Anatole Kaletsky is chief economist and co-chairman of Gavekal Dragonomics. A former columnist at the Times of London, the International New York Times and the Financial Times, he is the author of Capitalism 4.0: The Birth Of A New Economy, which anticipated many of the post-crisis transformations of the global economy.Well of course hacks like this would cheer on Red China.
The premise is wrong
If the tariffs actually decrease the import of Chinese goods, it is not only not necessary but impossible for American companies to pick up all the slack. The manufacturing willl be shifted out of China to a more favorable country or countries.
China will lose not only the revenue but the jobs. The loss of jobs on a large scale will be devistating to the chinese economy. There is presently not adequate domestic demand to pick up the slack
Then there are other countries with trade imbalances with China. If they join the Trump gambit, the situation will get truly dangerous.
Except investment IS flowing back into the US. Manufacturing jobs ARE increasing at a steady rate. And of course, China is not the only place in the world from which to source goods. The P&Gs and Wak-Mary’s and Targets of the world can diversify their suppliers to offset the risk. They’d be foolish if they haven’t already started doing so.
China meanwhile has a tanking bond market and a declining stock market due to their massive real estate bubble. It is they who will be forced to cave in.
Ah, yes, Keynesian economics. Like socialism, loved by liberals even though it never works.
Keynesian economics has a perfect fecord. Of failing. See Paul Krugman for his amazing Keynesian predictions.
Keynes was a moron. You’re more likely to find a smashed watch with one broken hand being accurate more often than a Keynesian economist. Krugman is one. And he’s so wrong so often that his spin should be enough to power a small city for a few months.
Who said what qualifies as a win? As long as our comparative situation is improved, it is a positive outcome.
Of course, Liberals cannot allow this possibility into any conversation.