Outsourcing America. 64 years in the making.

[jueco2005]

Soon after WWII the US started to play "empire". The interesting fight against the evil empire brought the US to build military bases in almost every nation on Earth. How did they do it???

One answer is for sure, economic benefit to those countries. That's it, the best way to "control" is trough economic ties. This was easy since the $ emerged as the global currency after WWII. This is how outsourcing began.

How in hell, did this country came from a manufacturing economy and a strong middle class in the 1950s to a "service economy 40 years later and virtually only two classes.???

All empires face the same problem and that's why they eventually fall. "They are too busy governing others but they can't govern themselves."

So?? After 64 years of outsourcing America what can we tell???

 

[nazzdack]

Quote from jueco2005:
Soon after WWII the US started to play "empire"......After 64 years of outsourcing America what can we tell???

Another "world war" may be necessary in order to repeat the prosperity that occured after the previous world war.

 

[TraderZones]

Don't see the lack of prosperity. The USA manufactures twice the value of China, and GDP-wise:

1st) USA 14+ trillion GDP

2nd) Japan 4+ trillion GDP

3rd) China

etc...

 

[Dr. Zhivodka]

"I don't know how World War III will be fought, but World War IV will be fought with sticks and stones"

--Albert Einstein--

Quote from nazzdack:

Another "world war" may be necessary in order to repeat the prosperity that occured after the previous world war.

 

[Thunderdog]

Quote from Dr. Zhivodka:

"I don't know how World War III will be fought, but World War IV will be fought with sticks and stones"

--Albert Einstein--

That's worth remembering.

 

[hoodooman]

How in hell, did this country came from a manufacturing economy and a strong middle class in the 1950s to a "service economy 40 years later and virtually only two classes.???
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What was considered middle class back then would be poor now. I know cause I was there.

 

[jueco2005]

Quote from hoodooman:

How in hell, did this country came from a manufacturing economy and a strong middle class in the 1950s to a "service economy 40 years later and virtually only two classes.???
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What was considered middle class back then would be poor now. I know cause I was there.

That is not valid for real changes in the economy.

What was middle back then was middle and It was attainable by a larger % majority than it is now on what we consider a middle class to be.

 

[hoodooman]

In other words middle class was when you had to walk to work and bought dried beans in large sacks so you could eat.

Poor was when you didn't have a job.

Rich was when you owned a home and had a car.

 

[Scataphagos]

Quote from TraderZones:

Don't see the lack of prosperity. The USA manufactures twice the value of China, and GDP-wise:

1st) USA 14+ trillion GDP

2nd) Japan 4+ trillion GDP

3rd) China

etc...

Maybe NOT. When measured in "prices of output" (US output measured in US labor rates), USA might look large. China might already be outproducing the US in UNITS of output... Does anybody measure THAT?

 

[TraderZones]

Quote from Scataphagos:

Maybe NOT. When measured in "prices of output" (US output measured in US labor rates), USA might look large. China might already be outproducing the US in UNITS of output... Does anybody measure THAT?

almost everyone pays similarly for commodities like gold, fuel or raw agricultural goods like wheat (otherwise, they would be sold to expensive regions by the cheap regions) and also for many manufactured exportable goods

Different might be local-only services like rent or construction services.

Most people in China are still dirt-poor farmers and transient workers. I don't think it is much of a comparison. The main difference is the Chinese GOVERNMENT has a big surplus while the US Govt has a big deficit