It is possible to dig up an economist who will agree or disagree with any just about anything. I respect that your opinion is different to my own. I would ask that you specify what part of what I said to you disagree with? The idea of self-sufficiency of the nation state? That a majority of Japanese consumers like to buy Japanese cars partly out of a sense of national loyalty? That the fall of the Roman Empire was in part due to outsourcing of food production to North Africa which resulted in enemy forces being able to blockade shipping to cause food shortages? That maintaining U.S. agricultural production is in the national interest? That a country needs a domestic industrial base in the long term to be a superpower?
OK, since you asked, and at the risk of someone correcting me....
The U.S. isn't going down the drain, but it does need to look at things and maybe change course on some.
I went to those "Japanese Secrets" seminars too lol.
Facebook, YouTube, Apple, and Google are great. In 1985 Apple made its famous "Mac" screen + computer combo in California. Look at the back of a vintage 1985 model and it says "Made in USA". By the 1990's they had moved production to Asia and the "made in USA" no longer was on the back. Now they have started using terms like "designed in USA". It is not enough to design the products in the USA. One needs to make them domestically as well - not just Apple but other companies as well. It builds up a strong lower-middle class of comsumers. The designers were always needed as a middle to upper middle class. The moving the lower-middle class jobs offshore and drastic reduction in domestic manufacturing capacity is dangerous on the global stage and very short-sighted. Yes, it makes for higher pofits for shareholders and lower prices for consumers, but it damages the self-suficency of the nation.
This assumes there is nothing else for the lower middle class to do, clearly this is a case of comparative advantage - where the job is done where it can be done most efficiently. Does it make sense for every country to produce every good, of course not. Sharing the work and doing what you can do better than anyone else is the most efficient system. Take Apple, while I would argue they have a massive strategy and design advantage to other consumer computing companies they don't have a manufacturing advantage, why do a job where you don't have an advantage.
I do agree that as these roles shift this causes displacement and re-alignment that is often painful.
As long as the U.S. continues having the best military in the world and keeps domestic food production, it won't go down the drain IMHO. Keeping domestic food production is a must - look what happened to Rome when they decided to push food production to north Africa.
I think the US focuses too much on food production, certainly we subsidize it too much, raising the costs and discouraging competition from poorer countries where producing food would dramatically increase the standard of living.
The Chinese have a strong sense of the importance of the state's interest as well as the individual interest, as does Japan and Germany. The U.S. once did so as well, but it seems for the past couple of decades to have been more of a "what is good for me and let the state take care of itself". The Japanese aren't flocking to buy foreign-made cars - it is a matter of national pride for most to buy Japanese made cars. The majority of Americans tend to buy the car they like best regardless of where it is designed or manufactured.
I would say the Chinese have a strong sense of what is important to the state and they do just as much as they have to for the individual to avoid social unrest. The currency manipulation is all about allowing the state, not the consumer in China to profit from the export business. I'd say the American decision criteria is more healthy.
I admit I let WWII colour my thoughts a bit - nations up against each other having to survive. Domestic self-suffficency I think is a good think, but it is eroding in many places.
Look at Canada and tell me about self sufficiency, what does Canada produce other than Blackberrys and raw materials for the US? I'm sure Canada can feed itself, it can't defend itself....
OTB