merocaine said:Dude are you seriously avocating european countries to become dependent on arms sales to spur economic growth? Before the 1960's the US had a normal economy, this was the golden age for american industry, now the only thing you make that is top of the range are weapon systems, almost every other industry has been eaten into by forigen compeditors.
Less than 40 years ago america was the undisputed world leader in everything. Now at least 30% of your industry is devoted to the military production which you sell to the highest bidder as long as they dont threaten you. And you want other countries to follow that path? What do you think would happen if germany and Japan went in to the arms market in the same way as the US? your profits would be destroyed! Everything else the Japanese went into they dominated, and the Germans arent far behind.
Singapore has to spend that kind of cash it lives in a very dangerous neighbourhood, they dont want to spend that money they have to.
Anyway europe is not america, goverments and people work differently here,
social cohesion and a more equal socity are much more important than booming profits and a lack of a social net. What seems to work for you does not work for other countries, just imagine where america would be if for the last 40 years half of what you spent on militaty R and D was spent on pure industral R and D. Maybe you would still be the top industrial dog.
Well if you would look at Germany, its industries are also going to China due to very high wages there, that is also the reason for its high level of unemployment, plus it is very hard to fire workers there, this makes employers hesitant to hire more labour when the economy recovers, thus leading to a high natural rate of unemployment even when the economy is expanding at 3 per cent, the reason why Denmark has a lower unmemployment rate is because of its flexible labor laws, and also because at 28 per cent, its corporate tax rate is lower than Germany, this despite it being a welfare state. As for the decline of American industries, it is simply because of the fact that wages are cheaper in China that American industry is migrating there, hopwever when it comes to the services sector, for example Silicon Valley and Wall Street, there is still a very strong presence in America, plus the fact the China's currency is undervalued and it keeps its wages artificially low by suppressing unions does not help much either in keepiung manufacturing jobs in America, it is mainly the unionized labor in factories that are losing jobs, factories that do not have a unionized workforce are actually doing very well, such as the Toyota and Honda plants in the South, plus it is actually a good idea to depend on your own country's companies when buying weapons, and to encourage having your own domestic arms industries, so that your supply of armaments will still not be cut off if war starts, for example, it will not be a good idea for the UK to relocate its weapons factories to China just because labor is cheaper there, since if a war between the UK occurs, then the UK will have its supply of weapons disrupted because its supply of weapons comes not from its own factories but from China, plus it cannot discount the possibility that China may be able to blackmail its trading partners, like Germany or France, into not supplying it the weapons it needs that are being manufactured in Germany or France, by threatening to deny German and French companies access to the lucrative Chinese market of its factories continue to supply weapons to the UK if war breaks out between the UK and China.