So you are arguing protectionism Gillip? As in ban Chinese products or put severely restrictive tariffs on Chinese imports for example?
What are the consequences of such actions?
And you understand that in the US we also have to deal with the reserve currency issues that a country such as Sweden doesn't, right?
Do you understand how that affects manufacturing in the US?
Because US dollars must flow out of the US so that other nations can do business as markets are all denominated in dollars. This puts two conflicting interests against each other in the US.
On one hand, we want our money and business to be in the US, the domestic side of the equation.
On the other hand, because of the reserve currency status, every other nation on earth requires US dollars and to get them they must produce something to sell to the US. The international pressures are trying to pull dollars out, and domestic pressures are trying to keep the dollars in.
Thus, the reason it's called the Triffin dilemma or also known as the Triffin Paradox. Those two competing interests have the effect of making manufacturing in the US much more costly in the US.
Let's say we move all the shoe factories from everywhere else in the world back to the US and virtually everything else that the US used to produce, what effect would that have on the rest of the world?
They couldn't buy US products because they'd have no US dollars because they couldn't produce anything to sell to US consumers to acquire those dollars. In order for what you are saying to function the US would have to give up her reserve currency status, and what are the implications with that?
Not to mention, if Sweden didn't get those US dollars it wouldn't matter how educated your workforce was because there would be no factories there. Even if there were they couldn't sell to the US because we'd be buying our own products and Sweden would have a shortage of US dollars to buy anything. Your high educated work force would have to move to the US to find jobs.
gillip wrote:1) How would it not benefit the U.S to produce it's own things? Especially when unemployment is high.
What's the trade off? So the US produces it's own things, what happens to all the other countries that were producing those things? What are their workers going to do?
gillip wrote:2) Why would it be admirable to open your market and compete with a nation that treats it's citizens poorly?
Treat it's citizens poorly? That's kind of a subjective thing don't you think? In the US someone might be- "$2 an hour? That's insane! That's slave labor!" would be the thinking, but there are countries where people would be happy with that.
You seem to be arguing against all free trade, which is OK, but what is the alternative and what problems does that cause?
The world went through it's mercantile and protectionist phases, and compared to the way trade is conducted in modern times, such forms of trade are relatively barbaric by today's standards. Such things actually caused shooting wars in the past, and would do so again.
If such concern for the people and how they are treated in other countries, why is it a good course of action to do things that will just get all those people you are concerned about to lose their jobs, despite how low paying you deem them to be? How does that help those people by taking their work away?
Do you see any
negative consequences in such a line of action?