America’s Has-Been Economy

Chronicles ^ | Friday, March 18, 2005 | Paul Craig Roberts

[1rudeboy]

If you are interested in a good discussion of domestic-content labels or autos, click on the link in my #156.

[1rudeboy]

If you are interested in a good discussion of domestic-content labels on autos, click on the link in my #156.

[Bogie]

Just think, if technology finds a food source that does not depend on plants. What if it could be done in the lab? What would happen to the dollar if there was no more need for feed grains?

Good for China, that's for sure.

[chimera]

Read the articles. The foreign graduates stay here.

So they say. You want me to believe something someone publishes in a foreign journal or my own lying eyes? I'm telling you my experience. You can give that whatever credence you want compared to a magazine article, but I live the truth of the matter everyday, so you're going to have a hard time convincing me that what I experience everyday is untrue but what someone I don't know writes in an EU article is true.

You remind me of the guy I used to work with who stated that he knew it was absolutely true that wearing seatbelts in a car crash didn't really help save your life because he read some article in some magazine to that effect. He's preaching that crap to me after I'd just lived through a 50 mph crash against a tree in part because I was wearing my seatbelt. Nothing like a little practical experience to give you a different view of magazine articles.

[A. Pole]

On April 8, James Madison, once again a congressman from Virginia, addressed the House. [...]

He, he. James Madison the original Commie and evil inspirator of Patrick Buchanan.

[oceanview]

these plants could be undercut easily. Many Japanese light truck makers have factories in Thailand; open it up, and Mitsubishi et al will ramp up low cost truck imports and undercut both GM, Ford as well as Nissan and Toyota who are based in the US.

[phil_will1]

"If WTO is so sacred that it is more important than national interest than VAT can be used to substitute for the tariffs (other countries use VAT for this purpose)."

So you support adding a VAT to our other taxes? That is politically a non-starter. Mnay conservatives are highly skeptical of giving the federal government another way of taxing us, in addition to the tax forms already in existence.

[phil_will1]

"So, how much tariff would be fair? And how much extra cost to steel users is okay to protect 170,000 jobs?"

And how many jobs would you be willing to destroy in steel using industries in order to save those 170,0000 jobs?

[A. Pole]

So you support adding a VAT to our other taxes?

I see only two options to prevent the collapse of American industry - restauration of the tariffs or VAT (which can be used like tariffs). I prefer the first.

[malakhi]

Do you recognise the difference between national economical policy involving market mechanisms and Soviet style central planning?

Only as a matter of degree, not of kind.

[malakhi]

Japan transformed from the Third World country into the leading economical power.

Japan was a First World country throughout the 20th Century.

Also, they were significantly benefited in the post-WWII era by not having to foot the bill for their national defense.

[Toddsterpatriot]

The proper way to address the issue is to levy a relatively low (10~15%), flat-rate "revenue tariff" on ALL imported goods. And to further encourage investment in domestic production with a corresponding reduction in the corporate income tax.

And then companies would be free to import all the foreign steel they wanted?

[Toddsterpatriot]

so where is the evidence that the light truck tariff isn't working?

I don't have any evidence anyone is being crushed. Do you?

[Toddsterpatriot]

The US doom and gloomers were then prophesizing Japan's dominance and the US economic collapse. Hmm, what happened to that?

In 20 years we'll be saying "Remember when some thought China was an economic threat?" And the protectionists will have moved on to their next target.

[A. Pole]

Only as a matter of degree, not of kind.

Degree difference if large enough is a difference of kind. For example if the temperature in you room gets hundred degrees higher or lower you will experience it very clearly. Believe me.

[Toddsterpatriot]

And how many jobs would you be willing to destroy in steel using industries in order to save those 170,0000 jobs?

That would be zero Phil. I'm trying to pin down those who do want tariffs.

[A. Pole]

In 20 years we'll be saying "Remember when some thought China was an economic threat?"

The scale is ten times bigger. If China follows the Japanese example then her economy will be five times larger that USA (if USA keeps the ground).

[Toddsterpatriot]

A, where'd you go? We were having this nice talk and when I asked you for actual facts, you stopped replying.

I hope you're ok. Get well soon.

[Toddsterpatriot]

If China follows the Japanese example

You mean the Japan example from 1989 until now?

[A. Pole]

We were having this nice talk and when I asked you for actual facts, you stopped replying.

Questions like this one:

"Still no luck proving Japan's planning worked better that our lack of planning, huh?"

First USA had planning in the past, second conditions of America with huge reserves or space and natural resources are completely different than the small crowded island without resources and with even less inhabitable land.

To demonstrate in a way compelling to you that Japanese policy was closer to the optimum than the alternative one is beyond human strength. Even designing an alternative economical policy for the mere sake of comparison is a PhD assignment.

Different things are obvious to the different people, sorry.