LEWISTON – In a matter of seconds, economist Paul Solman shattered the stereotype of stuffy PBS commentators.
He had all 300 attendees at the annual awards dinner of the Lewiston-Auburn Economic Growth Council thumb-wrestling.
“One-two-three … I got ’em,” proclaimed Solman, victorious in his demonstration match against Alan Hahnel, LAEGC board chairman.
The point – besides inciting a lot of post-dessert giggling – was to illustrate that in a global economy, it’s a dog-eat-dog world.
“Most Americans don’t like globalization, but realize we’re stuck with it,” said Solman, citing extensive polls published in Fortune magazine. “I’m suggesting a response to globalization and some reasons for hope.”
Solman, a business correspondent for The Newshour with Jim Lehrer, has been writing about economics in the real world for more than 25 years. He was the keynote speaker at the 27th annual LAEGC awards dinner at the Ramada Inn, a celebration of the area’s economic success and its high achievers.
Among Solman’s cause for hope: Rising transportation costs give domestic manufacturers an edge. Given China’s rising costs of currency, labor and raw materials, its production cost advantage over U.S. manufacturers has shrunk to about 20 percent.
“There are rising costs to global transportation and production,” said Solman. “The thing to do is capitalize on it.”
One possible upshot: The cost of locally produced goods, such as food, will be lower. That means healthier, less processed food, a smaller carbon footprint, a more vibrant local economy.
Another good sign for U.S. manufacturers: lower quality standards overseas. The China toy fiasco demonstrates a need for the United States to enforce safety standards on products during trade negotiations, much the way it sets standards for environmental and labor policies.
Another opportunity is energy. Solman said innovators are finding ways to make buildings produce more energy than they consume by recycling energy from the sun. Solman said about two-thirds of the energy used in industry goes toward lighting and ventilating buildings.
“This is an opportunity we should really be able to exploit,” he said.
Energy costs for Maine can be a disadvantage for business, but global warming might help change that, he said, rather tongue-in-cheek. The state does have three tremendous advantages: lots of land, lots of water, lots of wood. Good educational institutions. And perhaps most importantly, a sense of collaboration.
“The key to surviving in a global economy … you would be well-advised to consistently nurture the community – what you’ve got – and each other,” he said.
To illustrate the point, he again called a volunteer to the dais. This time, rather than trying to pin each other’s thumbs, they performed a sort of digital duet, working together, moving their thumbs side to side.
“We’re competing together,” said Solman, noting that if you change the rules, you can affect the outcome. “So think globally, act locally, together.”
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