Why America Should Ditch the Global Commodities Market

Why America Should Ditch the Global Commodities Market

During the commercial period, America was the most innovative nation on the planet. We were the creators of unusual inventions as well as the orators of accomplishments that have been made of dreams. As time progressed, we successfully maintained our innovative prowess, as the rest on the planet attempted to catch up, but get caught up they did. Today, we’re seeing the manifestation of globalization in great abundance. Nations are exporting and importing goods of every variety from every corner worldwide. A positive complication could be that the citizens of nations who actively take part in global trade often have a better quality of life.

America has maintained one of the most successful economic statuses for many years due to in-part towards the presence of a big middle class. The same is occurring in foreign nations. The increased global trade is giving rise with a middle class that is more educated, more determined, and willing to take advantage of each possible opportunity. So what sets America apart from the rest of the world today? The answer is hardly any this also is why.

While America was the first person to pioneer a lot of the technological advances which can be commonplace today, we have not yet progressed onward. Our infrastructure is aging and also the nations that have been categorically defined as “developing” posses facilities that are far finer quality than ours. For instance, Japan owns and operates one of the most technologically advanced trains on this planet. Yet at most 65 years ago, the country laid in absolute ruin following the Hiroshima/Nagasaki bombings. With an embattled and destitute military, the united states found another way to embark on the world marketplace. Desperation genuinely does breed innovation, and Japan may be the physical embodiment of that philosophy. So in a few aspects, the U.S. has fallen behind. The commodities market and it is manufacturers are slowly becoming the newest emerging superpower nations of the world.

The lax labor laws and inexpensive human capital of countries like China, Thailand, India, and Taiwan supply attracted U.S. based businesses offshore. It’s no secret that they may manufacture a product or service with a fraction in the cost in comparison to that of an American manufacturer. To compound the matter, the conventional living in these countries is normally lower, which means nominal wages. In contrast, the US maintains stringent labor laws such as a national minimum wage and in a few cases, employee advocacy organizations such as the various unions operating inside the automotive field contribute to inflated costs. Also, the United States looks after a significantly higher quality of life (when compared to the rest on the planet) and quite a few employers incur additional costs in connection with employee wellness like health-care. All these factors inflate operating costs and reduce the net income margins of American businesses, putting them with a significant problem with content with foreign-based businesses.

The inability of American politicians to address and balance globalized business with politics will continue to degrade what took this nation ages to develop. Directly trying to compete with these nations will not be beneficial also it carries the adverse effect of driving American based businesses offshore. So the response is merely to significantly scale down the competition in the global commodities markets. Education, specifically inside the field of math and science is exactly what will propel America forward and spur a new innovative revolution.

The creation and implementation of assembly lines in American manufacturing demonstrate our mastery of innovation. Our efforts would prove futile at best if this strategy is pursued since our laws stop the engagement of global competition with the price floor (which could be significantly lower). Yet, we still wish to compete, this specific costing us over profits. Instead of direct competition, have you thought to innovate through proper research and development?

There are global challenges who have not yet been solved. Where will our next commercial fuel source result from? Why not concentrate our efforts instead of finding new creative solutions to conditions plague us being a nation such as upgrading our decrepit infrastructure? If desperation breeds innovation, now it could be our time to innovate same Japan did after the war. Let the world’s emerging nations manufacture commodities. America is at the point of desperation and education is certainly one path toward innovation that is reminiscent of the economic period.

It would be unwise to fully abandon our roots and rely only on service-based business modeling. Just as diversification minimizes excessive risk within an investment portfolio, the United States should wisely employ the same strategies when engaging in global trade. Reallocating some of our resources faraway from saturated, low-priced commodity markets and redirecting the crooks to innovative research and development will restore America’s competitive edge. The strength and way forward for America are not determined by manufacturing, but on our capacity to innovate, equally as we did during the economic period. Let’s concentrate our efforts toward innovation, and usher the world into a fresh era.

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