”US President Barack Obama has recently suggested that Europe must take on more debt to stimulate the economy. Such reliance on cheap money, though, is what got us into the current crisis in the first place — both in Europe and in the US. America’s problem isn’t too little money. It’s a lack of competitive products”.
Der Spiegel, Oct 4th 2011 (online edition).
This statement underscores what has been an historical deficiency in terms of the Western abilities to produce or possess any significant competitive product or advantage that the rest of the world really needs.
Clive Ponting excellent academic work on a New Perspective on World History traces this deficiency as he examines why the western-centric viewpoint of, to use the words of another proto-academia from Stanford Mr. Ian Morris and his work, Why The West Rules (this person is influenced greatly by social darwinism theories of old-racial personalities, for example, his favourite Mr. Herbert Spencer, the Victorian self-proclaimed social evolutionary authority, etc) is fatally wrong, but only do so, as Prof. Clive notes, the only way the west have been able to achieve equal competitiveness positioning with that of the East was only when they colonised the Americas, with the newly gained wealth in gold, silver and the slave trade, this was the time that the west was able to meet the capital needs for eastern products, or another favoured approach was that through violence, writing;
”European (the west) states chose violence as a way of entering the established trading world and securing advantages..a common European way of operating- commercial companies were licensed by states at home (eg. the Dutch and British India Companies, or BP and Shell today), usually gives a monopoly, and acted like a state abroad”.
(World History, p. 529)
Professor Ponting of Swansea University in summarising historical fact of this deficiency, notes that;
”The products Europe (i.e. the West) could make or supply were of little interest to the great powers of (ancient Eurasian Era, BCE-CE) India and China that already made a wider range of highest quality products”.
(World History, p. 535).
This very statement was recently a part of a wider debate within the pages of that respected international journalistic magazine, The Economist, and it finally expressed in closing the debate how the Eastern Emerging Powers were more advanced and produced highest of quality at cheapest of prices; using the examples of how Japanese Car Industry brought to her knees those of her western counterparts, using above combo of lower prices and highest trusted qualities, and comparing with the modern version of pharmaceutical industry, where the Eastern Nations are again seemingly about to drive these big western firms out of business, as the former are producing cheaper and of higher quality medical technologies (for example, GE MRI machine compared with the Indian version is 10 folds higher in price and tends to breakdown a lot so to have ”maintenance” etc) and drugs, dominating the third world at the present.
This is it for today. Have a good day.