Everybody’s getting in on it! Bernanke has a plan. Paulson has a plan. McCain has a plan. Obama is working on a plan. Bush… well, I just hope Bush is working on anything. Ryan Peeler has a brilliant plan that will both inject the economy with cash and determine the next president.

Even those Libertarian Madison Avenue-types are getting onboard the Bail-Out planning bus, albeit for different reasons:

But don’t worry, even ACTUAL recession won’t reduce the Ad Industry’s precious consumer spending, let alone RUMORS of recession.

Remember that spike 9 days ago when your mutual fund bounced back and things didn’t look so bad? What the NYTimes reported as “the stock market soar[ing] last week on rumors that there would be a bailout.” RUMORS, people. Stay with me, here.

And this morning, Goldman shares jumped back towards their pre-Lehman Brothers price just on rumors of Warren Buffet‘s $5 billion or $10 billion dollar investment. Again, RUMORS.

So JEC Chairman Chuck Schumer (Sen. D-NY) says “Americans are furious” about the price tag on the current plan for bail-out. The people are getting angry–furious–but absolutely nothing has been done, yet. So far it’s just talk. Just RUMORS that things are going bad, RUMORS that things are going to get worse.

So, if the largest obstacle to approving the bail-out is the price tag and the strongest force on the US economy today is the rumor mill, I propose a 100% Free Plan to bolster the economy, save the struggling markets and stimulate America’s move back to a happy, ignorant, credit-based, stable financial economy.

We need to start the rumor that everything is going great. I recommend it start with a speech from the White House– George Bush puts one arm around McCain and another around Obama and he tells the cameras that “They’d miscalculated. Bernanke did his math wrong. Everything’s good. Going great.”

Then we shoot this via satellites and internet, and of course, YouTube, over to Europe and Asia and they hear that the US economy is fine, that the “crisis” was just a “bank error,” and it renews the confidence of global financial markets who are quick to swoop up the deals of the weakened dollar, buying more Converse shoes and Michelin tires.

Finally, I suggest we get some people on megaphones to stand around on Wall Street and read government reports on how much more ethanol fuel we produced, how many more pairs of boots, and how much higher our standard of living is compared to years past. We could put a few Squeelers right on the steps of the Capitol building. Just to remind everybody that times are good and that you’re not really in as much debt as you think you are.

Either that, or admit that the threat of recession and the entire subprime mortgage crisis was a trick to get Sen. McCain out of Friday night’s debate with Sen. Obama.

But more importantly: The Browns are gonna go with Anderson again this week. Anderson! Let’s just say we’re a country that loves a losing streak.

I am going to share with you today’s observation of China. Close your eyes and envision a map of the United States. Okay, now open your eyes and keep reading… You’re going to point on that map to these locations as I list them: New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose. These are the Top 10 U.S. Cities by Population and Rank. You may have noticed your finger stopped in about every major region of the country and crossed the continent at least 3 times. Further down that list you’d touch Detroit, Memphis, Jacksonville and Seattle at 23.

Now, the Top 10 Cities in China are Shanghai, Beijing, Shenzhen, Guanzhou, Tianjin, Nanjing, Dalian, Hangzhou, Shenyang and Harbin. If you were to do the same mental map-pointing with this country, you’d find your finger never strayed from the east coast. In fact, you’d find that most of these cities, 8 out of 10, cluster like shotgun fire to within 2 hours of each other.

China is a huge country, roughly the same area as the United States, but with more than four times the population. Across such a broad expanse of people and geography, one expects the country to have developed several distinct and unique cities and cultures. In the US, for example, we have Northerners and Southerners, we have City People and Country People, but we also have Suburbanites, Rednecks, New Englanders, Westerners, Mid-Westerners, Snow Birds, Beach Bums, Grunge Rockers, Cowboys, and Californians. There are lots of different lifestyles with different cultures and values, but these groups are dispersed across the length and breadth of the country. From what I can tell, China does not work this way.

In China, the businesses, industries, infrastructure, government, and foreign political influence—not to mention the wealth and leading founts of culture—are all located on a stretch of the country’s east coast spanning from Beijing down to Shanghai, the rough equivalent of the state of California. Meanwhile, the western portion of the country, perhaps 90% of the land area, is occupied by about 60% of the population and responsible for less than 25% of the GDP.

So, why does this strong disparity between East and West exist in China? Similar to that of the industrial North and agrarian South in the antebellum US, the cause is the drastically different cost of doing business in the regions. “The government is doing things to move China west,” said Randy Creel, a logistics expert at a major MNC in China. “The hesitation is the lack of infrastructure and its effect on logistics costs.” Effects on logistics costs that work out to about 200% more investment per mile for companies to run their businesses in Western China. China is on a self-perpetuating cycle of eastern growth and western lag that will require more than government incentives to Western businesses and FDI spenders. It may require an all-out reallocation of infrastructure build-up that the country has never before undertaken. At least not until the 2008 Beijing Olympics. –Shawn Butler

In spite of Thomas L. Friedman’s best efforts to claim otherwise in his newly revised The World is Flat: A Brief History of the Twenty-First Century, Release 3.0. Just as in his previous books, Friedman showcases his journalistic forte for information gathering, analysis, and insight-laden extrapolation. He supports well his own previous arguments for free trade, market specialization, and classical economic theories regarding absolute and comparative advantage. (Smith, Ricardo, … Reich)

I’ll pause here to acknowledge that I, too, am a strong proponent of globalization. I have seen first-hand the dissolution of geographic and political barriers to trade and the ensuing benefits to the local economy. I find no fault in Friedman’s historical observations, including his 3 eras of globalization, his 10 flatteners, and even his recommendations for new hybrid fields of study he calls “Mash-Ups.” These ideas are spot-on in our global economy of increasing convergence.

But why all the doom and gloom, Mr. Friedman? Instead of telling your readers how the new “flattened” world will make lives better—spurring the economy of our New America into a greater leadership role as the birthplace of ideas and a nation of entrepreneurs—he focuses on the bad. Friedman follows the M.O. of Lou Dobbs, crying wolf over foreign theft of US jobs and a general disappearance of the American middle-class. Rather than pointing to the strengths of our human capital as inventors, creators, and brand builders, he tells readers that the American sky is falling in competition with Indian and Chinese ITs and engineers.

Friedman leans toward the dramatic, but what do you expect from an Opinion Columnist? He opens with this quote from an Indian software CEO: “The global playing field is being leveled… and the US is not ready.” This is followed by other sensational statements of hyperbole. “Today, people in China and India are starving… for your job!” he warns his children. But then, you are given to flights of the inflammatory if you are to make your living as an op-ed writer. The Title The World is Friendlier to International Business because of Improvements in Technology and Transportation doesn’t sell books.
–Shawn Butler

Washington, DC has a new opponent, and it’s not drugs, terrorism, or even Iraq. In three separate venues: the US Dept. of Commerce, a US Senator’s office, and a DC law firm, CNN anchor Lou Dobbs was vilified by name for his confrontational stance on US foreign outsourcing as enumerated in his 2004 book Exporting America.

Dobbs has increased viewer share for both his cable and radio shows by becoming the self-appointed champion of US manufacturing jobs. And he is an unlikely hero. Dobbs stepped into his media career directly from his college years at Harvard and a bank job in LA. Notwithstanding, it is with homespun fervor that he crusades against the decade-long trend of outsourcing US jobs to foreign markets.

Dobbs said this in an interview: “The principal issue I have with outsourcing is that American companies — based in the United States, providing goods and services to the U.S. consumer economy — are killing jobs in this country and sending them overseas to provide the same goods and services back to the U.S. economy.”

Other experts corroborate Dobbs’ anxiety. Christian E. Weller of the Center for American Progress said, “Manufacturing has experienced an unprecedented decline for the past three and a half years … [T]he decline in manufacturing jobs explains the bulk of the overall employment loss during the recent recession and recovery.”

Since 2000 we have lost over 3 million jobs in the manufacturing sector of this country. But is that giving us the whole picture? Washingtonians in key positions that I spoke with this week say “No.” Within the Dept. of Commerce, Erin Sullivan, Senior International Trade Specialist for US Commercial Service, said, “The fallacy of Lou Dobb’s argument is that it is focused on manufacturing.” Sullivan’s program offers aid to US companies expanding into foreign operations, providing contacts and even on-the-ground consulting to American business owners.

“America is moving away from manufacturing into an intellectual property and branding based economy,” said Mark Kresloff, a patent attorney for intellectual property and technology. He sat with us across a long table in the DC office of McKenna Long & Aldridge, where he was joined by Jeffrey Li, a Chinese-American attorney and Qilan Jin, an attorney for the PRC Supreme Court. Li continued his colleague’s analysis of America’s economic development, agreeing “For America, this is a good thing.”

This sentiment was echoed in a meeting room of Senator Saxby Chambliss, R- Ga, where his current chief of staff told us that those in agreement with Lou Dobbs should do nothing, but if people disagree with his ideas, we need to pick up the phone and talk to our representatives. I was puzzled by this comment, but after three references in as many days, I determined to look into Dobbs’ argument.

According to the Dept. of Labor, the US is at a 4.7% Unemployment Rate in Oct. 2007. To Dobbs’ credit, that is up from 4.6% last year, an increase of 38,000 unemployed. However, we are well below the 6% we reported during the same month 4 years ago, and 1.6 percentage points down from the 6.3% high in June 2003. So, if all our jobs are going overseas, why are we seeing a decline in unemployment?

Other sources, including our interviewees in Washington, propose that these US workers are not losing their jobs for good, but are instead being reallocated into jobs that are more fitting with the new US economy. Am I saying that we are moving away from being a nation of factories and manufacturing? Yes. It appears so. And I welcome the progress that has led us from the industrial age into the information age. The new export of the US is our knowledge, ideas and leadership. It is time to give other countries’ economies the chances we’ve had. –Shawn Butler

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