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Thursday, August 29, 2019

What Globalism Did Was To Transfer The US Economy To China, PCR

The main problem with the US economy is that globalism has been deconstructing it. The offshoring of US jobs has reduced US manufacturing and industrial capability and associated innovation, research, development, supply chains, consumer purchasing power, and tax base of state and local governments. Corporations have increased short-term profits at the expense of these long-term costs. In effect, the US economy is being moved out of the First World into the Third World.

Tariffs are not a solution. The Trump administration says that the tariffs are paid by China, but unless Apple, Nike, Levi, and all of the offshoring companies got an exemption from the tariffs, the tariffs fall on the offshored production of US firms that are sold to US consumers. The tariffs will either reduce the profits of the US firms or be paid by US purchasers of the products in higher prices. The tariffs will hurt China only by reducing Chinese employment in the production of US goods for US markets.

The financial media is full of dire predictions of the consequences of a US/China “trade war.” There is no trade war. A trade war is when countries try to protect their industries by placing tariff barriers on the import of cheaper products from foreign countries. But half or more of the imports from China are imports from US companies. Trump’s tariffs, or a large part of them, fall on US corporations or US consumers.



Anonymous said...

NO. Not globalism. Capitalism. Capitalism did this.

Capitalism wants lower labor costs and higher profits. Capitalism doesn't care where you are from. It cares only about profits.

Capitalism wants to sell more for more profits. Period, hard stop.

Not globalism. Capitalism causes this.

Anonymous said...

Agree Apple etc should pay more taxes; however, do you still want China stealing US technology. Creating a multi billion US debt? Think about it - socialism will not work - that's what causes 3rd World situations. President Trump is doing right by America.

Anonymous said...

@ August 29, 2019 at 12:42 PM

Sounds like we need some sort of Government regulation to prevent technology theft then don't we?

Capitalism cares if it's profits are being stolen.

Anonymous said...

So Socialism or Communism is a better option 'O wise one' ?

Anonymous said...

@ August 29, 2019 at 4:41 PM

Actually, it points out that there are flaws in all of the systems, and a blending of them would provide the most positive outcome.