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While our incomes stay flat, debt/savings ratios are sinking us, and the cost of health care and education rise over and above inflation? Explain how that works.
Protectionism removes incentives towards innovation and efficiency. It also drives up consumer costs which reduces their buying power.
I liken protectionism to chemo-therapy. You only take the poison when the cancer poses the bigger risk.
While our incomes stay flat, debt/savings ratios are sinking us, and the cost of health care and education rise over and above inflation? Explain how that works.
Write your own damn post, Darrin.
Damn, you're lazy.
True. Not nearly enough American teens are going into science and engineering. That's why even in this tough economy engineering grads can still get $75k/yr straight out of college, depending on the discipline.
The simplest, clearest argument against protectionism is the economic concept of comparative advantage. Both countries in a bilateral free trade relationship are allowed to pursue the most efficient allocation of resources by producing only the most profitable products. And consumers in both countries win by being able to buy goods for cheaper, and devote more of their own resources to savings or investment or whatever else they might want to buy.
Protectionism raises prices because the market is less compe ive. Ultimately, consumers will respond by buying less. Which leads to anemic economic performance and unemployment. So, inflation and economic weakness. Stagflation. Beautiful.
Protectionism also encourages other countries to undertake retaliatory measures. Which closes markets to American goods. Which hinders the profitability of American companies. Which leads to anemic economic performance and unemployment. And . . . you get the idea.
We spend more per student than probably any other country. How's that working?
I know that timing is an important question, but isn't it at least possible in principle that there's some modest core of real productivity worth hanging onto, and protecting from the likes of a China?
So then, low prices for everything trumps national interests?
You're making things up now. Our standard or living go to ?
What the are you talking about?
I could say protectionists like you want to suck the of unions and don't care if persistent unemployment and stagflation become a reality in America.
You evaded a question with a question. Classic.
Doctors and engineers actually don't mind that there is a shortage. Also why nurses make quite a bit of money.
On the flip side, there are way more lawyers than anyone could ever use.
WH,
Why is GM such a huge failure?
Persistent unemployment and stagflation is the "good" outcome of the fix we're in already, irrespective of protectionist measures. You say that greater economic efficiency and post-industrialism makes us wealthier, but the last 30 years shows this not to be the case. Debt driven growth has wrecked us. Maybe we made a wrong turn.
As soon as you explain to me how Americans can hope to compete with Chinese workers making rough $1500 annually.
You do remember me looking up that bit of info after you asked in another thread, correct?
Or is it your belief that all Americans can be involved in non-menial labor? Or perhaps they should just all have to move to China and work for 2 dollars an hour or so.
More than a few older engineers I know have been laid off, in favor foreign talent. We're canning our own experienced experts for the sake of a buck. How is that good?
But if these tariffs are associated with a reduced tax rate for corporations, can't corporation then lower the price of their goods below overseas compe ors?
Also, how does protectionism remove incentives towards innovation and efficiency, if the only solution to said efficiency would seemingly be to get rid of existing labor laws? After all, there's a HUGE economic disparity in living wage between us and China, and a few bells and whistles on an American product won't necessarily make up for it.
Like I've already said, it's impossible to compete with that. The better question might be, do we really want to? Maybe it's best that we outsource the manufacturing of Happy Meal junk toys to the Chi-coms.
If we only bought "Made in the USA" products, our poor would become even poorer. Ironic.
Unsustainable legacy costs, brought on by their own bad business model. If you believe in freedom of contract, this is on the heads of management no less than labor. Management signed on the dotted line. So much the worse for them if they can't compete because of it.
I'm not doubting that you know a few, but that's hasn't been my experience. If you interview where I work and have difficulty putting together a coherent English sentence, you're probably not getting the job.
This is dishonest. Just look at electronics.
Oh, yeah? Prove it.If we only bought "Made in the USA" products, our poor would become even poorer. Ironic.
I understand the general idea. But when you have country A) with workers that must make at least 8 dollars an hour as well as regulations that cut into profit, and country B) which can pay its workers, say 2 dollars an hour, with no concern over pollution and other issues... well, there's an obvious disparity there. Businesses will go to the people who they can pay for 2 dollars an hour.
Now, the way I see it, there's three routes.
1) Protectionism, such as leveling the field with import tariffs/taxes
2) Laissez-faire, and hope you convince enough people to "buy American"
3) Getting rid of the rules and regulations that prevent us from paying someone 2 dollars an hour
It seems we've been trying number 2 with unsuccessful results. And number 3 won't happen.
Maybe, but those tariffs and tax subsidies will encourage other countries to retaliate with their own tariffs and subsidies, which will close markets to American companies. American exporters will suffer.
And those who can't get a job in non-menial labor? I guess survival of the fittest, and balls to them?
If that's your view, then hey, at least you're honest.
Ok, I'll bite. What about electronics?
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