[A. Pole]

The thrust of Samuelson's analysis is that a country like China, basically a low-wage economy, will create a net negative impact on the American people, when it manages a substantial rise in productivity in an industry in which the United States was earlier a leader.

USA is also being drained by the high wage economies which shifted their taxation to the Value Added Tax. This tax works like a tarrif on the imports from America and like a subsidy on exports. The impact of VAT might be higher than labor cost difference or cost of regulations.

USA need a national economical policy in order to avoid the fate of Argentina.

[XBob]

28 - "USA is also being drained by the high wage economies which shifted their taxation to the Value Added Tax. This tax works like a tarrif on the imports from America and like a subsidy on exports. The impact of VAT might be higher than labor cost difference or cost of regulations. "

Bingo - and maybe some people are starting to figure it out.

[GOP_1900AD]

VAT is a flat tax par excellance. Those who consume the most can typically aford it more. For truly dire situations, a person might be afforded a refund at the end of the year. But I would argue with a VAT, there would be fewer unemployed and underemployed.