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Great economy?

Amelia

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Wisconsin
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The Dow is currently rising slightly because the economy is showing signs of weakening. Investors are on the edge of their seats waiting for the Fed to lower interest rates in response to bad numbers. People will get hurt from a bad economy, but like Trump used to brag about doing investors will take advantage of it.


Dow Jones Industrial Average Treads Lightly Ahead of an Expected Rate Cut - Barron's

On Hold. Stocks inched higher on Monday ahead of the Federal Reserve’s June meeting tomorrow. Many are expecting a more dovish tone from the central bank to signal support for the market. Investors are also looking ahead to the G-20 meeting, seen as an opportunity for the U.S. and China to make progress on their trade dispute, at the end of the month. In today’s After the Bell, we...

wonder if a U.S.-China trade deal could be made at the G-20 this month; look at the potential damage to U.S. consumers if additional tariffs are imposed; and watch one economic indicator fall into negative territory for the first time...

Dow Jones Industrial Average Rises Because the Fed Has What It Needs to Cut Rates - Barron's Trump's trade wars.

The Dow Jones Industrial Average is heading higher this morning after an economic survey gave the Federal Reserve more evidence of economic weakness—and another excuse to cut interest rates, if it is so inclined.

The Empire State manufacturing index, a gauge of manufacturing activity in the New York area, dropped to negative 8.6 in June, down from 26.4 points from a positive 17.8. Economists had expected a reading of positive 10. It was the largest drop in the history of the index, and the lowest reading since October 2016....


That's just two articles from today to add to the similar ones from the past week. Trump wanted the Fed to lower rates. The Fed didn't want his inappropriate interference -- was determined to stay independent. But now he might get his wish thanks to his unrepentant screwing with what was otherwise a good market.
 
You know, I keep hearing all these negatives about our economy. This despite the reports to the contrary. Reports of lowest unemployment, increased employment for members of all racial groups, return of factory jobs which everyone said would never happen, and common citizens actually keeping more money in their pockets thanks to the Tax breaks (however temporary) passed under the current Administration. The various stock exchanges have gone up and down, true, but mostly up.

Still, let's for the sake of argument agree our economy is not so great as we believe.

My question?

Instead of knocking the situation...what are your (or anyone else's) actual, reasonable, and clear cut changes offered to improve the economy?

List them point by point, and explain each simply and clearly. Tell us exactly how these economic steps will improve our long term economic development.

IMO it is EASY to knock things down, how about telling us how to build things up? THAT would be something to discuss.

Eagerly awaiting a list of those plans. :coffeepap:
 
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You know, I keep hearing all these negatives about our economy, despite the reports of lowest unemployment, increased employment for members of all racial groups, returns of factory jobs which everyone said would never happen, and common citizens actually keeping more money in their pockets thanks to the Tax breaks (however temporary) passed under the current Administration. The various stock exchanges have gone up and down, true, but mostly up.

Still, let's for the sake of argument agree our economy is not so great as we believe.AnimalWised
776K views

My question?

Instead of knocking the situation...what are your (or anyone else's) actual, reasonable, and clear cut changes offered to improve the economy?

List them point by point, and explain each simply and clearly. Tell us exactly how these economic steps will improve our long term economic development.

THAT would be something to discuss. IMO it is EASY to knock things down, how about telling us how to build things up?

Eagerly awaiting a list of those plans. :coffeepap:

Vote buying by promising to add more income redistribution programs always seems to work well politically. ;)
 
Rule #1. Don't start trade wars with everyone.
 
You know, I keep hearing all these negatives about our economy. This despite the reports to the contrary. Reports of lowest unemployment, increased employment for members of all racial groups, return of factory jobs which everyone said would never happen, and common citizens actually keeping more money in their pockets thanks to the Tax breaks (however temporary) passed under the current Administration. The various stock exchanges have gone up and down, true, but mostly up.

The past three months for us is when we have seen the weakening. Our FY end is July 1st and due to the performance this quarter to date; we've completely missed our annual budgets and all year end bonus schemes both management and individual contributor are going to be denied.

Thankfully we don't make employment decisions based off of one quarter's performance, but it won't be pretty if this continues through the summer.
 
Rule #1. Don't start trade wars with everyone.

Pretty inane response. While not of fan of Trump's rhetoric it is time we face the reality is that we have been in a trade war with China for at least two decades. The difference being that we are responding to their illegal trade practices. As to tariffs most need to understand that many countries use them. While I would have attacked the problem differently a response is/was needed.

Even Chuck Schumer has backed Trump on China. We do have a new deal with Mexico and Canada which is stalled in congress. Democrats ( for myself as an example) used to care about middle class blue collar jobs. Not sure who the "patriots" are who are against bringing jobs home even if Nike and Apple make a bit smaller margin. How can you support unions but not support U.S. manufacturing.
 
The past three months for us is when we have seen the weakening. Our FY end is July 1st and due to the performance this quarter to date; we've completely missed our annual budgets and all year end bonus schemes both management and individual contributor are going to be denied.

Thankfully we don't make employment decisions based off of one quarter's performance, but it won't be pretty if this continues through the summer.

Couldn't hit "like". That's for sure.

Sorry to hear your company is stressed. I do not root for bad times. I wince when I hear anyone is suffering and pray the softening doesn't add to my family's strains.
 
The past three months for us is when we have seen the weakening. Our FY end is July 1st and due to the performance this quarter to date; we've completely missed our annual budgets and all year end bonus schemes both management and individual contributor are going to be denied.

Thankfully we don't make employment decisions based off of one quarter's performance, but it won't be pretty if this continues through the summer.

I'm not going to pretend to be an economist. I took Economics 101 and 102 in college back in the olden days, and I've forgotten more that I can claim to remember.

However, I have studied both history and philosophy, which have exposed me to economic theories and historical impacts of economic policies.

Stock markets are relatively new, but speculation in trade investment has been around almost as long as major civilizations have engaged in international trade. But in every case this speculation helps those investors, and only secondarily the nation they claim national allegiance to. IMO this is especially true of International Corporate entities as they don't care the means or detrimental effects at home; profit is the only goal.

We are in a trade war with China, and it did not start with Trump. It began decades ago with the ideas of Free Trade agreements allowing our Corporate entities the ability to tap into Chinese (as well as Indonesian, Indian, and other) labor pools. Labor pools absent OSHA, Fair Wage and Hours standards, etc.

It's almost as bad as the sweat shop labor of the old Robber Barons, only this time foreign government supported.

History has shown if a nation's economy failed to adapt internally thereby becoming dependent on foreign production, then it weakens and is supplanted eventually by those foreign producers.

The Trade War with China needs to be fought, and won, by hook or crook. IMO relatively short-term pain caused by efforts to wean ourselves off of growing dependency to foreign producers is better for long term economic stability.

So I am not swayed by market trends.
 
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Pretty inane response. While not of fan of Trump's rhetoric it is time we face the reality is that we have been in a trade war with China for at least two decades. The difference being that we are responding to their illegal trade practices. As to tariffs most need to understand that many countries use them. While I would have attacked the problem differently a response is/was needed.

Even Chuck Schumer has backed Trump on China. We do have a new deal with Mexico and Canada which is stalled in congress. Democrats ( for myself as an example) used to care about middle class blue collar jobs. Not sure who the "patriots" are who are against bringing jobs home even if Nike and Apple make a bit smaller margin. How can you support unions but not support U.S. manufacturing.


We're using a wrecking ball. Tariffs as the answer to almost everything, even made-up deficits such as Trump wrongly claimed we had with Canada. Turning everyone into an enemy. Telling our supposed allies that they should look to starting negotiations with someone other than us, so that they will have some buffer against the latest chaos our capricious policy-less president decides to stir up. Now staring at a war with Iran because the only strategy Trump has there is to try to make them desperate, with no hint of an endgame, and threaten anyone who attempts to take a more temperate approach with them.
 
We're using a wrecking ball. Tariffs as the answer to almost everything, even made-up deficits such as Trump wrongly claimed we had with Canada. Turning everyone into an enemy. Telling our supposed allies that they should look to starting negotiations with someone other than us, so that they will have some buffer against the latest chaos our capricious policy-less president decides to stir up. Now staring at a war with Iran because the only strategy Trump has there is to try to make them desperate, with no hint of an endgame, and threaten anyone who attempts to take a more temperate approach with them.

I already stated I am not in favor of the tactics. I however admit to not having a better answer on how to stop Chinese cheating/stealing. If you have a better way of doing it I would like to hear it and we can debate.

As to Iran I agree with we see to much saber rattling. However i see no evidence we are headed for a war with Iran. Unlike the former two presidents, one who pushed wars in Iraq and Afghanistan while the other thought Afghanistan was a war we should continue.
 
The Dow is currently rising slightly because the economy is showing signs of weakening. Investors are on the edge of their seats waiting for the Fed to lower interest rates in response to bad numbers. People will get hurt from a bad economy, but like Trump used to brag about doing investors will take advantage of it.


Dow Jones Industrial Average Treads Lightly Ahead of an Expected Rate Cut - Barron's



Dow Jones Industrial Average Rises Because the Fed Has What It Needs to Cut Rates - Barron's Trump's trade wars.




That's just two articles from today to add to the similar ones from the past week. Trump wanted the Fed to lower rates. The Fed didn't want his inappropriate interference -- was determined to stay independent. But now he might get his wish thanks to his unrepentant screwing with what was otherwise a good market.
The Dow is a whopping 3% below its all time high, the NASDAQ is about 4% off IT's high, and the S &P about 2%. Other major economic indicators are in record territory or near it. That said, Economics is not an exactly science, or a science at all; not all economists agree with all other economists. Our stock markets are based on economists disagreeing.
 
I'm not going to pretend to be an economist. I took Economics 101 and 102 in college back in the olden days, and I've forgotten more that I can claim to remember.

However, I have studied both history and philosophy, which have exposed me to economic theories and historical impacts of economic policies.

Stock markets are relatively new, but speculation in trade investment has been around almost as long as major civilizations have engaged in international trade. But in every case this speculation helps those investors, and only secondarily the nation they claim national allegiance to. IMO this is especially true of International Corporate entities as they don't care the means or detrimental effects at home; profit is the only goal.

We are in a trade war with China, and it did not start with Trump. It began decades ago with the ideas of Free Trade agreements allowing our Corporate entities the ability to tap into Chinese (as well as Indonesian, Indian, and other) labor pools. Labor pools absent OSHA, Fair Wage and Hours standards, etc.

It's almost as bad as the sweat shop labor of the old Robber Barons, only this time foreign government supported.

History has shown if a nation's economy failed to adapt internally thereby becoming dependent on foreign production, then it weakens and is supplanted eventually by those foreign producers.

The Trade War with China needs to be fought, and won, by hook or crook. IMO relatively short-term pain caused by efforts to wean ourselves off of growing dependency to foreign producers is better for long term economic stability.

So I am not swayed by market trends.
Let's get serious, here. If you studied ECON & PHL, you came across Adam Smith and his "Invisible Hand".

So how-the-hay do you "win a war" with a far lower cost producer? You don't. Unless you lower your costs commensurately. You need to adopt the other guy's labor rates, regulatory environment, legal environment, etc. To "win" (tie actually), we have to become China!

This idea that we can beat China in manufacturing is a pipe dream. We can use regs, taxes, and tariffs, to bend free-market principles. But you're not going to beat a lower cost producer in a global free market.

So the is no "winning a war". All you can hope for is to bend the playing field a bit, but we're not going to grab substantive manufacturing market share from China.
 
The Dow is currently rising slightly because the economy is showing signs of weakening. Investors are on the edge of their seats waiting for the Fed to lower interest rates in response to bad numbers. People will get hurt from a bad economy, but like Trump used to brag about doing investors will take advantage of it.


Dow Jones Industrial Average Treads Lightly Ahead of an Expected Rate Cut - Barron's



Dow Jones Industrial Average Rises Because the Fed Has What It Needs to Cut Rates - Barron's Trump's trade wars.




That's just two articles from today to add to the similar ones from the past week. Trump wanted the Fed to lower rates. The Fed didn't want his inappropriate interference -- was determined to stay independent. But now he might get his wish thanks to his unrepentant screwing with what was otherwise a good market.

Sooner or later you and those talking potato heads will have to admit that Wall Street isn't the US economy, at least not anymore. Main Street is the US economy now.

Those Wall Street speculators can speculate all they want...they can make all the bets they want...whether they win their bets and make oodles of money or lose their bets and lose oodles of money, it won't affect Main Street. The economy will continue to grow.

The Fed? They are starting to understand. They were all worried about inflation. They raised rates multiple times. That got those Wall Street speculators all in a dither. In the meantime, inflation has remained low to non-existent. Main Street is still doing great. If the Fed had listened to Trump and lowered interest rates, Main Street would be doing even better. We can only hope they'll start listening to Trump, since he's shown that he knows more than they do.
 
Let's get serious, here. If you studied ECON & PHL, you came across Adam Smith and his "Invisible Hand".

So how-the-hay do you "win a war" with a far lower cost producer? You don't. Unless you lower your costs commensurately. You need to adopt the other guy's labor rates, regulatory environment, legal environment, etc. To "win" (tie actually), we have to become China!

This idea that we can beat China in manufacturing is a pipe dream. We can use regs, taxes, and tariffs, to bend free-market principles. But you're not going to beat a lower cost producer in a global free market.

So the is no "winning a war". All you can hope for is to bend the playing field a bit, but we're not going to grab substantive manufacturing market share from China.

I've already posited a solution to combatting nations with massive populations who can undersell more "developed" nations with all our wage, safety, hours, etc. protections.

1. Begin massive investment in automation.

2. There will still be fields where general and skilled labor can be directed.

In the first case, we will still need technicians to oversee production, and service/maintenance personnel to keep the machines running.

In the second case, mining, farming, construction, repair, and many other labor skill-sets will remain.

Then there are all the development possibilities requiring invention, tech development, chemical processing, medical support, drug developments, and so on.

Investment in STEM education to keep our science and tech advantages. I could go on and on without touching on Service industries.

Simple recognition we need to recapture means of cheap production in a land where people expect decent treatment, good wages, and safe working environments as part of the cost of economic success.
 
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The Dow is currently rising slightly because the economy is showing signs of weakening. Investors are on the edge of their seats waiting for the Fed to lower interest rates in response to bad numbers. People will get hurt from a bad economy, but like Trump used to brag about doing investors will take advantage of it.


Dow Jones Industrial Average Treads Lightly Ahead of an Expected Rate Cut - Barron's



Dow Jones Industrial Average Rises Because the Fed Has What It Needs to Cut Rates - Barron's Trump's trade wars.




That's just two articles from today to add to the similar ones from the past week. Trump wanted the Fed to lower rates. The Fed didn't want his inappropriate interference -- was determined to stay independent. But now he might get his wish thanks to his unrepentant screwing with what was otherwise a good market.
The economy is doing pretty well. But the "best/lowest/highest in decades" claims for various parameters are due to our economy now having had a decade long straight-line projection of steadily adding jobs. We are now bottomed-out in things like unemployment, because we are nearing the end of available workers. It's not that the economy is hot, as much as it added workers for so long that there's not many unemployed workers left . This of course is good, because it means (in theory) rising wages for workers. In fact, we're seeing this wage pressure to a moderate degree.

But the problem I have, is that we are getting messaging claiming we are enjoying - courtesy of Trump - the "greatest economy ever"; yet they are clamoring for monetary easing! These two items (greatest economy / need monetary easing), are pretty much mutually exclusive! We either have a great hot economy, or we need monetary stimulus. But we can't possibly have/need both. And I'm in amazement that no one seems to point this out.
 
The economy is doing pretty well. But the "best/lowest/highest in decades" claims for various parameters are due to our economy now having had a decade long straight-line projection of steadily adding jobs. We are now bottomed-out in things like unemployment, because we are nearing the end of available workers. It's not that the economy is hot, as much as it added workers for so long that there's not many unemployed workers left . This of course is good, because it means (in theory) rising wages for workers. In fact, we're seeing this wage pressure to a moderate degree.

But the problem I have, is that we are getting messaging claiming we are enjoying - courtesy of Trump - the "greatest economy ever"; yet they are clamoring for monetary easing! These two items (greatest economy / need monetary easing), are pretty much mutually exclusive! We either have a great hot economy, or we need monetary stimulus. But we can't possibly have/need both. And I'm in amazement that no one seems to point this out.

I'm not pointing it out because it seems the dichotomy has been resolved. Thanks to Trump we have moved from great economy to needs monetary easing.
 
I've already posited a solution to combatting nations with massive populations who can undersell more "developed" nations with all our wage, safety, hours, etc. protections.

1. Begin massive investment in automation.

2. There will still be fields where general and skilled labor can be directed.

In the first case, we will still need technicians to oversee production, and service/maintenance personnel to keep the machines running.

In the second case, mining, farming, construction, repair, and many other labor skill-sets will remain.

Then there are all the development possibilities requiring invention, tech development, chemical processing, medical support, drug developments, and so on.

Investment in STEM education to keep our science and tech advantages. I could go on and on without touching on Service industries.

Simple recognition we need to recapture means of cheap production in a land where people expect decent treatment, good wages, and safe working environments as part of the cost of economic success.
Thanks for taking the time to post these items, but nearly all of this is moot in relation to China. Their technology and education is at parity with us, or even eclipsing us. As to "directing the economy", I doubt we are going to succumb to a directed economy to an extent to compete with communism!

I'm not saying there aren't things we can do better, and make some nuanced ripples in the current environment. But I'm afraid Adam Smith has yet to be proven wrong, and I doubt he will be here. Until China's cost of production rises to ours, or ours drops to theirs, I don't see how to put the genie back in the bottle.

And in the unlikely event we keep or add China specific tariffs for a long period of time, Those Chinese global entities will accelerate moving their manufacturing and supply chains to nearby low-cost producing countries like Thailand, Viet Nam, Malaysia, etc. This shifting Chinese conglomerate resources to other countries is already occurring, and started well before Trump got into office.

Barring carte blanche barrier tariffs on imported goods from all countries, the most we can hope for I suppose is to force Chinese manufacturing cost parity with Mexico, where we can then gain access through NAFTA. But I don't see it happening.
 
I'm not pointing it out because it seems the dichotomy has been resolved. Thanks to Trump we have moved from great economy to needs monetary easing.
That may be a fair point, Amelia! Haha!

Guess I'm a day late and a dollar short, here! :mrgreen:
 
Let's get serious, here. If you studied ECON & PHL, you came across Adam Smith and his "Invisible Hand".

So how-the-hay do you "win a war" with a far lower cost producer? You don't. Unless you lower your costs commensurately. You need to adopt the other guy's labor rates, regulatory environment, legal environment, etc. To "win" (tie actually), we have to become China!

This idea that we can beat China in manufacturing is a pipe dream. We can use regs, taxes, and tariffs, to bend free-market principles. But you're not going to beat a lower cost producer in a global free market.

So the is no "winning a war". All you can hope for is to bend the playing field a bit, but we're not going to grab substantive manufacturing market share from China.

Surely you know that there are no true free markets in the developed world. Tariffs are widespread for a variety of reasons. If a president other than Trump pushed back on Chinese trading practices most Americans would probably applaud. If what you said above was how the real world worked for example Canadian dairy farmers would be mainly out of business. In addition you might want to remember that America is the largest consumer market in the world. You might also want to consider that labor costs are not the only factor. There are a ton of extra costs in maintaining a supply chain from halfway around the world. Also consider that you are essentially the only country that makes our companies pay their employees health care costs. Which in many cases is more than the difference in pay rates or at least cuts significantly into that difference.

Not to mention that if we truly care about fellow Americans we should be willing to pay a little more for a pair of shoes made here than in China. In addition corporations are working on historically high margins. If Americans made where a product was made rather than just the price companies would be forced to compete and eat some additional cost via lower margins.

To do nothing but turn America into a nation of either burger flippers or professionals,then complain about income inequality seems like lunacy to me (no offense).
 
You know, I keep hearing all these negatives about our economy. This despite the reports to the contrary. Reports of lowest unemployment, increased employment for members of all racial groups, return of factory jobs which everyone said would never happen, and common citizens actually keeping more money in their pockets thanks to the Tax breaks (however temporary) passed under the current Administration. The various stock exchanges have gone up and down, true, but mostly up.

Still, let's for the sake of argument agree our economy is not so great as we believe.

My question?

Instead of knocking the situation...what are your (or anyone else's) actual, reasonable, and clear cut changes offered to improve the economy?

List them point by point, and explain each simply and clearly. Tell us exactly how these economic steps will improve our long term economic development.

IMO it is EASY to knock things down, how about telling us how to build things up? THAT would be something to discuss.

Eagerly awaiting a list of those plans. :coffeepap:

You are so behind the times. Clue: solutions are not in vough. Everyone bitches but solutions are hard to find, that unless one puts in a few seconds of thought, which of-course is hard. Why is it we get no actual solutions, or is it that the real question are we being played????
 
Thanks for taking the time to post these items, but nearly all of this is moot in relation to China. Their technology and education is at parity with us, or even eclipsing us. As to "directing the economy", I doubt we are going to succumb to a directed economy to an extent to compete with communism!

I'm not saying there aren't things we can do better, and make some nuanced ripples in the current environment. But I'm afraid Adam Smith has yet to be proven wrong, and I doubt he will be here. Until China's cost of production rises to ours, or ours drops to theirs, I don't see how to put the genie back in the bottle.

This is where I respectfully disagree. America was once like most of the rest of the world "back in the day," labor intensive fields competing with other basic labor. We "innovated" to seek new avenues of development and production.

Ford's assembly line is an example, which gave us a production advantage over simple "craftsmen" production.

IMO the next stage is automation, and we are doing well in robotics. Yes, the Far East (especially Japan) has been working on this area ahead of us, but China is too dependent on basic labor. They HAVE to be because they have BILLIONS of citizens who need work to earn a living, even in the reconstructed "Communist" system allowing for directed "capitalism."

If our society committed to automation and similar sciences which would successfully compete with labor-intensive societies like China via elimination of most labor costs, then our production could match if not exceed China in quality and quantity.

We would still need skilled and unskilled labor, at least for a generation or two before robotics becomes so advanced they begin to replace us even in those areas.

Societies need a mix of production, service, and support in order to function in happy efficiency.

Shrugging our shoulders and giving up to the "new eastern economies" is not the way to go in my way of thinking.
 
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Surely you know that there are no true free markets in the developed world. Tariffs are widespread for a variety of reasons. If a president other than Trump pushed back on Chinese trading practices most Americans would probably applaud. If what you said above was how the real world worked for example Canadian dairy farmers would be mainly out of business. In addition you might want to remember that America is the largest consumer market in the world. You might also want to consider that labor costs are not the only factor. There are a ton of extra costs in maintaining a supply chain from halfway around the world. Also consider that you are essentially the only country that makes our companies pay their employees health care costs. Which in many cases is more than the difference in pay rates or at least cuts significantly into that difference.

Not to mention that if we truly care about fellow Americans we should be willing to pay a little more for a pair of shoes made here than in China. In addition corporations are working on historically high margins. If Americans made where a product was made rather than just the price companies would be forced to compete and eat some additional cost via lower margins.

To do nothing but turn America into a nation of either burger flippers or professionals,then complain about income inequality seems like lunacy to me (no offense).
These are all good and fair points, that I will not dispute.

But I will posit this:

The world is constantly changing, much through technology, and those heretofore barriers to globalism are shifting and crumbling. Technology, funds, and information moves freely and immediate via telecommunications. And the geography separating us shrinks in terms of the ease of movement of people, goods, and services, and the economic costs of this movement is always dropping. Think back 200 years ago, then a 100, then 50, then just 20.

Those boundaries that acted as barriers are continuously being broken down. And yes, all this allows Adam Smith's Invisible Hand to have an increasingly greater effect.
 
Couldn't hit "like". That's for sure. Sorry to hear your company is stressed. I do not root for bad times. I wince when I hear anyone is suffering and pray the softening doesn't add to my family's strains.

Oh, I'm fine. I work for a Fortune 100 company. I mentioned it because macro-level trends are more recognizable in companies of that size.
 
This is where I respectfully disagree. America was once like most of the rest of the world "back in the day," labor intensive fields competing with other basic labor. We "innovated" to seek new avenues of development and production.

Ford's assembly line is an example, which gave us a production advantage over simple "craftsmen" production.

IMO the next stage is automation, and we are doing well in robotics. Yes, the Far East (especially Japan) has been working on this area ahead of us, but China is too dependent on basic labor. They HAVE to be because they have BILLIONS of citizens who need work to earn a living, even in the reconstructed "Communist" system allowing for directed "capitalism."

If our society committed to automation and similar sciences which would both compete with labor-intensive societies like China via elimination of most labor costs, our production could match if not exceed China in quality and quantity.

We would still need skilled and unskilled labor, at least for a generation or two before robotics becomes so advanced they begin to replace us even in those areas.

Societies need a mix of production, service, and support in order to function in happy efficiency.

Shrugging our shoulders and giving up to the "new eastern economies" is not the way to go in my way of thinking.
Then the argument your making has shifted to innovation. And I agree, that innovation is the only way I see to restore ourselves to a supreme global leadership position.

But from what I seem to be seeing, China has been matching us in technological development as of late, and they are far exceeding us in STEM education.

And you've also touched on technology obsoleting much of our labor force. You are absolutely correct. This is currently happening, and has been for decades, as can be seen by comparing pics of a 50's/60's Detroit auto plant, with a current new Japanese one. I've seen articles claiming that more Americans have been displaced from working-class labor due to technology, than from off-shoring. I don't know if that's accurate, but I wouldn't doubt if it is.
 
These are all good and fair points, that I will not dispute.

But I will posit this:

The world is constantly changing, much through technology, and those heretofore barriers to globalism are shifting and crumbling. Technology, funds, and information moves freely and immediate via telecommunications. And the geography separating us shrinks in terms of the ease of movement of people, goods, and services, and the economic costs of this movement is always dropping. Think back 200 years ago, then a 100, then 50, then just 20.

Those boundaries that acted as barriers are continuously being broken down. And yes, all this allows Adam Smith's Invisible Hand to have an increasingly greater effect.

Don't disagree with any of your post. Saying that I feel Americans have a choice. I self-identify here as slightly liberal. That is because I still feel that we have to find a way to support a viable middle class in a nation of 300+ million people and growing.

This is an area I have been discussing literally for decades now. In my crude way of looking at what Adam Smith said is that over time if we allow nature to take its course then naturally our standard of living per capita will decrease while China and the rest of Asia increases until there is the balance you speak of. Then again ask yourself how Germany is able to keep its auto companies domestic with their still higher costs.

There are additional costs that most folks including Adam Smith did not consider when talking about globalism. First would be the added costs of of supply chain management,there is also the costs of having your inventory tied up as product is shipped half-way around the world. Time to market is a consideration, currency fluctuations, quality of production etc. Not to mention Americans caring about the welfare of fellow Americans.

If you are correct in the end (which you well be) Americans can expect a much worse lifestyle going forward. While the standard of living will rise in China and elsewhere. I am not yet willing to concede the point yet.
 
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