Autodidact_33
Senior Member
The Economic Troubles of the Western World
In any nation there is a direct relation between economic prosperity and their ability to manufacture and export products to the world beyond their borders. After World War 2 and the economies and industrial base of many nations lay in ruin; America became the most powerful and economically prosperous country on Earth because of their industrial might and ability to manufacture products which they could export to the entire world. But now, many Western nations have economies which are in decline and a running up large trade deficits due to the fact that they import more products and commodities then export thus leaving a situation where their financial capitol flows out of their nation to other countries while less foreign capitol comes into their nation in turn. America, once the worlds most powerful industrial economy; now has minimized their manufacturing base and moved them to other nations where labor is cheaper which has led to a situation where their economy struggles and has in the past artificially continued economic growth through the lowering of interests rate which no longer is a viable option since they cannot possibly lower interest rates any more. Meanwhile nations such as China and India have recently become economically successful due to their cheap labor due to the fact that the impoverished oceans of people in these nations are motivated to work hard since there is no nanny state to fall back on and if they don't work they will go without food and other essentials. Poorer nations and other nations with growing economies become effective manufactures because of their almost limitless reserve of cheap labor. So how can the Western world possibly remain competitive as manufacturers in the new globalized economic system?
In nations such as India and China their people have accumulated significant economic savings due to the fact that those cultures are not about materialism or seeking fulfillment through material possessions and instead are much more frugal with their money. So Western economies need to manufacture products that advancing nations which seek to attain a higher standard of living would need. One possible product would be cheap, fuel efficient automobiles which are easy to manufacture and are sold at a much lower cost then conventional cars. Also products that such growing economies might need are new technologies which can lower the cost of utilities; new cheaper ways of heating or cooling peoples homes which can be perhaps achieved through geothermal processes. To have the capacity to manufacture products that the world needs you must understand what kind of products they may be willing to spend their money on. A nation must be able to export products to bring foreign capitol into the country. But many nations in the West have what is called a service based economy where most people are employed in professions which do not manufacture products but simply provide occupations which see to the economic desires of the people in such countries.
Any nation depends on the ability to export for economic prosperity so what kind of products could the West manufacture which many rising economies would need?
In any nation there is a direct relation between economic prosperity and their ability to manufacture and export products to the world beyond their borders. After World War 2 and the economies and industrial base of many nations lay in ruin; America became the most powerful and economically prosperous country on Earth because of their industrial might and ability to manufacture products which they could export to the entire world. But now, many Western nations have economies which are in decline and a running up large trade deficits due to the fact that they import more products and commodities then export thus leaving a situation where their financial capitol flows out of their nation to other countries while less foreign capitol comes into their nation in turn. America, once the worlds most powerful industrial economy; now has minimized their manufacturing base and moved them to other nations where labor is cheaper which has led to a situation where their economy struggles and has in the past artificially continued economic growth through the lowering of interests rate which no longer is a viable option since they cannot possibly lower interest rates any more. Meanwhile nations such as China and India have recently become economically successful due to their cheap labor due to the fact that the impoverished oceans of people in these nations are motivated to work hard since there is no nanny state to fall back on and if they don't work they will go without food and other essentials. Poorer nations and other nations with growing economies become effective manufactures because of their almost limitless reserve of cheap labor. So how can the Western world possibly remain competitive as manufacturers in the new globalized economic system?
In nations such as India and China their people have accumulated significant economic savings due to the fact that those cultures are not about materialism or seeking fulfillment through material possessions and instead are much more frugal with their money. So Western economies need to manufacture products that advancing nations which seek to attain a higher standard of living would need. One possible product would be cheap, fuel efficient automobiles which are easy to manufacture and are sold at a much lower cost then conventional cars. Also products that such growing economies might need are new technologies which can lower the cost of utilities; new cheaper ways of heating or cooling peoples homes which can be perhaps achieved through geothermal processes. To have the capacity to manufacture products that the world needs you must understand what kind of products they may be willing to spend their money on. A nation must be able to export products to bring foreign capitol into the country. But many nations in the West have what is called a service based economy where most people are employed in professions which do not manufacture products but simply provide occupations which see to the economic desires of the people in such countries.
Any nation depends on the ability to export for economic prosperity so what kind of products could the West manufacture which many rising economies would need?