Western weakness Lies in ‘deindustrialisation’

Since the 1970s, developed countries in Europe and the United States have gradually transferred their eliminated production capacity to the third world countries, on the one hand, created the economic miracle of the four Asian tigers, while reducing the environmental pollution caused by industry in their own countries, and the unemployed people have transferred to the service industry, and vigorously develop the financial industry that “money generates money”, creating an almost astronomical virtual economy.
Such moves were once seen as wise, even by many domestic economists, some of whom urged China to follow suit.
But today, deindustrialisation is becoming more damaging.

As a former empire on which the sun never sets and the birthplace of the Industrial Revolution, the former global hegemon has left an exceptionally strong family base for his children and grandchildren, although after several defeats, there are still a number of old enterprises with deep technical heritage such as Rolls-Royce.

But beneath the glitter of the City of London, it is hard to hide the reality of Britain’s industrial decay – as the country that built the world’s first railway, it is unable to update its own rail network and has to turn to China to build high-speed rail; As an old industrial power, a considerable part of China’s telecommunications network construction has been contracted by Chinese telecommunications companies such as Huawei and ZTE, and even the British Parliament has purchased Huawei products. As the former world hegemon, it has no achievements in civil nuclear power technology and has to turn to China and France for technical support……

When Tony Blair, the former British prime minister, asked Angela Merkel, the German chancellor, the secret of economic success when Britain was reeling from the financial crisis and the euro crisis, Merkel replied, “At least we are still making things.”

As a former world factory, the United States has also experienced the bitter fruit of “deindustrialization”, the national economy in the financial game of money, the more and more weak – after the transfer of low-end industry to the third world, the hematological ability is increasingly lacking, completely relying on the US dollar hegemony in the global blood and some high-end industries in support.

The population transferred from industry enters the service industry, and the service industry, which absorbs a large number of employment population, is also divided into high-end service industry and low-end service industry. The former mainly includes finance, accounting, law, medical care, education and other service industry positions requiring professional knowledge, with high income, high threshold and fewer jobs. Low-end services, on the other hand, do not require much advanced professional knowledge and skills, and the threshold is low, but the income is low. On the other hand, blue-collar workers, the middle class of society, gradually died out in the process of deindustrialization. On the one hand, this accelerated the polarization of the rich and the poor in American society, built barriers between social classes, and intensified class contradictions. On the other hand, it led to the deterioration of the American spirit.

Once upon a time, Americans also had the excellent qualities of diligence, courage, self-confidence and self-improvement that Chinese people possess – today, Westerners are impressed by China’s efficient infrastructure capacity and perfect infrastructure, just as Europeans were impressed 100 years ago that the United States completed the Empire State Building in more than a year. It was this spirit that turned the backward United States into the leading industrial power of the century.

With the “deindustrialization”, a large number of workers are unemployed, and the cost and threshold of education for financial professionals, accountants, lawyers and doctors in the United States are extremely high. The scarcity and professionalism of these jobs have resulted in a very common circulation in the industry from son to son, and the mobility of classes tends to stall.

Education can no longer change the lot of the common people, and has become a negative investment in the family, which directly leads to the prevalence of anti-intellectualism, the decline in the quality of the population, the soaring crime rate (the United States has 5% of the world’s population, but the number of prisoners in the world’s prisons 25% of the total), which in turn intensification of domestic racial issues, illegal immigration and other hidden contradictions……

In the case of hard work can not get rich, in the case of education can not change the fate of life, the original positive energy of the American spirit, is bound to be replaced by extravagance, hedonism culture, hip hop culture, so that the American elite can be hereditary, always high, while the civilian class can only go with the tide, gradually sink.

It is “deindustrialization” that has brought great harm to the social economy of the United States, in order to save the decline of the United States, Obama set out to engage in “re-industrialization” in a big way – in the first State of the Union address of the second term, he proposed to “make the United States a magnetic field for new jobs and manufacturing” and encourage the return of manufacturing, whose purpose is to strive to revitalize the United States with a strong industry.

And the Trump administration is strongly promoting the plan of manufacturing back to the United States, even at the cost of carrots and sticks: To impose tariffs and fines as high as 35 to 45 percent on overseas manufacturing enterprises and American companies based in foreign countries. On the other hand, for manufacturing enterprises that invest or return to the United States, the federal, state, city and town governments will give huge incentives in terms of land, taxes, public facilities and services to leverage the return of manufacturing to the United States. Restore America’s global manufacturing dominance and weaken its competitors.