Thursday, November 18, 2010

[Videos] ABC News on China Part 3

From Wednesday's shows....

The move from corporate America into China.  It highlights many of the things we've discussed at FMMF for years - how U.S. multinationals are the masters of the universe and how increasingly less important Americans are in the food chain.  Further, how if you want to build a business in China you have to source in China, and use Chinese labor - completely different than the U.S. dynamic.  Protectionist?  Yes.  Helps their citizens prosper? Yes.

Two examples -
GM sold 2M cars in China...95% were built in China.  Profits? Shared with the Chinese government.
Mcdonald's is only allowed to use food grown by Chinese farmers. 

Bigger picture it paints a story where U.S. corporations and shareholders benefit as sales surge overseas (i.e. net positive for stockholders, as sales surge) but aside from that specific niche of citizen, has less of a broad benefit on U.S. society because the items being sold are increasingly not made in the U.S. - hence the worker class does not benefit.  (unless you are a 'trickle down economics' kind of theorist)

4 minute video

Trade is a win win for all parties correct?  Well thus far millions upon millions of jobs have been exported out of the United States... in return estimates say the $70 Billion in goods exported to China have created 437,000 jobs in the U.S.  To put in perspective, the U.S. has lost 6 million manufacturing jobs since the Ross Perot "great sucking sound" era.  And we're not even talking the service jobs lost.  But I suppose we get stuff cheaper at Walmart.   Win win?

3 minute video

Of that $70 billion in exports 1 surprising state is grabbing a huge chunk, indeed about 9%.  Washington State.  See some of the smart things they are doing.

2 minute video

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