Government SCREW UP Of Supply Chains and Infrastructure Destroys America | Prof. Jack Buffington 

This got most interesting towards the end . How often citizens of the star spangled banner nation believe that their economy is innovation based, rather than predatory. And likewise believing that socialist nations are repressive of the people's capacity. And yet, in America today you can't even take a train or a bus easily for mobility, the public libraries are doubling as homelessness and community services and very few people can afford to go to higher educatuon..

I'm reminded of wikileaks and its exposure of how US government fought to suppress the Haitian minimum wage.

instead of lifting 800 million people out on poverty like China (we know USA has only 341 million people, and 41 million in the USA are still in poverty), USA decided to support 800+ military bases around the globe, go figure the connection why it is failing.

The US government stops US companies from buying cotton from Xinjiang China because the US said the cotton is harvested by hard labor even though there is no evidence. The US also force other Western companies from buying Xinjiang cotton which has good quality and cheaper price. So US and western companies got to pay more for cotton produced in other places. The supply chain is still there for cotton but the choice of supply is reduced. Apple has to buy small screws from China as Apple cannot get enough screws in the States to make iPad. The supply chain for small screws is still there but Apple has still to source its screws from China but Apple has to pay transport costs of importing from China Apple used to make iPad in China without supply problem of small screws. .

This guy is American first personiified. It is true that digitalization and automation will provide solution to high labor cost in America. I don't quite get how his "community" concept would make American products competitive in the global market place. Or is he even concerned about that? If I understand him correctly, he seemed to claim that automation and digitalization would only happen in "innovative America". Well. That is not quite true. He needs to learn more about what is happening in the world, outside of America; for example, what the Chinese are doing with automation, especially with their ports.

China is using 5G for IoT. The U.S. is using 5G for … wait, the U.S. does not have 5G.

In my highschool days I hated politics classes most. The teacher read from text book word by word on how capitalist democracy is not real. It was extremely dry and boring and it did not even sound like she believed it. Now after 30+ years I find out with first hand experience that it makes sense. If a system worships money and profit and put it above everything else how can it respect or even care about individuals? The reality is our rulers, though "certificated" by us in some way, are essentially bankrolled by Davos and must serve their masters. We are nothing but tiny parts on their profiting machine. The thing I like most about Xi is that he tamed the capitals, who's gonna take over China and make it just another US otherwise. And he spent quite some wealth on the people's wellbeing. For example, in big cities like Shanghai, where living costs are high, there are "community canteens", where old people can eat really cheap and well cooked foods, subsidized by the state.

Definition of supply chain, in the context here, is flawed.

I agree with others here - he is not understanding what is going on in China which is the capacity of china to do what he is saying - regionally not as a nation as a whole - the government is investing in all the public utilities infrastructure to make it work for the regions - and doing it regionally as he is advocating for us but locally - which can not work because we are a nation built for the benefit of the big players and their ownership class which run the government based on money subverting democracy creating false political distraxcxtions to what is actrually happening. china is becoming that innovation economy doing what always works - the government invests in education and innovation as it did back in the day here through the military industrial complex which actually funded all our innovation - all of it. Apple came from microchips created by government through research funded by the government - Bell labs was created by regulation of ATT whic mandated rates that funded the technology that created the transistor, Battelle in Ohio is a. Non profit which created so much innovation - all the pollution control devices funded by the government were created there ans well ass the engineers who funded by the government and tapped into by private industry to reap their innnovaation benefits back in the day, they created the copier the Xerox company and nmoved close to IBM in New York also which received government funding for innnovation and then moved to Silicon Valley created the Xerox PARC labs also non profit funded by government who then invented the mouse the icons that now are the basis of all operating systems, cell phones, and Steve Jobs and Bill Gates toured their labs and both licensed the operating system innovations and then Apple stole those by pulling them all together in other one Graphical User Device that they then prevented others from using those innovations they essentially stole form Xerox but did not create - the myth of their innovation is purely a myth. The innovations were created by a smart government funding those innovations and breaking up monopolies. Bill Gates created none of it - he only came into existence because IBM knew back then they could not own everyitn so they hand picked him as a Harvard dropout to make their operating system which he stole from the creator of CP/M by buying a company in New Mexico which had stolen it and then asked if he could sell MS-DOS to not only IBM but the competitive system IBM created by letting others copy the PC platform and compete with them. IBM could have been a monopoly on both teheoperating system and PC but did not go the Apple route and instead through threat of break up hand selected companies to comete in creating the processors (Intel and AMD which they could have themselves owned) and hand picking the business creation the operating system that why agin could have themselves owned these innovations came about becauase of goverment which back then invested in education and technology and prevented companies from owning it all as monopolies unlike today china is doing the same and managing the infrastructure through the regions because they have. A goverment NOT captured or owned by the owners of capital, but rather the government control over that ecosystem at the stae and regional levels. NO different from what he is advocating but with a full understanding that an innovation economy comes from smart govneranance and especially innovation funding and I guess you could call it human capital through eduction, together with public utilities and infrastructure tying it all together an figuring it out as a society through its management regionally.

Mainstream ideology has twisted the meaning of "free market" into the opposite of what the classical economists like Adam Smith intended. The classical economists defined a free market as free FROM economic rents (unearned income), extracted by feudal landlords. The classical role of government is to keep natural monopolies in the public domain and tax away economic rents to use it to lower the cost of production. This is done through subsidies for such things as public infrastructure, education, and health care, not raising the cost of living and therefore the cost of labor, as with neoliberal monopolistic privatization. Mainstream Austrian and Libertarian Chicago School neoliberals have no role for the government in the economy, leaving the market free FOR economic rents, extracted by monopolies and the banks (FIRE, finance, insurance, and real estate). Because the economy does not stay out of government, the result is rule by the rentier oligarchy, otherwise called feudalism. These two approaches, industrial capitalism and financial capitalism, are what the new cold war is all about, and it is the story of financial capitalism sucking ever more life out of once vibrant US industrial capitalism. “It is suggested that the tipping point for being a rentier economy is when 40 per cent of income comes from rent.28 Even if just interest and dividends are counted as rent, the USA is already at that point.” Standing, Guy. The Corruption of Capitalism: Why rentiers thrive and work does not pay (p. 114). 2016 “Rentiers derive income from ownership, possession or control of assets that are scarce or artificially made scarce. Most familiar is rental income from land, property, mineral exploitation or financial investments, but other sources have grown too. They include the income lenders gain from debt interest; income from ownership of ‘intellectual property’ (such as patents, copyright, brands and trademarks); capital gains on investments; ‘above normal’ company profits (when a firm has a dominant market position that allows it to charge high prices or dictate terms); income from government subsidies; and income of financial and other intermediaries derived from third-party transactions.” Standing, Guy. The Corruption of Capitalism: Why rentiers thrive and work does not pay (p. 94). “What is so ironic is that China’s policy has, as noted above, followed almost the same path that American protectionism did from 1865 through 1914: state subsidy for industry, heavy public-sector capital investment (but without creating predatory railroad land fortunes as became a U.S. economic curse), and social spending on education and health care to upgrade the quality and productivity of labor. This was not called Marxism in the United States; it was simply the logical way to look at industrialization, as part of a broad economic and social system. That frame of reference is now denounced as “the road to serfdom” and claimed to be autocratic, while the United States is itself moving into a financialized era of debt peonage.” Michael Hudson. The Destiny of Civilization (Kindle Locations 3200-3205)

I liked Mr Bluffington and I’m from Baltimore as well, I completely agree with his assessment that the city has been left to rot. That said, I cringed when he said the U.S. is “innovation based.” Yeah I guess in some way, I do like the iPhone I type on and my HP laptop , they were designed here but they were manufactured by the U.S.’s so-called greatest adversary (🇨🇳). It’s nice to have apps that you can order food from, though I really don’t even use them, but it does nothing for your society. The so-called innovation based economy is pretty flawed and really only benefits a select few.

Pascal you are doing a great service to humanity

Infrastructure has to be recognized as not only economic but social - health, education and welfare. Until then, investment in 'infrastructure' will only exacerbate inequality.

This channel is a gem! Keep it up.

@25:11. Hi. I need to slightly correct the professor on this point about innovation in China. The fact that China's economy is a state sponsored capitalist economy DOES *NOT* in any way diminish the significance of individual innovation that exists in China. China is actually a very technologically advanced country. Most people are not aware, but China actually LEADS the world in most of the core technologies of today. In fact, according to the Australian Strategic Policy Institute (ASPI), Australia's top strategic think tank that advises the Australian gov't : China leads the world in 37 out of the 44 critical core technologies of our times, while the US leads the world in only 7 of these 44 core technologies. No other countries lead the world in ANY of these 44 core technologies. Not Japan, not Korea, and not Germany. So individual innovation is definitely very significant in both the US and China even though their economies work somewhat differently.

The USA remains the world's undisputed leader in private wealth creation and accumulation. America accounts for 32% of global liquid investable wealth - a colossal USD 67 trillion, according to the 2024 USA Wealth Report published by global wealth advisory firm Henley & Partners. The USA is currently home to 37% of the world's millionaires. This number has risen by an impressive 62% over the past decade, well ahead of the worldwide growth rate of 38%. As a whole, Americans are getting richer and richer. But this wealth has nothing to do with most Americans.

Capitalism, as we know it, can not end soon enough.

Overproduction is function of capitalisation, there's not enough paid to produce the goods for sale. debt is a function of financial sector, there's not enough money lent to pay back plus interest. If the costs to live are high the wages must be high. As long as poor countries exist Capital companies will exploit them. Equal supply and demand is mostly an illusion, as are marginal cost, values etc. Trains were developed in England before USA, and history did not begin with capitalism.

Sensible citizens need to get involved in city councils, zoning boards, legislative offices, election polls, and govt job's. Spend money only on companies that support your values. Help make the change that's needed.

Should talk about the so call Overcapacity, and discuss what will happen if China listen to USA and reduce the supply.

because they have the manufacturing . PERIOD

9:24 This person doesn’t understand economic science. They’re a smart storyteller.

Excellent.

Fantastic insights. The connection between supply chain prowess, intent and policy to societal stability and democracy is insightful. Jack was dropping Truth bombs that demonstrates a keen understanding of the economy while also the national malaise of unemployment in the US As more white collar jobs get outsourced - which has been the trend since 2008 - it has led to the demise of the middle class. Companies view hiring in the US as a high cost labor and seek US markets only to sell - not to build, support or nurture talent. Chinas lead will only increase over time to further dominate the supply chain across industries. The residential piggy bank that runs 80% of the American middle class is due for another crash wiping out any increase in asset value.

Great interview.

Hello, I was watching you dubbed in Turkish, but I can't find it anymore. Have you closed this channel? I want to watch it in Turkish from Turkey.

Excellent interview. It is all about control. Everything else follows in the wake of that...

Wow, brilliant guy.

The USA and its labour force believed in this "American Dream", but the dream only came to the super rich. Their government propped up their standard of living by debt and profligate government spending. But China has done the same thing and left the middle and lower classes in increasing disadvantage. Both countries will have a recession with rampant inflation coming like in the 1980s. They do not learn from the past. Countries with good leadership have looked at Australia and South Korea for the answer. In the former case, there is a country with wages rates 30% higher than the USA, runs a current account and trade surplus and also a government surplus. It suffered only a small glitch with Covid because it had a public healthcare system that kept deaths to 10,000 while the USA had a million deaths. They say you get the government you deserve.

Waste of time listening to this gentleman. No coherent argument.

Got tenure😊😊😊

… still I hope he can have success in changing our politics if possible .

Yankee work culture 9-5-5. Chinese work 9 to 6, 6 days a week.

Good afternoon ❤️🇨🇳🇨🇭🦾😇

Tariffs

Americans didn't get poorer in total than China. Americans are getting richer and richer in total than China. It's just that wealth is more and more concentrated among a small group of people. Americans need to step outside to see the whole picture.

IMO the biggest problem of todayprocess->outputs) -to describe the components of their models the same way as in thermodynanamics hot source->work->cold source. So they build up the basic supply chain model natural resources->primary sector(extraction)->secondary sector(transfoemation)->tertiary sector(distribution)->consumers->(void?). But the globe is a close economic system, we don't trade with space alien civilisations. So the global economy should be describe by the more realistic Physical world->natural resources->primary sector(extraction)->secondary sector(transfoemation)->tertiary sector(distribution)->consumers->Physical world. In a close system there are feedback loops, negative loops that stabilize the system and positive loops that destabilize the system. Like in thermodynamics, when you use the transfert function of your individual open system sub-systems and insert it in a close system, there are modifications to make to predict the real behavior of those sub-components adequatley. With thermodamics it is an easy task replace the enthalpy constant of the measured transfet function equation with it's entropy constant. But I've never heard about any economic theory that looked at the global market as a close system and looked for an equivalent method to transform their open system economic transfert functions measurments to make computations when they are insterted into the closed system global economy With the clear example of fossil fuel energy to feed the mechanical slaves of our industrial economy. Hundred of years later we are causing disruptions in the ecosystem of the planet and unstable economic evolution. But representatives of our Open economic System Nations cannot have a consensus on how to insert effective economic negative feedback loops to stabilize the ecosystem and therefore the economic

I’m not skeptical that the US can revive the manufacturing sector through digital tech. I’m quite sure that will happen. I’m skeptical about the direction that will go in the longterm. How will this make life better for the workers involved - will it have an immediate impact that belies worse subsequent outcomes? There will always be a need for national/international supply systems and regional manufacturing for the national/international market- but, is it a good idea to dedicate (make reliant on digital manufacturing by) too much of the population? We are on shaky ground when it comes to even coming close to pretending we will meet carbon reduction targets. To meet net zero will require lowering carbon emissions as much as in the 90 percentile range for several major industries. Many in these sectors, particularly in the US, do not want to change not begin to have the understanding of how to on the level actually needed. While we will have to rely on ‘Goldilocks technology’ to lower our emissions (not high tech -but not Luddite), it is true that digital can help with better technologies. Please bear in mind that digital, itself comes with a voracious energy appetite and can only augment better approaches through judicious use.

I wish people who do interviews would invest in a decent microphone. Good headsets at Office Depot are good for a reasonable price. They don't allow that annoying empty room sound that interferes with the voice of the guest.

This guy is American first personiified. EEUU economy is predatory based, rather than innovation based. I agree with others here - he is not understanding what is going on in China. He needs to learn more about what is happening in the world, outside of America; The fact that China's economy is a state sponsored capitalist economy DOES NOT in any way diminish the significance of individual innovation that exists in China.

So we need to go back to the gilded age? Back when, according to your guest, distribution of wealth was better? That makes no sense.

The money goes to war

This guy's was on the money right up to he said capitalism... Lata bro look at the state of the US thanks to capitalism.

I'm sorry, Pascal. The usa invented the railway's?? Google George Stephenson & Richard Trevithick.

Good luck with America turning toward socialism.🤣

This guy is pretty shallow. Everything he's talking about has already been described by Michael Hudson and John Ross.

Are you blamíng private sector screw-ups on the governments?

My guy is glazing capitalism by literally describing COMMUNISM 😅😅😅😅😅😅😅

When you believe Ɓiden won the presidencial with 70Million shows the intelligence of a lot of people .