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(drewdevault.com)
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mc32 ◴[] No.21585110[source]
>”It’s economically productive for the 1% to maintain a trade relationship with China. The financial incentives don’t help any Americans, and in fact, most of us are hurt by this relationship...”

So true, since its inception with GHW, its execution and realization through Clinton and then once fully engaged the timid, supplicant responses from GW and BO, China has contributed to the stagnation of the blue collar worker on America with the full complicity of Democrats, Republicans and most of Industry and even unions who didn’t oppose their cozy politicians. They all only saw starry dollar signs...

That’s where we are now. People have had enough. That’s why they put up with the guy no one likes because he’s willing to sever that codependent relationship.

Now, if you ask any pol running for the nomination who the greatest threat to America is... it’s not going to be China...

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Barrin92 ◴[] No.21585355[source]
most of the job losses of blue-collar work are the result of automation, not foreign trade (this is a statement for which ample evidence exists[1]), furthermore on the aggregate Americans do benefit from trade with not just China but also other low-cost nations, which again is economics 101. If the United States were to produce goods at the level of domestic wages a small segment of the workforce would benefit, but consumers on average would lose out due to the increase in price. The price for an iPhone could go from ~850$ to ~2000$[2]. Now imagine that this happens for every good that is produced largely in China and think again if bringing back a few ten thousand jobs is worth the total loss of consumer welfare in the states.

Also, it goes without saying of course that it would also hurt the Chinese workers who are equally deserving of good employment as their American counterparts, and it's not clear why discounting their welfare is anything other than tribalism.

[1]https://www.nytimes.com/2016/12/21/upshot/the-long-term-jobs...

[2]https://www.aei.org/carpe-diem/how-much-would-an-all-america...

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remarkEon ◴[] No.21585440[source]
>increase in price

I, and I’m sure many many others, would be willing to pay a little more if I know that money is staying here and supporting families in this country. I can do without more plastic crap from China, and I consider it strategically important that high tech manufacturing comes back to the US. For defense reasons, among others. I’m sure someone will link the Wikipedia page with some neat plots from “economics 101”, which is fine. But some things are worth paying a little more for.

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Barrin92 ◴[] No.21585501[source]
Well you may be fine if you have a lot of disposable income, but many poor Americans will not. Which is of course the opposite story that the OP tried to tell. If you are a minimum wage US worker paying hundreds of dollars more for basic goods is a drastic cut into your quality of life.

This mercantilism on display here will be extremely harmful to people in America who rely on low cost imported goods just for the sake of predominantly wealthy people attempting to play geopolitics. If you're willing to harm poor Americans and cut trade then please state it like this, don't wrap it up in patriotism.

And to expand on the 'jobs coming back'. Given the high production costs that American companies would have to live with would instantly make their products unattractive in the rest of the world, where people are still going to buy Chinese phones. Giving companies like Apple an incentive to drastically increase the pace of automation, which again is the primary eliminator of jobs.

And even worse, unless you put a tariff on Samsung who will still produce in countries with access to cheap labour, american products will be uncompetitive in their own markets. If you do eliminate competition, the incentive to innovate will vanish. This in fact already happened in the US in the 80s, when the Reagan administration engaged in a trade-war with the Japanese to protect the automotor industry. We all know what this did to the american car market as a result.

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CharlesColeman ◴[] No.21586042[source]
> Well you may be fine if you have a lot of disposable income, but many poor Americans will not.

Why are they poor? Hasn't globalization directly contributed to making the American working class poorer? For instance: Offshoring a factory obviously eliminates those workers' jobs. The owner of a American factory can also use the threat of offshoring to keep wages down. The owner is better off, but the workers clearly aren't.

One of the obnoxious things about free-trade ideology is that the cause of problems and the proposed solutions often seem to be one and the same: more market faster.

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zeveb ◴[] No.21587645[source]
> Hasn't globalization directly contributed to making the American working class poorer?

My understanding is that our standard of living has continued to increase throughout my lifetime, and thus that the American working class is on the whole richer than it was decades ago.

> The owner is better off, but the workers clearly aren't.

Aren't they? If they make $10/hour instead of $15/hour, but the goods they buy are 40% the cost that they would have been, their $10/hour is effectively $16/hour (I think I got the math right there).

Of course, maybe they are making $9/hour, or maybe they lost their jobs after all, or maybe the goods they buy are 95% the cost that they would have been … but the principle still holds that they can be doing less well than they would like but still better than they were.

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1. CharlesColeman ◴[] No.21587788[source]
> Aren't they? If they make $10/hour instead of $15/hour, but the goods they buy are 40% the cost that they would have been, their $10/hour is effectively $16/hour (I think I got the math right there).

I think it's a mistake to treat it like a math equation, since (among other things) that engages in the fallacy of equating Homo economicus with Homo sapiens.

But if you do want to treat it like a math equation like that. The workers may still be worse off because they don't just buy trade goods. The owner's income didn't drop, and maybe increased, so he can use greater relative income to bid up non-trade goods like real estate, healthcare, and education, pushing those things out of reach of the workers.