Walter Williams: China Is Not The Source Of Our Jobs Problem

IBD ^ | 12/21/2011 | Prof. Walter Williams

[FreedomNotSafety]

Thanks for the great post. Hope you have on your flame proof undies on.

Many on this forum are in favor of freedom except when it comes to letting you freely chose where and from whom to buy your goods and services. Then they know with great certainty that we should have the same laws restricting our freedoms as do the Chicoms, India,and Venezuela.

Next will come the tired argument that the world isn’t free so we have to insure “fair trade”, except to be fair they have to pay our wages and follow our laws, but even if they do that they we have to make sure they don’t devalue their currency more than we devalue ours, but currencies being equal we still have to put our people first. But lets make sure that even our own people play fair against each other right? Cant have too many immigrants coming here and causing wages to drop. But even high earning immigrants cant come in because there aren’t enough IT jobs for everyone.

So for all you who hold to “lets only buy from US” you agree with decimating US candy making companies so that US sugar producers can get fat and support democrats? Do you want to protect heavily unionized steel manufacturers so that the much bigger US industry of steel fabrication, mostly not unionized, cannot compete worldwide? Do you want to keep subsidizing ethanol because Brazil does? OBTW maybe some of you noticed that the US is now a huge energy EXPORTER should we keep all that here instead sending it over there?

The only threats we have are poorly educated people and a US government that is hostile to Free Enterprise. Look at how the EPA is about to decimate our electricity industry. Look at what the USDA did to our timber industry. Look at what the SEC, the US Treasury, and FAN/FRED, have done to our finance industry. Look at what the EPA is now doing via ridiculous mileage standards to our auto industry (AGAIN). Do we really need to subsidize the VOLT because we are worried about Chery Motor’s electric car?

Your righteous anger is misplaced don’t blame China, blame yourself for letting your government cripple our abilities to compete.

[upsdriver]

You would rather pay taxes to support the welfare state and the unemployed lower IQ types that used to work manufacturing.

No, I'd rather the government get its sh!t together and allow for a business climate conducive to free enterprise. As a nation, we can compete on a global scale provided our own entrepreneurs aren't prevented from doing what they do best. China, etal, didn't cause our "jobs" problem, we did.

[Fledermaus]

A lot of what we make “overseas” is sold overseas also.

You have to also account for the fact the US over regulates are manufacturing and runs up the labor cost so high it’s impossible to compete.

How long do you think it would have been to introduce the IPhone if Apple tried to make it here? And how much would it have cost? I can imagine the massive environmental regulations, etc.

[Fledermaus]

“are manufacturing” = “our manufacturing”

[Revolting cat!]

Yep. Germany, Switzerland have as high if not higher labor costs as the US, and as much regulations. Do they offshore their factories to import the goods back? Swiss watches made in Guatemala? Mercedes Benz from Congo?

In the meantime, while excuses for US businesses fly, some engineers I know, whose jobs were exported to India, for products mostly sold here, and certainly not much in India, are in the 2nd year of collecting unemployment, and of course, according to many here, they are “lazy bums”.

[dennisw]

Walter Williams is an idiot when it comes to international trade where you swim in a pool of sharks. Put up serious tariffs and nuke the EPA. Then we will make progress to bringing more industry home

[dennisw]

Good post.... WWilliams is a free trade idiot locked onto ideas that sort of benefited us 30-40 years ago. We should have been playing hardball on trade since 1990 or so.

The real disgrace is that WW has been teaching these lies to college students for years

[central_va]

Do you know what the average cost worldwide for labor is per unit retail?

• A. 5%
• B. 10%
• C. 20%
• D. 30%

[central_va]

Do I want to pay people to sit on their asses while our manufacturing base is shipped overseas? No. The service sector has very little potential for growth. Especially with a broken border. WAlter Williams is a fraud, and knows that our industrial base is what protects our freedoms. We don't make enough steel to replace ships losses in a shooting naval war. Our enemies know this. China is doing to our factories in a few decades what the 8th air force accomplished in a few years to Germanys industrial complex. Their method, while slower, is more insidious indeed.

Williams BS begats the classic "Don't piss down my back and tell me it's raining."

[Democrat_media]

“We should have been playing hardball on trade since 1990 or so.”

I agree. Thanks. It's good to see that you and some freepers here have figured out the problem. It's terrible that many don't see it.

And the solution is so simple: Just put quotas and tariffs on China products and products from other countries too. That could be done tomorrow but Obama instead is signing free trade deals with other countries.

[Democrat_media]

China's living standards, production have risen by a great amount. The U.S. living standards have declined along with the number of U.S. workers in manufacturing. China has 10 times as many workers as the U.S. does in manufacturing.

China was a 3rd world country in 1990( before trading ,\ with the U.S). 99% of China's people were living as peasants as people did 10,000 years ago . Now a mere 20 years of trading (ripping off the U.S.) and China now has malls, 9% economic growth, modern cities, a middle class, and is lending the U.S. trillions.

In 1970 The U.S. was tremendously ahead of every country in technology, manufacturing technology, living standards etc.

Can you imagine where the U.S. would be now if we didn't trade with other countries? Our living standards would have improved tremendously. Instead the U.S. is in decline,with over 40% on government assistance (food stamps) and many government workers: and still we have 20% unemployment. The jobs available are a busboy job that 400 apply for. Look at how many millions applied for Mcdonalds jobs recently on that hiring day.

What do you think is the cause of the U.S. decline? It's China's economic war and terrorism against the U.S. some say it is the government growth and regulations and yes that has a bad effect on American businesses. but still those business that don't have to compete as directly with China like Mcdonalds, Walmart , FEd ex, are doing good despite the growing regulations. And Mcdonalds for example has a dollar menu so they can still keep prices low without having to make burgers in China.you saying that Buying $100 sport shoes made in Asia by workers making 50 cents an hour is benefiting you? what about the decline in your living standards and decline in your country that China's destruction of our industrial base and factories have caused?

I Have more to reply but short on time now.

[Democrat_media]

The U.S. debt is exploding, with 14 trillions of dollars in government debt.

China is lending the U.S. trillions of dollars.

Over 40% of people in the U.S. are on government assistance(food stamps).

Any of you free traders think that is sustainable? What do you think is the cause of the U.S. decline? .

Yeah you'll say it's government growth and regulations.And yes that has had a bad effect on U.S. businesses .BUT many U.S. companies that don't have to compete directly with China are still doing well : for example Mcdonalds, Walmart, Fed Ex. They are keeping prices low and producing despite of government interference: think of Mcdonalds’ dollar menu. But the cause of the U.S. decline is China and other countries ripping the U.S. off: our manufacturing is being shipped over seas. Who would pay a U.S. worker when they can pay a worker in China making 50 cents an hour to make something?

[FreedomPoster]

“This year, BMW expects to produce close to 240,000 vehicles at the plant and export 70 percent of them, said Jim O’Donnell, president of BMW of North America.”

From here:
http://carfanaticsforum.com/thread-2918.html

So, while it is true that “they sell those cars in North America”, the majority are sold elsewhere. That plant is a major source of Made in USA manufacturing exports, around $4.4 billion in 2010 per that article I linked above.

The SC plant makes X3s, X5s, and X6s. None of those models are manufactured in Germany. X3s and X6s are only made in the USA.

In short, your assertion about “Berlin riots” is bunk. Before making absurd assertions you should bother to check the facts underlying them. You have none on your side here.

[FreedomPoster]

>>Do they offshore their factories to import the goods back?

Yes, they do. See my post just above regarding BMW.

[FreedomPoster]

One answer to that last: BMW. Many (most?) of the X6s made in SC are sold in China.

[Democrat_media]

Most of the U.S. manufacturing base has been offshored to China.

The U.S. imports 2 trillion dollars worth of manufactured goods per year.

We don't make most of the things we use, our clothes, our TV’s, our telephones etc.

If we made those 2 trillion dollars worth of products here in the U.S. the U.S. would not be in decline.

Yeah there is still some U.S. manufacturing. But that is rapidly going away and will soon all go away: And then the U.S. will be staring into the abyss. So all you free traders keep defending China and the economic terrorism that China is committing against the U.S.

[central_va]

They don’t care. They lie, cheat, steal to their fellow countrymen to make there living and their political points. That is what traitors do. The word fits, its perfect.

[central_va]

there = there. Need coffee.

[central_va]

You are right Germany is a poor example since they have a trade SURPLUS.

Exports = €1.146 trillion (2010)

Export goods = machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles

Main export partners + France 10.2%, U.S. 6.7%, Netherlands 6.7%, U.K. 6.6%, Italy 6.3%, Austria 6%, China 4.5%, Switzerland 4.4% (2009 est.)

Imports = €1.020 trillion (2010)

Import goods = machinery, vehicles, chemicals, foodstuffs, textiles, metals

Main import partners = Netherlands 8.5%, China 8.2%, France 8.2%, U.S. 5.9%, Italy 5.9%, U.K. 4.9%, Belgium 4.3%, Austria 4.3%, Switzerland 4.2% (2009 est.)

FDI stock $1.057 trillion (31 December 2010 est.) Gross external debt $4.713 trillion (30 June 2010)

[central_va]

there = their !!!!