Vegas
01-09-2008, 12:28 PM
http://ibdeditorials.com/IBDArticles.aspx?id=284685092706364
By GARY SHAPIRO
Following is the keynote speech delivered by Gary Shapiro, president of the Consumer Electronics Association, at Monday's opening session of the 2,100-corporate member group's annual trade show in Las Vegas.
Our industry's growth remains strong, and the momentum will continue in 2008. CEA projects sales will top $171 billion in 2008, up 6% over 2007. This growth rate is strong compared to that forecast for any other industry. Even with an uncertain economy, consumers continue to demand our products.
Today the average American home contains 25 consumer electronics devices. Imagine a day without your cell phone, PDA, computer or GPS. Imagine an evening without your HDTV, DVR or MP3 player.
But the success of our products, our industry, CES and our economy are not guaranteed. They stem from one source — a vibrant free market that encourages trade in innovative goods and services. Innovation can be slowed, products can be priced out of reach, competition can be choked and services can be restricted.
I believe our digital destiny is as inevitable as the discovery of America. But it takes investment, belief and the vision of leaders to reach any goal. More, it takes government policies which promote free trade, innovation and the entrepreneurial spirit.
Never before in my career have I been more optimistic about technology as a positive force for society, our economy and the human spirit. And never before have I been as concerned that some in our country might hurt our leadership of the digital revolution.
Storm clouds are gathering. After decades of bipartisan support for free trade, we hear thunderous voices in the media, in Congress and even presidential candidates advocating protectionism as a solution to American woes. We see isolationism gaining favor from those who want a wall around this nation.
This is a dangerous and disturbing trend. If followed, it will lead to economic disaster.
Free trade is critical to our industry and our technology leadership. It allows innovation to flourish, encourages the free flow of ideas and enables the United States to attract innovators from around the world.
Those that fear trade do not understand the facts. Since 1965, the share of imports in the U.S. economy has nearly quadrupled to 16.8%, and yet we find ourselves sitting at a low unemployment rate of just 5%. More, average real compensation per hour has nearly doubled over this same time.
In all of this, technology has become the shining star of our economy. In 2006, other countries bought $220 billion in American-made high tech products. Those purchases accounted for one fifth of total U.S. exports, making high tech America's largest export sector.
While they might not understand the political rhetoric, Americans understand the importance of free trade to our economy. A new CEA study finds that 69% of Americans agree trading with other countries is good for the U.S. economy, which produced more in 2007 than it ever has at any point in its 200-plus year history.
International trade is not a new concept.
In the first century B.C., merchants relied on the Silk Road, a well-known Chinese trading route for cotton, spices, silk, rice and jade. The ancient Romans traded meat, metal and other goods.
In 1492, Queen Isabella of Spain supported Christopher Columbus in his quest for a new trade route between Europe and Asia.
More recently, American presidents like Roosevelt, Truman, Eisenhower, Reagan and Clinton built our modern trade policies because they understood that engagement in global markets encourages relationships and promotes stability, prosperity and hope.
International trade allows us to access products and ideas that we would not otherwise have. Each country contributes what it does best. As a result, all trading countries benefit.
Free trade allows greater access to products and resources by eliminating harmful tariffs. It streamlines commerce by making transactions transparent, enabling companies — of any size — to compete on a global scale and support good American jobs.
But today, despite what we learned and against the advice of most economists, we hear pundits, politicians and television demagogues hold up protectionism as a solution to American economic challenges. But it was not a solution in 1930, when it expanded the Great Depression, and it will certainly not work in 2008. Today, the U.S. economy is more open and more trade-focused than at any point in our history.
Our national strategy has been to attract the best and brightest from around the world. Many of our best companies like Intel and Qualcomm were created by immigrants.
Indeed, we are a nation founded by immigrants who simply wanted to work hard for a better life for their children. My wife was born in communist Poland. Her parents were doctors. They escaped to give her a better life — even though it meant they had to learn English to practice medicine here. Because of their sacrifice, my wife is now a surgeon saving thousands of Americans from blindness.
When did we stop welcoming the best and brightest? U.S. policies must keep open borders for trade and professional services, and allow citizens of other nations access to our markets and our work force.
Of course, free trade and open markets can cause some challenges. They involve temporary but real and difficult dislocations as our economy evolves.
It is true the technologies and services that connect us can be used for illegal and harmful activity like identity theft and commercial piracy. But technology is also a powerful tool for forces of good when used to promote the sharing of knowledge among citizens.
One of the core principles that unite our industry is a passion for international trade. We believe, indeed we know, that our technology improves the world.
Think about how low-cost consumer electronics improve the lives of global citizens. Devices that access the Internet. Devices that allow people to communicate. Products which bring the joy of music, movies and television. Technology which allows anyone to be an artist, producer and director.
These devices improve the human condition. They give access to medical information and best practices in agriculture. They warn about incoming weather. They improve health, increase safety and allow easy access to culture and education.
More, our technologies along with free trade share something else in this increasingly divided world. They are blind to religion, blind to sexual orientation, blind to race, national origin and ethnicity, and they allow the disabled to succeed alongside those who are not disabled.
Trade and technology are remedies for that which divides us. They shatter our differences. They unite us. They offer a shared experience. For those that are less fortunate, free trade and its twin, competition, bring lower prices and increase access to the world of entertainment, education and information.
Recently, I was in Cambodia and Vietnam and I saw many homes using car batteries to power cell phones and televisions. Why? The desire to have access to information, stay connected and to be a part of the international community is a powerful motivating force around the globe.
Technology. Competition. The free market. Free trade. They create opportunities for entrepreneurs. They reward hard work and innovation. They create new outlets for creativity. They raise the living standards for global citizens.
That is why I am passionate about free trade and technology — because with so many things pushing us apart, we must fight for the big things which keep us together.
For this reason, today I join two colleagues representing industries with whom we sometimes disagree. We are taking an extraordinary step in calling on our government to embrace free trade.
Specifically, Mitch Bainwol, the chairman of the Recording Industry Association, and Dan Glickman, the chairman of the Motion Picture Association, are joining me today in sending a formal request to Congress to approve pending free trade agreements and to restore the president's authority to negotiate free trade agreements.
This unprecedented request demonstrates the depth of our concern and the importance of free trade to industries which reflect innovation, creativity and good jobs.
Our government can take specific steps to further promote international trade. We seek a separate agreement to eliminate all barriers on electronics products. We urge Congress to ratify the pending Colombia, Panama and Korea bilateral Free Trade Agreements and give back to the president authority to negotiate trade agreements.
We must also support trade policies that respect workers and promote global environmental sustainability. Free trade does not mean tolerance of child labor or abuse of the environment.
I am very proud that this year's CES is the largest carbon-neutral event of its kind. This is an important step, but we must continue to support pro-environment stances through engagement in global markets.
Our view is that technology combined with the power of international trade is a potent approach to prosperity as more countries gain access to innovation, communications and democratic ideas.
International trade exposes developing countries to new technologies, communications and democratic ideas. And today, as national security concerns have protectionists rushing to close off our borders, a better solution might be to build bridges instead. Free trade establishes relationships, builds trust and helps us spread our ideas to global neighbors.
To my fellow Americans I offer a plea to get involved and make sure your colleagues, employees and even unions understand what is at stake.
We are fighting for our future. It is not just about free trade in technology and the ability to innovate. It is about our national soul and what kind of nation our children will inherit.
We can be isolationists with a weak economy, and the nation that used to lead the world in democracy, freedom, innovation and trade. Or we can be the bright beacon for those willing to take risks, work hard, innovate and compete.
America is a great nation. But a great nation does not erect walls. It engages in the world. It welcomes innovation and innovative people.
Indeed, the future of our industry, and of our country, depends on our ability to welcome the best and the brightest — not just people — but products.
So as you enjoy CES the next few days, take a moment to reflect on the value of free trade — given the climate today, it is not a given.
By GARY SHAPIRO
Following is the keynote speech delivered by Gary Shapiro, president of the Consumer Electronics Association, at Monday's opening session of the 2,100-corporate member group's annual trade show in Las Vegas.
Our industry's growth remains strong, and the momentum will continue in 2008. CEA projects sales will top $171 billion in 2008, up 6% over 2007. This growth rate is strong compared to that forecast for any other industry. Even with an uncertain economy, consumers continue to demand our products.
Today the average American home contains 25 consumer electronics devices. Imagine a day without your cell phone, PDA, computer or GPS. Imagine an evening without your HDTV, DVR or MP3 player.
But the success of our products, our industry, CES and our economy are not guaranteed. They stem from one source — a vibrant free market that encourages trade in innovative goods and services. Innovation can be slowed, products can be priced out of reach, competition can be choked and services can be restricted.
I believe our digital destiny is as inevitable as the discovery of America. But it takes investment, belief and the vision of leaders to reach any goal. More, it takes government policies which promote free trade, innovation and the entrepreneurial spirit.
Never before in my career have I been more optimistic about technology as a positive force for society, our economy and the human spirit. And never before have I been as concerned that some in our country might hurt our leadership of the digital revolution.
Storm clouds are gathering. After decades of bipartisan support for free trade, we hear thunderous voices in the media, in Congress and even presidential candidates advocating protectionism as a solution to American woes. We see isolationism gaining favor from those who want a wall around this nation.
This is a dangerous and disturbing trend. If followed, it will lead to economic disaster.
Free trade is critical to our industry and our technology leadership. It allows innovation to flourish, encourages the free flow of ideas and enables the United States to attract innovators from around the world.
Those that fear trade do not understand the facts. Since 1965, the share of imports in the U.S. economy has nearly quadrupled to 16.8%, and yet we find ourselves sitting at a low unemployment rate of just 5%. More, average real compensation per hour has nearly doubled over this same time.
In all of this, technology has become the shining star of our economy. In 2006, other countries bought $220 billion in American-made high tech products. Those purchases accounted for one fifth of total U.S. exports, making high tech America's largest export sector.
While they might not understand the political rhetoric, Americans understand the importance of free trade to our economy. A new CEA study finds that 69% of Americans agree trading with other countries is good for the U.S. economy, which produced more in 2007 than it ever has at any point in its 200-plus year history.
International trade is not a new concept.
In the first century B.C., merchants relied on the Silk Road, a well-known Chinese trading route for cotton, spices, silk, rice and jade. The ancient Romans traded meat, metal and other goods.
In 1492, Queen Isabella of Spain supported Christopher Columbus in his quest for a new trade route between Europe and Asia.
More recently, American presidents like Roosevelt, Truman, Eisenhower, Reagan and Clinton built our modern trade policies because they understood that engagement in global markets encourages relationships and promotes stability, prosperity and hope.
International trade allows us to access products and ideas that we would not otherwise have. Each country contributes what it does best. As a result, all trading countries benefit.
Free trade allows greater access to products and resources by eliminating harmful tariffs. It streamlines commerce by making transactions transparent, enabling companies — of any size — to compete on a global scale and support good American jobs.
But today, despite what we learned and against the advice of most economists, we hear pundits, politicians and television demagogues hold up protectionism as a solution to American economic challenges. But it was not a solution in 1930, when it expanded the Great Depression, and it will certainly not work in 2008. Today, the U.S. economy is more open and more trade-focused than at any point in our history.
Our national strategy has been to attract the best and brightest from around the world. Many of our best companies like Intel and Qualcomm were created by immigrants.
Indeed, we are a nation founded by immigrants who simply wanted to work hard for a better life for their children. My wife was born in communist Poland. Her parents were doctors. They escaped to give her a better life — even though it meant they had to learn English to practice medicine here. Because of their sacrifice, my wife is now a surgeon saving thousands of Americans from blindness.
When did we stop welcoming the best and brightest? U.S. policies must keep open borders for trade and professional services, and allow citizens of other nations access to our markets and our work force.
Of course, free trade and open markets can cause some challenges. They involve temporary but real and difficult dislocations as our economy evolves.
It is true the technologies and services that connect us can be used for illegal and harmful activity like identity theft and commercial piracy. But technology is also a powerful tool for forces of good when used to promote the sharing of knowledge among citizens.
One of the core principles that unite our industry is a passion for international trade. We believe, indeed we know, that our technology improves the world.
Think about how low-cost consumer electronics improve the lives of global citizens. Devices that access the Internet. Devices that allow people to communicate. Products which bring the joy of music, movies and television. Technology which allows anyone to be an artist, producer and director.
These devices improve the human condition. They give access to medical information and best practices in agriculture. They warn about incoming weather. They improve health, increase safety and allow easy access to culture and education.
More, our technologies along with free trade share something else in this increasingly divided world. They are blind to religion, blind to sexual orientation, blind to race, national origin and ethnicity, and they allow the disabled to succeed alongside those who are not disabled.
Trade and technology are remedies for that which divides us. They shatter our differences. They unite us. They offer a shared experience. For those that are less fortunate, free trade and its twin, competition, bring lower prices and increase access to the world of entertainment, education and information.
Recently, I was in Cambodia and Vietnam and I saw many homes using car batteries to power cell phones and televisions. Why? The desire to have access to information, stay connected and to be a part of the international community is a powerful motivating force around the globe.
Technology. Competition. The free market. Free trade. They create opportunities for entrepreneurs. They reward hard work and innovation. They create new outlets for creativity. They raise the living standards for global citizens.
That is why I am passionate about free trade and technology — because with so many things pushing us apart, we must fight for the big things which keep us together.
For this reason, today I join two colleagues representing industries with whom we sometimes disagree. We are taking an extraordinary step in calling on our government to embrace free trade.
Specifically, Mitch Bainwol, the chairman of the Recording Industry Association, and Dan Glickman, the chairman of the Motion Picture Association, are joining me today in sending a formal request to Congress to approve pending free trade agreements and to restore the president's authority to negotiate free trade agreements.
This unprecedented request demonstrates the depth of our concern and the importance of free trade to industries which reflect innovation, creativity and good jobs.
Our government can take specific steps to further promote international trade. We seek a separate agreement to eliminate all barriers on electronics products. We urge Congress to ratify the pending Colombia, Panama and Korea bilateral Free Trade Agreements and give back to the president authority to negotiate trade agreements.
We must also support trade policies that respect workers and promote global environmental sustainability. Free trade does not mean tolerance of child labor or abuse of the environment.
I am very proud that this year's CES is the largest carbon-neutral event of its kind. This is an important step, but we must continue to support pro-environment stances through engagement in global markets.
Our view is that technology combined with the power of international trade is a potent approach to prosperity as more countries gain access to innovation, communications and democratic ideas.
International trade exposes developing countries to new technologies, communications and democratic ideas. And today, as national security concerns have protectionists rushing to close off our borders, a better solution might be to build bridges instead. Free trade establishes relationships, builds trust and helps us spread our ideas to global neighbors.
To my fellow Americans I offer a plea to get involved and make sure your colleagues, employees and even unions understand what is at stake.
We are fighting for our future. It is not just about free trade in technology and the ability to innovate. It is about our national soul and what kind of nation our children will inherit.
We can be isolationists with a weak economy, and the nation that used to lead the world in democracy, freedom, innovation and trade. Or we can be the bright beacon for those willing to take risks, work hard, innovate and compete.
America is a great nation. But a great nation does not erect walls. It engages in the world. It welcomes innovation and innovative people.
Indeed, the future of our industry, and of our country, depends on our ability to welcome the best and the brightest — not just people — but products.
So as you enjoy CES the next few days, take a moment to reflect on the value of free trade — given the climate today, it is not a given.