NY Times 11.17.09 The Nation of Futurity by David Brooks

David, as usual a great article and a solid attempt by you to divine why the optimism found in China's futurity is not as overwhelming in the U.S. I believe, the loss of jobs, absence of steady income, questionable occupational prospects for youth, opinioned motivated leadership, and massive division all contribute to this lack of enthusiasm. I published an article months ago which included an important Financial Times reprint. I submit this piece to you from a personal position of humility, like you still seeking truthful answers.

Recently, Bob Herbert of the N.Y. Times, reminded all Americans, recovery is still about the national economy. “The American people are worried sick over the economy, which may be sprouting shoots from Ben Bernanke’s lofty perspective but not from the humble standpoint of the many millions who are unemployed or those who are still working but barely able to pay their bills and hold onto their homes.” I personally remain concerned about U.S. job losses to China without regard for their replacement at home, in spite of the President's current dialogue with them. In the woods when you harvest a tree you plant another, this is not happening on the jobs front...

Americans need to read the article I cited from a recent Financial Times article concerning the “Shopping habits of China’s suddenly wealthy” (August 21,09). The “Baofahu” as they are called, have become the suddenly wealthy. “Big flashy cars like the Porsche Panamera and the Geely GE, otherwise known as the Baby Rolls-Royce, are just a couple observations concerning their tastes. Add to the list their appetites for Gold, Barbies, Sprits and the finest wines, Ivory, Dairy, Dried seahorses for aphrodisiacs, they are still labeled by the author as “penny pinching, ruthless, suspicious shoppers.” This is a must read for Americans being admonished to drive smaller cars, use less energy, be careful in wasting healthcare, and support even greater participation in global trading. This certainly dampens the welcome of futurity for Americans, especially youth.

The Financial Times also reported “Caterpillar chief hits at buy American.” “Addressing the Chicago Council on Foreign Affairs, Jim Owens attacked the ‘buy American’ position in the stimulus, saying it had prompted ‘a wave of concern throughout the world.'” The paper observed that Mr. Owens’s words carry weight in both Washington and globally…The Caterpillar chief is also a member of Mr. Obama’s Economic Advisory Board and is close to both the President and,…the transportation secretary…Mr. Owens stated that “we cannot be a great country by building a wall down the southern border." I observe that we cannot be a great country by simply protecting our bottom line and giving American jobs to other countries.

(Financial Times, Hal Weitzman) August 22, 2009, FT highlighted the story that Caterpillar holds China truck talks (Justine Lau), “The talks come just months after Caterpillar announced that it would expand its joint venture with Navistar to produce commercial vehicles outside North America…Caterpillar also said it would withdraw from being an engine supplier for U.S. truck makers because of declining sales in the U.S. market."

In fairness it should be noted that Caterpillar is not the only American company exporting jobs to China.Yet there have been some nations, however, who are to be commended for investing dollars and plants in the United States. Several auto plants are the result of Japanese, German, South Korean and other nations who understand the reciprocity inherent in equitable international trade. I am not a protectionist but businesses and nations must all yield to a fair exchange on labor and production. Our CEO's may need to read Fiedler on the subject of exchange theory.

Much has been said in recent years about “job creation.” Whether small businesses, the federal government, corporations or even the U.S. Coast Guard, estimates can range from 30,000 to over 400,000 to create a new job. Job restoration is quite a different matter and hopefully Obama's job summit efforts to return jobs to this nation will feature out of the box innovation. Why not exempt corporations that return jobs from overseas, or those creating jobs daily in America from corporate and state taxes.

As a nation let's provide the motivation for all to embrace a new future, not of just a shining city on a hill, but people with faith in and excitement about the future. Thanks David for provoking our thinking!

Dr. Alan Phillips
Bloomington, IL