Wednesday, August 1, 2018

WARNING Trump Anti-Trade Advertiser Says China Trade Fight Will Be Long,

Peter "I hate trade" Navarro
Peter Navarro, the White House anti-trade adviser, said on “The Laura Ingraham Show” that Chinese predatory trade policies are so embedded in its system that an accord will prove elusive.

“Basically, China would have to revamp its entire economic model, basically, to stop being the predator that it is,” he said. “That’s why a deal with China is going to be tougher than any deal with all of these other entities.”

And then going on to display how totally ignorant Navaro is about economics, he said:

 China is the manufacturing factory floor of the world, and they heavily subsidize their goods.What they do basically is unfair, and they put Americans out of work. They put American businesses into bankruptcy.
China does not put Americans out of work. This is the lump of labor fallacy. There are always jobs. Markets clear including labor markets.

If China is subsidizing the manufacturer of their exports, this hurts Chinese taxpayers for the benefit of  U.S. consumers. Why would an American economic adviser complain about this?  It increases the U.S. standard of living.

As far as bankruptcies, the economy is always shifting to produce what is more valuable to produce. If China is providing goods at a discount, this allows businesses and workers to shift into making other product. Thus, increasing overall economic goods for Americans.