A number of studies suggesting that you know our Manufacturing Sector has been devastated by the manufacturing as a percentage of g. D. P. Is at its lowest point in 72 years so this idea that we retain the software but we all share the manufacturing thats going to be great for both sides when when its been a win win for china and its been a lose lose for the u. S. Right im like i have a quote from biden here one of the candidates of course who say quote chinas going to eat our lunch come on man yeah he has been doing particularly well in the polls and i think part of the reason for that is because he still uses a playbook thats about 20 years out of date politically and economically of course he was part of a government swim bill clinton that the great democrats shipped our jobs overseas and it is interesting that weve come full circle that robert light hisor who was almost the lone voice in the neo liberal American Economic and political system back in the late ninetys he said in a piece in the wall. Street journal now the New York Times he warned that if it made it to the w. T. F. Can tell us china would become the dominant trading nation virtually no manufacturing job in the us will be safe he was right today hes now the u. S. Trade negotiator against china when youre reading the Chinese Press what how are they looking at trump how are they looking at robert like hisor in particular and their trade position against china so trump was kind of an x. Factor they didnt know how to deal with trump i mean trump is not acting like a normal politician they know how to deal with the biden family they give they give his son a 1500000000. 00 so thats you know how you can deal with some politicians trump is just is acting is all a negotiation he realizes back to the point of the manufacturing space you cant continue to innovate when you dont make anything all innovations happen on the manufacturing floor and we had the solution and a lot of it comes from academia these economists that you dont need to make anything manufacturings going away their reality is weve just had the greatest manufacturing boom in history the world it just occurred in china not the United States and we got rid of all our jobs you cant meet have a country of 330000000 people and not be able to make anything for yourself realizes that and this is all part of the strategic kind of realignment were going to have to happen and to be fair i think there theres been a number of economists now that say in retrospect that that whole model was wrong even paul krugman has dared to admit that he might have overestimated the or underestimated the impact and allowing china to go into the w t o and this idea that free trade would somehow be great for both sides and im personally a bit regarding light hoser i think hes the best thing thats happened to the us economy and the government hes probably the most qualified guy in the the cabinet granted that so i think thats not something exactly a high bar but hes an exceptionally talented trade negotiator and he the 1st guy that weve had in that position who not only has the dominant voice he. Treasury which was basically happy to offshore those jobs so long as you know the Capital Markets were happy but hes been doing this for over 40 years hes been doing this since the reagan years so the democrats arent discussing this issue in particular actually during their primaries but will it become a huge issue that against them and in the race against certainly biden is the nominee will because you know he as you pointed out earlier he biden embodies the the the socalled washington consensus but there is there are signs that some of the other candidates are embracing a different approach notably Elizabeth Warren she came out with a paper on economic patriotism and providing that manufacturing so she seems to be hearing a bit to that playbook and i think thats a rather hopeful sign as far as the democrats are concerned well aside from the economic advantages or disadvantages and shifting jobs overseas it does appear china is making a pretty aggressive move militarily and just looking at some of the trends coming out of there theyve perfected the rail Gun Technology that they can now put on a naval vessel you know ive been following the rail Gun Technology for a number of years now this is an electromagnetic projectile e. Fired into has a range of a missile what you can do with a rail gun is you can knock a satellite out of the sky which is. Way out aggressive they could start knocking competitor satellites out of the sky for one thing number 2 the u. S. Can build 2 submarines per year. It is retiring 3 per year or meanwhile china is able to manufacture more submarines per year so theres a military advantage there as well as militaristically is there or should that be a something to you know i would say that youve got to consider the base from which it starts i mean we still spend on defense u. S. Spends on defense more than the next 10 countries combined so we spend a massive amount of money now we dont spend a particularly efficiently if you look at some of the boondoggle we have out there and the political. The engineering that comes down but i think we still have a qualitative edge the question is whether you want to continue to surrender that qualitative edge which you will do if youre prepared to wait this offshore manufacturing to get it to china but of course china and the Republican Administration a trump hes hes met them head on in terms of trade the Previous Administration under obama said were doing the asia pivot and were going to confront them militarily the point max is making about the the fact that we can only build 2 submarines a year even with trumps new funds for the military because you know why because we rely on china for many of our and thats all part of the Manufacturing Base you have to get back all these technologies are interconnected castings fourteens electronic embedded systems these are all if you can make the cars you can make the systems in the plants then you can use it for the Defense Industry and you get rid of all that in the pentagon has come up with papers on this guys we have mostly one supplier for each type of our systems and these these defensive players have become completely dependent on federal government money and completely inefficient all right well were going to take a break come back talk a lot more about china on front running 2020. 2 descriptions sound up or tell using even for the owners so how to choose had Food Industry is telling us what to feed our pets really more based on what they want to sell us and was necessarily good for the pet turns out may not be associated people believe we have animals that have you know diabetes in our stride they have auto immune disorders these allergies we are actually creating these problems. Its a huge epidemic of toms all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets less treats the larger corporations are not very interested in proving or disproving the value of their food because theyre already making it a 1000000000. 00 on it and theres no reason to do that research. But if she warn you and i do the dishes at the bazemore those jeans nudist beach and you see me we need to. Close and about that come up and when you guys e. Q. s will be home in the news i mean that is where that infant involves. A lot of you will see sawing during fuzzy fights about 2 kids out there both for the most school. Board as in middle eastern fire check. This out. Here in cherokee folks cabinet 5 they were days doing it. In english 38th people who simply knew to manipulate in total. What is physics physics is nothing but the harmony you can create on vibrating strings that is chemistry chemistry is the melodies the melodies you can play on strings what is the universe the universe is is a symphony of strings. Time after time corporations repeat the same mantra sustainability area of. Transition sustainable transport sustainability stay number man a more equitable and sustainable world. They can. And the production is completely harmless hollow does need the. Number of listen it into something Companies Want us to feel good about buying their products while the damage is being done far away theres a 2nd eldest does he want anyone and i mean lets just get this time in and you must let me do on time eamon and im studying them in the best understood so going in. Medical use dont leave clause leave guarded sadiq audio. When your. Call doesnt that it could cause for the look of it is too close was a thought a book a new to this a but. Just its course still its a bit silly to me yet theres. Just chill. Welcome back to front running 2020 with max and stacy were talking about this. Moment between the u. S. And china well the u. S. Catch up can the u. S. Even catch up stacy without some kind of industrial policy exactly in order to compete on that sort of scale we need an industrial policy i would think because of course the Apollo Program which we introduced under j. F. K. To compete with russia it cost 600000000000. 00 in current terms but we have the manufacturing capacity at that time do we need an industrial policy an order to even rise to this challenge that china presents to us well in the world yes and we used to do the industrial policy very well until the reagan came into office in the 1980 s. And said that government is the source of the problem rather than part of the solution but theres been a number of the works by people like Maryanne Demasi who pointed out for example that the i phone is a good example which was derived and stood on the shoulders of a considerable amount of government already and the idea that these things just magically appear through the magic of the free market is just a fantasy and given how Financial Lives are economies you cant rely on the free market alone to get us anywhere near to the right kind of policy to catch this is one of the things in the political season i dont understand because a lot of flag waving and a lot of usa usa from the. Poloi in the audience but then when asked about Economic Policy they hate the us its like the usa cant do anything the government stinks its all about private corporations thats why we should throw out everything and the government can never accomplish anything theyre very negative toward their own country duplicity there and they dont understand that as you point out without the Us Government there would be no i phone there would be no. That there being no war when in world war 2 there would be no man on the lower right right so they dont seem to be a disconnect and if you look at things we fund we fund the wrong things right what do we publicly fund sun sports stadiums china funds chip factories so were trying to figure out what happened to 5 g. They just rolled out their 60 center sixtys going to be 10 x. 0 or 5 g. You know you look at electric vehicles right they pour hundreds of billions of dollars behind even battery maker who is now becoming the number one in the world control the space they have 4 percent of the penetration influx of us already which is twice the u. S. And theyre going to be 50 percent within a couple years they really know each charge and stations all over the country so they have a plan they have a policy its you know to dominate the century integrated circuits i mentioned the chip funds in the usa we used to make 25 percent the World Semiconductors were going down to 5 percent because we live in a world of finance capitalism and were getting played by china whos really plain state capitalism and we have done this before i mean in the 1980 s. There was a concern that the Semiconductor Chip market was going to be dominated by the japanese and the koreans and we set up something called cemetery which was the private Sector Consortium with the government and effectively the u. S. Was able to leapfrog and move to the next formal form of Semiconductor Technology was a very very successful project and it was profitable but somehow weve decided thats not a good model to follow anymore i would i would argue that thats exactly the kind of model that you can follow and you can use the military as well you dont have to pick winners and losers you can just how the military is saying you know we want a vehicle with these kind of specifications if you can build it for us we will guarantee you a market of eggs and thats the way you can actually support private industry in that regard quantum computing another example china put a lemon 1000000000. 00 in a Quantum Computing Center we needed just under a 1000000000. 00 for quantum computing thats going to be the next you know the next big thing so yeah absolutely look at every technology. We need to have some type of plan around for the end to the absence of an industrial policy in america is quite apparent during this time of a trade war and has applied all these tariffs to chinese. And weve also had the tax cuts a trillion dollars of tax cuts where does everything go into share buybacks and oh well thats it thats just it i mean 1st of all the tax reform was a joke because it was basically a means for the companies to use the result in cash flow to their stock prices because c. E. O. Compensation is basically predicated on what the stock price of the company does as opposed to the underlying operations which is why i disaster like boeing even though the Company Getting back to the china and apollo able to get exactly the point a point is that you you have to direct these things in the right way and and the problem with trump is that you know hes hes got a handle on the the problem in the sense that he said he recognizes there is a problem but hes using the 19th century solution protectionism tariffs as a means of dealing with the problem in fact i would argue that instead of trying to dismantle chinas elaborate system of state support the u. S. Should be doing more to try to replicate it and copy it as they did for example under Alexander Hamilton when they the big competitor was the United Kingdom so i would agree and disagree on some of those points i think the tax cuts were good on the fortune 500 standpoint absolutely theyre not they werent paying the 30 percent Corporate Tax rate anyway theyre all offshore everything in us has become warehouse and distribution and you reckon if your profits offshore small and medium sized businesses thats actually important to get the tax rate to some type of competitive level from 30 percent down to 21 percent now we match sweden for instance in the Corporate Tax rate so its not we have the highest Corporate Tax rates in the world next to north korea that had to come down so its i think part want to trump strategy. The strategy is youve got to keep the tariffs on because youre going to drive the manufacturing back here youve got our it has are going to drive it back here or not to vietnam or cambodia. And so a lot of Processing Technology to vietnam has gone to vietnam to close these types of things keep in mind. Doesnt have the population or the Manufacturing Base to absorb all that change i mean but you have lived in china for 20 years you did the china money report when the Chinese Government meets in the party me and they do a 5 year plan a 10 year plan what sort of policies like what are they looking at what do they say are they telling you know many families in michigan they are quickly to build this stuff yeah they do ive met with i dont know how many Chinese Government officials and theyre all impressive most some are engineers and if you look at the poll every put it comes from an engineering or science background they spend decades within the c. C. P. System you know start noting the provinces learn how to build economies learn how to support social systems and buy at the end of the end of the decades of a career when you know when theyre in their sixtys then they only get up to the top we have politicians whose last job was the bartender so thats where were getting schooled they have but i see is a fantastic leader shes charismatic shes articulate she comes up with good ideas they if i were a leader is our older people that you say are great theyre the ones that have failed us in the boomer generation has totally failed generation we have a generation of milan eels and generation z. Who are have their waitresses simply because the previous generation sent our manufacturing jobs to china how do you answer that the whole model is wrong you cant keep you know the argument is youve got all shore manufacturing because youve got to compete against the you know the sweatshop labor in asia and therefore you pay your workers accordingly and thats the soft option and ultimately its a race to the bottom and in fact theres another school thought either there was a prominent political economist Seymour Mehlman in the 1960 s. True to the 1980 s. Who pointed out that if you didnt offshore your labor and but labor was a constant you know rising costs that forced you to invest and move up the technological and gold for the higher boat value added type type of products and that for example is whats happened in japan and germany you know they clearly believe in the importance of an industrial ecosystem and i think we have to get back to that sort of thinking as opposed to saying well were going to all short all to low cost jurisdictions because ultimately thats just not going to get you to a position where you can compete in a viable way with china can u. S. Get off the decks to short termism so yes i pay 500. 00 matter what company it is they go to the cash desk and they are going to financialization and they typically manipulate. Well you dont want to l