How we can win our economic war with China

How we can win our economic war with China:

1. Have the government subsidize all domestic industries, in exchange for common stock.

2. Set up a big government-owned distributor that buys goods from domestic industries at the expensive domestic prices, and dumps them on the domestic and foreign markets at below-cost prices.

3. The industries can then use the subsidy money to expand, ensuring market capture.

4. The government distributor slowly raises the prices over the years.

By following this, switching to an energy-backed currency, and using thorium nuclear power, we will no longer need to rely on imports of goods and energy, we will become an economic powerhouse, and we will revive the American Empire! Then we can conquer China and Russia, and stop the Great Evil!

 

How about simply raising the tariffs? They'll raise the tarriffs on us in return and ya know what? We have enough Chinese plastic crap in this country already.

 

Tariff wars never help anyone. Mine will improve our domestic industry and increase our global market share.

 

Tarriffs also penalize Chine for paying 8 cents per hour AND raise the price of their slave-labor making it competitive with a US worker. Guess you missed that part.

And when they raise our tarriffs, then the only things we export: Levi jeans, Marlboro and Coke will all become "overseas specialty items". It's a win-win. I remember as a kid going to Greenwich Village to buy those overseas imports they didn't press here... they were always a lot more. So will Levi Jeans in China (until China buys Levi).

 

Then it will decrease demand. My plan of dumping cheap exports would work much better.

 

We have no cheap exports to dump.

 

Tariffs don't help. They never have.
China will just cut its pay wages and send even cheaper products over.

 

Well, it does not seem to make much sense to buy their products, funding their military, while at the same time building huge expensive military bases to counter their potential military threat.

http://www.theaustralian.com.au/nat...952627611?nk=af7b37a934d57601b5e8094a3b6a336c
http://www.telegraph.co.uk/news/wor...8bn-super-base-on-Pacific-island-of-Guam.html
http://www.theaustralian.com.au/nat...-us-marine-bases/story-e6frg8yo-1226738605072

And I am unable to find the other link right now, but I remember reading a few years ago the U.S. spent a couple billion dollars to construct a new base in Australia, to counter China's military expansion.

 

"How we can win our economic war with China"

Stop worrying about winning the productivity war and start worrying about who can win the liberty war - which nobody seems to be waging.

No competition! Should be pretty easy.

 

I wish it happened in Tieneman Square.

I heard if China decided to start building houses to make their nation like ours, that the demand for copper would be above that og gold because of the BILLIONS of pounds they'd need. Something to think about.

 

Why go to economic war with them all we need to do is give economic benefits for making goods IN the United States if you have any US presence or do trade with any US company, taxed to the receiving company if Levi's made in China are imported to Target then charge Target a 15% tax and if made here 0% tax (an economic impact fee) ... it could be higher just make it too expensive to import them for the receiving company. Then no one will buy them unless US made Levi's. Do this also for services and intellectual goods. We could include favoritism in trade deals we make but for trade deals that will help the United States and keep in opt out clauses to keep the other nation honest.

Its not a tariff on paper its an impact fee to US citizens and companies, not the importing nation.

 

Interesting theory!

I personally lean heavily toward the creation of local currencies that are used to partly finance documentary, reality and semi-reality science fiction films.

As we begin to better understand the evidence that indicates that each human life has virtually infinite value to fundamental life forms who invested eternity in creating us...… we will realize that the Falun Gong people of China..... hold the key to defeating China!


http://www.christianforums.com/t7781576/

We Christians should defend the Falun Gong of China!

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This article about enforced organ donation is one of the most horrifying I have ever read.

http://www.dafoh.org/unethical-organ-harvesting/

 

You're already a loser if you believe the US must win over another nation?

What the US must do is take care of it's own house! We should be solving today's problems and making better decisions which govern the next few decades. One of today's problems IS NOT an economic war with China.

Lastly, the US and most all nations must operate in the global economy...this means trade agreements, imports, exports, and collaborative issues like space exploration. We think we are the world's police but this is BS since we only involve ourselves in selected political events, of which all of this time and money should be forced to the UN or some form of world order...leaving the US to focus our finite resources on domestic issues and improvement...

 

What "Great Evil" are you talking about? Not Communism, since Russia is no longer Communist.

 

I think the great evil is when politicians want to stay in power at any cost, and hoard their money for election campaigns.

 

Well, we don't have to look to other countries to see that.

 

I like Promethues too! i wonder what the political scene is like in that movies plot?

 

That's crony capitalism - someone in gov has to pick the winners and losers. Gov can't figure out how to put together a functional website.

The best way to make US corporations more globally competitive is to eliminate the corporate income tax which reduces the cost of production. Corporations don't pay taxes, they collect them. This is the essence of Gruber's comments that people resist individual taxes but they are OK with taxing the health insurance companies not realizing that the will actually be paying the health insurance company taxes. If China continues to price below what US corporations can manufacture then we are silly not to buy from them. We then have more disposable income to purchase domestic products and servises.

 

Tarriffs are a fundamentally bad idea. They artificially raise prices reducing consumption of goods and services and altering the signals of prices in determining the allocation of capital. Nobody wins. Think Smoot Hawley.

 

Economic "war" in the form of trade barriers and subsidies is basically mercantilism.

I think what you're trying to get at is economic competition and how the US can maintain its dominant position and standard of living for its citizens.

The US, in the long-term, cannot hope to compete with China in terms of production, whether quantity or even quality. The only way to stay ahead is to stay ahead. This means always pushing the scientific frontier and implementing the new scientific breakthroughs into marketable products and services faster than the Chinese. First mover advantage is still very important.

Chinese are not by nature lacking in innovation, it is their culture that keeps them from really "thinking outside the box". Fortunately for them, they've long ago recognized this problem; they just haven't found a way out of it.

 

We expanded our middle class and brought unheard of levels of prosperity for average americans, by NOT allowing the price of our widgets to dictate our economic model. Having access to the cheapest widget by buying from a nation who can exploit its poor, as our MNCs are also allowed to exploit their poor for cents on the dollar labor costs, is not in the best interest of a consumption based nation like the US. If the People matter, and if the people need to earn a living wage by their work. The cheapest widget paradigm has taken over for one reason alone....more profits for corporations.

America needs to forget the nonsense of cheaper widgets, and manufacture all of them here, sold for a price that allows our people to make living wages. We used to do that, in fact, we did it for much of our history. If you do not do that, you end up with more in poverty, and the middle class shrinking. And then those that do have jobs, have to support those who lost their jobs to cheaper widgets.

When we made our own consumer goods, which employed our people, paying them living wages, americans could still afford our widgets. In fact, having higher priced widgets served us well for a long, long time. We have gone down hill ever since we allowed big business to change that paradigm, which created a giant sucking sound of living wage jobs leaving this nation to exploit the poor, wherever they could be found.

We didn't expand our middle class exponentially by offshoring jobs for cheaper widgets. We did the opposite. For we had enough sense, and our leaders actually were representing us then, the average American. This changed beginning basically in 1981. When we turned business loose to max out their profits with whatever it took to do that. A change in paradigm which was driven by the elites not being satisfied with their profits. Greed demanded mo money, mo money, mo money. And the rest is history.

 

How does government subsidize in exchange for common stock? Each time they buy something from the company at heavily inflated prices you give them more stock? When does their collection of stocks stop or when is the government prevented from becoming a majority shareholder through accumulation of those stocks?

If global demand is low, as it is now, how does saturating markets further with more product help economically? Sure, you'll suck up market share if you sell for the lowest price, but how do you harm only your "main" competitors (you mentioned China/Russia) without harming all others (like NATO country corporations)?

What good is slowly raising prices by the government over the years going to do? That just encourages competition from the outside as your prices climb.

 

I would never bet against the potential of China...they have the benefit of watching how the US evolved, our successes and our failures, so when they desire to move forward, it will be at a much greater speed than we did in the USA. I'm guessing that China's honor students alone outnumber all US students combined, you can guess China will have little to no barriers advancing society and technology and innovation, etc. I say again IMO the best thing the USA can do is slow/stop our meddling and wars around the world and focus on bringing the USA up to world class standards...

 

Rather than subsidize, CUT Corporate taxes, deregulate and get Government out of our Commercial System.

Aside from being "Communism" (Government Control of Commerce) or maybe over 100 TRILLION Dollars, government is already obligated to...the people paying for a Federal Government could never afford.

Few Industries could afford the loss of investors which supplies trillions of dollars to do the same thing and again Governments (State/Federal) are already too far in debt. Example; GM was financed to help the American Economy, but in reality, they financed GM's production in Russia/China and currently planned billions in Mexico.

Do you really think any other Country, would support a system, that could destroy their own economy and would not permit those product by any number of means.

That "energy based economy", which is not correct..is a service economy today), already services energy needs and/or construction around the world.

Get Government(s) out of the picture, lower or eliminate their tax obligation (paid by consumers anyway), deregulate and watch them grow and more importantly, foreign industry (probably more than you think) would build and hire HERE, rather than ship into this country.

 

Frankly, that seems, at first look, like a not totally bad idea. It seems like a way to get around the WTO but I would think someone must have thought of this before.