Thursday, March 3, 2016

Comment on comments

Dear Mr. X,

You represent the majority who have this misconception. Free trade always works if it is played fairly. You buy the best from any country at the least cost. For example, you do not want to plant sugar cane in Alaska or in Hawaii with high labor cost.

The funny thing about the banning of Chinese tires is we do not gain ONE single job and that is the original purpose. The new import goes to SE Asia countries who could not compete with Chinese tires before. That's not the way to tell Chinese we're superior at the risk of a trade war.

I blame China for not understanding American politics. They do not have to lower the prices that much, just enough to be competitive.  [This is on the 200% or so tariffs on Chinese steel.]

China does not have slave wages today and that goes to many low-wage countries such as Vietnam. It should go to India and however, India's governance is so poor that they cannot even copy a workable model from China by building a 'small economic zone'. It proves that wages is only a factor, but not important to make a difference such as infrastructure including electricity and transportation of the finished goods.

There are have many threats from China besides the rare earth elements such as our national debts to them. China today still cannot say 'No' to the US, but it will change in time. Hope your nationalism will not cover your eyes. Do not mix philosophy and idealism with real life.

Every country and every generation have its advantages and disadvantages. We are the victims of our own success. With the high-living standard, we cannot compete with low-wage jobs in labor-extensive industries. The $20 per hour can never compete with the $2 per hour that is available in many countries beside China.

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