I am only kidding, but it wouldn’t surprise me a bit to see a left-wing rag like WaPo or the failing NYT running a story like this. On Friday, President Trump and Russia’s Vladimir Putin met during the Asia-Pacific Economic Cooperation (APEC) summit and shook hands in Da Nang, Vietnam, where the POTUS shared his vision on the new American-Asian economic relationships in the future.
President Trump’s views on fair economic trade will most probably alter the current trade policies which made China and other Asian tigers world’s economic powerhouses, and Asia the world’s fastest growing continent, which thrived from flooding the United States consumers with cheap goods (and services). Trump has said that the United States will stay in Asia, thus alleviating the fears of America’s allies in the region:
“I will make bilateral trade agreements with any Indo-Pacific nation that wants to be our partner and will abide by the principles of fair and reciprocal trade,”
The POTUS emphasized his campaign notion that the American workers/middle class were the losers from China/Asia’s growth/liberalization, as he said:
“We are not going to let the United States be taken advantage of any more.”
What we will no longer do is enter into large agreements that will tie our hands, surrender our sovereignty and make meaningful enforcement practically impossible,”
The decline in US manufacturing began when people with vested interests started telling Americans that the profit ration on things like shoes, shirts, pants was too low and that the US should farm those things out and the people who lost those jobs would get better ones. Using the old Herr Goering technique, they repeated that over and over until it became the truth.
Unfortunately, those geniuses failed to consider that many lower skilled Americans who lost their jobs did not have the capacity to retrain for “better” jobs, so the US stopped making those “unworthwhile” things but they kept on buying them. At the same time, those “underdeveloped” countries, like China, whom the US viewed with mild contempt, started buying the machinery to make more sophisticated stuff and stopped buying it from the US.
Whether or not you have a globalist or nationalist view there is no question that successive Chinese leaders have been laser focused on what could be described as a “China First” policy. Clearly over the past 35 years the US has seen its middle-class shrink with stagnant wages and slowing economic growth. One could argue that globalism has not been a good policy for US families in the middle. Meanwhile China’s per capita GDP has nearly doubled in the past 10 years and GDP growth is nearly 3 times that of the US. Granted China had a long way to climb in the post-Mao era. Again how does globalism benefit the majority of Americans? Cheaper TV’s-iPhones? This only works if you have the disposable income to make a purchase.
If you ask me, one thing, and one thing only is required here: eliminate the 4x trade imbalance between the USA and China. If China wants to eliminate the trade imbalance by buying USA-made product, then fine. If not, then we need to sever trade relations with China. Let them rip off other countries and steal their intellectual property and jobs, if any other countries will allow it, but keep them out of our country.
China is like an itinerant flea market operator who wants to plop down on Main Street USA and start selling stolen merchandise that was burglarized from honest people’s houses, while running a bordello out of the tent in back. We don’t need that kind of business.
Photo Sputnik/Mikhail Klimentyev/Kremlin via REUTERS