joseph gresham
Jun 11 · 2 min read

Well first even if automation did not cause the job loss then it doesn’t mean that it wouldn’t have caused the job loss without trade. Let me explain what I mean. If wages are too high then obviously companies want to outsource. However wouldn’t they also want to automate? If they can’t do one surely they would try the other?

As for your three points. The first one I’m sorry to say is mildly naive. How many countries have a trade deficit with the US and how many of them complain about it. China I believe has a trade deficit with Vietnam. I haven’t heard the CPC complain about it. Also the deficit doesn’t take the flow of capital into consideration. If they export more to us but they also invest a lot in the country then surely the latter would do quite a bit to amend the damage of the former.

As for the second point I believe it was to do with depreciation of the currency. I don’t quite know what the problem here is. I remember Italy used to do that quite a bit when their economy was doing well. As for subsidies, what is America‘s problems with subsidies? The EU has subsidies as do Russia and I think Canada as well.

As for the third point there are quiet a few arguments against it but you mentioned them already. So I will just add my own opinion: if you do business without informing yourself on IP laws of a country then you pay the price for ignorance. If you do business in a country knowing the bad IP laws then you pay the price for stupidity or naivety at best.

Personally I am pragmatist not some kind of free market moralist. If a certain economic policy works then we should do it. My problem with the Tarifs is I believe they will backfire.

An interesting article though.

Thank you

    joseph gresham

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