The U.S. a Manufacturing Giant Again?

After reading Tonelson’s letter, it seems that his intended audiences are business owners; the general US public, specifically those who are having trouble finding work; and economic analysts.

Alan Tonelson is a Research Fellow at the U.S. Business & Industrial Council Educational Foundation, a Washington research organization studying U.S. economic, technology, and national security policy. Tonelson received a B.A. in history with highest honors from Princeton University in 1975. He has had many articles in major publications such as The New York Times, The Wall Street Journal, The Washington Times and The Los Angeles Times. He’s appeared on CNN, TalkAmerica, and Global Economic Media. He has testified before the government committees and commissions such as the Senate Commerce Committee. Not to mention the numerous books he has written on foreign trade; he also lectured at many universities all over the U.S., including Columbia University and Harvard University.

Tonelson’s argument on Michelle Dammon Loyalka’s editorial (“Chinese Labor, Cheap No More,” The New York Times on the Web, Op-Ed, Feb. 18) is that just because China is going through some labor changes, it does not ensure that a “meaningful American industrial comeback” is on the way. He argues on Loyalka’s point how “industrial subsidies, trade policies, undervalued currency and lack of enforcement for intellectual property rights” may have increased Chinese labor costs which in turn would increase price and decrease American imports from China, but “American imports of Chinese products have become less than 5 percent more expensive since 2010”. He mentions how predatory trade policies have transitioned China to high value capital manufactures, which pay better than labor-intensive manufacturing thus raising overall Chinese wages, but “their higher productivity typically offsets these pay levels with improved efficiency.” These non-labor considerations helped push the United States merchandise trade deficit with China up by another 8.2 percent; broadening how close the U.S. is to getting back on its own feet.

I think Tonelson has a good point due to the hard facts that he presents. It would be hard to say that the U.S. is soon to be a manufacturing giant again like it was back in the industrial revolution just because China is having some social problems meeting its younger generation wants and needs.

http://www.nytimes.com/2012/02/25/opinion/chinese-labor-costs-and-american-manufacturing.html?ref=opinion

The War to Come?

            Time Magazine published an article on February 9^th, 2012 titled Four Ways the U.S. Could End Up at War with Iran Before the Election*. It talks about worries on how Iran is trying to make nuclear weapons through their nuclear programs and how the U.S. could end up in a war with Iran before the 2012 elections.

            Jay Newton from Time Magazine states how Iran may be looking for a war to cover “the country’s deep internal political fractures and distract from widespread popular disaffection”. Not to mention Israel is ready to wage war because they are convinced that Iran is intent on acquiring a nuclear bomb as soon as possible. The only thing stopping the U.S. from taking further action is the fact that Iran is still allowing inspectors into their nuclear sites. If Iran decided to deny inspectors right of way or close the Strait of Hormuz in turn shutting down oil flow and provoking international condemnation, it would then pull the U.S. in taking action.

             This article shows how tensions have been rising in the Middle East and what to look for in the near future. This situation would not only affect oil prices around the world but we would also be looking at another world war if Iran or Israel were to take action. As it states in the title of the article, we may see this unfold be the end of the year.

http://swampland.time.com/2012/02/09/four-ways-the-u-s-could-end-up-at-war-with-iran-before-the-election/