Interested in a comparison of how China long range planning and simple method used to obtain manufacturing superiority over the USA was far wiser than the USA Congress?

Two articles in the Chicago Tribune provide clues to this conundrum.

The first article is titled: Vote on Limited Chip Bill to Come, reported an upcoming Bill in Congress to approve 53 billion tax dollars to provide incentives to build chips in USA.

The second article is titled: China trade surpluses reaches record as export accelerate, reported

“Exports to the United States surged 19.3% over a year earlier to $56 billion despite lingering tariff hikes in a trade war over Beijing’s technology ambitions. Imports of American goods edged up 1.7% to $14.6 billion.”

The Purpose of This Post

Is to relate an ancient wisdom verse and information of the biggest folly Congress made by not listening to the counsel of one of the best proven business managers in the USA along with the simple method used by China to obtain USA manufacturing to be transferred to China.

King Solomon

Hear counsel, and receive instruction, that thou mayest be wise in thy latter end. (Proverb 19:20)

Ellicott’s Bible Excerpt

That “though thy beginning might be small, yet that thy latter end should greatly increase” (Job 8:7)

What’s My Point?

In 2003, Warren Buffett attempted to counsel the US Congress on the issue of Trade Deficits and proposed a simple method to control what he considered was folly to rely and outsource USA manufacturing to global sources.

For example, on chips, the USA at one time manufactured and exported 62 percent of chip compared to now only 12 percent.

Computer chips shortages in the USA have resulted in plant shutdowns beginning in 2021 and now Congress wants to pass a Bill to subsidize chip industry to return to the USA.

My point is China used a far simpler method which was to not allow any country to sell their products in China unless 51 percent was manufactured in China.

In My Opinion

The USA Congress did not listen to the wise counsel of Warren Buffet and instead listened to politicians and economists who claimed the USA is better off being a service economy and USA manufacturing jobs would never return to the USA. (Barack Obama)

Sad. Now the USA taxpayers must subsidize manufacturing to return to the USA.

Regards and goodwill blogging

If Interested

Read the Source Links below

You Decide

If Congress would have listened to wise counsel in 2003 and was as wise as China leaders in planning long ranges plans, would US taxpayers have to now subsidize industry to return to the USA??

Which party will you vote for in November in hopes for a wiser Congress to understand and listen to wise counsel on the folly of the belief that the USA will fare better as a service industry>?

In retrospect, would the USA now be out of balance in manufacturing and trade deficits in the USA which requires us to rely on globalism sources which have proven to be folly in the Covid pandemic and the now the computer chips shortages in the USA?

Source Links

Chicago Tribune – Yahoo – Senate Eyes Vote on Computer Chips

China Trade Surplus Surges to Record

Warren Buffet – Foreign Trade

Previous Post – Here How I Would Solve the Trade Deficit