most part NAFTA is irrelevant to anybody - it didn't much fulfill the great boom in production, didn't much kill our factories because there was a Chinese tsunami much greater than the great sucking sound. But every time I see Clinton's name brought up (post-election post mortems in several quarters) it's about that NAFTA deal and welfare reform - you couldn't imagine that the guy did anything else in his time in office, or that both NAFTA and welfare had brought the US crashing to its knees.

    Meanwhile, we've gone a decade without any serious attention to China from the left or right, except for people clamoring "cut them off, cut them off" or "we can't, we can't". This is childish, and China's one of our biggets issues, as just 2 secs of reading Quinn posts gives you an idea of.

    Back to real issues. Real complexity. All this tea bagger stuff has us way off our game - they've got us debating like Beck.


    Did you actually look at ArtAppraiser's "deeper look"? This is how they live ... in the dorm selected  for a western media organization to see.

    http://cache.gawkerassets.com/assets/images/4/2010/11/500x_img_1069_01.jpg

    When you sign up to live like that ... get back to me. Interesting thing, did you notice how all the areas were pretty damn sparse with people considering it's a complex containing 400,000 people in a 1.6 mile area - especially the areas that were all shiny-polished looking? Maybe explore the Chinese concept of "Face" a bit.

    Nobody is saying cut China off. People are saying that we need to demand our trading partners have a certain parity in labor and environmental requirements instead of rewarding our corporations for doing an end-run around American standards by doing business in places that don't maintain them and then repatriating the products without penalty or tariff while off-shoring the profits so they don't have to pay any goddamn taxes on them.

    Frankly, teabaggers are starting to make a whole hell of a lot more sense than Clinton-conservative Democrats, at least their priority for American trade policy doesn't include making sure we can't have jobs if Chinese fucking workers might be negatively impacted (though, I'm not at all convinced that would be the result). Carrying the torch for Chinese government produced propaganda doesn't really makes you any more sophisticated than Beck.

    Also too. It was Clinton signing Gramm-Leach-Bliley that ultimately brought America crashing to it's knees. Welfare reform screwed a bunch of poor people; a betrayal of core Democratic principles but hardly enough to bring down the economy. NAFTA et. al. primarily continued the job Regan stared in helping decimate the labor movement by slow attrition and with it the middle class. On the bright side, I think Clinton did get himself plenty of extra sex on the job, so there is that to look up to ... and let's face it, a cigar will never be viewed in quite the same way again. And of course now Clinton is a multi-millionaire many times over as a reward for his lifetime holding relatively low-paying elected positions. Funny how that works. Also.

     


    Oh the poor babies, they're living in a college-size dorm rooms. My crocodile tears fall over the place.

    Cripes, it's not beautiful, but no, I don't kill myself. Get real.

    Any idea what most Shenzhen or inland high-rises look like?

    Why do you think these diseases spread so quickly through them? Open plumbing - the feces above flows below. This dorm room looks more sanitary than the typical apartment building.

    You're talking about people starting off at the very bottom moving from the country to the city to get ahead - a blistering 12 out of 300,000 kill themselves - how many freshmen off themselves?

    "Certain parity in labor and environmental requirements" - crap on that - tell me what they are. A double apartment building for every worker? Minimum $5/hour? What is it? This is a straw man. You've no clue what the answer is - "they should do better" is about how you'd probably sum it up. A never-achievable goal.

    Yes, people want to shut China down.

     


    I was committed to not coming back here, and focusing on other sorts of writing, but here I am again.  Your 'poor babies', of course, pummeled my poor brain and my sensibilities (as you suspected).  Yet another twist on micro-creative-destruction, I guess.  Some of us like myself have a pretty hard time with such a Big Picture view of long-term economic plans.  Yeah; ya kinda have to ignore the suicide nets a bit below the dorm balconies, but it's a pretty tiny percentage of dead workers, and they might have done it anyway.  Christ, Des. 

    And Welfare Reform may not have brought the US to its knees, but last I checked, some of the defenders of family and children didn't think it worked out so well, although it might have with smarter, longer, and therefore, more expensive provisions.  Can't want to argue that one further today. 

    But I remember Clinton for the Commodity Futures Modernization Act, too, not only deregulating derivatives, but preventing individual states from regulating them. 

    You'll like this from FP magazine; 'cooler heads will prevail in the trade war with China' is the theme:

    http://www.foreignpolicy.com/articles/2010/10/19/reluctant_warriors

    Another one deals with the differences between Reagan's responses to Japan over trade, and has this funny paragraph: 

    Like 1980s Japan, China today is pursuing an export-led growth strategy, suppressing domestic consumption, pushing savings, and guiding investment into strategic industries. It has a multitude of trade barriers, weak labor unions, and an undervalued currency. The U.S. trade deficit with China is now about $250 billion -- four times that with Japan. Despite its early welcome to foreign investors, Beijing is focused intensely on developing its own technology. More importantly, U.S. high-tech industries -- solar energy, computer chips, and fiber optics -- are increasingly being offshored to China. And Chinese commitments to strongly protect intellectual property are often honored more in their breach than in their execution. As one Chinese friend explained to me last year, "Now we have all the foreign dogs in the kennel, and we're going to beat the stuffing out of them."

    When you opened this blog, you spoke of 'foreign policy', then talked about 'trade policy' instead.  That they are intertwined is clear.  This bumble-fumble by Obama on his trip to China last year may speak volumes:

    The United States also has less leverage with China today than it did with Japan then. Washington needs China to deal with transnational threats like Iran, North Korea, and global warming, not to mention financing the mounting U.S. government debt. So Obama has been less able and less willing to act -- except, that is, when he is making inexplicable concessions. During his trip to China last November, for example, Obama pledged that the United States would assist Beijing in developing its own commercial jet, though aerospace technology is one of the few U.S. strategic industries that still exports to China.

    http://www.foreignpolicy.com/articles/2010/10/11/lie_of_the_tiger?page=0,1

    So the trade deals and currency revaluation deals are twisted with considerations over Taiwan, and Chinese 'interests' v. 'stay-the-hell-out-of-chinese-business re: Taiwan', and extending their naval forces beyond Taiwan to the south, and Hillary in Australia cutting deals for closer ties with our military and theirs, and bases of operations, and a more (ahem) vigorous US Naval Presence there in the Pacific and...yeah; it's complicated, because you have a couple big countries that want to be Top Dog...or something.  (Sorry for the crap end of that thought; I typed myself into a corner, and i have ass-cramp now and want to get off...)   ;o)

    But I really will try to make this my last comment and try to get a real life today.  And besides, kgb is much better informed and coherent than I am.   Tongue out 

     


    I find your response to be real coherent, and right on target, too. Bravo!

    Too often, I find myself asking "Just whose economy is it?" when I encounter the "experts" talking about growth and success. Reason being, I look around my neighborhood and amongst my peers, and I see everything going backwards in terms of quality of life. And I don't see much consideration for the quality of life for others in the developing countries, either. Human resources. Grist for the mill. All doing their part to give it up for the growth of the economy. But whose economy is it?


    I live next to a bridge, and it used to be every once in a while you'd find a body underneath it - perils of depressed urban living. Okay, so they put up a fence so not so many suicides, but people do kill themselves - more in the north than in the south, for example (though Colorado lock-in may cause more than All Work No Play Jack homicide). Again, if it's a result of physical abuse, rather than the usual trauma of being a migrant laborer under stress, well, Foxconn has a big problem.

    And then China is trying in different ways to change - e.g. domestic consumption. To go along with that energy & pollution & worker conditions, etc. That also means they'll be trying to cover 90% of their population with public health care by end of 2011 - as a way of stimulating domestic consumption. Rather clever, that. And ambitious.

    And no, this blog hasn't touched much on SE Asia conditions and where China fits in, as well as influence on Africa. Of course most of China's effect these days is felt in economics & trade, fortunately not so much saber rattling, though that part's not to neglect - a sprightly army they have.