Gary North Article

by chumchingee

Your thoughts are valid. They do not explain the entire problem.
But you are dealing with a playing field with different rules of commerce.
Let us say a widget costs $20 here. The same widget costs $2 in Taiwan. 
It costs $5 in Korea. $10 in Japan. $25 dollars in Germany. No one here can
compete with anyone but Germany.
Now a country decides its main export is labor. It keeps its currency
artificially below everyone else so the widget now costs $1. Even with
transportation costs, the widget is under $5 here. This country can do this
because they are dealing with slave labor which is basically wrong. 
The playing field there is not the playing field here. They do not deal with
the same commerce rules we deal with here.
Using the world's largest slave labor population they are out to bankrupt
every nation that trades with them. It is open warfare against economies.
Tariffs were the solution in the 1800s to the 1950s. You simply keep the
trade out. I don't know what the solution to this problem is. We are now
hooked on slave labor goods from India and China. This has caused a national
economic problem of huge proportions. When the ax falls it will bankrupt
this country.
That was the solution China sought as far back as 50 years ago. It works.
The one thing that local industry did well back in the 1950s was to insulate
us from currency fluctuations. If products are produced locally in this
country, the entire economic picture is more like what you describe. When
currencies are equal in value and product prices are fairly equal in value
then competition is the way to go and the loser is the one that does not
compete. I trust the baker, farmer, and other industries locally produced.
They are on an equal playing field. The only thing I trust about slave labor
warfare is that it is not there for my good. Yet most of the goods moving
through places like WalMart are "Made in China."
The fallacy is the entire economy will go south and bankrupt when the
currency fluctuates.