The New Economy

11:58 AM Brendon: where do you stand w taxing imports from china?

11:59 AM and why do people not want us drilling off shore?

12:00 PM me: Environmental reasons.

12:01 PM Brendon: and what about taxing imports from china?

12:03 PM me: It is an attempt to slow down the amount of imports from China. Import taxes (tarrifs) never work.

12:04 PM Brendon: why not?

40 minutes

12:45 PM me: If you tax imports from a country like China, they will tax imports on their side from the US, and also it usually increases prices domestically, which means people spend less, which hampers the economy.

12:46 PM Brendon: ahhh... so wise

12:48 PM me: The way out of situations like the one we are in (flat wages, increasing inflation, decreasing dollar) is to create a new type of economy.

12:49 PM Hamilton was a genius when he proposed that we not only be Agriculturalists, but that we also become Manufacturers.

  That set us up for the Industrial Age

  Which is the source of much of our country's wealth so far

 Brendon: i'm going to read to thomason what you just wrote

12:50 PM me: Now that other countries have more efficient Manufacturing, they can compete on the same level as us, which hurts our economic status.

12:51 PM So, we need to introduce a new economy that we can dominate once again

 Brendon: so what do you propose?

12:54 PM me: 2 things. We need to let the Asian countries make the cheap stuff and bulk items. They are better at it. We need to admit that. However, we are (or have the potential to be) really good at making things that are feature packed and expensive

  When you can make a product that is feature packed and expensive, you can control the price. Especially if it is proprietary. Apple and Blackberry products are a perfect example

12:55 PM Everybody wants them no matter the cost

 Brendon: oh ok

12:57 PM me: But the 'new economy' i believe will be based on information and new energy. Creating, harboring, and destroying it. We haven't yet scratched the surface of both of these.

12:59 PM Once we get both to levels that are beyond today's capacity, all kinds of new things will come about. With better energy sources and types, for example, faster transporation will become reality

1:00 PM But, for each one, the infrastructure is seriously lacking which is why the potential of both have been hampered.

1:01 PM (sorry, that's a lot of info)

1:04 PM Interestingly, new advents in energy use an sources is always the precursor to the next economy. With agriculture, it had to be figured out how to irrigate and how best to use the daylight to gro plants.

1:05 PM With industrialization, it was how to harness the power of rivers at first, then steam power, then chemical reactins to produce electricity.

5 minutes

1:11 PM Brendon: so what do we need to do w our infrastructure

9 minutes

1:20 PM me: Build high capacity fiber and wireless networks that are available everywhere. Begin building roads and highways with new technologies, techniques, and materials that are longer lasting, more durable, and cost effective. Create new ways of transporting electrical energy and upgrading electrical grids with more durable equipment. Build more pipelines for energy, water, and other resources to make distribution better. Build high speed rail lines - for both freight and passengers. Build intercountry highways for transportation of goods. And add infrastructure that will allow for energy carriers such as hydrogen to be distributed more efficiently.

--
Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
Get eXcited!
www.dmxed.com

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