1 The Selling of America? The Outsourcing Dilemma.

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The Selling of America?The Selling of America?

The Outsourcing DilemmaThe Outsourcing Dilemma

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Or, Global SocietyOr, Global Society

Global Economy

Not, a Domestic Economy

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Adam SmithAdam Smith

- land- land

- Labor- Labor

- Capital- Capital

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ConversionConversion

Free MarketsFree Markets

Private OwnershipPrivate Ownership

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The USA merchandise trade deficit reaching an all-time record deficit in 2008 of $821 billion.

Cumulative trade deficits since 1985 total $8.2 Trillion

These trade deficits are owed to non-Americans - - not to ourselves

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                                 FOREIGN RESERVES - USA STAGNATES - - OTHERS GROW

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USA just $69 billion.

Together, China and Japan own 40% ($1.9 trillion) of total World international reserves ($5 trillion).

The U.S. share is just 1%.

Additionally, the USA has tremendous international debts exceeding $10 trillion to more than cancel out its mere $69 billion in international reserves, whereas Japan has zilch international debt.

Devaluing the U.S. dollar's foreign exchange rate will not solve the problem.

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Federal Government Debt ReportFederal Government Debt Report

$12 trillion at end of fiscal 2009, or $38,956 per man, woman and child.

In FY 2009 federal debt increased $1.7 trillion.

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The persistence

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       MANUFACTURING BASE DECLINE

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The rapid build-up of federal debt per man, woman and child is $38,956.

This means a family of four (4) shares $155,824 in federal debt responsibility

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GDP Growth Rates – 2008/TrendGDP Growth Rates – 2008/Trend 1. China 9.6% - 12%2. India 7.4% - 10%3. Vietnam 6.2%4. Russia 5.6%5. Brazil 5.1%6. U.S. 1.1% - 2.5% 7. Germany 1.0%8. U.K. .7%9. Canada .4%10. Japan (.7)%

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No higher resolution available.

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Country       GDP (millions of USD)      

—   World 60,917,477[4]

—    European Union 18,387,785[4]

1    United States 14,441,425

2    Japan 4,910,692

3    China 4,327,448h (8.8 trillion Yuan – PPP)

4    Germany 3,673,105

5    France 2,866,951

6    United Kingdom 2,680,000

7    Italy 2,313,893

8    Russia 1,676,586

9    Spain 1,601,964

10    Brazil 1,572,839

11    Canada 1,499,551

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                                   Here's the personal savings trend.

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America is living beyond its means - - by consuming more goods made by others than it produces to meet the needs of foreigners - - resulting in exploding debts in favor of foreigners, in addition to record high domestic debt ratios of household, business and the domestic financial sectors.

It can be seen that the pattern since the mid 1970's brings into focus the basic question above - - America's lack of competitiveness world-wide - -

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The Diamond EconomyThe Diamond Economy

1950 – 80’s1950 – 80’s

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The Hourglass EconomyThe Hourglass Economy

2000 and on2000 and on

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Image of an hourglass, or "sand clock

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What is Kaizen?

The Japanese use the term “kaizen”

for continuous improvement.

Kaizen budgeting is an approach that

explicitly incorporates continuous

improvement during the budget

period into the budget numbers

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Kaizen budgeting is an approach that

explicitly incorporates continuous

improvement during the budget

period into the budget numbers

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Budgeted Hours/Item

January – March 2004 3.00

April – June 2004 2.95

July – September 2004 2.90

October – December 2004 2.85