Our conversation today about China and Vietnam’s emerging economies and their future with the US economy reminded me of an articleI read back in 02 I think. Talking about the US and China turning into Cold War foes. I had to question if in today’s economy either country could afford such an under taking. We have seen our interdependenceon the new globalized world economy as Us stocks tanked, imports from China also fell causing their market to decline as well. Despite our societal differentials, the all mighty dollar is the string that keeps likely foes nervously pushing together towards a rebound as freinds.
But what after this world recession rebounds? China and Asia in general tend to be moving more towards S&T strategies for economic growth….and why not; they have thrived on their available cheap labor for years. This is only another market they could move into that would provide (theoretically) cheaper labor than is found in the West. Where would this leave US/China relations as it infringed on a universally American industry? Could we see a tightening of tensions as resources vital to fast economic growth (at least the economic growth that America has been used to in the recent past) leaving our shores? Will it be the US at China’s door asking for work someday?
Interesting questions to think about, after all Rome didn’t last forever. Many say that we should be expecting economic policies and strategies that mirror that of the Roosevelt era….I certainlyhope not. America can’t not becoming self serving in it’s rebuild of the economy, our efforts must best serve all economies if we hope to have a world power status when the smoke clears. Isolationism will lead to economic failure in the long run and is likely to only increase international tensions. “So what can we do”; that is the trillion dollar question.
It is likely that we must help other nations grow their economies in areas we have expertise in and rely on international diplomacy in order to collectively build the globalized economy. One aspect of the Roosevelt era is vital today; to tighten our belts and get ready for one wild ride as change sweeps the world.