Wednesday 1 December 2010

US-CHINA TRADE

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MAKING PEACE IN THE US-CHINA TRADE WAR

We think of our trade imbalance as a bad thing. Looked at another way, China is paying US workers to take vacation

Dean Baker

The Guardian, December 1, 2010

Trade disputes with China have been heating up lately, but there really is no reason for the hostility. Essentially, China's government is saying is that it has no better use for its money than subsidising the consumption of people in the United States and other wealthy countries, by propping up the value of the dollar. That may seem surprising since per capita income in China is less than $8,000 a year, while it is over $45,000 a year in the United States, but if this is what China's leaders insist, who are we to argue?

But this is raising objections from the United States and other wealthy countries, since Chinese imports are displacing domestic output and thereby costing jobs. But it need not be this way, if governments in the United States and other countries were more effective in managing their economies.

(...) [artículo aquí]

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