El Toro, Cont’d
During the 1980s the Japanese changed the game. Before then, international competitiveness was measured in missiles, soldiers, and ships. However, Japan dominated the decade with almost none of each. They spent more money on business entertainment than national defense. Butter (or perhaps sushi) trumped guns.
The Bush administration and the Republicans in Congress now have an interesting little dilemma on their hands: butter or guns; 21st century or back to the 20th? Do we spend taxpayers’ money on trade infrastructure or defense infrastructure? We already dominate when it comes to defense. Some argue our scariest international competitor is China. We spend seven times what they do and have thousands of deliverable nuclear warheads to their dozens. But, what about trade infrastructure,things like education systems and airports?
In China kids go to school 251 days per year, while ours go only 180. Chinese kids have time to learn more science, math, and foreign languages. Similar to the recent proposals by Gov. Gray Davis, a 200-day school year for all American students would improve our future international competitiveness substantially. We can afford to spend federal defense dollars to increase teachers’ salaries for that extra month in school. Smarter students will not only design better weapons systems, they will also design better information, healthcare, financial and communications systems. And the latter will thankfully preclude the use of the former.
Manufacturing has gone the same way as agriculture in this economy; 80% of us now work in services. That’s why the cost of shipping a container from LA to Hong Kong is about a third of the cost of Hong Kong to LA. Manufactured goods are heading east across the Pacific, ideas west. Sure you can transport ideas via the Internet. But, a growing global trade in services means those smart people our school system will produce will also be traveling to foreign countries with their ideas to sell. Indeed, bringing people together with diverse views maximizes creativity and innovation.
Airports are idea gateways. Have you flown into the new ones in Shanghai or Hong Kong? I am so happy they closed that right-turn-between-skyscrapers nightmare on Kowloon. Now Disney joins a wonderful airport on that new island just a fast train away from downtown Hong Kong.
That’s what we need at Camp Pendleton,a new international airport with train service for both Orange (including Disneyland) and San Diego counties. The dinky thing Mr. Argyros is promoting for El Toro won’t get the job done. We need runways and over-ocean takeoffs to handle 747s and A380s. Sure the military will squawk about lost beaches. But the President and Congress decide. Will it be guns or butter, Mssrs. Bush, Cox and Issa?
John L. Graham
Professor of International Business
Graduate School of Management
University of California, Irvine
