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发表于 2019-1-23 06:11:35
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Why do we have trade ??? That is the question.
When in college studying Econ 101, trade is basically a Comparative Advantage and therefore Exchange of products each country is at its best to produce, even when BOTH could produce it.
China before had advantage in plentiful education and labor and farmers to produce basic surviving necessities to live on.
US never had a war on its land and absorbed a lot of talent from other countries to the NEWFOUND land, virgin territory to start a new life. After WW II, it is really the only place other than S America did not attract the bombing and destruction in ruins. So it has been booming to rebuild other countries and selling their products to their advantage.
After a while, its citizens really enjoyed the fruit of success and lived a good life. Of course, complacency set in with NO competition while others were rebuilding from their ruins and death of their military people during the war.
Fast forward to 40 years ago, China were freed from US sanctions and started supplying US and the world with cheap good from their vast human resources.
Now 40 years later, China got to Advanced country infrastructure and manufacturing capabilities while maintaining a LOWER wages (5K RMB as average wage, even among College graduates). US is worried not about just a TRADE deficit, but also ADVANCED TECH. China can even produce C919 passenger jets to replace Boeing. Going to US airport is just a sight of THIRD world airport (said by some US senior official) . Personally I can not understand why Subway passenger can still COMMIT suicide on tracks when a separate gate will do, also for accidents happening.
Honestly why lend money to US when its dollar value may decrease over time, unless GOLD is still the backing of Paper money , when Nixon abolished that standard due to lack of gold to pay for its ever growing spending habit. I cannot imagine how many items I bought which did not use and do not know where they are, wasteful society at its worst. |
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