China Trade Imbalance Shows Why Americans Should Get Back Into Manufacturing

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the goods and services deficit was $74.4 billion in March marking a 57.6% increase over last year (BEA). The numbers are a stark reminder that we, and likely the rest of the world, are soaking up Chinese inventory of products with few American alternatives. Our low cost outsourcing has left some of our cupboards bare in terms of providing a formable market response. We may need to get creative with solutions and empower a mammoth group of diverse youngsters how to flap their wings so they can not only compete but thrive in the global market place. We just need an "open minded" place for them to experiment with ideas before pushing them out of the nest and into a bigger world🦅.

We talk a lot about competing with China in goods production but as of today's date we are unable to muster the political capital to do what is necessary to build an export oriented economy (It can be done!). This will likely be one of the greatest challenges of our time as different leaders ponder their options and judge the needs for compromise and solutions (See Evidence Based Decisions). As our fully mature economy walks down a very narrow rock covered path into a fresh and emergent digital world we don't want it do to so blindly and without a good sense of direction (Limited information, time, and options is when compromise and general consensus is needed so we can choose our fate together. Some politicians will seek to resolve impasse while others crave to white knuckle on principle alone. Wheat from chaff. See Leadership by Leading or Leadership by Position/Power).

Problem Solving and Compromise
in Positive Politics

At this juncture in history our nation needs politicians who have a high concern about the beneficial outcomes of all parties/stakeholders involved in national negotiations. According to the managerial grid when both negotiation parties want beneficial outcomes they will engage in problem solving activities (Blake & Mouton, 1964). When parties want only their own outcomes, and don't care much about others, they rely heavily on forcing as a strategy (Its interesting that side A pushes and then side B pushes back and the game is argued over a very narrow field of sometimes trivial differences. Few look in other directions and beyond the horizon at where unexplored opportunities lay). This is the nature of modern day politics and why we will need to change our conversational dynamics to solve problems and effectively compete in the global business game. The next generation needs well meaning problem solvers and not problem makers to adapt and master this next challenge. (See Manager's Dilemma 😵)

If you want to learn more about negotiation and the different styles/outcomes you can read Negotiation and Bargaining.

Blake, R. R., & Mouton, J. S. (1964). The managerial GRID. Houston, TX: Gulf.Steinel, W., & Harinck, F. (2020, September 28). Negotiation and Bargaining. Oxford Research Encyclopedia of Psychology. Retrieved 4 May. 2021, from https://oxfordre.com/psychology/view/10.1093/acrefore/9780190236557.001.0001/acrefore-9780190236557-e-253.

Trade Deficit US China May 4th 2021 US Bureau of Economic Analysis by Dr. Murad Abel on Scribd