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Once upon a time, we had leaders who did what was in the best LONG TERM interest of the American people. Short term think has dominated for the last 50 or so years. So, while the Economic Cost you speak of is real, its only short term. Long term, we are shooting ourselves in the foot.

Short term thinking is indeed a problem, and not just for Government but also for business. To borrow from Goldman Sachs (a saying I totally believe in), it is always better to be Long-term Greedy than Short-term Greedy. Short term can kill you if you let it hang around long enough.

The problem is that, both in politics and business, politicians and CEOs have their stars rise and fall based on short-term factors. Thus, for as long as that will be the case (and I don't see how it can change with a major systemic shift) then the captains of politics and industry will always use shorter-term loci to map their movement rather than longer-term milestones.

For instance, what you said about economic profit probably being for the short term is true. After all (to stick to my example), Spetz's Wrench shop has gone to Indonesia, and it has managed to do quite well due to the lower cost base. However, while the Indonesia factory makes my wrenches by day, by night the SAME factory starts to make 'counterfeit' (in honesty, the same wrench as mine) wrenches under its own brand. Before you know it, I have 3 Indonesian companies as ULTRA-low cost competitors, and by the end of the year I have a baker's dozen of such companies! Then before long we are not talking about wrenches, but cars (at first ugly unreliable cars ....but give Chinese companies like Geely and Chery time. Sooner or later they will start producing good cars at low cost, just as the Japanese and Koreans went up the curve. I hear one of the Chinese companies just bought Volvo). Before you know it, suddenly we have higher technology factors at play ...not useless stamped metal wrenches!

I also hear China has stopped the exportation of rare earth (they make 97% of this particular type, which is needed in all sorts of industry ...including defence).

Now, I see that. You see that. I am sure the Managing Director / CEO also sees that ....he did not get to his post by being too stupid. The problem is the short-term factor. By the time that happens, he has already made enough money to retire for half a millenium, and it is his successor's successor who will have to deal with the poison apple at the end of the road.

It is quite the issue I'd say.

The problem is that, both in politics and business, politicians and CEOs have their stars rise and fall based on short-term factors.

Yup. And they are aided and abetted by spin and people’s own shor term memories. It is maddening to me sometimes that most people can’t remember past 1 year behind or think past 6 months ahead. In many cases, the long term thinker looks like the goat while the short term thinker looks like the hero because he improves the bottom line more. What is the solution? In a free society, I fear there is none.