Paul Krugman understands his economics and in his New York Times article China, Japan, America and the Renminbi, he alerts us to the fact that what we would have called mercantilism a couple of centuries ago is still alive and well today as an economic reality.
What Krugman recognizes and what many of his fellow economists apparently do not understand is that modern "economics" has not negated basic economic principles that have existed since mankind began to trade goods and services.
Although Krugman points the finger of blame at China and at Chinese appeasement by shell-shocked American policy makers suffering from the financial crisis, we continue to regard the real culprit as the large-scale transfer of technology to China and elsewhere BY THE WEST over past decades in exchange for cheap labor. Some people think that is a win-win strategy, but only for those who profit by it. It is a lose-lose strategy for the majority of citizens.
For a while ... you could take a shoe that cost $10 to make in the USA and sold for $100 in the USA and move production to China where that shoe cost $1 to make and still sold for $100 in the USA, but you can not do that forever, because middle-class consumers in the USA, having lost their jobs to cheap labor in China, ultimately no longer have the money to buy those $100 shoes, and the shoe now may cost more to make than before, even in China.
At some point, the equation has to rebalance -- that is inevitable -- and that is one grievous aspect of the current economic problem. Currency over- or under-valuation is merely the surface manifestation of a much larger problem involving the entire structure of the US economy.
Hat tip to CaryGEE.
Monday, September 13, 2010
Most Popular Posts All Time
- Samsung Digital Picture Frame 2006 is Clear Designer Prior Art to the Later "Design" of the iPhone and iPad
- Legal Graphologists : A Query to You : What About the Christopher Marlowe - William Shakespeare - Controversy and The Signatures of These Two Authors? Are They By the Same Hand?
- PONG ! About that Ridiculously Granted Bounce-Back Scrolling Patent US 7469381 Which Is Anticipated by the Prior Art and Obviousness of the Old Atari Game of PONG
- Speaking of Mouse Trap Economics, What About that Yarn that Patents Stimulate Invention: Les Earnest Testifies Before the USPTO
The ISandIS Network
Our Websites and Blogs: 3D Printing and More 99 is not 100 Aabecis AK Photo Blog Ancient Egypt Weblog Ancient Signs (the book) Ancient World Blog AndisKaulins.com Anthropomorphic Design Archaeology Travel Photos (blog) Archaeology Travel Photos (Flickr) Archaeo Pundit Arts Pundit Astrology and Birth Baltic Coachman Bible Pundit Biotechnology Pundit Book Pundit Chronology of the Ancient World Computer Pundit DVD Pundit Easter Island Script Echolat edu.edu Einstein’s Voice Energy Environment and Climate Blog Etruscan Bronze Liver of Piacenza EU Laws EU Legal EU Pundit FaceBook Pundit Gadget Pundit Garden Pundit Golf Pundit Google Pundit Gourmet Pundit Hand Proof HousePundit Human Migrations Idea Pundit Illyrian Language Indus Valley Script Infinity One : The Secret of the First Disk (the game) Jostandis Journal Pundit Kaulins Genealogy Blog Kaulinsium Kiel & Kieler Latvian Blog LawPundit.com Law Pundit Blog LexiLine.com LexiLine Group Lexiline Journal Library Pundit Lingwhizt LinkedIn Literary Pundit Magnifichess Make it Music Maps and Cartography Megalithic World Megaliths Blog) Megaliths.net Minoan Culture Mutatis Mutandis Nanotech Pundit Nostratic Languages Official Pundit Phaistos Disc Pharaonic Hieroglyphs Photo Blog of the World Pinterest Prehistoric Art Pundit Private Wealth Blog PunditMania Quanticalian Quick to Travel Quill Pundit Road Pundit Shelfari SlideShare (akaulins) Sport Pundit Star Pundit Stars Stones and Scholars (blog) Stars Stones and Scholars (book) Stonehenge Pundit The Enchanted Glass Twitter Pundit UbiquitousPundit Vision of Change VoicePundit WatchPundit Wine Pundit Word Pundit xistmz YahooPundit zistmz