GLOBAL RESOURCES ANALYSIS
EFFECTS | INCREASING TRADE DEFICITS
When oil/energy prices rise trade deficits rise with them. This will boost imbalance in the already very imbalanced trade deficit of the USA. On 300 million US population there are only 10 million people employed in manufacturing, this is a severe problems indicating figure. Where consuming becomes more important than manufacturing nations will face future dire straits. Holland her leading role on the global economy ends when they start to finance the UK industry with their by trade earned capital. The US economy is 70% based on consumer spending, boost by yearly increased house prices (the housing bubble) and fund by the whole world. The housing bubble has collapsed. Saving has become hip again in the US. People cut their creditcards and start using debitcards. Stopping with loving honest and good manufacturing has a deep mental colonial and/or racist background: Something like 'let the stupid other nations work for us, they're not smart enough for our high developed technologies, finance models (yes right, they have giving us sustainable wealth…) and organization models'. But this is a misconception: Education in India and China delivering each year as much engineers as the US or the EU has in total. There is no knowledge gap any more. Certainly there is a mental gap (looking up to the Western World), but this mental gap will have its polarity change when the Western World can't afford it wealth anymore.
Author: Gijs Graafland
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