FJ540 wrote:Something mentioned as a negative outcome (cutting us off) would be a freaking BOON for the US economy!
What would happen if the UN put sanctions on US trade? We'd in-source production of everything we needed. That's jobs folks. Lots and lots of jobs!
We'd stop exporting medical devices and prescription drugs. The rest of the world's grandma's die. Bummer![]()
We'd stop spending money on military bases and wars in other countries, as well as bribes for other countries to be nice to us (foreign aide). Big move towards balancing the budget. Why is this a bad thing again??
Certain minerals would be problematic, as they're not readily mined in the US, but life would go on.
Meanwhile, we stop exporting steel and food, and china grinds to a halt.
This ain't happening. No matter how wonderful it would be.
FJ540 wrote:Comparative advantage only applies when there's a balance between the trading partners. We have a disparity now, where too much of our work has been off-shore'd and we no longer have the wage base to continue with our domestic transactions.
While it's true, we'd have a surge in cost of many items, there would be a complimentary surge in money retained within our economy. Instead of bleeding profits to foreign workers (for them to spend in their countries, not here), that money would remain inside our borders to be spent with other domestic producers.
The largest problem our economy faces right now is the fact that so much of the wealth is held by so few people. Those uber wealthy aren't inherently wrong for amassing that wealth, but the fact they don't or cannot spend it is why there's less money for the middle and lower class to spread around. That they have it isn't the problem, it's that it's not flowing which is. Economy's only function when trade occurs. When the wealthy suck up all the money, no one's spending it and the economy suffers.
Users browsing this forum: No registered users and 24 guests