Just a couple of points -
First off, people generally misunderstand the status of the American economy. Often they relate its economic strength in terms that they are familiar with. For instance, manufacturing production and jobs. Frankly, thats not an accurate view of the current situtation.
Now, don't get me wrong - I'm not saying that
if there was a war, America wouldn't have the potential to make some money in the defense sector. However, that sector as a whole represents such an tiny segement of the overall economy that any short or long term gains realized there would be negated in other sectors (namely energy trading and banking). The way I understand the stratification of the current economy is thus:
1) Financial Services
2) Energy Trading
3) Other services
4) Intellectual Properties
5) Manufacturing
Manufacturing (as a whole) occupies I
believe less than 20% of the entire output of the economy and far less than the #4 position (Intellectual Properties).
The #1 segement (Financial Services) is
the goliath of the American economy. Every single mark, frank, yen, peso, euro, etc, is going to flow at one point through New York. The industry requires a collosal amount of foreign capital to stay afloat. Basically they need investment money from overseas to continue to expand. Any sort of war in Asia would take two of the largest investors in American capital firms out of the loop - namely Japan and China. The U.S. needs those countries to continue to invest their money into the financial sector and any sort of war build up would make it far less likely they would have any money to spare to continue investing.
Thats why I don't see the practicality of wanting to encourage a conflict. Any small gains made in the smallest of U.S. sectors would be massively overshadowed by drop off in investment capital. Also the taxes collected by the U.S. government from the financial sector far overshadow what they collect from manufacturing. Infact, it could definately be argued (and is by several US economists) that the entire manufacturing sector is being subsidized by Washington.
Also to answer Bossel directly:
China may suffer economically from a conflict with Taiwan, but that wouldn't stop the hardliners in the CCP & esp. in the PLA from attacking in case of some (at this time unlikely) move of Taiwan in the direction of independence.
Actually I
do agree with you. The difference I think, is that I believe it would happen later rather than sooner. I don't think China is in the proper situation right now to embark on that adventure. In 20 years if they still haven't launched an attack, you'll owe me a beer ok? Otherwise I'll pony one up myself
It's just one of those things that time will tell I suppose.
The Bush government already showed that they don't care so much about economy in general. As long as their cronies in the industry benefit, they'll probably try to advance their agenda.
It's not that they
don't care, its just that they care in a way that hasn't been proven to work. The economic policy that they are working on is centered around reducing the U.S.'s trade deficit via a weakening dollar. The problem with this is that focusing purely on the trade deficit is an outmoded idea. In principal it should be part of a comprehensive economic policy that also fosters growth in the service industry as well as increase in foreign investment. The problem is that we have
too much debt out there right now, so its dilluted the value of buying any additional debt. Becoming an American creditor has gone from a compelling concept for foreign banks, to basically holding a bunch of nearly worthless debt - due to the weak dollar.
If the President and Congress could exercise some self restraint and actually lower the deficit, then the rest of their policy would work. You just can't weaken the dollar and create massive amounts of debt at the same time, the two things will snowball with each other.
And finally, Lexico -
7. One bloody step closer to the f-ing NEW WORLD ORDER. HAIL PAX AMERICANA !
One step closer? I was under the impression that this had already been here for a while?
/joking! (well... sorta
)