Economists May have gotten Globilization Wrong
I couldn't agree more. Nothing is more ironic than a "Union Proud" bumper sticker in Walmart.
While in general, I support simple free trade. I believe that the open trade with China has wiped out our manufacturing industrial base, and that "free trade" is nothing of the sort when they don't play by the same rules. IP is a good example.
Maybe some people can learn.
While in general, I support simple free trade. I believe that the open trade with China has wiped out our manufacturing industrial base, and that "free trade" is nothing of the sort when they don't play by the same rules. IP is a good example.
Maybe some people can learn.
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It is an interesting thread, Thoritsu.
Jan
But add in Flawed Humans, and Abject Corruption (ie, the world we live in), and it's a giant fail.
First, the EPA had job #1 to STOP new businesses in this country. Making ever increasing hurdles. Does it make ANY sense to have such stringent rules in the USA that DRIVE the companies to countries without those rules? (Notice the difference from rules that generally improve things at a realistic pace. I am NOT against a local government saying that a building must spend X% on artistic look/decorations to enhance the areas appeal. Now when X grows out of whack, the new building stop!).
Next, Free trade MUST be free in BOTH directions. This concept that OUR goods are tariffed but theirs cannot be. Sorry. Wrong idea. No good businessman would enter into a one sided deal AGAINST them. But people MISTAKENLY call that Free Trade. Sorry, it's NOT. If we are NOT allowed to sell our goods in their country, or they are so heavily taxed we cannot afford to sell them there... Then what? We should still sell our stuff to them? (BTW, is it free trade when the CCP owns 51% of your intellectual property for opening up a business in their country, but you don't even get to AUDIT the books of a company listed in our stock market? Is that YOUR definition of Free Trade? It's not mine.
Free Trade is a Two-Sided coin, In My Opinion. And ONCE one side is not FREE... The other side has some soul searching to do... I agree 100% w/trump and his approach to China. He's been right on this relationship since day 1, and I will give him plenty of latitude.)
This system breaks down when I no longer know how to make the arrow shafts. At that point, even if you are crummy at knapping arrowheads (as long as you can still make them), if I am not able to make the shafts at all, I am now at your mercy.
We either have to trust each other or we have to have backup capabilities. China is not trustworthy (unlike Taiwan, who is) and the US is perilously close to 'not still being able to make arrow shafts'. That is where free market and national self interest both come into play.
Jan
Free trade is always healthy; it is statist policies that interfere with it, turning win/win trade into win/lose or lose/lose trade.
Nationalism is what harms us. E.g. Trump's "fair trade" to always put "America first" has led to improper interference in the marketplace.
Manufacturing loss due to bad regulations and legislation is expected; but it lowered the cost of goods and did not harm our economy.
There are other ways to punish China for whatever they have done to harm the U.S.
Krugman also will be loathe to admit that he was one of the principle cheerleaders of normalized and even Most-Favored Nation status with China despite their rampant theft of intellectual property, currency manipulations, and suppression of free markets even in its own nation. Krugman has no one to blame but himself.
Personally, I think we ought to use this COVID-19 crisis to completely re-evaluate our relationship to China. I think that Trump ought to make it known to the world that China has been complicit in the spread - if not the original development - of COVID-19 and encourage a world-wide embargo on China until they become a free nation. Revoke their trade status with the United States and push all industries using China for cheap labor and manufacturing to bring those jobs back to the United States by drastically lowering corporate taxes (taxes which get paid by consumers anyways).
Although I question “guilt”. Envy and sympathy seem stronger. Guilt would only apply to the wealthy. What we have is a structure where there are many that feel sympathize to others that have less, but plan to take from a third party to support those with less. We have an Empathic Lynch Mob.
There is no doubt some guilt (maybe), for example Bill Gates. Although I think he is also motivated by ego. Look at all these little commoners that I’ve made feel better. I can’t wait until I see Larry on the boat and ask him how many letter he got!
The free market needs no central authority to do what it does best.
They praise the people in Clinton's economic team and describes them as "worried about globalization". Clinton's people gave away the intellectual property tech advantage that US companies had worked so hard to get. Clinton's people started this so we need to give the reins back to them to really mess things up with socialism.
From 1989 to 2017 the administrations gave away the store repeatedly. So they blame Trump when he has so few weapons to use to repair the sinking economy.
Typical. Blame others for your mistakes.
https://www.youtube.com/watch?v=JTF2j...