The US economy has become so "financialized" that there is little or no connection between the profits of Wall Street speculators and domestic production of material (or intellectual) goods and services. "Finance" used to exist in order to pay for production. In a global market where production is outsourced overseas, US finance is a stand-alone entity where a very small number of people make a lot of money by moving paper around (i.e. futures trading, shorting currencies) with no economic growth in any other sector.
One of those fallacies, discussed in the article, is the dishonest claim that speculator profits translate into economic growth in other areas.
Other fallacies include:
1. The claim that due to "relative advantage," free trade enriches all countries. The relative advantage argument assumes that capital remains in each country, when in a modern globalized economy it does not. Rather than relative advantage, wind up with a net flow of investment capital from a country with expensive labor to one with cheap labor.
2. Free Traders claim that tariffs invariably make goods and services more expensive. Their arguments are correct in the (very) short term, but then they go on to claim that those prices are permanent because apparently they've never heard (or don't want you to hear about) liquidity and elasticity in supply and demand. If import shortages raise prices due to increased demand, domestic production will increase to raise that demand and bring prices back to an equilibrium. Free traders assume that the increased demand can never be met domestically.
3. Free Traders claim that tariffs cause economic depressions and impoverish nations. That would be news to Americans during most of the 19th and early 20th century, when tariffs were high by today's standards and economic growth was unprecedented.
4. Free traders like to pretend that the whole world except for Trump and his supporters reject tariffs. The fact is the most other nations have protectionist policies, if not through tariffs, then through various regulations that favor domestic production.
From the article:
An example of a fallacy of false choice you might find familiar:
Corporate outsourcing is due to manufacturers looking for cheap labor; AND also, job losses are due to automation. See the problem?
If automation replaces labor, then why move the manufacturing process? The argument doesnt add up. Confused? Dont worry, youre supposed to be.
The idea that they are somehow at odds is laughable. Sundance usually does better than this.
The push to reduce costs is always there. But cheap labor costs overseas and increasing labor costs in the U.S. both create pressures to move where there is cheap labor and/or to automate.
sounds like bradman has quietly abondoned his theory that North Korea summit is meaningless because NK totally controlled by China trade issues.
To witness the largest transfer of Capital Stock in the history of mankind, and not see it, makes one a fool.
We need to see a few Free Traitors burned at the stake to facilitate a quick change a of heart on the matter.
Jonah Goldmansachsberg is an idiot. Chis Wallass is liberal globalist hack.