Originally posted by Metal Brain The states can compete with each other without protectionist measures. We can't compete with Chinese labor without protectionism except with certain products that don't amount to much.
Can you compete with slave like wages?
If indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
Originally posted by quackquack If indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
Any such benefit is dwarfed by the negative externalities associated with the unemployment that is being caused by our huge balance of trade deficit.
Originally posted by quackquack If indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
Not really.
That just allowed the Fed Reserve System to increase the money supply more and get away with it with less inflation than would otherwise be possible. In other words, they cheated us out of the true deflation of imported goods and increased prices of domestic goods for an overall inflation number that would satisfy nitwits like you.
Basically, we had deflation and inflation at the same time of different products. That is the symptom of money supply cheating. Those cheap imported goods didn't help you while those domestic goods (and services) you bought were made more expensive. You got ripped off and you think you got a sweet deal. Welcome to the reality of money supply manipulation.
Obama/unemployment
19 Jul '11 17:33
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