New York Times (NYSE: NYT) Columnist Tom Friedman returns to the subject of China and the global economy, and it's a column investors would be wise to review. In a nutshell, Friedman argues that those who assert that green technology doesn't have the right stuff to move the U.S. GDP needle are misguided. China is investing hundreds of billions of dollars in electric cars, solar power, energy efficiency, batteries, nuclear power, and wind power.
China's leaders understand that in a world of soon-to-be re-growing emerging market countries and sprouting middle classes, demand for clean power and energy efficiency is going to surge, he said. And if the United States is not careful, China is going to dust the U.S. and grab market share galore in these promising sectors.
Friedman recommends that the U.S. end its head-in-the-sand ways and stimulate large private investment in clean tech via increasing the carbon price and via tax incentives, among other measures.
Economic Analysis: Friedman is correct. While the United States remains wedded to status-quo oil/coal interests, China is preparing for the future, and given growing emerging markets, there's a high probability that large demands will be placed on resources, especially oil, which does not bode well for a reduction in oil prices. The U.S. must provide incentives to develop clean technologies if it hopes to lead economically in the 21st century. Otherwise, that business is going to China.
Before the bell: Stocks futures steady ahead of GDP, housing data
Google's plan for netbook PCs moves higher into the clouds
So long peak oil, here comes peak uranium
Reader Comments (Page 1 of 1)
9-11-2009 @ 7:04PM
jason said...
I TOTALLY AGREE IF THE US DON'T GET ON THE BANDWAGON FAST WE WILL BE LEFT FAR BEHIND
9-11-2009 @ 8:50PM
Shawn said...
I have invested in one American company that is minority owned and working on not only a biodiesal plant in S.C. to lessen our dependance of foreign oil, but is also working on
setting up solar and wind farms, which are definitely green/clean energy. The company has a stock symbol of SYNJ and their President (McCutcheon Marshall, Jr., Founder and CEO) and partner has the website: http://www.sentinelrenewableenergy.com/
If you have any questions please write me, although I am just an investor!
9-11-2009 @ 8:58PM
mgrockman said...
I think the US should invest all it can into THIS country, bring the JOBS back, bring the paychecks back here and quit sending our best resources (capitol) over seas. Then, under GOOD government this country can get back to BUSINESS!!! Remember this come election time because the people we put in office decide our future, NOT YOU!!! Comments are appreciated and encouraged.
9-12-2009 @ 12:00AM
Iridium said...
Why should we invest billions into the United States if China is already investing billions into making green technology?
US manufacturers will be no better off competing with Chinese made solar panels as they are with shoes and blue jeans.
We'll just create millions of new jobs to be outsourced as soon as the next green company goes public. The bottom line is all that matters. There will be no stock price incentive to create technology in America if it is more expensive.
The only way to bring this country back is to destroy the publicly traded market. A company that is a slave to earnings reports and big ticket shareholders will never be a company that cares for the welfare of its workers.
The only thing that matters to a true private company is making enough profit to pay for its expenses and have enough profit left over to grow at a rate dictated by its output.
The real solution is the forced privatization of the economy. Without the big ticket brokerages we wouldn't have bubbles. We wouldn't need massive outsourcing to help the bottom line and reduce labor costs. We wouldn't need accounting tricks to turn losses into profits so your P/E will match the expectations of analysts. We wouldn't need a rigged system.
The only negative of this is a whole lot of brokers, investment houses, and financial networks would go out of business. I don't think that would be a bad thing. Maybe these people could start to actually work at a real productive job for once. Then maybe they would see how hard it is to make money doing something real rather than just being good at spouting BS all day long. Any single factory worker is more valuable to the economy than a big shot trader getting his million dollar bonus for helping to rob the public blind.
9-12-2009 @ 11:22AM
James Roop said...
Iridium I have a question. Exactly how would forced privatization destroy the publicly traded market?
What is the blueprint for such an endeavor?
9-22-2009 @ 8:13PM
Adam Smith said...
Isn't this the guy that flies all over the world in private jets talking about global warming, married to the shopping mall developer? He's correct, but....c'mon, no street cred!