This week my son called my attention to an article appearing in the on-line edition of Britain’s Daily Telegraph. The article, written by the Telegraph’s International Business Editor, Ambrose Evans-Pritchard, is positive on America’s future! Imagine that. The article was so inspiring that I’ve used its main points in this blog. You can see the article in its entirety at:
The article is titled, “World Power Swings Back to America.” In the introduction, Pritchard says:
“The American phoenix is slowly rising again. Within five years or so, the US will be well on its way to self-sufficiency in fuel and energy. Manufacturing will have closed the labour gap with China in a clutch of key industries. The current account might even be in surplus.”
I thought Pritchard’s summary a bit optimistic until I read his article. All words in italics are Pritchard’s. Among the surprising facts cited in his article are these:
1. Energy independence may occur faster than we thought. The United States is the highest fossil fuel growth nation in the world. “The US was the single largest contributor to global oil supply growth last year, with a net 395,000 barrels per day (b/d),” said Francisco Blanch from Bank of America, comparing the Dakota fields to a new North Sea. Total US shale output is “set to expand dramatically” as fresh sources come on stream, possibly reaching 5.5m b/d by mid-decade. This is a tenfold rise since 2009.” America now produces more natural gas than any nation on earth, recently surpassing the output of Russia.
2. We are nearing a “tipping point” where manufacturing may be not outsourced, but “insourced” back into the US again. China’s manufacturing costs are rising. “Made in America, Again” – a report this month by Boston Consulting Group – said Chinese wage inflation running at 16pc a year for a decade has closed much of the cost gap. China is no longer the “default location” for cheap plants supplying the US. “
3. Firms coming back the United States: “The list of “repatriates” is growing. Farouk Systems is bringing back assembly of hair dryers to Texas after counterfeiting problems; ET Water Systems has switched its irrigation products to California; Master Lock is returning to Milwaukee, and NCR is bringing back its ATM output to Georgia. NatLabs is coming home to Florida.”
4. Demographic factors favor the United States: “The US is almost the only economic power with a fertility rate above 2.0 – and therefore the ability to outgrow debt – in sharp contrast to the demographic decay awaiting Japan, China, Korea, Germany, Italy, and Russia.
In spite of our anti-growth, anti-capitalism administration, the United States may be poised for prosperity again. Let’s hope the looters are run out of office before they realize that America has been producing behind their backs.