I can't remember the news station I heard it on but Donald Trump is considering running for President. I disagree with him that we should raise tariffs, mostly because It would create higher prices for many goods in the united states. The lower cost of goods that China has given us has to have stimulated our economy. A similar argument used to be used against new technology that lowered prices but cost workers jobs, But lower prices often stimulate the economy and create other jobs. I recall the old song about John Henry where It sings of the tragedy of the machine replacing a whole crew of rail road workers back in the day. But the song fails to mention that the money saved on labor costs often get passed on to consumers. The money consumers save is spent in another area of the economy where it creates jobs. I view the whole China putting US manufactures out of business the same way. It may cost some Americans jobs but over all it stimulates our economy,
After Class Friday, I was thinking some more about china keeping there currency undervalued on purpose. If China was to raise the value of the yen would that increase the cost of Chinese products?I heard a speech by the prime minister of china were he stated that most Chinese companies only make a 3 percent profit selling to America and that tariffs would cost millions of Chinese Jobs. It seems from that statement that the Chinese have to keep the dollar undervalued to stay competitive.
I can't remember the news station I heard it on but Donald Trump is considering running for President. I disagree with him that we should raise tariffs, mostly because It would create higher prices for many goods in the united states. The lower cost of goods that China has given us has to have stimulated our economy. A similar argument used to be used against new technology that lowered prices but cost workers jobs, But lower prices often stimulate the economy and create other jobs. I recall the old song about John Henry where It sings of the tragedy of the machine replacing a whole crew of rail road workers back in the day. But the song fails to mention that the money saved on labor costs often get passed on to consumers. The money consumers save is spent in another area of the economy where it creates jobs. I view the whole China putting US manufactures out of business the same way. It may cost some Americans jobs but over all it stimulates our economy,
ReplyDeleteAfter Class Friday, I was thinking some more about china keeping there currency undervalued on purpose. If China was to raise the value of the yen would that increase the cost of Chinese products?I heard a speech by the prime minister of china were he stated that most Chinese companies only make a 3 percent profit selling to America and that tariffs would cost millions of Chinese Jobs. It seems from that statement that the Chinese have to keep the dollar undervalued to stay competitive.
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