Offshoring Goes on the Offensive

The McKinsey Quarterly, McKinsey & Co. ^ | 03/17/2004 | John Hagel III

[CasearianDaoist]

But our debt to China is in the form of government securities which are quite fungible. We cannot, per se, "default on our debt to China." we can only default on our interest payments to the entire world. This debt government debt business is a little over blown given the mechanisms that there are to end run it. If worst came to worse they could raise taxes and eat the economic slowdown it might cause. What is important is the double whammy of debt and trade deficits.

But he real problem is selling off the only comparative advantage we have for short term gain. This is not caused by debt, this is caused by shortsightedness by all of the Americans involved in the whole business of off shoring. The question arises: Why now? Why would this have not happened before? The answer, of course, is that we boomers are in charge now and take the wealth machine of the country for granted. It is short term profits over long term poverty. That is what is so galling about it. It does not even make sense from a business point of view if you look any farther out that 4 years.

[Paul C. Jesup]

So, what new form of government do you advocate for the U.S. that will be helpful to "us" (and who is the "us" you are referring to, other than yourself)

The one we had in 1790.