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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference


 Clyde Prestowitz giving presentation to CDI...


Steve Olson teaching trade negotiations at the Mekong Institute...


Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(05/12/10) Betrayal of American Prosperity Mentioned in TIMnovate

The Betrayal of American Prosperity

May 12, 2010 in Global Crisis Blog

The Betrayal of American Prosperity

By Shlomo Maital

Clyde Prestowitz was President Reagan?s chief trade negotiator. Later he founded the Economic Strategy Institute. Clyde knows more about trade and trade negotiations than anyone. And he is deeply troubled by how American political leaders, Republican and Democrat alike, have sold America out, given away the store, and ruined their country. He expresses this forcefully in his new book, just published: The Betrayal of American Prosperity (Free Press, 2010). Here is a small taste:

?In The Betrayal of American Prosperity, I explain that in the 150 years between 1800 and 1950 America became the richest country the world had ever seen by developing an economic strategy similar to that of China today. The United States rejected Adam Smith?s call for it to be primarily a supplier of raw materials and agricultural commodities and set out consciously to build a business-government partnership to overtake the industrial leadership of Great Britain by promoting technology development, investment in American production in key industries, and massive infrastructure projects like the transcontinental railroad. In the past fifty years, however, we have largely turned our backs on this approach while our ?brightest and best? have subordinated our economic development to geo-political priorities and embraced false doctrines like consumerism, efficient markets, Ricardian free trade, and shareholder value that, in an era of companies without countries, are rapidly eroding the bases of our prosperity and national security.?

Consider this, Prestowitz notes. ?China?s #1 export to the U.S. is computer equipment ($46 b.). America?s #1 export to China is waste paper and scrap metal ($7 b.).? Question: Which is the underdeveloped country?

?If we do not make dramatic changes quickly,? Prestowitz says, ?we will confront a painful permanent slide in our standard of living.?

Think carefully about the probability that an American president, even Obama, will inflict pain in order to fix the decline and deterioration of America over 50 years. Then judge your own investments and business accordingly, in a world where America?s decline is drastic and irreversible.


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The Betrayal of American Prosperity.

The Trans-Paific Partnership and Japan.

Making the Mexian Miracle.

Industrial Policy and Rebalancing in the US and China.

The Evolving Role of China in International Institutions.


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