President Trump has not been at all shy about laying some of the blame for America’s declining, stagnant economy on China, particularly since Barack Obama blew up our national debt and the Communist nation gobbled it right up.While many folks would agree this is a serious problem that needs to be dealt with, Alibaba founder and Chinese billionaire, Jack Ma has a different theory, and it’s almost a guarantee Trump and every other red-blooded American will hate it. He’s also wrong.
Ma basically says it’s our fault for “investing in warfare.”According to CNBC:
Ma was asked by CNBC’s Andrew Ross Sorkin about the U.S. economy in relation to China, since President-elect Donald Trump has been talking about imposing new tariffs on Chinese imports.Ma says blaming China for any economic issues in the U.S. is misguided. If America is looking to blame anyone, Ma said, it should blame itself.
“It’s not that other countries steal jobs from you guys,” Ma said. “It’s your strategy. Distribute the money and things in a proper way.”
He said the U.S. has wasted over $14 trillion in fighting wars over the past 30 years rather than investing in infrastructure at home.To be sure, Ma is not the only critic of the costly U.S. policies of waging war against terrorism and other enemies outside the homeland. Still, Ma said this was the reason America’s economic growth had weakened, not China’s supposed theft of jobs.
In fact, Ma called outsourcing a “wonderful” and “perfect” strategy.
“The American multinational companies made millions and millions of dollars from globalization,” Ma said. “The past 30 years, IBM, Cisco, Microsoft, they’ve made tens of millions — the profits they’ve made are much more than the four Chinese banks put together. … But where did the money go?”
He said the U.S. is not distributing, or investing, its money properly, and that’s why many people in the country feel wracked with economic anxiety. He said too much money flows to Wall Street and Silicon Valley. Instead, the country should be helping the Midwest, and Americans “not good in schooling,” too.“You’re supposed to spend money on your own people,” Ma said. “Not everybody can pass Harvard, like me.” In a previous interview, Ma said he had been rejected by Harvard 10 times.
Spend money on our own people? Mr. Ma, nearly half the U.S. population already receives some sort of government assistance.
Also, perhaps you didn’t know our military spending represents only about 16 percent of total federal spending. The lion’s share goes to mandatory entitlement programs such as Social Security and Medicare.
And sure, those global companies made tons of money, but they didn’t necessarily bring it back to the U.S. because of our onerous corporate tax rates. An estimated two TRILLION dollars is overseas because corporations are trying to avoid taxes here in the U.S.
Mr. Ma. you’re right, the U.S. isn’t investing or spending its money properly — and certainly not during the previous eight years of the Obama administration. But the military isn’t the problem. It’s the ever-growing, over-reaching bloated nanny state plus heavy-handed tax and regulatory policies that have driven our bus nearly over the cliff.
Luckily we have a new driver.
[Note: This article was written by Michael Cantrell]