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Originally Posted by nerv14
I think that a tariff would be helpful to fix the trade imbalance, but the main idea of a tariff wouldn't be for the US to produce cheap items, but instead produce products that require more education.
We can't compete with China in creating 2 cent toys, unless we had a huge tariff, but then we would have to buy the inneficently created products.
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A tariff means inefficiency, you figured that out correctly, but it could never ever help you establish an export-sector. That's the point of a tariff, to save products, that aren't competitive on the world market otherwise...
Quote:
Originally Posted by nerv14
There is nothing wrong with free trade and buying products that you don't produce on your own but the problem is that we aren't exporting anything to make up for what we buy. The United States needs a niche in the global market so we can export something, and a tariff is the first step to give those companies a strong start.
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Remember, a niche in the global market doesn't need any protection at all.
The very first step is to figure out where to compete, it needs to be a sector where Americas productivity overlay covers the cost advantage of the competiors from Far East. After that, the expectations of longterm benefits will take care of the rest - no tariffs needed...
Quote:
Originally Posted by nerv14
If we could export computers, or even more grain than we could import more cheap products from China without destroying the dollar.
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But y'all cant though - this is just hypothetical...
Quote:
Originally Posted by nerv14
Service jobs are incredibly productive because many of them involve how great investments are carried out but most of them still do not bring in much revenue from imports, whereas production jobs do. Just enough production jobs to fix a trade imbalance would be the best job strategy for the United States right now.
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Just don't underastimate the commerce with services, especially the New Economy services - that sector has huge growth rates compared with the production sector. The US is pretty dominat there, y'all should pretty much zoom in on that - the weak dollar right now takes care of the rest...
The trade deficit doesn't worry me too much anyway though.