Quote:
Originally Posted by OrangeBlossomBaby
There are lots of things that people consume or purchase, that aren't made in the USA at all. And many of those things that ARE made in the USA, use components that are made in China.
Prices will be going up on just about everything other than LOCAL produce and meats. Why? Because trucks that deliver stuff to the supermarket are made with components that come from China.
In addition, the whole reason we all buy things from China instead of manufacturing here in the first place - is because no one here wants to work for the low wages needed to provide these products to us, for the same prices that we pay from Chinese imports. So we'll be looking at either a) a massive increase in prices for products newly-manufactured in the US to accommodate the pay, insurance, and other expenses involved in having American employees, or b) a massive drop in pay and massive increase in people who can no longer pay their bills.
It's just so myopic to assume that we'll be fine if we just buy from US manufacturers.
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I agree with this analysis. I have no training in macro economics but logic tells me the a country with a high standard and cost of living cannot compete long term in a global economy with countries that have a low standard of living. It seems to me that eventually they will have to meet some place in the middle.
And I can't understand how some economists claim it's OK to keep increasing the national debt. Doesn't the debt have to go away at some point, maybe by inflation, maybe devaluing the currency, or some other approach?