Editor's Note: Be sure to catch GPS every Sunday at 10a.m. and 1p.m. EST. If you miss it, you can buy episodes on iTunes.
By Fareed Zakaria, CNN
President Obama spoke forcefully in his State of the Union about the importance of reviving manufacturing in America. If you talk with economists they will tell you it's a very complex problem, involving tax, trade regulatory policy, exchange rates, and educational skills. It is all those things.
But when you move from high-level policy to specific cases, you will often find one element that is rarely talked about: a foreign government’s role in boosting its domestic manufacturers with specific loans, subsidies, streamlined regulations and benefits. In effect, these governments - many in Asia, though some in Europe as well - have a national industrial policy to help manufacturers.
In a front page story last week, the New York Times detailed how Apple's iPhone ended up being made outside America. The Times wrote about the Apple executives who visited a factory in China to see if it could cut the glass precisely for the phone's touch screen. When the Apple team got there, the factory owners were already constructing a new wing. "This is in case you give us the contract," the manager explained.
How could they afford such an extravagant gesture? Well, it turns out, the Times noted, that they received subsidies from the Chinese government. That one incident is part of a pattern.
In 2009, for example, Bridgelux, a light-emitting chip manufacturer in the United States, was searching for a new factory site, the company considered the cost of building in the U.S. and elsewhere. The government of Singapore offered to pay half the setup cost of the plant.
"Why can't we do that here in the U.S.?" the CEO Bill Watkins asked.
Andrew Liveris, the CEO of Dow Chemical, has been arguing for a national policy aimed at reviving manufacturing. In his book, Make It In America, Liveris argues that not only would a manufacturing policy produce good, long-term jobs, it would upgrade the job skills that are crucial to keeping innovation alive.
"Innovation doesn't just happen in laboratories by researchers," he told me. "It happens on the factory floor. The process of making stuff helps you experiment and produce new products. If everything is made in China, people there will gain the skills, knowledge and experience to innovate. And we will be left behind." He worries that with tablets like the iPad and Kindle being made mostly in Asia, the next generation of these products could well be imagined there.
Companies can't compete with countries, he says.
Take solar energy, an industry largely invented in America, in which the manufacturing has largely moved to China thanks to massive state subsidies. Or consider wind turbines: China's biggest windmill makers have received more than $15.5 billion in credits from state-owned banks.
As a result, despite many concerns about quality, they won their first major foreign orders in the past year.
In theory, I am deeply skeptical of government industrial policy. Government doesn't know how to pick winners and losers, it makes mistakes, the process gets politicized.
And yet, when I look around the world, particularly in Asia, I see governments playing a crucial role. They do make mistakes – their versions of Solyndra – but they seem to view it like venture capitalists.
Their role is to seed many companies, only a few of which will succeed. Once successful, the government helps these companies to compete against big American multinationals.
There used to be a joke about Marxist economists who would say of a deviation from pure Communist economics: "It might work in practice, comrade, but it doesn't work in theory."
That's what industrial policy looks like these days.
The theory doesn't make much sense but it's hard to argue with the results.
For more on this, you can read my column in this week's TIME Magazine. For more of my thoughts throughout the week, I invite you to follow me on Facebook and Twitter and to visit the Global Public Square every day. Be sure to catch GPS every Sunday at 10a.m. and 1p.m. EST. If you miss it, you can buy the show on iTunes.
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At one time, America could be proud of it's industry, and probably to a large degree it's government. There is still pride in what's left of industry (thank you Harley Davidson). As for the government, well now, there's something that needs to be gutted, restructured, and made by real Americans again.
It's bureaucracy that spoils the enthusiasm of manufacturers to stay in the country. Except for Germany, many European countries face the same problem and they go to Eastern Europe or Asia. The governments maintain the importance of treating everybody equally. Should they grant a company subsidy, they would have to grant every single one the same. By granting nobody, they would have less work.
please read: many MANUFACTURERS in the European countries face....
Many subcontractors knowlingly under-quote business in rough economic times, then hire someone to throw under the bus after a "lessons learned" meeting. Happening to me right now...
Job performance is second fiddle to family/children.
Interesting that you happened to mention Harley. If it hadn't been for a massive federal bailout back in the 80's or 90's, HD probably wouldn't exist today. Harley had dug itself into a hole due to a shoddy product with inferior engineering and poor quality. Today, given that Harley relies largely on image instead of technical prowess, I'm not sure it's the best choice as an example.
Granted. Can I throw in a couple of cases of Old No. 7 with that Low Rider?
I made the very same example of Harley Davidson as a model for American manufacturing. For me, Harley Davidsons are more than motorcycles, they represent the American mythos, the magic that America used to represent when I was a kid. The current political landscape embarrasses the nation and lowers our social global currency (can I say that?) The only export that hasn't waned is the "magic" of America. The Hollywood export, The Harley export, to some extent the hip hop and pop culture export. If we could just capture some of the other higher minded items that meant something we might turn this thing around. But first we have to get a grip on this out of control pure capitalistic virus running rampant.
The spirit and magic is still there but somewhat bruised and stifled. Live Free. Ride Free. Build Free??? Ok, it's gonna need a little work.
motorcycle manufacturer Harley-Davidson borrowed $2.3 billion from a federal bank to ease the company's ongoing financial troubles, it has been revealed.
Read more: http://www.visordown.com/motorcycle-news-industry/harley-at-centre-of-23-billion-bailout/16312.html#ixzz1ktEU0UKM
Yup. Closing Buell and buying MV Agusta for 70 million euros and then selling it back for 1 euro. No wonder they needed a bail out!
Thank you Feds for bailing out Harley Davidson.
If America can just vote all the Democruts out of office, yes the corrupt Demo. There is nothing progressive about them just because they call themselves progressives. During their history all they have done once they mess anything up is change their name. America has got to get a grip on that and get them all out of office.
Here we go again. In times of crisis we still bicker about politics. Folks, that's just plain sad. Thats how petty this has become. This isn't about red vs blue friend; it's about do or die. It might as well be the apocalypse and Lady Liberty and Uncle Sam are still bickering over who gets the kids. The entire system, not just the cripublicans or the demo-bloods, has failed the American people, and your still supporting this blame-game system like a blind mole rat? For shame.
If America can just vote all the Democruts out of office, yes the corrupt Demo. There is nothing progressive about them just because they call themselves progressives. During their history all they have done once they mess anything up is change their name. America has got to get a grip on that and get them all out of office.
Today I heard the most ill thought out, irresponsible statement I have heard in a very long time. Zakaria stated that we should take a page out of the Chinese play book on how to run our economy!
Well the Chinese are doing a lot better these days, why not borrow a few ideas from them? However I think a better model would be the one that Germany uses.
that's the problem with people who think like you Isabel. You live in the past refusing to believe that not everyone is our enemy. You buy into the GOP propaganda of fear, we must be afraid of everyone else in the world and we must dominate everyone in the world. I suggest you get your consciousness into the 21st century and evolve or you and yours will be left behind.
Evolve? Isabel doesn't sound like someone who believes in evolution..
Evolved ??????? Seem like you mutated. You need to get you and your family to Mainland China and evolved there.
He is correct. We either match what others are doing to steal our jobs, or we don't.
Since we know what they're doing, and we know they will not stop, we should do it better and faster.
Isobel, that was the most ill thought out, irresponsible statement I have heard in a very long time.
I think Fareed missed the main point in the story on China and the lack of an industrial policy in this country. We need an industrial policy here but in my opinion we sure don't want to be like China. The most important part of the story I heard was that when they wanted to start production of the IPhone, they went into the dormatory at 2:30 am where all the workers were sleeping, woke them up, gave them a bisket and some tea, and sent them out to the production line. That sounds very Orwellian to me.
So what do you suppose we do? Threaten them with a nuke b/c they're successful? Apparently, it's not just Occupiers that loathe success (accept, this time, race and nationality join the party).
Of course the U.S. needs an industrial policy that is robust. BUT simply subsidizing industry by tax breaks or building factories is NOT enough. Now states themselves subsidize industry by a varity of tax breaks and grants usually for ten years or around that. Once the ten years is up many industries simply shop around again for another sucker to take advantage of. What you failed to meniton Fareed was that when it was decided that glass was needed for the apple device the contractor got around 2000 or 3000 people up from barracks at 3 in the morning gave them a cup of hot soup and got them working on 15 or 20 hour shifts. There is NO way America can compete with economic slavery and the pittance of a wage rate often offered. Not to mention workplace and overtime abuses. That was also in the NYtimes.
Even industrial electricians can read the NYTimes on the internet. HT Industrial electrician 40 years Iowa
P.S. We have not even mentioned the advances in industrial technology which now advantage underdeveloped countries.
Yes, you are so right. Because they are a Communist country they can do whatever they like with their people and companies. That didn't stop Apple from taking their business over there. That's the bottom line. A very American product is made in China.
Good post. I love GPS, but Fareed really dropped the ball on this one. Government finance of projects is not the real story or what we are competing against. As pointed out, it happens all the time over here. On the other hand, workers living in dormatories, being awaken with a bisket and a cup of tea to go to work at 3:00 am sounds appalling. From what llittle I know, this sounds much to much like Stalinist Russia or Mao's China.
...industrial policy, YES it makes alot of sence but only because WE; the consumer, the investor, the manufacturer(now gone distributor) have created this. There are "tools" in place that our governments(USA & Canada) have turned a blind eye to called "duties"! Fareeds report on Apple visiting a company in China only to find out that they were building a complex "just in case" they got the Apple contract is exaclty what is going on in China and YES their government is subsidizing, plants, employess and giving back tax credits on almost all exported goods to the manufacturer in China...how are we to compete? Our governments do not want to review current duty rates in fact, China is stilli given favored country status(and thus lower duties) in Canada – WHY?
If 200 million Americans (USA & Canada) spend $40 a month on American manufactured items, that's 8 billion dollars going back into our economy every month...we could soon reverse the trade inbalance and bring back jobs to AMERICA.
China has taken the "build it and they shall come approach" and WE are fueling their growth, while are governments are doing the "politically correct" thing(nothing!).
While I agree with the sentiment of your post, you need a bit of perspective. $8 Billion/month to our GDP is just about the same as $8 against a $2400 bill – in other words, nearly insignificant.
Its time to stop those agricultural subsidies and give them to manufacturing.
This week we heard how much Apple made lately. With over $100 billion in cash sitting around, they should follow Bill Gates ' example and give back. They should take that cash and pay off the European debt. A bold move, but what a great move it would be PR wise. I would consider even changing my anti-Apple stance if they did this. Not only would they get their money back over the long term, but the goodwill would also open doors and bring new cash in their doors.
They should do the right thing and bring their manufacturing back home to America.
They would if you guys had enough qualified engineers, but you don't (see last weeks article). Your educational system only produces Nobel prize laureates and burger flippers (very little in between). What you need is a national education policy that isn't spearheaded by a president who had a C- average in college. No Child left behind, lol, what a joke your previous president was.
Ya, I'm sure that'll make a lot of individual investors and pension fund managers very happy to see their investment go down to zero. That won't start a panic or anything.
لمناسبة استشهاد الرفيق حكمت العزاوي مرة اخرى العار لكم يادعاة حقوق الانسان
شبكة المنصور
صلاح المختار
لقد قيل بصواب ان الفرع مثل اصله ، وهذه الحقيقة تنطبق حرفيا على لجان حقوق الانسان العربية التي ترى بعين واحدة هي العين الامريكية ، فما ان ترى عين المخابرات الامريكية حالة تريد تسليط الاضواء عليها حتى نرى لجان حقوق الانسان العربية تتبارى في اصدار البيانات وتنظيم الندوات تعبيرا عن الاحتجاج على خرق حقوق الانسان في هذا القطر العربي او ذاك ، ولكن هذه اللجان ذاتها تصاب بالخرس والعمى والطرش عندما يتعلق الامر بحقوق الانسان التي تخرقها امريكا ودمى امريكا العرب وجنود امريكا ، فمنذ فرض الحصار على العراق وتطور الامر الى غزوه وما ترتب على ذلك من استشهاد اكثر من اربعة ملايين عراقي بين عامي 1991 و2011 ، وتعرض من لم يستشهد للموت البطئ نتيجة انعدام او ضعف الخدمات وتعمد ما يسمى ب ( المجتمع الدولي ) منع ازالة كارثة العراق ، وتشرد سبعة ملايين عراقي من ديارهم ، واغتيال مئات العلماء والخبراء العراقيين واختطاف مئات اخرى مازال مصيرهم مجهولا ، ووضع ملايين المهجرين العراقيين امام تحدي انعدام المورد المالي ورفض دول اوربا واستراليا وكندا قبولهم وقبول عدد قليل جدا منهم فقط ، وقيام الانظمة العربية ب ( واجبات الاخوة العربية ) بتعذيب العراقيين وجعل نهاراتهم اسود من ليلاليهم عن طريق عدم منحهم الاقامة وان منحت لهم جعلت وسيلة اذلال لهم ونهب لليسير من المال الذي يحصلون عليه بشق الانفاس .
لقد اصبحت مأساة شعب العراق بحق الكارثة الانسانية المنسية ، وكنا نحن ابناء العراق ، ورغم كل شكوكنا بمنظمات حقوق الانسان ، نتوقع منها على الاقل سد طريق نقدها باصدار بيانات ولو شكلية وقليلة لادانة الاعمال البربرية التي تعرض ويتعرض لها ابناء العراق وقادته المدنيين والعسكريين ، سواء على يد الاحتلال الامريكي والايراني للعراق او على يد الانظمة العربية التي تتفنن في اهانتهم وتعذيبهم ونهب ما لديهم من اموال شحيحة ، ولكن وكما تكرر الامر منذ عقود فان هذه اللجان ترى بعين امريكية وتسمع باذن امريكية وتطرب لانغام امريكية فقط ، اما انين المعذبين وشهقات المحتضرين في العراق فانها لا تصل اسماعهم ولا تحرك انسانيتهم ابدا .
مناسبة هذا التذكير هو استشهاد الرفيق المناضل حكمت العزاوي في سجون الاحتلال نتيجة للتعذيب البطئ له ولعشرات الرفاق الاخرين ، ومن بين اشكال التعذيب عدم معالجتهم رغم انهم كلهم كبار سن ولديهم امراض تتطلب العلاج المستمر ، لكن الاحتلال الامريكي والسلطة العميلة في بغداد تعمدا وفق خطة موضوعة تصفية رموز العراق ليس عن طريق الاعدام الرسمي فقط بل ايضا عن طريق اهمال المرضى منهم ومنع الدواء عنهم فتكون النتيجة الحتمية هي موتهم واحدا بعد الاخر في سجون الاحتلال .
وقضية الرفيق حكمت العزاوي مثال صارخ على اهمال منظمات ولجان حقوق الانسان العربية لقضيته فبالرغم من النداءات المتكررة والتحذيرات المستمرة منذ سنوات والتي كانت تلفت النظر لحالته الصحية الخطيرة وعدم تلقيه العلاج المطلوب انسانيا حتى لمن يحكم عليهم بالاعدام من المحكومين العاديين ، الا ان دعاة حقوق الانسان لزموا صمت الموتى وكأن اسرى العراق ليسوا بشرا تشملهم حقوق الانسان ! انه امر اكثر من غريب ويصل درجة الوقاحة ان تتجاهل لجان ومنظمات حقوق الانسان العربية الحالة الخطيرة للاسرى العراقيين واغلبهم شخصيات معروفة عربيا وعالميا ! والاكثر مدعاة لليقين ان تلك الجماعات المطالبة بحماية حقوق الانسان ليست سوى بيادق امريكية هو ان عمليات خرق حقوق الانسان العراقي لا تحتاج لتوثيق او تحقيق لانها تمت وتتم غالبا عبر شاشات التلفزيون وبصورة متكررة وصدرت وتصدر بها اعترافات امريكية او من المسؤولين في الحكومة العميلة في بغداد ، مثل طريقة معاملة من قدموا للمحاكم من قادة العراق وتعرضهم للضرب والاهانات امام الملايين وحرمانهم حتى من الملابس اللائقة ، كما حصل للشهيد برزان ابراهيم الذي كان يحضر جلسات المحكمة بملابسه الداخلية ، والمناضل الشهيد الحي طارق عزيز الذي كان يحضر المحاكمات بالبيجاما ! فهل كان الاحتلال عاجزا عن تزويد الاسرى بملابس مناسبة لحضور جلسات عامة ؟ ام انه تعمد اهانة العراق وشعبه بجعل قادته يحضرون محاكمات نقلتها اجهزة التفزيون العالمية بالبيجاما او الملابس الداخلية ؟ ورغم هذه الحالات المثبتة فان هذه اللجان لم تتحرك و لم تصدر بيانا لادانة هذه الخروقات الفظة والخطيرة لابسط واهم حقوق الانسان وهو حق الحياة وحق الكرامة الانسانية . وحينما اعدم الشهيد برزان ابراهيم اعلنت الحكومة العميلة في بغداد رسميا ان راسه انفصل اثناء اعدامه ، وانفصال الرأس امر غريب في الاعدامات وكان يجب على لجان حقوق الانسان ان تجري تحقيا حول الامر لمعرفة كيفية انفصال الراس ، لكنها لم تفعل وكأن الامر طبيعي ، تمام مثلما فعلت القوات الامريكية والسلطات الامريكية التي تحتل العراق وكانت تشرف على المحاكمات وقتها .
لقد اصيب الدكتور محمد مهدي صالح الراوي وزير التجارة العراقي في العهد الوطني بالعمى وهو في الاسر لان كل النداءات التي وجهت لانقاذ عينيه ذهبت ادراج الرياح ولم تكلف اي لجنة من لجان حقوق الانسان نفسها حتى باصدار بيان مطالبة بتوفير العلاج ، وعميد الاسرى العراقيين الرفيق المناضل طارق عزيز يواجه الموت ببطء نتيجة حرمانه من الدواء عمدا رغم تدهور صحته ، وفي حالة الاستاذ طارق عزيز نلاحظ العمى الكامل لجماعات حقوق الانسان حيث ان جهات دولية وعربية كثيرة لا صلة لها بما يسمى حقوق الانسان تأثرت بسوء معاملته وطالبت باطلاق سراحه مرارا وتكرارا ولكن ابطال حقوق الانسان لم يتكلموا ولم يسمعوا ولم يروا ! انهم مصرون على تجاهل مأساة مئات القادة في سجون الاحتلال في العراق ، ويتعمدون تجاهل ماسي ملايين العراقيين داخل وخارج العراق ولكنهم نشطاء بلا حدود عندما يتعلق الامر باستنفار تعلنه امريكا للدفاع عن حق انسان او بضعة افراد يقال انهم تعرضوا للاضطهاد هنا او هناك !
اين انسانية هؤلاء الاوغاد الذين يستخدمون دائما اسم حقوق الانسان في تنظيم الحملات الشرسة ضد اطراف بعينها ولكنهم يتفرجون على احتضار رجالات العراق في سجون الاحتلال ؟ يكاد هؤلاء ان يقولوا بصلافة واضحة ( دع قادة العراق يتعفنون في سجون الاحتلال حتى الموت ) ! فهل هذه هي واجبات لجان حقوق الانسان العربية ؟ وهنا لابد من التنبيه الى ان هذه اللجان والجمعيات قد كشفت مؤخرا واكثر مما مضى ، فحينما بدأت تظاهرات الجماهير ضد النظم العربية وجدنا هذه اللجان تنشط ولكن بصورة انتقائية فتسلط الاضواء على خروقات حقوق الانسان في قطر ما وتبالغ واحيانا تنشر الاكاذيب لكنها تمارس صمت الموتى تجاه اقطار اخرى ، وكأن حقوق الانسان تمنح لبشر ويحرم منها بشر اخرون .
ان هذه النزعة الانتقائية في التعامل مع حقوق الانسان تؤكد بما لا يقبل الشك حقيقة ان هذه اللجان والمنظمات ليست سوى اداوت امريكية صرفة تتحرك بعد ان تحرك من واشنطن ، واذا لم تأتيها الاوامر من هناك فانها لاتتحرك ولا تفضح ولا تهاجم . تلك هي تجربتنا نحن العراقيون الذين نتعرض للابادة الجماعية ولابشع التجاوزات على حقوقنا كبشر منذ عام 1991 وحتى الان وسط صمت دعاة حقوق الانسان وتجاهلهم لمأساة ملايين البيوت العراقية التي فجعت باستشهاد ابن او ابنة او خطف طفل او رب العائلة وطلب فدية لا تملكها العائلة فتضطر لبيع بيتها واثاثها او للاستدانة لضمان اطلاق سراح ابنها او ابنتها ، ودعاة حقوق الانسان مشغولون بامور اخرى تحددها لهم واشطن .
قبل حكمت العزواي استشهد نتيجة التعذيب او تعمد الاهمال طبيا ومنع الدواء والعلاج الكثير من الشخصيات العراقية ومنهم الشهداء اللواء صباح مرزا المرافق الاقدم للرئيس الشهيد صدام حسين الذي مات مشلولا دون علاج وهو في الاسر ، والدكتور سعدون حمادي المفكر الكبير ورئيس الوزراء الذي تعرض للتعذيب ثم سمم في السجن بواسطة جاسوس عراقي كشف مؤخرا وضع معه في السجن ، ومحمد حمزة الزبيدي رئيس الوزراء الذي قتل بالضرب المبرح حتى مات ، والكثير من الضباط الكبار الذين ماتوا نتيجة التعذيب ومنع العلاج عنهم ، واخيرا وليس اخرا لدينا حالة المناضل طارق عزيز الذي طالب حكومة المالكي بتنفيذ حكم الاعدام به ليتخلص من الام المرض ، وحالة الاستاذ سعدون شاكر وزير الداخلية الذي تعرض لجلطات خطيرة ومع ذلك لم يعالج وحياته في خطر .
في كل هذه الحالات فاننا وجدنا ان لجان ومنظمات حقوق الانسان غير معنية بحياة العرقيين على الاطلاق فهل يجوز الصمت بعد الان وترك هذه اللجان تعمل وكأنها فعلا تدافع عن حقوق الانسان ؟ لا يوجد امل في استيقاظ ضمير هؤلاء بعد سنوات من موت الضمير ، لذلك والى جانب تحميل مسؤولية موت وتعذيب وتهجير العراقيين لامريكا وايران والحكومة العميلة في بغداد لابد من تحميل هذه المنظمات ايضا مسؤولية كارثة العراق ، فاذا كان الانسان كل انسان يستحق الدفاع عن حقوقه وحمايته فان هذه الجهات تعاملت بانتقائية مع شعب العراق وتركته للتعذيب والموت والتهجير الملاييني ، والذي فاق عدد المهجرين فيه المهجرين من شعبنا الفلسطيني ، لذلك فانها تستحق الفضح وتسليط الاضواء على مواقفها اللا انسانية وتجريدها من قناع حقوق الانسان وتبيان انها مجرد ادوات لامريكا والصهيونية تحرك وتتحرك لخدمة الاهداف الامريكية والصهيونية .
ان استشهاد الرفيق المناضل حكمت العزاوي يقدم لنا اليوم مثالا ودليلا اخرا على خيانة هذه الجماعات لواجباتها الانسانية المفترضة ، وبنفس الوقت يؤكد موت الرفيق حكمت على ان تحرير العراق من بقايا الاحتلال الامريكي ومن الاحتلال الايراني هو الحل الوحيد لمأساة كل العراقيين من الشمال الى الجنوب .
i dont mean to sound rude.......but why do people post in another language , or even competely different letters? whats the point? i mean its not even the same alphabet, unlike european languages.
I think we'd be better off with tariffs than giving more subsidies to specific companies. Tax breaks for companies opening new factories in the USA is a nice idea, but tariffs on products imported from nations using subsidies on their end or who have exploited, unprotected, or under-paid labor is the bare minimum. Direct subsidies are usually a form of central government control. The only time you want that is for infrastructure, defense, vaccines, basic/open research that all domestic companies can use.
The problem with tariffs is that there is nothing to stop the other countries from raising tariff barriers against US goods. Tariffs can be useful for the short-term on a few goods but over the long term the wide spread use of tariff's only hurt your own export businesses.
Fareed,
I enjoy watching your show every week. Your stories are always so informative and I always walk away feeling that I learned something important. I enjoy your show so much that I disregard the occasional bias in your stories but, your justification of Solyndra is too shocking to disregard. You have just shown where your allegiance lies.
Nancy, I am not clear what you are saying. Quoting the article:
"In theory, I am deeply skeptical of government industrial policy. Government doesn't know how to pick winners and losers, it makes mistakes, the process gets politicized."
Zakaria does not justify Solyndra at all, but he does make the same argument that Romney makes with respect to closing companies. To succeed you need a portfolio of companies, some of which will fail and maybe even in spectacular ways but a rational strategy can produce long-term winners. It is the same wisdom of the old folk saying "don't put all your eggs in one basket."
None of the incentive policies and programs suggested by President Obama will work unless the incentives are tied to the requirement for broadened productive capital ownership among the 99 percenters. Please see my capital ownership article at http://www.widescreenreview.com/blog_detail.php?id=837.
""Why can't we do that here in the U.S.?" the CEO Bill Watkins asked." Because the knuckledragging Teaba$$er-Republicans will cry big government intrusion, nanny state, etc. We are perfectly content to continue to ship our jobs to other countries, thank you.
Just another sep to the Soviet States of America.
Yes, the president of DOW Chemical is a communist. I truly would like to learn how so many people came to believe in this "America is becoming socialist" crap. America is already socialist and has been so for a long time - the roads are socialized, education is socialized, police and firefighting are socialized. Certain industries have long received government subsidies - sugar, milk and other agricultural sectors. Anyone remember Sarah Palin's efforts for USDA subsidies for a failed creamery?
Big mistake. Another giant government program arbitarily favoring some at the expense of others. "Let's tax everbody and support "manufacturing" because "we" have decided it's "good"." Note the Chinese are losing big time with industrial subsidies. We get the cheaper products. Manufacturing is not more efficient – it's less efficient when government funded.
Clearly a world war is required to give new life to manufacturing. WW2 did it for America, WW3 could do the same. And those who lose the war can surrender their resources to the victor. WE are long over due for another war.
Companies cannot compete against countries. Our government needs to protect its citizens from all dangers – physical and economic. It is clear the WTO is failing to enforce fair trade practices and United States should unilaterally take defensive measures. I believe after tariffs are imposed the Chinese will come to understand that trade with United States is only possible when the benefits are mutual.
Of course the United States should have a national macro-economic policy. Our government should be active in not picking winners but more like a farmer occupied in ensuring the conditions are right for maximum growth and sustainability. United States leads the world in the science of business management – it is time our government begin to act the same.
I think we need a policy to start having policies. Someone get on that.
You've been told this before, Zakaria: America needs for the government to stop meddling with companies trying to do business in the US. Obama is very late to the game in wanting to lower taxes on corporations creating manufacturing jobs in the US. He should have made that his top priority three years ago, in 2009, but he was too clueless (at the time) to do so. It took Steve Jobs and maybe a couple other CEOs to explain to him why "an iPhone cannot be made in the US". So, after that, Obama is finally saying the same thing that Republicans were saying in 2009, except that I am not sure that he will go far enough on reducing some regulations related to factory construction.
Obama's concentration on manufacturing has kind of won me back to his side, as manufacturing job creation is a big deal to me, but during the election campaign, he will have to prove how serious is about helping US companies that bring jobs back to the US. Taxing the rich is not the only answer here. Obama will have to make truly tough choices concerning cutting Federal expenditures and enabling entrepreneurs.
I think you also failed to mention the variable of organized labor. It is NEEDED in China and it is overdone here in the US.
Your articles are basically worthless, by the way.
Depending on complex,different elements.
During the early 1980's (and before) groups of senior politicians and industrialists from Europe and the United States meet on a regular basis to discuss progress towards their New World Order; they decided upon Deindustrialization of their countries to pave the way towards a one world government, one world currency, and one world religion. This massive transfer of wealth to the east could not have happened any other way; joint cooperation between industrial leaders and political leaders. Both Democrat and Republican leaders are members of the Bilderberg Group, Council of Foreign Relations (CFR) and the Trilateral Commission. You will find large numbers of CFR members working in the cabinets of all American Presidents. This Deinustrialization causes massive loss of tax revenue to the United States and Euro countries, destabilizing the respective governments, creating chaos, an ideal situation to force people to accept austerity measures from a group with a solution to bail them out. Yes, we need a reindustrialization policy, but the foxes have been living in the chicken coup for a very long time and they are well entrenched. The foxes are the politicians we elect and have elected for several decades. The industrialists are just interested in the bottom line to their corporation; they have no concern for the citizenry. The Defense Industrial complex as President Eisenhower warned us about, like wars as their industry makes tremendous amounts of money selling bombs, bullets, aircraft, tanks etc. to the governments. I wish all you the best in your efforts to return America to its once great status as manufacturer to the world. With severe indebtedness of the U.S. and Euro expect to see a one world currency take center stage in the not too distant future. The elimination of the U.S. dollar as the world reserve currency will reduce the standard of living for the American people quite drastically. We hear a lot of talk from Republicans and Democrats about reducing the deficit, yet they just increase it more – they are part of the system. Presidential candidate Ron Paul is the only candidate who is serious about reducing the deficit.
Right on , Randy.Our economy and our capital went to China and we talk about industrial policy ? Our Congressmen should face treason charges and Obama as well.I agree with you, Ron Paul is the only glimmer of hope . The other clowns will get us into more endless wars.
Right on , Randy.Our economy and our capital went to China and we talk about industrial policy ? Our Congressmen should face treason charges and Obama as well.I agree with you, Ron Paul is the only glimmer of hope . The other clowns will get us into more endless wars.
Duplicate comment keeps clicking and you are not posting my comments. What is going on ?
Right on , Randy.Our economy and our capital went to China and we talk about industrial policy ? Our Congressmen should face treason charges and Obama as well.I agree with you, Ron Paul is the only glimmer of hope . The other clowns will get us into more endless wars.
Duplicate comment keeps clicking and you are not posting my comments. What is going on ?My comments are disappearing – shame on you Zacharia !
أهم الأخبار
الحكومة العراقية تتهم الشركات الامنية الخاصة بالضلوع في اعمال التفجير والاغتيالات
وزارة الداخلية العراقية تكشف عن ضبط اسلحة محظورة لدى شركات امنية خاصة بعضها يعمل داخل المنطقة الخضراء
ضبط شركة امنية خاصة داخل المنطقة الخضراء كانت تعد لاستهداف شخصيات سياسية كبيرة وتفجير مقرات حكومية
الرئيس العراقي جلال الطالباني يعود الى بغداد من رحلة العلاج في المانيا ويبدأ اتصالاته لعقد المؤتمر الوطني للتعامل مع الازمة السياسية في البلاد
نائب الرئيس الامريكي بايدن يدعو القادة العراقيين لحل خلافاتهم قبل عقد المؤتمر الوطني
اوساط اقتصادية تقدر العملات الصعبة التي سحبها الايرانيون من اسواق التداول في العراق خلال شهر كانون الثاني باكثر من ملياري دولار امريكي
اوساط اقتصادية تقدر العملات الصعبة التي سحبها الايرانيون من اسواق التداول في العراق خلال شهر كانون الثاني باكثر من ملياري دولار امريكي
دبي-الشرقية 29 يناير: قدرت اوساط اقتصادية محلية واقليمية قيمة العملات الصعبة التي سحبها ايرانيون من اسواق التداول في العراق خلال الشهر الحالي باكثر من ملياري دولار امريكي مما ادى الى ارتفاع سعر العملة الامريكية داخل البلاد.وقالت رابطة الشفافية ان مضاربي العملة يقومون بعملية التبادل مع تجار ايرانيين عند المنافذ الحدودية بعد انخفاض قيمة الريال الايراني بنحو عشر في المئة واضطرار الحكومة الايرانية لزيادة سعر الفائدة الى عشرين في المئة في محاولة لوقف عمليات سحب النقد الايراني من المصارف وتبديله بالدولار بسبب تاثير العقوبات الاقتصادية ...من جهة اخرى ذكرت مصادر عراقية ان الوفود التجارية الخاصة والحكومية الايرانية القادمة من ايران الى العراق تفوق بعشرين مرة نسبة ما كانت عليه في العام الماضي.واضافت ان محادثات الوفود تتركز على فتح فروع للمصارف الايرانية في العراق ومراكز تجارية وتاسيس مراكز لنقل البضائع من العراق الى ايران مضيفة ان هناك عزوفا كاملا في العراق من التعامل مع الريال الايراني .ونبهت المصادر الى تزايد عمليات نقل الذهب بكميات كبيرة الى ايران في حين يجري نقل كميات كبيرة من الدولار الى سوريا بالاضافة الى المشتقات النفطية
I grew up in the North East of the US. small town with many moderate size industries...engine gaskets for Big 3, bearings, machine tools, brass, hand tools, aircraft engines not far away, firearms about the same distance away. ALL are G-O-N-E or a fraction of their former size. The big fear when I was growing up was that this stuff would be shipped to the Southern US. Now it is all OVERSEAS !!! Just for the record the Blackhawk helicopter (mainstay of the US Army) now has fuselage sections built in POLAND and other former East Block states shipped here and put together in the states. Do we need a manufacturing policy? Do we need an energy policy? Come on Fahreed how about some answers rather than stupid questions?
It is all well and fine to talk about historical examples (modern) of governments directing industrial policy, but what is missing is an example of a post-modern society successfully dircting industrial policy and reviving its manufacturing economy. There is no such example. Post-modern societies inevitably try to direct money toward "socially rewarding" industries (like the current administration) and ignore industries that are simply money generators. The results look like Obama's failed attempts at solar panels, et al.
Farid, are you kidding me? The Chinese government is subsidizing slavery in those factories. Are you suggesting that we reduce minimum wage to $1.40, like it used to be, get rid of unions, and start stockpiling slaves like Foxconn? Irresponsible reporting....
We seem already to have an industrial policy. Congress steals whatever money they need to bail out failing enterprises. What more can industry want?
Why do you think foreign governments chip in to help the industries? The reason is very simple: to guarantee jobs for their citizens, something our US government failed to recognize. Despite the fact that our nation is one of the most advanced countries in the world, not to mention that we have so many intelligent folks around, we failed to see something as simple as such–jobs, jobs, jobs... I hope we learn a lesson from the outsourcing fiasco and let's bring those jobs home so we can become great again. This country should operation on the foundation that people should come before BIG CORPS!
Reblogged this on A DM Opinion and commented:
Fareed Zakaria explaining the dilemma with state sponsored capitalism. It's a tricky situation, but is it working?
I also have reservations about a national industrial policy. Singapore, China, and other Asian countries (but especially China, have provided massive subsidies to industries in their countries to lure international companies. And, you're right, it seems to be working – in the short term. But in the long term, I'm not so sure this is the primary path to take. It seems to me we are starting to see that all these subsidies are leading China to overextend itself. These over-the-top subsidies are starting to pinch the government and the banks. And we are seeing that some of the projects they are funding are, to be charitable, less than top-notch (e.g. the high-speed rail disaster.). I can support some U.S government-provided subsidies/tax incentives when they are targeted and well-thought through. Otherwise, we should be concentrating on developing a workforce that has the skills multi-national companies must have – from the high end manufacuring technician to the super smart "imagineering" engineer. This means not only graduating more engineers and scientists. It means heavily investing (hello government) in high-end vocational training and a serious apprenticeship program. In the long-run, that's a better bet for getting international companies to locate facilities in the U.S. – and stay here.
Lastly, I kind of disagree with Andrew LIveris, CEO of Dow. He says companies cannot compete with countries. I think it's the other way around. Companies are in the driver's seat. It's the countries that are chasing after the companies – and throwing money their way. Again, in the short run, this may work. But in the long run, it may result in just a whole host of empty factories and unemployed (and angry) former workers. A company is always looking for a better deal. And when some other country puts it out there, that company will wave bye-bye and be gone.
The speed in witch product production time needed to bring new items to shelf in the U.S. has been slower than the products life span. In the past 10 years advances led to spot development with world wide distribution. Plasma TVs for example needed to pay other technologies not to produce there products or Sony would have gone bust.
Governments helping business is nothing new. It's just that the USA is not doing as much for renewable energy as needed, but China is. Our government paid for the intercontinental railroad; telegraph system; interstate highways; DARPA bought most computer chips; oil companies depletion allowance; space program; and numerous research and development programs. Our government is also paying for export of jobs. A tax deduction incentivized companies to export jobs, even when it is cheaper to build here. Numerous laws or regulations have passed or been changed creating a very dangerous situation for our economy and manufacturing. We The People left everything up to politicians and they made a mess. We The People will have to clean it up.
America has many industrial policies. The defence-aerospace-technology sector has been subsidised and led by the US government defence and national security system since WW2. It has given the US a lead in technology-aerospace and defence.
By the way, why do you continue to invite right wing revisionist historian Niall Fergusen onto the program to talk about economics? He is a historian. He knows less about economics than we knew in the 1920s. Please invite him on ONLY to discuss historical questions and ONLY together with an ideologue from the extreme other side. Fergusen seems rational, but remember, he is an angry right wing revisionist historian and should only be allowed airtime in a situation where he is challenged.
Democracy has been a monumental failure. The petty concerns of special interest groups are proof of this. We should adopt the Chinese system of government. Then we will have growth again.
an industrial policy to go along with its de industrial policy.
sure, why not.
also, re program sunday, wahday ghanfar was destroying the zionist imperialist shill/propagandist, niall ferguson, untill you saved niall's rear by going to a break.
As usual Fareed Zakaria spreads his anti American propaganda about the US. The fact is the US manufacturing base is bigger than ever when it comes to Air Craft, Machinery, Automotive and Agricultural processing. China does what a lot third world countries do. They supply cheep labor for consumer electronics, apparel, toys and assorted trinkets. China can't even produce an automobile worthy of an American market. Don't confuse the crap people buy at Wall-Mart with aircraft, automobiles, and industrial machinery. All that crap they make is for consumption at a low price. As far as I'm concerned they can continue to produce it for my amusement.
the problem is to multifarious to make suggestions like this. we need to do nultiple things all at once to have even a hope of turning this nation around. education, inner city decay, competivness in international markets etc all need to be delt with as one . all of this contributes to the problem and need to be delt with.
Yes its called cheating by the WTO which china is part off, cut these industries off from out markets now, Boeing is next FYI!
I think when U.S. talks about what they hate about China's economic or currency policy, they need to 1) know what they are talking about and 2) be specific and be able to give detailed facts. "Credits from China State Owned Bank", you mean like a loan? How is that significant? U.S. has hundreds of venture capital and private equity firms that China does not have, which can provide funding too. And what kind of "subsidies" are you talking about? U.S. companies consider "subsidies" or "tax breaks" they can get from the local government when they are choosing which U.S. state/city to move their head quarters to. This is just the same on a global scale. It is nothing new to anybody. Why act so surprised.
Hopefully a national manufacturing policy doesn't eventually result in nationalizing the banks.
Firstly, it's just foolhardy to compare communist China with capitalist America! What Mr. Zakaria suggests is at best a far cry given that we are still hearing reverberations of our failed attempts at propping up companies like Solyndra and Ener1, or even bailing out GM & Chrysler.
So, rather than an industrial policy what we need in America is, as President Obama rightly said, a tax policy that rewards domestic manufacturers, and zero taxes on repatriated profits, especially when the profits are used to create new jobs right here in America.
Having said, that inspite of impressive credentials (on paper!) many of Mr. Zakaria's articles really lack any depth and appear to be only an excercise in sensationalism designed to captivate only less informed Americans.
Othertimes, the articles are just a rehash of info/analysis published elsewhere, with some of Mr. Zakaria's own interpretations thrown in (Fareed's Take!).
However he preserves his very best skills for issues closest to his heart, be it maligning the valiant Jewish people, or crtiicizing magnaninmous Americans/Indians/Europeans for their (percieved) discrimination of Muslims, or trashing Russia for its handling of the Chechyan crisis, or condemning India for its rule in Kashmir (which he calls Martial Rule) etc.
Poor Job Mr. Zakaria!
No need for 0% taxes on repatriated money. Just charge tariffs on the products when the US companies try to repatriate THE PRODUCT for sale to the US consumer/worker.
Romney would LOVE a 0% income tax on "repatriated" funds. Hey..for Romney, the 45 Million he has stashed in the Cayman's and the tax he would, AGAIN, avoid bringing that money home, is a mere "pittance". But...Hey!....A Million Saved is a Million earned!
Reblogged this on Hanuman Capital.
USA needs to market their products extensively, and compete with other overseas brands. This is not done. Any more over reliancve on American consumers will spell doom for most manufacturers. Because Americans are now starting to save money.
The other point is US goods cannot be priced like you are selling to free spending American consumers. Prices should suit foreign consumers, and compete favorably in foreign markets. American goods and services are desired by Asians if they are priced only slightly above locally made ones..
Go for big volume exports – instead of high markup price tags. It will be worth the economy of scale marketing in Asia and other emerging countries. The market there is ten times bigger – and they are prospering.
5 million jobs can be created instantly.
Yes. Everything in US should be made in US. This will encourage more employment.
We just need tariffs. We do NOT need to mimic Asian countries, as they have never been able to achieve much. Just bring back the tariffs and everything will be fine.
Are you still living inside that frog's well, and have a tunnel vision ?
Asia is going to lead the world in technology and trade. Already China will have a space station in outerspace and this is achieving alot in a decade. New technology ideas will come out of it. They will be testing new inventions.
China is able to provide jobs for 600 million of its citizens in a short period of time – from scratch.
The problem with America is this : better than you , holier than thou, bigger than others mentality. Americans are buying houses they cannot afford, living on credit, and overeating like there is no tomorrow. The entire USA has been living on credit – and the net result is the Government is broke and Americans are poor today. 15% of Americans are living in abject poverty – ths is shocking indeed.
Asians now see American under a different light. "We dont see Americvan tourists nowadays. They are bankrupt" said one tourist retailing shop.
So, I wonder who are the poor achievers – ordinarry Americans or Chinese? Of course, there are smart American innovators and inventors, but only a few.
My comments are disappearing-any reason ?
Well , it looks OK , now. I thought that maybe moderators are removing what they don/t like to mold the public opinion.
So now, I will say what I wrote before. No , we do not need industrial policy. We need to bring our economy and capital back from China ( Warren Buffett- please pay attention ), close our borders and stop all wars as Ron Paul proposes.
Only socialists and communists want dictatorial power over the economy, always resulting in utter failure. Doesn't matter if they are Middle Eastern socialist dictators or European socialists, or Mexican socialists. All fail. You are foolish to suggest it.
So when the Chinese kick our asses in the next World War - or simply eclipse our influence and access to markets & resources - because we let the "free market" drain away our manufacturing base to countries that *do* subsidize their industries... what then? Can we please stop peeing our panties over the socialist boogieman and take an actual, practical approach to our strategic interests? Please?
America's industrial policy? Sure. Get the hell out of the way - AND DECERTIFY THE F7CKING UNIONS.....
And if you don't believe that, just ask an American Airlines employee who was lied to by the unions about their job, their benefits, their pension - AND THE FINANCIAL HEALTH OF THEIR LIVELIHOOD.
No country has EVER survived on "service" jobs. Manufacturing MUST be brought back to the United States (with subsidies, Tariffs, Trade Blockages, Cancellation of "free trade"). If not, China will takeover this country. If not, you'd better start learning Mandarin!
You need to educate yourself on what has happened in the last 30 years. There is no manufacturing supply base left in the US. Remember the recent floods in Thailand, and how they impacted the manufacture of American Autos in this country. It's that way across the board. Google Apple-not-so-cool-after-all and make sure you read the entire article. This is being repeated from company to company throughout the US. I'ts a bit late to do anything now.
I think America has to compete and collaborate with Asia, and the emerging economies, in manufacturing US goods in America soil for export.
It is amazing that things like American made household products, fashion and shoes etc.... are not widely sold in Asia! This is partly due to lack of any marketing and promotion of US products outside America. American factories are simply contented with selling to locals at home – at high markups.
There was as case of some Idaho potato growers who visited an Asian city 2 decades ago after they received several container loads of potatoes. They came because they were surprised Asians eat potatoes this much! That is history now. American potatoes are now literally flying to Asia on every refrigerated cargo space available. These American farmers have appointed a local importing agent to handle orders.
But it is only possible if US immigration law allows these foreign own factories to bring in their own national workers. Of course they can only employ like 40% of foreign workers but 60% must be American employees.
This should stop Mormon Mitt Ronmey from blaming China for stealing and cheating American jobs.
I expect, soon, China entreprueners Chinese will soon set up or buy over factories in US. And sending their American made goods back to China – to sell at affordable prices. Because US made goods are highly desired by Asians.
Repeating above post (error in my cut and pasting)
I think America has to compete and collaborate with Asia, and the emerging economies, in manufacturing US goods in America soil for export.
It is amazing that things like American made household products, fashion and shoes etc.... are not widely sold in Asia! This is partly due to lack of any marketing and promotion of US products outside America. American factories are simply contented with selling to locals at home – at high markups.
There was as case of some Idaho potato growers who visited an Asian city 2 decades ago after they received several container loads of potatoes. They came because they were surprised Asians eat potatoes this much! That is history now. American potatoes are now literally flying to Asia on every refrigerated cargo space available. These American farmers have appointed a local importing agent to handle orders.
I expect China entreprueners will set up or buy over factories in US. And sending their American made goods back to China – to sell at affordable prices. Because US made goods are highly desired by Asians.
But it is only possible if US immigration law allows these foreign own factories to bring in their own national workers. Of course they can only employ like 40% of foreign workers but 60% must be American employees.
This should stop Mormon Mitt Ronmey from blaming China for stealing and cheating American jobs.
As the end of the atomic age is nearing an end, I wish to welcome you to the ethereal age. The search for Hicks Boson shall soon be abandon for a higher truth, a truth that does not lie in matter but that which lies between all matter. That which is the aether, the invisible energies, the explanation of matter, gravity and the first baby steps in T.O.E. These things soon to be revealed will help us final understand the universes, but the real mysteries have always had to do with consciousness. Thx keep strong I will begin to share what I know this year. You’re going to hate it, and love it. Valery
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