China The Parasite

We are in a race to the bottom, led by a communist country that suppresses the wages of its one billion workers. It is a multinational outsourcing paradise: no pollution restrictions, no unions, and a manipulated devalued currency. Unless we radically change our absurd trade policies with all countries that have similar policies we will eliminate the middle class and bankrupt our country. Here are some of the essays I’ve written on this depressing subject:

  1. Why don’t skills pay the bills? Manufacturing companies expect to get workers with college skills but they are only willing to pay 3rd world country rates. They have bought in completely to the idea that Americans should not earn more than Chinese peasants.
  2. Community Preference (Part 1) How and why we need to reorganize global trade back into regional preferences. The genie can and must be put back in the bottle. Part 2 is HERE.
  3. We must become more productive! Another myth: If only Americans got more or better education, then they would all find great jobs and we need not worry about all those low skill jobs moving to China. Many Americans have no skills. They’ll take whatever they can get. We told them to expect 8 hour days, overtime pay, the right to organize and paid vacations.
  4. It’s time to choose – between targeting GDP and targeting job growth. The correlation is breaking down so a new approach to policy is required unless we like jobless growth. (Another essay about this is HERE)
  5. China’s economy is weakening – Should we care? China sells us four times more than it buys and limits those purchases to minerals and technology for the production of exports that go back to the US (and Europe). We sell more stuff by far to Canada so if China’s economy dies I won’t spend much time feeling badly.
  6. If you make your products in China then you must … Why should CEO’s be protected by US patent and copyright laws and live and work in a country that prevents pollution and political corruption when they only hire workers in a country that does none of these.
  7. Why will all wages converge down to Chinese peasant levels?  Economists call it Factor Price Equalization and you need to understand it. (More HERE)
  8. US labor has no chance. The entire movement is an anachronism. People love their cheap toys too much.
  9. Here’s a War We Could Win. Everyone is so afraid of a trade war as though it would cause chaos and economic madness. It would do neither since we have a massive trade deficit – unlike the Smoot Hawley era.
  10. Nostalgia Won’t Help. Imagine a world where our parents had to compete with third world peasants after they returned from fighting WW2. There would be no middle class and WW2 debt would have buried us. We prospered only because the rest of the world had blown itself up- not exactly the American Exceptionalism myth that Republicans love to proclaim.

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