I have no particular desire to get into “Global Macro-Econ 101” with you here, but the US is by far the largest importer and largest exporter in the world (Yes, the EU’s economy is about the same size, but that mostly comes from EU internal sales).
Again: Chinese goods ARE THE SAME PRICE because they chose to link their currency to the Dollar.
European goods are more expensive to import.
American goods are cheaper to export.
Foreign labor costs are relatively higher than local labor costs (more American jobs).
As for oil, only America has an alternative fuels program available, waiting only for the sign that oil is going to STAY above $50.
Please elaborate on the "available" alternative fuel - and how long a sign you think we need of above $50 oil.
Plastics like PVC (and a zillion others) are all made of oil. Those increasing costs are making their way through to just about every product we produce and consume ourselves or export.
Copper, iron and most other metals costs around triple what it did just a few years ago. The things we export and consume ourselves are made of these things.
Why do you suppose meat, milk, and virtually every other food has gone up in price very substantially over the last few years? Bought a good steak lately?
It is simple. The dollar is worth less than it was not long ago. We aren’t some isolated economic island that can arbitrarily set values for everything. Supply and demand is without borders and will ultimately set the price.
As the dollar continues to be worth less the prices of everything we consume that defines our standard of living will slowly work its way through the supply lines and end in higher prices. If our pay doesn’t increase by the amount the dollar declines our standard of living declines. It is as simple as that.
I strongly believe inflation has been much higher than reported. I believe the numbers are artificially driven down due to cheap imports from China while virtually everything else of value has gone up.
By the way, my business produces high tech communications equipment that we sell all over the world. Virtually all the companies that produce the kind of equipment we do are already in the US. Lower affective prices don’t make a big difference in our exports because the users of this type of equipment already bought from the US. So there’s no one from outside the country to take the business from. I’d guess that is true in many high tech areas including software.
Uhhhh, no labor costs just WENT UP. An outsourced job does NOT cost more than the American equivalent.
Yah
Now we can burn our food as fuel.
THAT'S a solution!