Tuesday, November 11, 2008

The Ever Regressing America

The rise now of China, Japan, Europe, and others-India, Korea, and to some extent Russia and Brazil-means the United States must be relatively diminished on the world stage, much as an only child whose mother just gave birth to quintuplets.

The United States is losing its capacity as supplier of many useful things to the world. This role is being seized by China and others. The American working class, which briefly achieved the status of world's working-class aristocracy after World War II-industrial workers who enjoyed homes, cars, long vacations, and even boats-has seen real wages declining for many years.

It works against rising competitors who can now deliver the benefits of their much lower costs to the world owing to the phenomenon of globalization. American manufacturing jobs are moving to the lower-cost places, replaced at home if at all by relatively low-wage service jobs.

The American establishment's vision of the future, implicit in its behavior and policies, has been that traditional manufacturing jobs will pass to developing countries while greater value-added high-tech jobs and intellectual property rights will provide America's economic strength.But that is a somewhat arrogant vision, because competitors like China and India do not plan to do only lower value-added work, and they are uniquely gifted to succeed.

The Chinese, Japanese, and Indians have an extraordinary reservoir of natural mathematical and engineering talent-every international competition or test shows this starkly - that is only now beginning to be harnessed. There is every reason to believe that over any substantial time the US will decline to a secondary role in high-tech. China or India each likely have something on the order of three or four times the natural mathematical endowment of the US. Their new high-growth economies and emerging modern infrastructure prepare the way for full application of this priceless talent.

You only have to look at photos of American Senators to see the swollen, crinkled faces of arrogant (mostly) men, faces of bloated entitlement, grasping power into their seventies and eighties. They resemble the faces of heads of powerful families in the 16th - 18th century's

Thoughtfulness and real debate at the national level have become uncommon.

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