There is an aged an adage in the halls of the Pentagon that goes “Protection is constantly fighting the very last war”. In other terms, soon after a army engagement is completed DoD attempts to restructure alone so that its capabilities are a lot more efficient for the previous engagement. This is an adage that is really correct in the history of DoD and right now numerous in DoD work extremely diligently to make sure that it is no lengthier accurate.
In several approaches when it comes to rebuilding America’s financial competitiveness, several have fallen prey to this time outdated adage. And as DoD has found on recurring occasions, preventing the final war can be extremely deadly for the navy and the country.
The US has divested alone, equally by style and by default, of its manufacturing foundation creating a weak point that China and other folks have exploited for a competitive benefit. This weakness has now been exploited to the amount that its adverse effect on the financial overall health of the US is so pronounced, that it can no lengthier be denied by anyone apart from the most nave or out of touch pundits.
In reaction, there is a developing call-to-arms across the US private and public sector to rebuild the US production base to its previous glory. The strongly inferred, but not often said premise is that rebuilding the US manufacturing foundation is certain to rebuild America’s economic well being– in other phrases the producing base of a nation is the foundation of a country’s economic competitiveness.
It is the scenario that the Chinese observed and exploited the weak spot introduced by America’s declining producing base but by just taking away this US weakness does not equate to a US power–it just gets rid of a US weak spot that could be exploited by China and other folks for a competitive edge. In result, removing the US weakness by rebuilding the US manufacturing base is just battling the previous war.
With this US weakness eliminated, China and other individuals will just change the combat to an additional battlefield.
To rebuild the financial well being of the US we must obtain and sustain a competitive benefit, not just eliminate a US weak point that supplies China with the opportunity to get a competitive gain relative to the US. Rebuilding the US producing base can remove the US weaknesses so that it can no more time be exploited by China or other people to the detriment of the economic health of the US, and it is the case that the US manufacturing foundation could be rebuilt in a manner that provides the US with a competitive gain and thus boost the financial well being of the US. But, opposite to what is being maintained in the press and by a developing amount of professionals, the US production base is not the basis of America’s economic competitiveness–the exploitation of technologies is the basis of America’s financial competitiveness as well as the basis of all of our competitors’ financial competitiveness.
To rebuild America’s financial competitiveness, and thus the country’s financial wellness, and not just get rid of a weakness or develop a restricted fleeting aggressive advantage in one spot, we need to out maneuver our opponents in the exploitation of the worldwide technological innovation which is the foundation of all aggressive benefit.
The issue is that at the stop of Entire world War II, choice-creating in the US for the most component, abandoned technological innovation-dependent organizing and adopted economic-dependent preparing. In financial-based preparing the basis of all choice-generating is the powerful utilization of the resources to accomplish a function where, inside a company in most instances, the perform is to improve income. In other phrases, the cash are what are becoming manipulated and the measure of accomplishment is how effectively the funds have been manipulated. Adoption of economic-based organizing is the root lead to of America’s loss of its production foundation.
In contrast, in engineering-based mostly arranging the foundation of all choice-making is the successful acquisition and utilization of the technological innovation to generate a aggressive edge. It is the technologies not the cash that are getting manipulated as the basis of choices. Retaining in brain that technology is appropriately described as any software of science to achieve a operate.
The difficulty is that right after the US adopted economic-based organizing after WWII, the relaxation of the entire world ongoing utilizing and refining technologies-based organizing. China and India have been using very refined, extremely aggressive technology-dependent organizing to speedily remodel their standpoint nations into financial superpowers.
In the US intelligence community under the Reagan administration, I directed a plan the Socrates Venture, that established that the underlying result in of America’s declining financial competitiveness was the country’s switch from technological innovation-dependent organizing to financial-based arranging. Trade Secrets produced a very advanced sort of tech-based arranging–automated innovation–that would allow the US and all its non-public and community corporations to consistently out maneuver all competitors around the world in the acquisition and utilization of technologies to get and maintain the optimum competitive benefit.
So instead of the US just getting rid of the current weak spot caused by the country’s waning manufacturing base, the US and its corporations would be in a position to be the dominant competitor in all current and foreseeable future industries—to incorporate manufacturing.