OP-ED: Flawed Strategy – #Trump
By Gary Peterson, PCP, Washington County
In the 1980s, when Motorola 1st started preparing to move their Integrated Circuit (IC) production to China they did not look for facilities or buildings to move into. Technology in the IC process had changed so much it made more sense for them to build new facilities and move both new and existing equipment into them. One thing we know is that technology is changing very rapidly. What didn’t make financial sense to automate 10 or even 5 years ago makes sense today. China’s cost of labor is going up as the Chinese middle class grows and automation is driving even China to look for new places to move their manufacturing to. They’re making huge investments in Africa and South America infrastructure to develop new markets and cultivate cheaper labor.
Just as America did with China.
There are #NewDeals to be made with developing countries and the United States of America should be challenging China with the #TheArtOfTheDeal to beat China at the game the US was once so good at. Rather than #Tariffs, #TaxCuts for businesses, eliminating #EPA regulations that #Fail to #BringBackJobs we should have a two-pronged approach:
- Go head-to-head with China in developing countries with technology exchange agreements and multi-national trade agreements;
- Make US companies earn tax reliefs for re-tooling to new technology and investing in #NewMarket development with the US government.
There is going to come a time when the cost of labor is not a factor in developing the economies of the world. The future differentiator will be technology and the country that has the educational system to support its development will lead the world. The US needs a partnership with US Corporations to make this happen; the government can’t do it on their own. This is not a long-term vision or strategy, the US needs to aggressively do it now.
The long-term strategy needs to be developed around how the US maintains a strong middle class in a world of Artificial Intelligence (AI) and technology. There is no real discussion on what this would even look like much less, how to we make it happen. Those discussions need to be the centerpiece of all (hopefully bipartisan) political discussions.
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