Shamnesty Part III: Competative Advantage, Do you know what it means?

Now for Post Three I want to go to a general theme touched on by Jeb Bush and Ken Melhman in their WSJ Editorial about competition with India and China.

Lets talk some Facts about the Economies of India and China… they focus a lot on High tech issues but thats not the only reason they are doing well.

Part of why China and India are doing well isn’t because of High Tech or outsourcing, but those are certainly factors. Lets put it in perspective using a statistic from India. Their are more people in the Indian Middle Class then their are in the Entire population of the United States of America. They have such large labor pools and such large economic advances because their countries are very big, have a very good educational system, and have an economy that had no where to go but up. While bringing in new laborers is great and all thats not going to help us do better that India and China.

We could import all of Central and South America into the Super Group “Total America” and it wouldn’t work because the problems which prevent India and China from doing as well as they could (income inequality, greater educational disparity, etc. ) would be even worse in the US

We aren’t going to become a more competitive economy by asserting a Labor advantage thats a developmental stage which the British went through, we Went through, even the Japaneses went through…But stages have to end and for us to go back into a labor advantage stage we would either have to massively lower wages or massively increase the size of the US labor pool. Two things that aren’t in our competitive advantage and even now would take decades to achieve. We have an advantage in innovative technologies and service. We have an advantage in short life cycle technical products. We have (though Congress and the President are working to change that, to the negative) an advantage in capital

We should instead focus on that

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