Much of this may sound like a repeat, but it is still significant. That is what this blog is about.
First off, we have been in a trade war with China for over 25 years. President Trump has just called it to our attention and is doing something about it. When you hear the alarm from, so called Economists, they say that a trade war with hurt the USA and consumers. What they do not point out is that we are on a suicide mission buying more from China than we are selling to them. In the end, China will own the USA and you and me.
Next, I would like to remind you that any economy is made up of two components. Wealth produced by the exploitation of natural resources and wealth produced by value added labor. China know this and are dumping their value added products on to our markets. They don't have much in the way on natural resources compared to the size of their population. On the other hand, the USA has a lot of natural resources compared to the size of our population. Knowing this, China is putting a duty on our natural resource products. Isn't that interesting?
The amount of wealth produced per worker is much higher from the exploitation of natural resources than from value added labor. This is because there is much more competition on value added products world wide than there is from the exploitation of the world's limited natural resources. I have pointed out in prior blogs that almost 100% of the wealthiest countries have economies based on the exploitation of their natural resources.
The key point that you need to look at is the ratio between the amount and value of natural resources and their population size. That is the main reason that we do not need any more immigration which dilutes the value of our natural resources per person. Further, only a small percentage of any population has the ability to produce significant wealth by value added labor. Places like Switzerland is a special case where they tightly control the size of their population and where they have excess energy from hydro electric sources. Note that hydro electric energy is a natural resource!
In a prior blog, I pointed out that our farmers are some of the richest families in the USA and this is because they are both efficient and are exploiting our natural resource, good weather and good soil. China is not putting duties on shoes and clothing from the USA, because we can't compete with them on price now. Interesting?
PS--Notice the China is proposing duties on our natural resources, not our value added products. The only exception is Boeing which is "high" tech and our largest exporter. Remember that our farm products are actually examples of natural resource products. China buys "logs" from Washington state, but not milled lumber. They can mill the logs into lumber cheaper than we can. Saw mills in Washington state have been closing down for years. Pork is another product based on natural resources. Growing pigs is almost 100% automated so that the labor based value added component is very small. China has proposed a duty on pork imports because they can compete with our 100% automation with their cheap labor. Keep watching and you will see that I am right!
First off, we have been in a trade war with China for over 25 years. President Trump has just called it to our attention and is doing something about it. When you hear the alarm from, so called Economists, they say that a trade war with hurt the USA and consumers. What they do not point out is that we are on a suicide mission buying more from China than we are selling to them. In the end, China will own the USA and you and me.
Next, I would like to remind you that any economy is made up of two components. Wealth produced by the exploitation of natural resources and wealth produced by value added labor. China know this and are dumping their value added products on to our markets. They don't have much in the way on natural resources compared to the size of their population. On the other hand, the USA has a lot of natural resources compared to the size of our population. Knowing this, China is putting a duty on our natural resource products. Isn't that interesting?
The amount of wealth produced per worker is much higher from the exploitation of natural resources than from value added labor. This is because there is much more competition on value added products world wide than there is from the exploitation of the world's limited natural resources. I have pointed out in prior blogs that almost 100% of the wealthiest countries have economies based on the exploitation of their natural resources.
The key point that you need to look at is the ratio between the amount and value of natural resources and their population size. That is the main reason that we do not need any more immigration which dilutes the value of our natural resources per person. Further, only a small percentage of any population has the ability to produce significant wealth by value added labor. Places like Switzerland is a special case where they tightly control the size of their population and where they have excess energy from hydro electric sources. Note that hydro electric energy is a natural resource!
In a prior blog, I pointed out that our farmers are some of the richest families in the USA and this is because they are both efficient and are exploiting our natural resource, good weather and good soil. China is not putting duties on shoes and clothing from the USA, because we can't compete with them on price now. Interesting?
PS--Notice the China is proposing duties on our natural resources, not our value added products. The only exception is Boeing which is "high" tech and our largest exporter. Remember that our farm products are actually examples of natural resource products. China buys "logs" from Washington state, but not milled lumber. They can mill the logs into lumber cheaper than we can. Saw mills in Washington state have been closing down for years. Pork is another product based on natural resources. Growing pigs is almost 100% automated so that the labor based value added component is very small. China has proposed a duty on pork imports because they can compete with our 100% automation with their cheap labor. Keep watching and you will see that I am right!
