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Thursday, June 28, 2007

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Alex Tolley

This is really another way to argue that it doesn't matter if we export microchips or potato chips. I disagree. Whilst it may look like the value-added is captured by the US (although it is arguable that the $75 is just our distribution inefficiency), over the long term, the ability to design new products is quite transferable, will be transferred to places that can do it cheaper/better, whereas our ability to design and manufacture the high components is already being lost. One really has to believe that conceptualizing new ideas based on existing components is a long term advantage of the US. I don't believe it is.

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