Quote:
Originally Posted by Illuminaughty
I think prices would go up a bit, but I'm not sure how they would skyrocket. Increasing competition helps keep prices down and affordable, I don't see how having domestic competition for the Chinese imports would be a bad thing. The import sales would go down and the domestic sales have nowhere to go but up. What jobs would be lost? The one's that don't exist in the US anymore? Prices can go up and wages can go up, it's all relative. You go way up North in Canada and yeah prices for goods are higher but their wages are higher to offset that. It's not like China would just stop exporting goods to one of largest markets in the world.
I think the gains the US would make on imports would offset any of the loses they experience on exports.
They call in their debt, don't pay it unless they are willing to renegotiate these deals. Really what can they do? So what solution would you adopt? Continue with these one sided deals and become more indebted to China because they have a "gun to your head"? They have to address the problem or they will continue to bleed economically.
You can't just keep treating business as your cash cow for spending, that's why nothing is being made in the US anymore. You must be referring to the major corporations that have all sorts of tax loop holes, exemptions and powerful lobbyists and make large campaign contributions to both parties. They won't go anywhere, they will just hide more holdings offshore if anything.
I'm open to hearing some of your solutions.
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Your Northern Canada example is flawed, as wages and living are heavily subsidised by the government. Is that the solution to keeping American businesses going? Increasing taxes on everyone to subsidise wages?
As for jobs, they'll go down because you're increasing the cost of doing business. Companies won't be able to afford doing business at the current rate if they can't capitalise on foreign workers, so domestic cuts will occur to balance the amount of domestic jobs they have to add.
I mean, I agree you have to reverse the trend, but the way you (and Trump) are suggesting is short sighted and just frankly wouldn't work. It's basically a left-wing fantasy (that Trump has tricked the right into believing to a dangerous degree).
Not paying the debt is not an option. China is more powerful than the US, and if you think it's bad having a gun held to their head, wait until China pulls the trigger. Regardless of the imaginative and inspiring endpoint - American made! Jobs for everyone! - the reality is that moves against China and free trade are going to make America much, much worse for many many years. If Trump heads down that path, he'll never get close to seeing a better America. Certainly not in this term or the possible next, and unlikely in his lifetime.
Americans, especially the working class, don't seem very happy with the current rotten state of the economy. You think they'll stomach another decade or two? You think that if Trump makes this move and the economy starts to tank (and it will, no question), that he'll get re-elected? I don't. And I don't think anyone would be stupid enough to follow in his footsteps.