“Innovation distinguishes between a leader and a follower” – Steve Jobs
Nov. 25, 1783 – During the Revolutionary War, the British evacuated New York. New York was their last military position in the United States.
Nov. 25, 1867 – Alfred Nobel patented dynamite.
Nov. 25, 1990 – Poland held its first popular presidential election.
Nov. 25, 2015
Last time we covered the negative effects of regulating Big Business. If you missed it here it is LINK – I highly recommend it. Today we’re going to look the opposite way through the lens. In contradistinction to regulation, the benefits of DEREGULATION are enormous, specifically military might. How does deregulating big business hurt our enemies?
Made in China. It’s no coincidence.
Ever since that fine print started showing up on all of our purchased goods, China has emerged as a new world Super Power. Let’s just take a look at the big players at th͢e table during World War I: China was absent. WWII? They were a victim of Japan. Sure they started growing over time militarily with some help from the Soviet Union, but it wasn’t until 1972 when Nixon went and opened the door to trading with China.
At this time, in 1972, compared to a century before, there were so many new laws on the books making it hard to do business in the U.S.
As soon as Nixon made it okay, firms hopped across The Pacific to set up shop in a place less hostile to their financial interests. So how does that factor into military might?
In the first world war, the United States was the king of production. We were taking weapon orders like we were a fast food drive-thru, and business was good….let me add: Germany was one of the nations at the very front of the line! This wealth launched us into the “Roaring 20’s” because all of Europe owed us a ton of money, putting the United States on the map as a serious World Power.
In the Second World War, there was even a more direct example: The United States, as we all know, fought the largest war in the history of the world, on two fronts, on two complete opposite sides of the world, and were uncontestedly victorious. Although many factors affected the outcome, this feat would not have been possible without MASSIVE production.
The Production that took place in the United States during the war was unlike anyone had ever seen before. We essentially went from having a very little and unequipped standing military to the most powerful military force in the history of humanity (within about 3 years).
If you’re curious, here are some numbers:
The assembly lines that were used for cars, and auto parts, started producing tanks and aircraft. The colossal amount of food our country had learned to produce, supported the troops stationed on all corners of the globe. The powerful garment industry that was once rooted on U.S. soil, made uniforms, boots and accessories.
So aside from the obvious wealth that manufacturing creates for us when it takes place on home soil, there are serious military implications that come along with outsourcing. Today China’s Navy is on track to become more powerful than our navy in the near future. China has the largest standing army in the world. They are building strategic Islands out in the middle of the Pacific as new landing bases for planes enabling long range bombing raids. They are producing the future of nuclear submarines, and their intelligence gathering(as seen in recent news) is a close rival to ours.
What are the ramifications of this? In the long run, many! But currently, China has claimed the South China Sea as theirs. This sounds logical and benign due to the fact that the Sea holds the word ‘china’ in its name. However, the consequences could be fatal to international shipping.
The South China Sea is the liquid highway for the majority of the world’s shipping as Trillions of dollars of goods pass through those international waters. If China claims this as their own, they then hold the power to shut down this passageway (or place taxes on usage) determining which countries can and cannot enter. If you don’t think this would cause conflict that may escalate to war, then you will understand when basic goods like textiles and T-Shirt prices skyrocket to the point of gas prices.
We instead keep downsizing our military and pushing our manufacturing overseas with business regulations that make it impossible to do business at home. So this, Dear thinkers, is how DEregulating business hurts our enemies, and how regulation makes them so powerful. And it leads one to wonder, if the world went to war today, could we win?
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