The best illustration is on the tariff on Chinese low-end tires. They are replaced by other countries like Indonesia, Thailand... at higher prices to US consumers. We do not gain a SINGLE job. It is a lose-lose situation that we're accustomed to.
Politicians take note: China is the most efficient manufacturer so far but many low-wage countries can replace China. $20 wage will never compete with $2 wage and you cannot live here in $2 per hour.
Free trade works. You do not want to grow sugar cane in Alaska. Tariff is the first step to start a trade war, which we cannot afford as China is our banker. We manipulate the currency more than Chinese by deflating it to lessen our debt burden. China just peg their currency to it and has appreciated their currency in last 5 years steadily.
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Wonderful blog. Thanks for sharing. Keep posting please.
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