Today, Airbus completed the first test flight of their new MegaUltraJumboJet, the Airbus 380. Some analysts are deeply concerned about the jet’s affect on the airline industry, and on Boeing’s ability to compete.
This got me thinking. I think that Boeing could be in trouble, and it’s just sympomatic of what could be a major threat to the American economy.
Boeing is a privately-held, publicly-traded company. It has to answer to its shareholders, who are the owners of the company. Airbus is co-owned by the British and French government, which means it has a certain level of immunity to the free market.
Another recent entry to the American market is DHL, the delivery company. In their big ad push, they showed a FedEx and a UPS driver meeting and saluting each other at a train crossing, then reacting in dismay as a train carrying dozens and dozens of yellow and red DHL trucks passes between them.
FedEx and UPS are, as Boeing, privately held and publicly traded. DHL is owned by the German postal service.
Over the last few decades, more and more manufacturing jobs have migrated from the United States to places with cheaper labor costs. One of the biggest beneficiaries of this move has been Communist China, and today our trade deficit with them is running over 166 billion a month — roughly a quarter of our entire trade deficit.
China is a communist nation. The government owns everything, including every business that is currently manufacturing our computers, our VCRs, virtually our everything.
There are some that say that World War III will be an economic war, and I think there’s some truth to that. I’ll stack our corporations against any other country’s corporations, and may the best business win.
But when I see other governments deliberately targeting those corporations as competitors, and going into business for themselves, I get worried. Because very few companies have deep enough pockets to successfully fight off an attack by a competitor that, whenever they need more money, can simply raise taxes to get it.
I’m no economist. I don’t know if this is a real problem, or what the solution is. But I’m halfway decent at spotting parallels and connections, and I’m seeing more and more examples of foreign governments going into business and challenging our companies. And it’s got me worried.