Thomas Friedman: Red China? No, Green China


New York Times (NYSE: NYT) Columnist Thomas Friedman returned to the subject of how green technology is not only good for the environment, but ultimately good for American wallets.

Good for American wallets, that is, if the United States seizes the day regarding green tech. Right now, in Friedman's view, the U.S. isn't: China is - it's embarking on simultaneous tracks of 20th century tech and 21st century tech to remain an economic powerhouse in the global economy ahead.


Green tech: a growth engine

In fact, Friedman said if the United States does not commit to green tech, soon the U.S. will not be buying only cheap toys and furniture made in China, but electric cars, solar panel, batteries, and energy-efficient software, among other products, as well. Don't think of massively-polluted China as solely strong in low-labor-cost smokestack industries, he says: having seen the impact of industrial pollution on its environment, and recognizing that climate change is real, China is attempting to jump ahead of the United States in next-generation green technology - a parallel path to a green economy that the U.S. ignores only at its peril.

Economic Analysis: Once again, Friedman is on-the-mark. The United States must embrace and cultivate green tech. China already dominates in low-end manufacturing. However, the United States has a technological advantage, that, with proper federal tax credits/investment incentives, can position the nation to be the leader in high end/tech-based manufacturing, with green tech at the core. Green tech can become an engine of growth for the U.S. economy.

Critics counter that green tech isn't worth the investment because it can't create enough jobs. On the contrary, the jobs will appear, aided by the sale of green tech products to foreign consumers - everything from solar panels, to electric cars, to more-efficient commercial airliners, to next-generation waste water treatment facilities. In sum, the U.S. must lead in high-end/tech-based manufacturing and green tech if it hopes to lead economically in the decades ahead.

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