The devastation in Japan has taken the world by surprise, so much so that other stories got buried. For instance, The Financial Times reported that China has officially surpassed the U.S. as the global manufacturing leader, ending America’s 110-year reign. I wasn’t necessarily surprised that this happened – in fact, we’ve been hearing projections about thisfor years, but it’s still a tough pill to swallow.
Furthermore, where are the pundits and the politicians screaming about the end of days for the U.S. economy? While alarmists may be concerned about the future of the U.S. manufacturing sector, we have to remind ourselves that we are a service-based economy. China is in the throes of mass-industrialisation, so yes, they will manufacture a lot of things (and we will continue to buy them).
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