One can not escape the feeling that a lot of people in the United
States government, and elsewhere, do not understand modern environmental
needs and issues, especially as regards energy. Gas-guzzling vehicles.
Apathy about the environment. No sensible energy policies. Worse, in
this industrial sector, as most others as well, the manufacturing system
is from yesteryear.
Keith Bradsher and Diane Cardwell have the story at the New York Times in
U.S. Slaps Tariffs on Chinese Solar Panels - NYTimes.com.
What a paradoxical sector on which to put up protective tariffs. One
would think the more cheap solar panels the better, given the need to
lower energy costs.
What is particularly baffling is
that sources in the the USA are COMPLAINING that the Chinese
"non-capitalist methods" give them an UNFAIR ADVANTAGE!
The article quotes lawyer Alan Price from the law firm representing the USA in the solar panel case, Wiley Rein, as follows:
"China’s
method is straightforward: it sets forth industry-specific Five-Year
Plans and then uses all forms of national and local subsidies and other
governmental support to quickly transfer jobs, supply chains,
intellectual property and wealth, to the permanent detriment of U.S. and
global manufacturers," he said. "China’s ability to ramp up and
overwhelm an industry is unique and particularly devastating with new
and emerging technologies, where global competitors may be less
established and can be knocked out more easily and quickly."
The
question then arises what the "good old boys" and the staunch
supporters of American capitalism are doing wrong in the USA in turning
modern America into a manufacturing wasteland that is no match for
socialist countries?
If we follow the train of Alan
Price's thinking, and he may well be right, a much larger socialistic
Chinese behemoth is apparently far more nimble and adaptable than the
backward American manufacturing system, which, by our experience, is
often mired in past nostalgic centuries, methods, ideas, attitudes and
politically absurd conceptions.
What did we just read, that
Hewelett-Packard is to let go of as many as 30,000 employees? at a company now headed by a political favorite of the GOP?
The
only measures that most American CEOs seem to understand to increase
profits are outsourcing and/or cost-cutting by getting rid of employees,
leaving a mass of unemployed for the government to look after.
The
idea at HP is said to be that the money saved will be invested in a
better-trained sales force able to generate more cash. Surely that is a
joke. Is the delusion there that such measures will make HP more
competitive with Canon and other competitors? Not on my desktop.
My
first printer was an HP. Since then, the company HP has been resting on
its laurels. Grow, or die. That is a rule of life, and a rule of
business.
How about better and more competitive
products? Where, in Europe, does one find products on sale that are
"made in the USA"? American wares, with few exceptions, are also-rans.
How much of American resources are going into research and progress,
rather into the ever-filling pockets of the upper income classes?
Start there if you want to keep from being over-rolled by the Chinese.
If
America thinks it is going to prosper in the future, putting up
protective tariffs is not going to help a defunct system living from
patent trolling, trade barriers, and completely out-of-date political
ideas. No way.
Either you have free trade, or you go
back in all product sectors to the old system of protective tariffs,
which may not be advisable for an American manufacturing sector that has
been less competitive as time goes on.
America's problem is not dumping by China.
America's
problem is a structurally unsound economy geared to filling the wealth
demands of company owners, vastly over-inflated salary levels of
corporate executives, and unrealistic demands of stockholders for stock
price appreciation. The idea that companies should concentrate on
state-of-the-art production of goods and services appears to be a
novelty.