Sir James Goldsmith talks about outsourcing to China

Twenty years ago, Sir James Goldsmith talks about how America will kill its own economy. It is quite horrifying hearing Goldsmith accurately predict today's situation as Clinton's trade agreement GATT gets implemented and the long term consequences unfold. Goldsmith talks about how jobs will get obliterated as they are exported from America and the number of jobs reduced sharply.
Goldsmith asks,"What is the purpose of an economy?" He says it is there to serve the needs of society - prosperity and stability. He adds, "Material wealth would solve our problems and we achieved that. We have destabilized society because the economy is no longer serving us."
"Who benefits from these trade treaties? Major corporations benefit. What is good for GM is good for the USA is no longer true. They are no longer linked to the USA. They farm out their production wherever they can get the cheapest capital and labour."
Charlie Rose is stunned at the suggestion that automobile manufacturing or technology industries would move out of America. I would enjoy Charlie Rose doing a "Stupid Things I Said in the Past 20 Years on my Show." This show is almost painful to watch as a wise entrepreneur who can see the patterns of industry tries to get across his correct vision of the outsourcing of American jobs. Clinton's spokesperson does not listen and just shouts him down. She ran the London School of Economics and boy, if this is the type of "thought leader" leading our universities, the type that refuses to listen but shouts down the opponent, it is not a good trend.
Clinton's aid says. "When American jobs are moved abroad, they add jobs here too."
Goldsmith points out that new jobs are part time and lower skilled. This was back in 1992. We have seen that real income has not risen since 1992. Goldsmith saw the future, here is the interview:

3 comments:

Anonymous said...

Joseph Raczka, CMA, CPA, CFP emailed me to say

Incredibly prescient advice from 20 years ago! Based on the interview we can expect a slow recovery as many economists have forecast. How will this impact your business?

J. B. Loewen said...

It means that capital follows the jobs which is why private equity is flooding Asia and leaving North America. For business owners thinking of selling in 5 years, there will not be the interest that there still is today.
Unless China and India blow up, business owners would be wise to get pe capital partners today, wile they are still figuring out how to invest in Asia.

Anonymous said...

Joe Oswald, P. Eng. This was riveting, Jacoline. Thanks for suggesting the viewing.