biomedlives

U.S., China Increase Trade Deficit: Win-Win Situation

I agree that supply and demand will force the price of labor way down, probably close to the level in developing countries. Then American workers won't have much money to buy consumer goods or pay taxes.


On Mar 18 12:31 PM Bulldawg88 wrote:

> How do you do that when governmental controls and regulations keep
> you from being competitive. I am an owner of a manufacturing company
> and I have too many people in our compnay do things that do not produce
> one penny of revenue, but I am REQUIRED to have them on staff. Every
> company that has to compete in the world market "gives international
> competitiveness" a high priority, otherwise we will be out of business.
> The harsh reality is that american workers are bloated in there self
> worth and this economic downturn will help to bring that down. Supply
> and Demand is going to force the price of labor way down.

U.S., China Increase Trade Deficit: Win-Win Situation

It's also worth noting that China's vast dollar holdings will give it leverage in foreign affairs in the future. A precedent is President Eisenhower's use of American pound holdings to force the UK out of Egypt in 1956.