19 Jul 11
1 edit
Originally posted by Metal BrainIf indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
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?
19 Jul 11
Originally posted by quackquackAny such benefit is dwarfed by the negative externalities associated with the unemployment that is being caused by our huge balance of trade deficit.
If indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
19 Jul 11
Originally posted by quackquackNot really.
If indeed China has low wages, we benefit by getting cheap goods. Protectionism simply ensures that all goods are more expensive.
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.