"Martin Hotze" wrote in message
...
"Mike Rapoport" wrote:

It isn't important whether anybody likes it or not, what is important is
realize that it is inevitable and change what and how we do things so we
do
not compete where we are at a major disadvantage.

So what is your (US) or our (Europe) advantage? High costs for labor and
energy, higher transportation costs, more restrictions and laws, lack of
people willing to work really hard, etc. etc ...

#m
--
http://www.hotze.priv.at/album/aviation/caution.jpg

Lots of intellectual property, extensive infrastructure, stable political
system, lots of capital and educated people. Every country has about the
same energy costs. The US and Europe are well positioned to compete in many
industries.

Part of what looks like a trade disaster with China is an error in the way
we look at it. We may import a billion dollars worth of low margin rebar
that China made a 5% profit on but we may provide them with $100 million
worth of investment banking services that have a profit margin of 80%. It
looks like a balance of payments disaster but the trade actually worked to
our advantage. Yes, it looks like they got more dollars but they had to use
them to produce the rebar. There will be a major change in economic theory
soon because the current theories can't explain why high cost regions can
produce (and sell) anything at all. The new theory will look at trade
profitability instead of trade revenue.

Mike
MU-2