An Alternative to High Tech

In recent years American industry's ability to compete in the international marketplace has appeared to decline. With a decreased world market share and a balance of payments deficit many policymakers have concluded that traditional industry is dying and that it is time to reassess American economic strength in new and more advanced industries, that is, "high-tech" industries. The "failure" of domestic "smokestack" industries producing automobiles, steel, and textiles allegedly supports this view. However, the problems of these industries are attributable to the current structure and climate of international and domestic trade.

To offer any realistic solutions, the following issues must be addressed: industry targeting practices by foreign governments; the lack of adequate intellectual property right protection; and "social policy disadvantages" imposed under United States (U.S.) law. A high-tech versus smokestack industry analysis does not address these important issues. This article examines the fallacy of the proposed high-tech solution and offers realistic answers to the actual problem.