BIDEN CAN BARELY EXPLOIT HIS PUDDING CUP: How Biden can exploit China’s weakness: Russia and China are more vulnerable than we think.
The problem isn’t America, but what passes for its leadership:
America’s cognitive elites may seem enamoured with China’s state-controlled political system, but for much of the country, this remains the land of Jefferson and Lincoln, not the Yellow Emperor. Despite the pandemic, new business formations rose from roughly 3.5 million in 2019 to 4.4 million last year. Self-employment, pummelled at first, has recovered more rapidly than conventional salary jobs; more than 500,000 Americans reinvented themselves as entrepreneurs.
Arguably the greatest test for American renewal lies in manufacturing, precisely the place China has based its ascendancy. Here Trump’s “America First” mantra is echoed in the demands of Biden’s progressive agenda: in just the past three months, Congress has passed The BuyAmerican.gov Act, The Make PPE in America Act, as well as recent legislation banning the import of good produced using slave labor in Xinjiang.
This is not only good policy but good politics; Americans, at least theoretically, are willing to pay higher prices for domestically produced goods; an overwhelming majority, according to one recent survey, would even fork out 20% more for products produced at home. No doubt this desire to reshore production reflects the pain associated with the mounting deficit on trade goods, which has enriched many of our leading manufacturing companies — notably Apple — but has also cost an estimated 3.4 million job losses since 2001.
That also goes some way to explaining why America’s industrial revival is occurring largely outside coastal affluent ‘mini-Europes’. Between 2017 and 2020, five states — Arizona, Texas, Oklahoma, New Mexico and Nevada — accounted for 30% of all manufacturing job growth. Perhaps more important is the fact that, along with reviving Midwest states like Ohio, Iowa and Indiana, these states tend to have lower taxes, housing costs and less regulation than their coastal counterparts. . . .
This industrial renaissance is critical if the West is to address its ruinous dependence on China — made all too evident during the pandemic and the current supply chain crisis. And yet it is also likely to elicit opposition from our own largely pro-China elites, who seem more willing to appease rather than confront Beijing.
Well, that’s because they’re bribed. And didn’t much like America, or most Americans, to start with. The question is why America, and Americans, allow them to remain in their places of influence.
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