That is the cover story of this week's Business Week, and it plays on themes in our book, The Great Recession Conspiracy, and several entries in this blog.
First, the story highlights three brand new technologies that are about to disrupt old businesses.
1) Light emitting chips that are as bright as incandescent bulbs will replace the lighting business that exists now.
2) Fuel cells will power electric cars and replace petroleum.
3) Solar panels will replace electric generating plants.
All of that is good since we are shifting resources from old technologies to newer, more efficient technologies. That is one of the good things Business Cycles accomplish. You can read more about it in our book.
The other theme in the article is that U.S. government policies are encouraging manufacturers to move there plants overseas. This is not about low cost labor since all three of these new products will be made on automated production lines. It is about government policies that do not encourage the creation of new high tech jobs in the U.S. Previous entries have discussed how important to the growth of the U.S. economy is creating exactly this kind of jobs. Take a minute and go back to the pieces on JOBS. Then read the article in Business Week.