Economic Progress

One of the big advantages of the global economy has been the reduction in the price of many items.

Especially when compared to performance we are paying significantly less today than we were say 30 years ago.

Of course this Isn't true for every product but certainly for many manufactured and electronic products we have seen this dynamic.

In some products the price we pay has little to do with the cost of production as it includes much more in the way of advertising or branding than the actual manufacturing cost.

We do run deficits with certain countries and a pretty big one with a country like China.

Whether this is a good thing or bad thing from an economics point of view is not relevant, it is the most efficient thing.

It is our responsibility to develop products that offset that deficit and it is probably wrong to look at deficits or surpluses country by country.

Further trade, while influenced by Government policies is not conducted Government to Government but business to business or business to consumer.

When Governments get involved it disrupts the economic forces that make items the least expensive.

Economics tells us that over time it will correct itself.

In fact what we are seeing now is a correction to the artificially high labor costs we had for low skilled jobs in this country.

Those jobs were overpaid and it was more economical to automate or export them.

It reduces the cost we pay while of course it also reduces the income for those people.

In a capitalistic society that is just the way things happen and it has happened many times in the past as economies evolve.