"Here's the problem with that approach though. You'd have to put tariffs on cheap goods from all countries. " That's OK too. Why not? America is still the world's largest economy but our decline is due entirely to the fact that we do not produce enough real wealth anymore since we allowed China to steal our manufacturing base. If you don't like tariffs (and they are not my favorite tool either) how about the Warren Buffet Import Credits plan? It accomplished the same goal of equaling our balance of payments deficit in a more elegant way.
Reciprocal trade is a better idea. Only put tariffs on goods that your trading partners put tariffs on. Basically, if you can set up a policy structure where openness with trade is directly dependent on the actions of trading partners, this discourages protectionism on all sides.
Ah... Interesting. Well, I guess I wouldn't have a problem with a certain amount of Chinese influence if the end result involved stabilizing and progressing our economy.
We don't have reciprocal trade. America is making China rich by buying far more from them than they buy from us. If you don't like tariffs then we could use the Buffet plan to force China to buy from us as much as they sell.
Whose fault is that? Why should one be punished for being economically successful? Typical big-government, tax-the-rich talk. Disgusting.
I know we don't currently have reciprocal trade, but the reasons for that are complex. I'm not familiar with the Buffett plan, but forcing China to do much of anything is difficult at this point. They have enough global leverage right now to call a lot of the shots.
Do you even know what the Buffet plan is? Don't you think you should find out before commenting on it?
Perhaps... Besides, wikileaks is valuable for this sort of thing. Although they can be a pain in the ass when it comes to properly running an occupation, they also could serve well to dish out the dirt on China if the official outlets are too afraid to do so.
I'm well aware of his plan, and there's a reason it's gained no traction. I don't think you understand the economics of it.
this i s the probleme in both USA and Canada. there i s to much goods made in China and this is imported into the country. somtimes the goods are still made in China and then only assembled here. perhaps everybody agree China will become more powverful soon and when currency become stronger then the world will b e in worst trouble with economie.
Why don't you explain the economics to us if you think you know more than Warren Buffet does? The fact that the political class in Washington does not support it - assuming any of them have ever heard of it to begin with - does not mean it's a bad idea. It just means that the political class is buttering its bread on the other side from the American people.
There is a reason why China's economy is exploding and ours is stagnant. They have taken our manufacturing base away from us. China has become what America used to be.
Warren Buffet is essentially being asked to step aside following his recent blunders; but I don't claim to know anything more than he. His policy isn't for American well-being, it's for his. I have no stake in either side. It has too many faults and holes to truly be considered.
It has nothing to do with the manufacturing base; that's an excuse the educated politicians use to win over the uneducated voters.
More or less. Educating our workforce is the issue here. We haven't taken the necessary steps to modernize our workforce like much of Europe has. Canada also seems to be ahead of the curve.
"I have no stake in either side." Huh? Are you a furriner? I thought you were one of us, but if not then I'm wasting my time discussing what is best for America with you.
My employers are going to get around that proposed policy anyway, so I couldn't care less. The point is that it's more philosophy than practice; such a policy would mean withdrawal from the WTO and a collapsing nation. Removing the USA from the WTO would work to China's plan— America's trading partners, some of her greatest allies, need new markets.
Isn't 40 years long enough for the public teachers monopoly to figure out how to educate kids? If they don't know by now then we need new educators.
You're right that we need new educators, but that has to do with our lack of focus on technical education. In Germany, there is much more emphasis on technical education. If we had the two tier system they have, then we could provide our workforce with a lot more skilled tradesmen. Currently, we have this silly notion that everyone should strive for a 4-year degree when plenty of good paying jobs that won't be outsourced need only a 2-year technical degree.
Germany has always been more technical than America. It just seems be a particular talent of theirs. While there is no doubt we could do a better job of educating kids we must not overlook the idea that many of them will need manufacturing jobs after they leave school.
