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Those are points I hadn't considered, but what in the US, net exports are negative. Wouldn't that imply the converse effect to what you're describing?
by gregwtmtno 8y ago
Those are points I hadn't considered, but what in the US, net exports are negative. Wouldn't that imply the converse effect to what you're describing?
- deogeo 8y agoIt wouldn't. Say someone in the US buys something made in China - how does that increase demand for labor in the US? There's some marginal US labor required for the last part of the transport, but that's it.
- pas 8y agoThough thanks to the bigger market the prices can actually decrease, so living standards could increase, even if wages haven't.
- thfuran 8y agoOnly if they wouldn't have bought it if they hadn't moved to the US.
- ultraluminous 8y agoThee last part of the transport is not marginal in the real world. Increased local consumption drives transport, retail, marketing, etc. etc. Real life economic modeling is not a simple supply/demand, widgets made/sold chart.
- ebog 8y agoThe person pays for the good in US dollars. Where do those dollars go? The Chinese people who now have USD either spend or invest them back in the US.
- raincom 8y agoMost of the dollars go as profit for the multi nationals. The remaining (very minimal) goes to the contract manufacturers.