That undervaluation is actually raping/stealing from the Chinese, Koreans and Japanese. What America is getting is imports at 50%, 25%, and 15% discounts while exporting inflationary pressures to those countries. It’s a good deal and trade without duress is always beneficial.
Blocking trade hurts people and diminishes wealth.
Great example and worth the minute:
https://www.youtube.com/watch?v=8PL9yH-7vec
So when do we get a lecture on how great the H-1b visa program is and how it is better to pay income taxes than tariffs/sales (consumption based) taxes?
No, it protects their home markets from competition and allows them to make most of the profits to be made in their home nation and then make even more profits exporting to the US, plus they have the jobs that were lured away from the US with cheap labor and lax regulation.
Have you ever heard of marginal contribution?
Every tariff reduction should include a corresponding reduction in internal regulation/taxes to match the corresponding trade country or require that the corresponding country increase their regulation/taxes to match - otherwise it is not “free” trade.
I agree. Every nation is on the race to devalue. The problem in the US is the dollar is on a tear and won’t be stopped. In any case, the whole protectionist game is one that never ends. Country A enacts legislation to give them a political advantage on trade in certain goods, so Country B retaliates in in other goods. It’s a fool game IMVHO.
The one exception for me is China, whom I believe really do cheat at the behest of our own government. Their goods are imported with CHINESE quality and safety standards while our manufactures must meet more stringent regulation. Not to mention corporate espionage conducted by China.
Blocking trade hurts people and diminishes wealth.
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Stealing peoples jobs, and lowering their pay, exporting our industry and creating bigger and bigger trade deficits is what NAFTA did. This new deal will be THE MOTHER OF ALL NAFTAs.