Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Here Comes the Made-in-China Cadillac - we're published in today's American Thinker
Follow the following link to read it:
Comment by Joe Esty, 5/10/2012:
I thought Adam Smith put mercantilism to bed 250 years ago. Messrs Richman obviously didn't get the memo.
Most of what is manufactured in China is designed, engineered, and marketed in the United States. In other words, the high-value work occurs in the United States, the Cooley labor occurs in China. (And it doesn't matter if China demands GM turn over its technology. Knowing something is one thing, implementing it is another. And very, very few can implement. )
Let China raise its import tariff 100% on U.S. imports and let China heavily subsidize exports to the United States; that's great for U.S. consumers. Only an idiot would retaliate with a similar policy. That's like saying "China shot holes in its boat perhaps we would do the same."
The following is a pure strawman and reveals no understanding of basic economic. China, according to the Richmans, "is using trade to acquire economic and military power for itself and to bring down the economic power of the United States."
First of all, trade isn't a a football game or political contest. Trade isn't a zero-sum game. What's more, economic development involves competition AND COOPERATION between individuals. It's not China V. United States.
I suspected this article was a product of no original thought when it began with the hidebound and hackneyed "It's like deja vu all over again." By the time I finished, I was proven right.
Response to this comment by M, 5/11/2012:
Response to this comment by Howard Richman, 5/11/2012:
Journal of Economic Literature:
Atlantic Economic Journal: