The Downhill Race for Global Economy

* When we hear stories like “Global Glut Bringing Asian Chaos to Stable Economies” [Oct. 25] on building more plant capacity than there is demand for, the question naturally arises as to why anyone would put their money in such enterprises.

The answer, of course, is that there is a hope for the opportunity to make money.

A well-known story might help illustrate the situation we seem to be in now:

Two friends went to Alaska for the first time and engaged a guide to take them through the countryside. One of them nervously asked the guide, “What do we do if a grizzly bear comes after us?”

“Run,” said the guide.

“Run?! Do you think you can outrun a bear?!” replied the incredulous tourist.

“I don’t have to outrun the bear,” said the guide. “I just have to outrun you.”

The rest of the world is beginning to catch up to the U.S., and, as the manufacturers quoted in the story have found, it is much, much worse to have them selling their products here at low prices than it is for them to stop buying our exports to their countries.

They’re outrunning us because the bear is at their heels, and the worldwide economic situation is beginning to resemble a race downhill in which we couldn’t stop running if we wanted to for fear of losing our balance and crashing. Metaphorically speaking, of course.

Whenever you hear someone talking about the rationality of the market, keep the Alaskan guide in mind.

PAUL TURPIN

Lecturer in Communication

Annenberg School for

Communication, USC

Los Angeles