pcr as usual, speaks the truth that the empire's 'consumers' will refuse to hear;
What Globalism Did Was To Transfer The US Economy To China
Paul Craig Roberts
The main problem with the US economy is that globalism has been
deconstructing it. The offshoring of US jobs has reduced US
manufacturing and industrial capability and associated innovation,
research, development, supply chains, consumer purchasing power, and tax
base of state and local governments. Corporations have increased
short-term profits at the expense of these long-term costs. In effect,
the US economy is being moved out of the First World into the Third
World.
Tariffs are not a solution. The Trump administration says that the
tariffs are paid by China, but unless Apple, Nike, Levi, and all of the
offshoring companies got an exemption from the tariffs, the tariffs fall
on the offshored production of US firms that are sold to US consumers.
The tariffs will either reduce the profits of the US firms or be paid
by US purchasers of the products in higher prices. The tariffs will hurt
China only by reducing Chinese employment in the production of US goods
for US markets.
The financial media is full of dire predictions of the consequences
of a US/China “trade war.” There is no trade war. A trade war is when
countries try to protect their industries by placing tariff barriers on
the import of cheaper products from foreign countries. But half or more
of the imports from China are imports from US companies. Trump’s
tariffs, or a large part of them, fall on US corporations or US
consumers.
One has to wonder that there is not a single economist anywhere in
the Trump administration, the Federal Reserve, or anywhere else in
Washington capable of comprehending the situation and conveying an
understanding to President Trump............
https://www.paulcraigroberts.org/2019/08/21/what-globalism-did-was-to-transfer-the-us-economy-to-china/
