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Alan's avatar

Good observations, I was there when Lazy Boy closed the Tremonton facility to chase low labor costs in Mexico. As I recall they had to move again when that didn't work out. I've worked in a different industry getting things off the ground in China. One HUGE difference I observed was China & the Chinese valued education. The "service economy" was once the "New American Economy". The truth is, moving a mouth, adds limited value and none when that movement serves only to manipulate instead of to lead. I was also there when BIC pens were shot through a board to prove they would still write, they didn't tell you how many pens it took to get a survivor. When being entertained and "winning" is given greater value than "contribution" and "creation of real value" we loose. Corbin is right, we've let it happen. I always heard folks from Asian cultures accuse American's of "short term planning". They are also right. The corporate board room focus on the next quarter is part of what has sunk us. Our snorkel is taking water.

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Carl Van Ness's avatar

Great article. But my analysis of America's decline begins before the rise of neoliberalism. The first blows against US industrial capacity did not come from offshoring to nations with cheap labor, but from another industrial power, i.e., Japan. This was most notable in the automotive and consumer electronics industries. Japan beat us because they built a better product and a product that Americans preferred. The US consumer electronics industry insisted on building TV and stereos encased in furniture. The high end market for stereo was considered a niche market and we were content to let the Germans have it. The Japanese came in and said, "You don't want a TV or stereo encased in furniture and, by the way, we make a product that's as good as the German stuff." Within a matter of years, not decades, electronic factories across the nation closed. With cars, Japan entered the market with cheap and gas efficient economy models that the US refused to make. Our first new car was a 76 Toyota Corona. We ran it until we got sick of it (over 200,00 miles) and upgraded to a Mazda 323 in the mid 1980s. By that time, Toyota and Honda had captured much of the sedan market as well as the economy car market. Of course, Japan and others now make cars in the USA, but the industry is concentrated along interstate corridors, like I-85, in the South. The other event in America's decline that occurred before the rise of neoliberalism was the war in Indochina. People who grew up after Vietnam tend not to understand how that war devastated the US morally, intellectually, economically, and politically. But that's a story for another day.

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