I recall in the late 70's my computer geek roomate saying the US was turning into a service and information-based society. I countered that you need a manufacturing base to keep the flow of goods from getting lop-sided. What good is an economy that doesn't produce tangible things? Why lose all that manufacturing know-how and flexibility that, for example, got the US thru WWII? Well he was proven to be right. What wasn't obvious back then was how the playing field would spread world-wide, pitting us almost directly against a cheap Mexican and Asian labor force, who by the way, also are good with information technology.

Where does that leave us? We need to exploit niche markets. China's booming economy could bring many opportunities. For example we have 30-40 years of experience with occupational safety and environmental standards. A lot of their dirty industries need to be cleaned up before they suffocate in their own filth, and these are skill and technologies we can readily provide. As China's oil consumption goes up, we will find innovative and practical ways to harness other energy sources, possibly opening whole new markets.

Trade agreements everywhere will continue to flatten the differences between countries. This means more pain in the form of shrinking incomes and less job security as we adjust to the new reality. Perhaps shipping costs will make foreign goods more expensive, ie less competitive, but I don't expect a reversal of this trend any time soon.

Interesting, Hyundai opened a big new plant in Alabama alongside others including Mercedes, making that state a major international player. Whoda thunk?

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1985 380SE Blue/Blue - 230,000 miles
2012 Subaru Forester 5-speed
2005 Toyota Sienna
2004 Chrysler Sebring convertible
1999 Toyota Tacoma