China Ends Subsidies. Will It Help?

In Five Short Blasts, I made the point that it’s imperative that the U.S. take actions that are within our control to make a difference in the trade deficit, and not rely on the promises of other countries.  Here’s a perfect example:

http://www.usatoday.com/money/economy/trade/2007-11-29-china-tariffs_N.htm

It’s reliance on these kinds of promises that has kept our trade deficit soaring for over three decades.  Everyone gets excited that a major concession has been made and that now we’ll be able to restore some balance to the trade picture.  It won’t happen!  Such concessions don’t address the root cause of the trade imbalance – the huge disparity in population density between the U.S. and China.  I’ve seen this happen at least a hundred times in the last thirty years and our deficit only gets worse.  The Chinese are probably rolling in the aisles with laughter at the naivete of our trade negotiators.

Pete

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: