President Obama has vowed to double U.S. exports within the next five years. That's because exports are critical for rebooting the American economy. It's clear American consumers can't get the economy going on their own. They can't restart the jobs machine. They've run out of money and credit.
It's not just that one out of four Americans is unemployed or underemployed (working part-time, overqualified, or at a lower wage than before). More significantly, the Great Recession burst the housing bubble that had let American consumers turn their homes into ATMs. Now the cash machines are closed.
So the administration figures foreign consumers will have to fill the gap.
Problem is, most other economies also relied on American consumers. Remember the trade gap? Americans used to be the world's biggest and most reliable customers -- sucking in high-tech gadgets assembled in China, car parts from Japan, shirts and shoes from Southeast Asia, and precision instruments from Germany.
With American consumers pulling back, these other economies have also been slowing down. Their unemployment is rising.
Last week I attended a conference with global business executives. When I asked them where they expected to find new customers to replace Americans who are pulling back, they all said China and India and quoted me the same number: 800 million new middle-class consumers from these and other fast-developing countries over the next decade.
Yes, but. As of now China and India are still relying on net exports to fuel their growth. Even if you think their middle classes will eventually become so big and rich they can buy everything these nations will be able to produce, that doesn't mean they'll also buy what the rest of the world produces.
http://www.huffingtonpost.com/robert-reich/the-vanishing-american-co_b_640836.html
So that's the plan.. middle class in the US will be gone forever, exchanged for "800 million new middle-class" in India and China. And Obama says we need to double our exports within five years.. that's sort of a laugh, considering both Republicans and Democrats have been shipping jobs OUT of this country for more than twenty years now.
How does the President propose to double exportes if he won't take any protectionist measures? We need to stop offshoring, stop immigration and enact strategic tariffs to encourage manufacturing in this country.
Incidentally, the article mentions the recent news that GM is now selling more cars in China than the US. Sounds good for US exports right? WRONG -- the GM cars sold in China are made in China. While we keep hollowing ourselves out and giving away the store, the Chinese are protecting their economy.