It is an old story which tells people how Mr. Reagan once make Russian frightening about the outer space weapon. It even makes the dismantle of the USSR to be a reality. Mr. Reagan is intelligent and smart enough making Russians scared. Could we expect Mr. Trump to be in the same situation? Now Mr. Trump faces Mr. Putin, a smart guy who runs the Russia more than a decade. Could we expect Mr. Trump smart enough to help the world? I think all it depends on the science. Some simple science makes American corportations lead in the world for several decades. Simple fact American people discover in daily life help American business grow and prosper. American people need that again to have their life back.
Science does cost money which needs a lot of trial and errors. That is what Mr. Trump has to acknowledge. It is the reason why American people could move on. Higher technology makes a lot of things happen. Economics is the strong science Ameircans know better than the world. Computer science is antoher one that Red China still follows. But we have to admit Red China does catch up.
For better or worse, we do expect the United States government reopen some NASA programs even a lot of private programs are on the way. Red China does invest a lot in their space programs. They try hard to catch up with the United States. American people should be inspired with some new aerospace programs.
Monetary policy vs fiscal policy as noted
Take the monerary policy versus the fiscal policy for example, people in the academy do think the former one is better but the latter one is unecnomic. When the Fed implements the monetary policy to help the economy, we do see the Fed could restore the economy easier even if the Fed wants to shrink its balance sheet. But if the government implements the fiscal policy, the debt piling is for sure and not reversible. In the case of monetary policy, the Fed could withdraw money from the system by selling all those government-sponsored debt to the market. Then we will see the US dollar level around the world goes down. On the contrary, in the case of fiscal policy, the reverse may not be easy. Spilled waster is hard to recover. Government may try hard to tax people to purchase back those debt issued for the fiscal policy. To be honest, scholars do think fiscal policy does harm than good if those programs get something wrong. Those programs may bring even more problems to the society if the fiscal policy doesn't implement well. It is a science instead of a lousy alchemy that the monetary policy could be done much easier than the fiscal policy. People should know the difference better.
A new industry with long term promise
Maybe, Mr. Trump with his team should consider waste-processing industries as a new hope. To make all those electronic waster to be reusable material and create new value from them is not easy but an environmental friendly move. Trump's team should travel all around the world to find the solution for the new development. Solar power industry is an industry to be long time ignored by the United States. Mr. Musk once considers to build many large-scale solar power factories to help the electric cars to be more common in the United States. Maybe, Mr. Trump should know that better. Old solution doesn't help much when the United States has to use new one to help those long-term unemployment people. Don't give them a non-real hope but a real one. Help them join in a self-sustained ecosystem and have a long-term full time job. It is Mr. Trump's duty. All those things depend on the science. A simple science could change people's life and make them live better.
Real Truth on US jobs and related issues
There are 5.6 million jobs destroyed in the United States. Around 80-90 percent is due to automation. On the Mexico manufacturing cars, there are arond 40% components are made in the USA. If MR. Trump stop importing the car, the supply chain will be largely destroyed and a lot of US job will disappear. The world is deeply connected.
India and China both face severe air pollution in their capitals and big cities. A serious issue on the manufacturing in Red China is the overcapacity and overproduction. It is no doubt if Mr. Trump tries hard to move those outdated assembly jobs home. American people in the assembly line will not get a raise in their jobs in which the payroll will be decreased due to the global comparison even new tax is imposed. Volumes of high valued components made in the USA will also be decreased due to the largely price increase in the final goods from abroad. It brings more harm than good to American people. And we could expect even if all those industries move back to the United States, the automation will still replace the manpower. It means the industries will try hard to use robots to replace the need of human beings. It brings no jobs need to US corporations and has no effect on the jobs creation for ordinary American people. Automation and advanced technology are the symbol of a well advanced nation like the United States. It is a non-reversible path for the United States. By the way, even the Airbus moves a assembly line to Red China, many important components are still made by the Germany, the France and the UK. The benefit to move the assembly line to Red China is to create even more nned of Airbus planes and related components made in the Europe. That is the reason why Boeing may need to consider the same strategy as Airbus. The middle goods need to be measured and well calculated between the trade of two nations. If one country makes a lot of valuable components and the other only does the assemble, we sould know better than the former one gets the most benefit from the trade.
Another important example is the PC industry, the most valuable parts are the CPU and the dymanic RAMs. In the old days, the most valuable parts are largely manufactured by the US corporations, but the south eastern nations only provide manpower to assemble a computer. The most benefit goes to the United States. Even in the old days, the United States often use the calculation of final goods imported as the reason to ask the currency appreciation of those nations.
Education system in the United States is broken amid the lack of fund of many local states in the United States. It brings the layoff of school teachers. It creates a big problem for many laid off teachers and brings a lower quality of public schools, including elementary school, junior high and senior high schools. If Mr. Trump does want to help, the federal goverenment should provide a funding mechanism to help local states funding their schools properly with economic means. How to keep those schools work well with higher quality in the situation when those local states lack of tax collection during the dark time. Advanced education needs to be taken care and the fundamental education is the root for higher education. How to help local states for the issue when facing next financial trouble of USA is the one which Mr. Trump should try hard to resolve.
Education needs money. Deteriorating airports, bridges and roads all need money to repair or rebuild. Airports could collect taxes. Bridges or roads may not be toll-free. Education is so hard to fund in which people find no way to collect taxes. It is a issue for Mr. Trump to figure out. Education is the business of each state. States should try hard to resolve, but we do see many states have pension system crises. How to help the education in a better shape may be a new issue for the new administration. Old defined-benefit system could not go on when the old assumptions fail these days. Pension system should to renegotiate with pensioners when thesystem is lack of money. It is nothing but the truth for Mr. Trump.
If the United States is that strong, how come the US accumulates 20 trillion debt? Let's face the music that Obama administration doesn't dare to look at those facts, including broken state pension system, lousy fundamental education system, poor and small states long term unemployment issue and a much weaker United States corporations amid the lack of funding. I know Mr. Trump hears many real stories and does feel scared. It is the truth of the United States. The United States does need a real renovation. All those things do depend on the science.