(HT: Stephen Kirchner)
If exports are so good (as mercantalists state), why don’t employees offer their labour free of charge?
Sinclair maybe you could let the US people know about this theory. Protectionism regarding China seems to be the game in town over there and happens in political rhetoric on both sides of the fence. Maybe try to point out to them that they will have another 20, maybe 50 countries to get through that can and do compete with China. My selfish person says to the US you go right ahead this will be great for the Thai economy which you have a free trade agreement with and I have investments in.
The key to happiness, however, as Micawber pointed out, is to be able to pay for those imports via your balance of trade (exports) or your huge reserves of cash or gold that you don’t know what else to do with.
How often did we hear in the past that our balance of trade deficit came about because we were “sucking in imports”.
Why do we now have a 200bn debt when five years ago we had nil, plus another 22bn in surplus?
One of the best question to ask the average protectionist dummy is simply “what is the point of exports”.
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Australia’s political class can be as opportunistic as any tabloid.