by SeaGypsy » Fri 07 Jan 2011, 22:56:50
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I'd prefer a more balanced approach, whereupon the US would simultaneously: (1) achieve a "level playing field" viz. Asia with respect to legal regulation; (2) maximize its predominance of intellectual property (i.e., "cranking out more engineers, scientists, biotech specialists"); and (3) shift from a services-oriented economy to a manufacturing-oriented economy.
Several major issues there which have no simple solution:
1/ The level legal playing field.
In Asia it can be easier to get forgiveness than permission. Backdated planning permissions are routine in a lot of countries, can anyone see the US allowing open slather development on a private contract basis and post dated planning allowances? Not me. How about the minimum wage? In most of Asia that's less than $5 USD per DAY. What would happen in the USA if any government tried that?
2/ Intellectual property dominance.
Applying to what industrial products? The ones coming out of Hollywood? Ever been to a market in Asia? Enforcement of copyright laws is near enough to impossible, let alone engineering IP. Re-engineering is so commonplace in Asia it's rediculous. Chinese companies routinely rip off designs so blatently as to use original products to cast moulds for their copies. They make a few tiny modifications and claim originality of design. Little by little resistance in first world markets has been wearing away. Nobody can afford not to do business with China, so nobody kicks up too much of a stink about their industrial espionage or copy cattery.
2/b. Ever looked at the numbers of engineering and science grads in China and India?
3/ Reversion to manufacturing vs service economy.
(see 1 & 2) Much more easily said than done. The absolute necessity for the US to fix up it's trade imbalance hinges on oil dependence. Stupidly, this has never been put as the central focus of any government. If the US could get off imported oil, it can continue to have a service dominated economy, it's that simple. The only way to do as you suggest is to compete directly with China; which means paying dirt wages, removing worker entitlements, restricting environmental protections and ignoring patent law. Nope. Easier to get serious about getting off oil.