Sunday, August 12, 2007

Engines of Economic Growth

Ian Welsh of The Agonist has a short great post in FireDogLake on economics and the current situation with China and the United States. A simple illustration of Econ 101. The short answer - massive currency intervention is preventing a natural job creating feedback loop from occuring. The comments have some good points too.
The era of globalization is winding down, for all you don’t hear people saying so. And tariffs aren’t always a bad thing, especially since many countries are effectively employing trade subsidies (mind you, so does the US, especially in agricultural goods).

I support free trade (but not free capital flows), but we don’t have free trade right now, we have very managed trade that calls itself free....

...NAFTA subsidized large-scale international investment in agriculture and manufacturing in Mexico. Little folks got creamed. Their choice has been to compete for a limited number of jobs in border manufacturing plants or heading north.
Ian and I also agree on John Edwards.
At this point I really have no idea why more progressives aren't aligning behind Edwards. He's electable. He's staking out progressive positions. He doesn't want to expand the army. He talks about the poor and middle class all the time. He's put out the best health care plan of the big 3. Hilary will rule as a conservative Democrat - anyone who thinks otherwise simply hasn't paid attention. Obama seems to be trending the same way.

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