The Export Model

Why does this refrain sound universal, with a remarkable American downbeat? The children of the original ground-breakers won’t follow in their Parents’ footsteps. Everyone wants the Money; no one wants the Work. Japan is running out of Engineers, a most virulent hazard considering that the Japanese economy depends upon high-Tech productivity; Japan not enjoying the Resource capacity to endure a Second-place Finish in the Tech races. Demographics will destroy in Japan, where it will only lead to a slow deterioration in the United States, after which a new Generation will again develop high Incentive. Island economies risk the British model, which chose to import their necessary Labor elements; now facing a cultural diversity in a compacted, over-populated arena of limited Options. Exporting their Manufacturing will leave Japan in the same Situation as the OPEC model–which do not have the domestic viability to maintain themselves when faced with a loss of their Operating revenues. The World economy is becoming too complicated, and acculturation factors are becoming too expensive; just ask the Somalis.

The lack of primary Incentive is the major Woe of the American economy still, this article providing a capsulated Picture of the effect on the American economy; one where there is under-performance coupled with over-expenditure. The American economy attempted to overcome the lack of performance since 1970 with what could be basically called the Reagan model of development of domestic infrastructure–with development of high-profile Retail outlets and Housing; a model only recently being shattered by Housing and Financial Crises. The younger Bush model of dependence on Exports–which really started mid-way in the Clinton era–will fail because of the high Costs of Energy, Transportation facilities, and lack of sufficiently-funded Trading partners; note that the heavy foreign investment is only the symptom of the inadequacy of the Export model. Foreign funding of American infrastructure does not equate to development of sufficient Trade volume to maintain the infrastructure.

Here is the notification that Siberia and Russia in general has begun to follow the American model, and seeming successfully, as the region still contains major primary development incentive because of Resource and Labor; Poland also doing a like business. What signals Success here in these areas is a trained Labor force organizing basically still-untapped Resources. They, though, face the same hazards as Everyone attuned to the Export model–a rapid fill of Consumer capacity, need for added Labor cadres inspiring trained Labor recruitment through Immigration, and Second-Generation desire to move to nicer Climes. The long-term economic value of this style of Export model has yet to be proven. lgl