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| Yes, China has an enormous population of cheap labor while we have a much smaller population of expensive labor, a population by the way which has stagnant growth. The way to win this competition is to allow the Chinese population to become prosperous enough to buy enough of the things that we can produce efficiently.
They have 1.3 billion people, we have some 320 million. On a per capita basis we only need to sell them a quarter of what we buy and trade will be balanced. At the moment we're selling them $115 per capita and buying $2031 per capita.
One of the irony's of the trump tax cut is that it inadvertently made it possible for the upper middle class to buy a lot more imports from China. If trump really wanted to stop people from buying from China, he should pay down the national debt. | |
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Thanksgiving dinner review of soybean tariffs from a macro commodity hedger
