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Originally Posted by spence
This is a challenge in a global economy where domestic industries are competing against companies often heavily subsidized by foreign governments.
If we remove government subsidy and selective regulations, which favor preferred companies, from corporate structure and budgets, AND remove government "welfare" for labor (pro-labor regulations by NLRB), we will be much closer to a free competitive market. That would create an interesting contest between global government subsidized business and free market U.S. business.
The peculiar process of raising corporate costs imposed by government giving labor the power to inflict those costs, but then reimbursing corporations with corporate welfare merely creates an inflationary rise in the "economy" and a fake rise in GDP. The only winner being a more powerful and controlling government.
Remove the cost of corruptive manipulating government middle man, let market forces determine costs and prices, and I'd put my bet on U.S. corporations beating the socks off of subsidized and controlled foreign corps.
We're shackled by short-termism and shareholder value when China is working on decades long business plans.
It's messy.
-spence
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The real short-termism is constant ad hoc government intrusion into and manipulation of the market for perceived immediate problems. True market forces ARE long term. Government manipulation outside of market forces is always a "now" fix and hope it works. That it usually doesn't is why the non-market fixes always have to be re-fixed and funded at greater levels and regulated further and further in micromanaged short term fixes.
Government fixes of that nature are always messy, full of fake rises in GDP, phony promises and compromises, a tangled web of lies and failed attempts which actually give government the illusory opportunity to present even more fixes.
So, are you saying China has gone from the traditional 5 year fixes that communism used to promise to decade fixes? Interesting how you put it--"China is working on decades long business plans." You so are stuck on the progressive ideology that it is government which must plan the commercial business of a nation.