1 The Selling of America? The Outsourcing Dilemma

2 Or, Global Society Global Economy Not, a Domestic Economy

3 Adam Smith - land - Labor - Capital Adam Smith - land - Labor - Capital

4 Conversion Free Markets Private Ownership

5 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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9 FOREIGN RESERVES - USA STAGNATES - - OTHERS GROW

10 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.

11 Federal 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.

12 The persistence

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14 MANUFACTURING BASE DECLINE

15 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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17 GDP 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)%

18 No higher resolution available.

19 Country GDP (millions of USD) — World 60,917,477 [4] [4] — European Union 18,387,785 [4] [4] 1 United States 14,441,425 2 Japan 4,910,692 3 China 4,327,448 h ( 8.8 trillion Yuan – PPP) h 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, Brazil 1,572, Canada 1,499,551

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21 Here's the personal savings trend.

22 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 - -

23 The Diamond Economy 1950 – 80’s

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27 The Hourglass Economy 2000 and on

28 Image of an hourglass, or "sand clock

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31 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

32 Kaizen budgeting is an approach that explicitly incorporates continuous improvement during the budget period into the budget numbers

33 Budgeted Hours/Item January – March April – June July – September October – December