balazer said:
That's true - if we buy too much stuff from other countries (and buy too little from domestic companies), domestic industry will fail. But you're not going to stop people from buying foreign goods. Even the most fiercely nationalistic peoples buy foreign goods. So the questions are how much is too much, and what can the U.S. do to maintain its lead and its standard of living?
I would submit that the answer lies in keeping an educated, skilled, and creative workforce whose hours spent working are more valuable than its competitors. When we create more valuable and innovative products and services, other countries will buy from us. I'm fine to have my socks made in China, if their computers and medical equipment are made here. But I'm not an economist.
No one should stop people from buying foreign goods, but it's a delicate balance. The problem is that in my view we've already tipped far over the edge. There are literally many products the US is no longer even capable of making because the companies and the physical industrial facilities no longer exist in the country. Large metal castings and press forgings, for instance.
Walk into a store and you'll see almost everything is made outside the US, the growing majority from China. Nearly all computer equipment is produced in somewhere in Asia. Most consumer electronics (other than things like high-end cameras from Japan) are Chinese. Medical equipment still is a fairly heathly business in the US and Western Europe, but the Chinese aren't ignoring it. Even industry sectors that previously were thought to be immune to offshoring, like electronic hospital work and computer tech support, are now largely in India. Even software is more and more often being coded in other places.
I'm not an advocate of buying domestic only for the purpose of supporting local companies. The auto industry in the '70s, for instance, got so crappy they deserved to get whipped by the Japanese and now they're better for it. I'm not going to spend money on someone making junk. But nowdays usually things made in the US or friendly countries are much better quality than goods that only have the advantage of being a few dollars cheaper.
Your comment about an educated workforce is a good one, taken the right way. A big problem now is that no one's being taught to do it, in fact they're being told that it's not proper to be involved in regular work. Lots of unneeded middle management and liberal arts educations being cranked out, while types of knowledge that's actually in demand is marginalized.
I think I'm going to stay out of this thread from now on, I didn't mean to take things so far off topic.