Ernie : Ummm, as much as we all think that high tech is "the wave of the future," there are such things as essential old school industries that are going to remain essential for as long as anyone can imagine. Shoes Lumber Power-line Transformers Cement Adhesives Aluminum products Plastics Glass Airframes Paper products Rubber and synthetics Insecticides Chemicals Medicines and drugs Fiber products Tractors You get the idea. Yes, high tech has emerged as a really major factor in the economy. Impossible to imagine many sectors without it. But there are such things as industrial basics, the floor beneath our feet. Throw that away and high tech becomes vulnerable to all kinds of forces that no-one at MS or Apple has to worry much about at this time. Trouble is, even now absence of worry would seem to be ill-advised A "hollowed out" economy works against the national interest including the national economic interest. Market forces are insufficient to protect a good number of essential industries. National interest = national security Without it we all are cooked. It is essential for economists to cease and desist obsessive fixation on bottom-line profitability. Some things, like national survival, are much more important. Billy ================================ 4/20/2012 10:03:57 A.M. Pacific Daylight Time, [email protected] writes:
Hello again, On Apr 19, 2012, at 9:11 AM, Dr. Ernie Prabhakar wrote: I think they are 100% correct. That is why any focus on protecting our existing manufacturing industry would be vastly counterproductive. More details from their executive summary: _http://growth.newamerica.net/sites/newamerica.net/files/policydocs/Lind,%20 Michael%20and%20Freedman,%20Joshua%20-%20NAF%20-%20Value%20Added%20America%2 7s%20Manufacturing%20Future.pdf_ (http://growth.newamerica.net/sites/newamerica.net/files/policydocs/Lind,%20Michael%20and%20Freedman,%20Joshua%20-%20NA F%20-%20Value%20Added%20America's%20Manufacturing%20Future.pdf) Public policy needs to focus on the imperative of revital- izing and upgrading America’s manufacturing base, by methods that include: R&D and Technology Diffusion. Public policy needs to encourage private sector R&D, including through a per- manent R&D tax credit. Public investment in R&D and support for manufacturing should be financed in part by new federal development banks and federally-favored municipal bonds. Breakthroughs in R&D must be fol- lowed by development at scale and the diffusion of new transformative technologies across sectors, with the help of government procurement, credit and technology exten- sion programs. Infrastructure and Energy Strategy. In addition to these forms of direct assistance, infrastructure and energy policies can indirectly retain or onshore manufacturing in the U.S. by lowering the costs of energy and chemical feedstocks and by reducing bottle-necks in the transportation and commu- nications infrastructures. In addition to lowering the costs of manufacturing, the energy sector, revitalized by natural gas, and the construction of new, more efficient transporta- tion and communications systems can provide sources of demand for domestic manufacturing firms. Tax and Regulatory Reform. Tax policy should encourage investment in American manufacturing by foreign and domestic firms alike. Legacy regulatory systems need to be updated as cutting-edge technology blurs or destroys the boundaries among kinds of manufacturing or between manufacturing and services. Training Workers for Advanced Manufacturing Jobs. Rapid technological change in manufacturing means that the U.S. needs a new social contract in education which ratio- nally allocates responsibility for learning and upgrading skills among government, employers and individuals. Promoting Mutually Beneficial Rather than Adversarial Trade. The U.S. needs to do a better job of defending its industries against predatory policies by mercantilist nations, without sacrificing the benefits of access to for- eign markets and foreign talent. These may not be the final answers, but they are very much on the right track. -- Ernie P. -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: _http://groups.google.com/group/RadicalCentrism_ (http://groups.google.com/group/RadicalCentrism) Radical Centrism website and blog: _http://RadicalCentrism.org_ (http://radicalcentrism.org/) -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org
