The Upside of Down

What makes America great? Is it the people? The beautiful landscape? The election process? I think a lot of citizens define the greatness of America through her economic and military prowess. Over the past 10 years there has been a lot of news about America’s dominance fading in the world. I hear things like, “China owns half of our country!” “Their is a new Cold War with Russia!””There are going to be taco stands at every corner!” “All of our jobs are being shipped overseas!” I never really looked into these claims before so I wanted to read a book about the true economic status of the developed world compared to the developing. I picked up The Upside of Down: Why the Rise of the Rest is Good for the West by Charles Kenny. Kenny was previously a senior economist at the World Bank and is now a senior fellow at the Center for Global Development and writes for Bloomberg Businessweek and Foreign Policy magazines. To put it simply, this guy knows his stuff.

First off, China is definitely going to surpass the United States economy very soon – some economists argue that is has already happened. The math is simple: China has 1.3 billion people and the United States has roughly 350 million people. That is a billion more workers and consumers with an ever widening middle class that is ready to spend.

“…by 2030 the world will have four major economic players. China will be the heavyweight, with a share of global GDP around 24 percent (measured at purchasing power parity). Next will be India, the European Union and the United States – each with 10 to 12 percent of the global output. Brazil, Indonesia, and Japan will each control a little more than 3 percent of global GDP.”

Should this fact worry the United States? Not at all. It is great news. For one, the average Chinese or Indian will one day be able to buy more products from the United States. With more money flowing into America, there will be more jobs created and more services needed. Second, countries with large economies love trade agreements – allowing them to easily import and export. This increases alliances and decreases the risks of wars. Thirdly, with greater partnerships with other countries, the United States can reduce military spending and focus more on improving quality of life measures for her citizens (health care, infrastructure, worker benefits, etc.).

Now what about all the worries of immigration and jobs being taken by the “rest” of the world.

“…US offshoring may have been responsible for a 1.6 percent decline in manufacturing jobs over the period 1997 to 2007, but the impact on long-term productivity may actually increase employment (which may also be better paid). The idea is that firms save money by offshoring, which, by allowing them to sell more for less, increases both their own revenues and the revenues of those that purchase the goods they sell. As a result, they can hire more people, or their shareholders have more money to buy goods and services from other Americans.”

Yes, America has lost jobs overseas but the economy as a whole has benefited immensely from affordable goods and greater domestic purchasing power – the result being a net increase in job creation. So what about jobs at home being taken by immigrants? The United States attracts some of the best and brightest students from around the world. Our universities, with the help of foreign students, foster innovation that continues to make America a leader in patents and technology. Immigrants are vital to our growing economy, because as earlier explained, the number of people in a country is one of the biggest factors in economic health. With an aging population and a decreasing birth rate, the United States should be happy to take all the skilled labor she can get. What about the “illegal” immigrants? Shouldn’t we build a wall? It was found that immigrants from Mexico do not take jobs from Americans but rather help create new jobs (click here for clear example). By paying less for labor, businesses have more money for investments, purchases, and new job creation. Furthermore, between 2009-2014 there was net loss of Mexicans leaving the United States. This is due to an improving Mexican economy and better family reunification programs. It was found that increased border control actually increased the number of illegal immigrants in the country; due to the fact that it was harder for Mexicans to reenter their country.

All of this points to the need for more investment and economic teamwork throughout the world. We should not become a isolated country that is afraid of immigrants or the success of other countries. We need to remember that immigrants founded this country and that the rise of the rest is good for the west. If you liked this article please a related post, The World is Flat.

 

Racist Smells to Rising Empires

Which type of meat would you like in your Chop Suey…rat, cat, or dog? Is this an odd question that seems completely ridiculous? Unfortunately, the idea that Chinese people ate these dirty or taboo types of meat came about in the mid 1800’s. The first major influx of Chinese immigrants to the US was during the 1849 gold rush in California. These early immigrants were a source of cheap labor in three distinct industries: mining, personal servants, and laundry. The early Chinese immigrants were pigeonholed to these lower class jobs because of racism and a general sense of superiority by white Americans. The history of Chinese food in America begins in this setting of prejudice and is explored in detail in the book Chop Suey, USA: The Story of Chinese Food in America by Yong Chen. The early Chinese immigrants were seen as barbaric propagators of disease and hence the myth came about that they ate the animal equivalent of themselves- sewer rats. Early Chinese food in America was also given negative press because the restaurants in the mid 1800’s had distinct unfamiliar smells. These smells were from the Chinese tobacco smoked and the unique spices used in cooking; unfortunately, white Americans associated them with dirtiness and race inferiority. This was the stigma that Chinese food had to battle against and it is truly amazing that today, Chinese food is the most popular ethnic cuisine in America. How the heck did this happen?

The negative stigma towards Chinese immigrants began to shift from dirty rats to great workers throughout the late 1800’s. Whites commonly employed Chinese men as house servants because they were extremely hard workers, attentive, and more than anything clean. As more immigrants moved into the US, “China Towns” were erected to give the isolated Chinese a community and sense of home. These exotic town centers propagated a large amount of Chinese restaurants that served authentic Chinese food. As time went on, the image of Chinese cleanliness along with a shift away from personal servants provided a huge source of ideal restaurant laborers; this created a surge of Chinese restaurants throughout the US in the early 1900’s. The restaurateurs quickly began to shift their menus from traditional delicacies like bird nest soup and shark fin to the more Americanized dishes like Chop Suey and Egg Foo Yong. Along with adjustments to America’s gastronomical tastes, Chinese food filled America’s imperialistic tastes-material abundance, expansion, and democracy.

Chinese food in the twentieth century met the demands of the growing empire of America by providing cheap labor, affordable food, and quick service. The ever expanding middle class flocked to restaurants because it was a symbol of wealth and social status. Chinese food was the perfect democratic fit for all races, classes, and economic demographics. African Americans, Jews, and those in their 20’s especially flocked to Chinese restaurants as a haven where they felt accepted (for the most part). Chinese food was the original McDonald’s that fed a rising nation and created the quick, cheap food culture that is ubiquitous in the 21st century. Today, Chinese restaurants continue to adapt to American tastes and are more popular than ever. The history of Chinese food in America is not just a story of food but rather the relationship between two empires. China’s cheap labor satisfied America’s mass consumer needs in nearly every sector of the economy. The next time you eat some Crab Rangoon or Sesame Chicken think about how much that seemingly unimportant food allowed you to drive an over sized SUV, live in an over sized house, and live the over sized American lifestyle.