| of Capitalism full force. This may shed some light on what is behind the threat. Basically, the US is considering adding tariffs to everything coming from China, or other sanctions. From other things I have read, the US government believes that the yuan is kept artificially low by the Chinese government, in order to increase trade. Trade which takes jobs away from the US economy by underselling a lot of things that are made in the US.
Looked at in another way, this could also be taken as a sign of the wealth disparity between China and the US. It's the same force that is behind offshoring going to India and Taiwan. And in a world of free trade, it is inevitable that the country that can produce goods cheaper will perform better. If goods are cheaper because workers in that country make less money, and have a lower standard of living, then it is inevitable, given free trade. Eventually, when the rest of the world catches up, the desirability of offshoring, and cheap(er) Chinese products, will cease, and the US will no longer be working under a serious handicap of high labour cost.
Ironically, it is the adoption by the rest of the world of the Capitalist ideals that is now creating equality. And for the top dog, equality must hurt. |
