WHere is the wealth, hint: Its our fault (loan, expenses, buy)
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Yes, but the US imports much more manufactured goods from China than it exports to China, and probably more than its total export of manufactured goods.
Why would that matter? But if you want to focus on China, there are certainly changes coming. China has about used up its old options and is now increasingly about rolling out reform -- working to become a consumer-oriented, environmentally friendly, service-based economy. They cannot any longer use shortcuts to sustain their growth rates as stability and growth going forward will require increases in things like wages and pollution controls. Growth indicators (and government forecasts) are already at 15-year lows and trending downward. Manufacturing will face at least its share of problems. There has been little growth in demand for Chinese exports, as what once were cost advantages are now eroding. The dreaded word "re-shoring" is apt to become more familiar in China, as facilities producing for sale abroad (such as in the US) have less and less reason to remain there. Keep in mind that China uses about nine manufacturing workers to produce the value-added that one US worker turns out, and you start to see the sorts of leverage that looming wage increases will bring about. Liquidity shortages and government pledges to rein in debt do not bode well either. Just a few things for China-watchers to chew on.
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Originally Posted by Ralph_Kirk
(BTW, be careful with those stats, because the data I've seen counts goods that were originally manufactured in China and imported from China as "US exports" when the US company merely repackaged them.)
You should be looking at data for real manufacturing value-added. That's the number. And it of course includes really close to nothing at all as the value-added by repackaging.
Quote:
Originally Posted by Ralph_Kirk
I've pointed out myself in a number of threads that the overwhelming global manufacturing supremacy of the US from 1945 to around 1965 was the result of WWII (which gave the US the opportunity to destroy the infrastructures of the major competitors), but I never claimed that the US was #1, only that it had a manufacturing economy.
The US was the world's largest manufacturing economy long before 1945 and long after 1965.
So Ive had a lot of meaningful conversations with coworkers and close friends lately on the state of the Economy, distribution of wealth, and wage gap. It boggles my mind that people don't realize who is truly to blame in these shortfalls. Whenever I ask these "ranters" how much their net worth is, more often than not they have a negative net worth, or their worth is tucked away in a 401k. This is very dangerous my friends, we have been trained to believe that as long as you have a good cash flow (salary) and some 401k then you are better off than 99% of the world right? Wrong. The government listens to those who hold the wealth. We need to teach our kids to accumulate wealth over their "fun years" of 20-30, rather than buying a BMW like I did, getting a fancy apartment like I did, getting a mortgage at 28 like I did etc. I cant tell you where my money has gone over the past 10 years as I approach 30. Ill tell you this though, my wife and I made 300k over the last 4 years. If we had a good portion of that salary invested in the economy, then we wouldn't just be relying upon salary alone to earn wealth.
Employers are well aware that us workers rely solely upon salaries to maintain our cash flow, and they abuse this situation. They work us long hours, and fire us at the drop of a hat because they know we NEED them. Now imagine a situation where the bulk of the workforce actually had hundreds of thousands of dollars invested that brought them in almost as much as their salary, do you really think it would be the status quo to "rape" the modern worker like it currently is? The more power in the workforce, the less abuse we take.
Imagine a scenario where your wife is diagnosed with breast cancer at 35, and your direct family can collectively cover her medical bills because they have an accumulated net worth of millions. Currently if most Americans fell into her situation they would have to file bankruptcy and destroy their credit for 7 years.
Imagine if we just changed out way of thinking and collectively spent our early years building wealth, so that we could spend the REST OF OUR LIFE with less sleepless nights, and less 800 calls from creditors.
The economy would be in far better shape than it is today. Its our fault that the wealth isn't in our hands, we just don't want to admit it.
While I agree with most of your OP, you are marginalizing the effect the government - big business love affair has had on the American economy. We are a service economy now. The goons have outsourced our jobs, slashed unions, and suppressed wages.
And why do you think young people will listen and not do as you did? The problem with youth is they think they know everything and that older people who tell them to do things differently are just fun suckers. My dad tried to tell me but I did what everyone else my age did. I went out and had a good time. I tell my kids the same but I won't be surprised if they do as I did not as I advise.
I think they will listen if they are taught it in school. The first experience I had with financial management? It was when I was working full time at 20 but my credit card payments were eating up half of my paychecks.
I think they will listen if they are taught it in school. The first experience I had with financial management? It was when I was working full time at 20 but my credit card payments were eating up half of my paychecks.
Shame on your parents for allowing you to reach 20 years old without teaching you what you need to know, people should expect the school system to teach their kids what they need to know. It doesn't take a village
Shame on your parents for allowing you to reach 20 years old without teaching you what you need to know, people should expect the school system to teach their kids what they need to know. It doesn't take a village
I'll give you their email and you can tell them that yourself
I might be able to pay cash for a 3-5 year old BMW, but I wouldn't be able to afford gas, insurance, and maintenance!
~$27,000 non-retirement savings, $23k/yr income, $600 rent, no debt of any kind.
27 years old here.
At 27, I had 3 jobs (slept little) and was $600K in debt (and would have gladly been more in debt if the bank would have given me the money). Now (nearly 20 years later), experience has only reinforced my belief that good debt, leverage and financial risk, particularly at younger ages, can be very good. Penny-pincing savings and high-salary can only get you so far.
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Originally Posted by thatguydownsouth
I think they will listen if they are taught it in school. The first experience I had with financial management? It was when I was working full time at 20 but my credit card payments were eating up half of my paychecks.
This is taught by parents. And it is not "told," but "shown." Shown by how the parent operates their own finances/business affairs, how they model behaviors, what they expect from their children, how they encourage money-making, investment, risk, assertiveness, creativity, competition, ideas....what they give them and don't give them.
Often, this is counter to what the schools (or peers) are teaching, which is often merely to be passive workers/ followers/ students/consumers - rather than creators and leaders. Parents often need to counter this mentality by offering/encouraging other experiences that create financial drive/passion. At 14, my son is making $250/weekend, has an investment account, is building a business - this was modeled/encouraged. And yes, he has good grades, does sports/extracurriculars, is preparing for college. IMO too many put limits on what they (or their children) can do financially. Maybe they find money-making and debt distasteful, or are afraid of risk or to try new things. Maybe they are lazy. I do not think our current educational system is helping the situation.
Shame on your parents for allowing you to reach 20 years old without teaching you what you need to know, people should expect the school system to teach their kids what they need to know. It doesn't take a village
Agree 100%.... Sad that so many parents are expecting the schools to teach such basic things to their kids, or the excuse that their teenagers "just won't listen," or the blame that the parents/schools "just didn't teach them." Take some personal responsibility people. It's not rocket science.
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