Comments on: China’s Surplus…US’s Deficit

By: Ames Tiedeman

Ames Tiedeman — Sat, 22 Apr 2006 00:39:42 +0000

It is a disgrace that America has choses the short sighted value of cheap labor for the long term pain of the declining dollar. Collapse of the dollar is near..

By: Tom Grey - Liberty Dad

Tom Grey - Liberty Dad — Sun, 13 Nov 2005 23:06:24 +0000

You’re great DosPeros — but PorkBusters can’t even get a Rep Congress to cut out an Alaska bridge to nowhere for Katrina. Only budget Dems would cut is military, the one “provide for the common defense” that needs providing for. “Promote the general welfare” doesn’t need involuntary tax support.

FDR should have started out with required savings for retirement, PLUS means tested additions (from the employer’s matching payroll tax).

On China, remember poor US folk get $10 China jeans from Wal-mart — and China gets green paper. Eventually they’ll use the USD to buy Saudi/ ME / Russian oil, and the oil sellers will get US$ — and buy something. Maybe US real estate?

Trade deficits are no problem, they’re a smokescreen to support protectionsim. To protect overpaid workers who want poor foreigners to stay poor. When fiscal deficits start increasing the long term interest rates, the rate increase chokes off investment money, and thus growth. Inflation can hide this for awhile, but then there is less growth AND more uncertainty (which causes even less growth).

(See Marginal Revolution, or Arnold Kling TCS.)

By: DosPeros

DosPeros — Sat, 12 Nov 2005 06:00:23 +0000

How do you think this would play out in real dollars? What would be the implications?

I would get more of my money. I really don’t need the federal government to promise to repay me in the distant future, so they can borrow my money for other purposes and lie to me. Social security should be privatized.

At 17% I’d be paying a lot more of my income than some and lot loss of it than others. It seems mighty progressive to me. And with no minimum wage and relaxed immigration laws, the Casa de DosPeros would become the multicultural Mecca of hired-help in North America.

In terms of real dollars, IÃ¢â‚¬â„¢m not afraid of inflation unless someone can convince me otherwise. The immediate implication would be to make health insurance much more affordable for many families, including my own.

By: Justin Gardner

Justin Gardner — Fri, 11 Nov 2005 06:35:47 +0000

I agree though, that we should Wage a War on BUDGET Deficits: First, we cut federal spending by 50% (eliminate all corporate welfare schemes, i.e. all you grant writers have to get real jobs), flat tax the country at 17%, eliminate the minimum wage and bring our military homeÃ¢â‚¬Â¦for CindyÃ¢â‚¬â„¢s sake.

Interesting ideas. How do you think this would play out in real dollars? What would be the implications?

By: DosPeros

DosPeros — Fri, 11 Nov 2005 04:10:20 +0000

I’m not a big fan of the “War of Terror” (is “Terror” an adjective or a noun in this War), but what’s so wrong with a trade deficit? I suspect that in the long run, the Gulf Coast hurricanes will have the effect of decreasing the trade deficit.

I agree though, that we should Wage a War on BUDGET Deficits: First, we cut federal spending by 50% (eliminate all corporate welfare schemes, i.e. all you grant writers have to get real jobs), flat tax the country at 17%, eliminate the minimum wage and bring our military home…for Cindy’s sake.

I’m apologize Justin, I haven’t taken my medication all week.

By: JonBuck

JonBuck — Thu, 10 Nov 2005 22:11:27 +0000

One of the major reasons why China can do so much: Well over a billion people that represent very cheap factory labor. We cannot match that, and thus our own factory sector suffers. China is pulling everybody into their orbit.

The only way we could possibly compete is to lower our wages down to their level. So much for our standard of living…