According to the article, because President Donald Trump began to implement his policy on bringing manufacturing back to America, the process of globalization is under adjustment which is also called "recalibration" by the Dow Chemical chief, Andrew Liveris. America has been a consumption economy after the World War II which means people can import almost anything and sell them in any retail environment or channel while there is actually no much incentives to invest. On the contrast, almost all the other economies are investment economies and even Europ has protections around the economy. Becuase America has paid much attention to the consumption, manufacturing based in America has lost the advantage of job creation.
It would be interesting to see how the policies implemented by Trump can attract more investment. I'm looking forward to seeing what further policy would be issued to protect investment. Also, as America trying to get manufacturing back, this would definitely affect its import and the export of other countries. What is more, as the article mentioned, this adjustment might bring America to a level-playing field with other countries and probably, the America-centric would be the real future issue.
http://www.cnbc.com/2017/03/20/china-development-forum-globalization-is-facing-a-re-calibration-says-dow-chemical-chief.html
2 comments:
I am curious to see if the polices will attract more investment too, it seems that certainly some policies aren't conducive of this though. Having more manufacturing jobs and relying on energy sources that aren't clean is very shortsighted. Protecting jobs that would otherwise be replaced due to innovation is not the best way to create opportunities for investment that may later benefit the country. Lower taxes for the wealthy may increase investment in some areas of the economy, but it will be important that those areas are sustainable.
I am intrigued to see how Trump plans on attracting more investment. Even with lower corporate taxes, companies have a greater incentive to invest out of America where cheap labor can be employed. In my opinion, the best to create jobs in the modern capitalist economy and boost innovation would be a federal investment in education. But there has been absolutely no talk of that as thousands struggle to find jobs with college hanging above their heads. He recently took credit for the major investment in Michigan that Ford announced, which would create 900 jobs. However, it is interesting that he failed to mention the GM's announcement of the layoff of around 1,100 workers in Lansing, Michigan. That is a loss of 200 jobs. However, to Trump such things are alternative facts and can be disregarded when necessary. I do not think the policies he has presented or put in place will create sustainable jobs for thousands of people across the country.
Post a Comment