Bad Business Practices

Does this article sound familiar? The News kind of makes me yuan, and brings up the old economic argument of whether economic growth is best engendered by the transference of Capital, or the transference of technical expertise. The current transfer of Capital to China has brought about high rates of Inflation in both China and the United States, with Infrastructure Costs almost destroying the Chinese Government’s ability to engage in other activities. I estimate that at least 50% of Chinese manufacturing capacity is geared to Sale of Product to highly industrialized nations, and now China will be buying heavy quantities of Food; American Pork Producers should be talking to Chinese officials already, who could substitute for the declining American interest in Pork Products (though not in Bacon, Ham, Ribs, and Sausage). The real impact will be in the American market, where Consumers will find any increase of Prices for Chinese Goods decisive in the Purchase pattern; American Wholesalers are probably looking elsewhere even now, considering the current fears of Chinese Product Safety and Quality. China may have real trouble ahead, in that the United States has relatively no Quality Control agencies in Imports supervision like most of the World, but is finding they are necessary.

This article shows the difficulty of an industrialized nation relying upon Exports as the mainstay of its economy, especially when it also has a heavy reliance on resource Imports. Americans feel that the American economy is too large to be adversely impacted, but there is ever-increasing reliance on Imports, and a recognizable plateau has been reached for American Exports, unless there is a revitalization of the American manufacturing sector. Current Corporate philosophy stands as an impediment to this revitalization in their search for low Wage rates, bringing on a contempt among American Youth for technical positions. We may endure the same pattern as the Japanese economy of the 1990s, simply not sufficiently Productive to generate the Profits necessary for American growth.

Here is a real example of Corporate policy which must be countered, if there is going to be real growth in the American economy. The Corporate mentality is pricing itself out of the family market, as families have to budget for Vacations. Transportation, Room rates, and entertainment venue rates are all going up at a faster rate than are American Incomes, but Corporations hope to restrict the Las Vegas Strip to the heavy Players–Most of whom chose Investment dalliance over the short-term thrill of wild Betting. The Corporate mentality will think to concentrate upon becoming a Convention Center as the Betters leave for much cheaper and closer Indian Reservations, but Business will look at the Cost forecast of massive Transportation and Room Costs of moving Staff great distance to adverse Room rates–they won’t come in the volume desired. Corporations do not seem to understand the limitations of the Tourist industry. lgl