America first?

Discussion in 'Economics & Trade' started by AngryCitizen, Dec 26, 2018.

  1. AngryCitizen

    AngryCitizen New Member

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    I can understand Trump to a certain level, that playing “Mr. Nice” to every country in a globalized world, has led to unfair competition which has destroyed many industries in the developed countries.
    Just imagine being a factory in a high-wage country, having to compete against another factory overseas, where a worker only pays $80 a month for his housing and can live from 200-dollar salary. For a factory this is like trying to swim up the Niagara Falls.

    However, Trump’s policy to see every country in the world as his economic enemy, is absolutely insane and even pathetic!
    Businesses in other developed countries like Canada, Europe, Australia etc. struggle with exactly the same problems like high wages, strict regulations and other high costs.

    There is no such thing as ‘bad Germans’ trying to destroy the US economy with unfair competition. Companies in the south of Germany like Mercedes, Audi and BMW, are facing salaries on a Californian level and are struggling with the same difficulties of competition as anywhere in the USA!
    Not wanting an open competition with these countries is like a baseball team that refuses to play a match against its equals. The level of such baseball team will decline inevitably!

    This is sad, because the USA is a country with amazing resources of technology and innovation in states like California, Massachusetts, Washington etc. and actually has everything on board to come up in the future with an entirely new generation of cars and other products that could conquer the world.

    However, building an economic wall around the USA and sticking one’s head into the sand is clearly not the way to make America first…
     
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  2. modernpaladin

    modernpaladin Well-Known Member

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    I agree that we should be trading more with other developed nations that pay their workers fairly like Germany instead of countries like China that basically use slaves.

    However, developed nations have been screwing us in other ways. Germany, for example, relies on its military alliance with us for its national defense, which allows it to subsidize more benefits for its workforce so it can pay them less than it would have to otherwise... while our economy makes up the difference. Thats one of the reasons our defense budget is so rediculously large... its not just our defense budget, but Germany's defense and many other of our allies defense who arent pulling their weight, forcing us to pick up the slack or risk endangering the alliance altogether.

    Trade is really the only pull we have to try and negotiate them to hold up their end of the alliance. Well, that and cancelling the alliance, if ccourse.

    https://www.wsj.com/articles/numbers-back-up-trumps-tough-talk-on-nato-1531690164
     
    Last edited: Dec 26, 2018
  3. Reiver

    Reiver Well-Known Member

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    A couple of myths here. First, there isn't unfair competition in favour of developing countries. Its typically unfair competition in favour of developed countries. Its made worse in the US as it is number 1 in being sued for trade protectionism! Second, the idea that Germany's success reflects free riding on US military expenditure has no credibility. Empirical analysis into burden sharing has shown that Germany's burden roughly corresponds to its benefits. The US's military burden can be understood by looking closer to home: a military industrial complex demanding inefficient investments to generate economies of scale.
     
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