Why America Should Ditch the Global Commodities Market

During the industrial period, America was the mostcompared to the rest of the world) and most
innovative nation on the planet. We were theemployers incur additional costs related to employee
creators of inventions that were unheard of and thewellness such as health-care. All these factors inflate
orators of accomplishments that were made ofoperating costs and reduce the profit margins of
dreams. As time progressed, we successfullyAmerican businesses, putting them at a significant
maintained our innovative prowess, while the rest ofdisadvantage to compete with foreign-based
the world attempted to catch up, but catch up theybusiness.
did. Today, we are seeing the manifestation ofThe inability of American politicians to address and
globalization in great abundance. Nations are exportingbalance globalized business with politics will continue to
and importing goods of every variety from everydegrade what took this nation hundreds of years to
corner of the world. A positive side effect is that thebuild. Directly attempting to compete with these
citizens of nations who actively engage in global tradenations has not been beneficial and it carries the
often enjoy a better quality of life. America hasadverse affect of driving American based businesses
maintained the most successful economic status foroffshore. So the answer is simply to significantly scale
many years due in-part to the presence of a largedown competition in the global commodities markets.
middle class. The same is happening in foreign nations.Education, specifically in the field of math and science
The increased global trade is giving rise to a middleis what will propel America forward and spur a new
class that is more educated, more determined andinnovative revolution. The creation and
willing to take advantage of every possibleimplementation of assembly lines in American
opportunity. So what sets America apart from themanufacturing clearly demonstrates our mastery of
rest of the world today? The answer is very littleinnovation. Our efforts would prove futile at best if
and this is why.this strategy is pursued since our laws prevent the
While America was the first to pioneer many of theengagement of global competition at the price floor
technological advances that are commonplace today,(which could be significantly lower). Yet, we still feel
we have not yet progressed onward. Ourthe need to compete, even though it is costing us
infrastructure is aging and the nations that weremore than profits. Instead of direct competition, why
categorically labeled as "developing" posses facilitiesnot innovate through research and development.
that are far superior to ours. For instance, JapanThere are global challenges that have yet to be
owns and operates the most technologicallysolved. Where will our next commercial fuel source
advanced trains on the planet. Yet no more than 65come from? Why not concentrate our efforts
years ago, the nation laid in absolute ruin after theinstead on finding new creative solutions to problems
Hiroshima/Nagasaki bombings. With an embattled andthat plague us as a nation such upgrading our
destitute military, the country found another way todecrepit infrastructure? If desperation breeds
engage in the global marketplace. Desperation doesinnovation, now is our time to innovate the same
indeed breed innovation, and Japan is the physicalway Japan did after the war. Let the world's
embodiment of that philosophy. So in some aspects,emerging nations manufacture commodities. America
the U.S. has actually fallen behind. The commoditiesis at the point of desperation and education is one
market and its manufacturers are slowly becomingpath toward innovation that is reminiscent of the
the new emerging superpower nations of the world.industrial period. It would be unwise to completely
The lax labor laws and inexpensive human capital ofabandon our roots and rely only on service-based
countries like China, Thailand, India and Taiwan havebusiness modeling. Just as diversification minimizes
all attracted U.S. based businesses offshore. Its noexcessive risk in an investment portfolio, the United
secret that they can manufacture a product at aStates should wisely employ the same strategies
fraction of the cost when compared to that of anwhen engaging in global trade. Reallocating some of
American manufacturer. To compound the issue, theour resources away from saturated, low-priced
standard of living in these countries is typically lower,commodity markets and redirecting them to cutting
which translates into nominal wages. In contrast, theedge research and development will restore
US maintains stringent labor laws such as a nationalAmerica's competitive edge. The strength and future
minimum wage and in some cases, employeeof America is not based on manufacturing, but on our
advocacy organizations like the various unionsability to innovate, just as we did during the industrial
operating within the automotive field contribute toperiod. Let's concentrate our efforts toward
inflated costs. In addition, the United States maintainsinnovation, and usher the globe into a new era.
a significantly higher standard of living (when