The China Deal: If You Can't Sell It, Buy It

Tom Lehman uswa12 at Lorainccc.edu
Mon May 22 06:54:26 PDT 2000


Kevin Phillips makes a few points. He even throws in British/German trade relations prior to WWI. http://www.commondreams.org/views/052100-102.htm

Michael Pollak wrote:


> On Sat, 20 May 2000, Doug Henwood wrote:
>
> > If imports keep domestic prices down, then people (those who don't
> > lose their jobs to imports, of course) have more money to spend on
> > other goods. We can argue about the relative importance of the two
> > influences - lower prices vs. job loss - but to ignore the lower price
> > angle is analytically incomplete.
>
> If I understand it correctly, the comparative advantage argument is that
> that extra money is not only spent on other things that wouldn't otherwise
> have been bought, but those things are produced by people that wouldn't
> otherwise have been employed -- so that even imports produce jobs. Do you
> and Mark agree that part's not true? If so, can you send me to a good
> critique of it?
>
> Michael
>
> __________________________________________________________________________
> Michael Pollak................New York City..............mpollak at panix.com



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