Here’s a letter that I sent this morning to the Washington Post:
Harold Meyerson is confused about U.S. trade with China (“A marriage made in China,” Nov. 18).
As incontrovertible evidence that American exporters and producers are harmed by U.S.-China trade, he points to the fact that, since the 1998 agreement that normalized trade between the two countries, America’s trade deficit with China has grown. Indeed it has grown, in absolute terms.
Sincerely,
Donald J. Boudreaux
* I adjusted these figures for inflation with the calculator found here.
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The trend of U.S. trade deficits with China has grown from -68.7 billion dollars in 1999 to -266.3 billion in 2008 as shown by the charts referenced. China accounts for 58% of the goods deficits for the U.S. currently.
Trade has grown in absolute terms but the “inbalance” in the yearly trade figures between the two countries is growing by stunning numbers.
Intellectual property products are now 55% of U.S. exports according to the U.S. Chamber of Commerce BUT it is extimated that over 80% of business software in use in China is pirated and that 90% of movie and music dvds are pirated. The ability to steal what would otherwise be an area of export growth to China is not going to lessen the continually rising merchandise trade deficit for the U.S.
The shock to wage earning capacity of U.S. workers will be a hindrance to the capacity of the U.S. to promote freedom for capitalism around the world.
In America, you watch television. In Soviet Russia, television watches you!”-Yakov Smirnoff
“Amercian Express, don’t leave home without it. Soviet Russian Express, don’t leave home.”Yakov Smirnoff, The Comedy Club, Hollywood, USA
“Amercian Express, don’t leave home without it. Soviet Russian Express, don’t leave home.”Yakov Smirnoff, The Comedy Club, Hollywood, USA
In America, you watch television. In Soviet Russia, television watches you!”-Yakov Smirnoff
The trend of U.S. trade deficits with China has grown from -68.7 billion dollars in 1999 to -266.3 billion in 2008 as shown by the charts referenced. China accounts for 58% of the goods deficits for the U.S. currently.
Trade has grown in absolute terms but the “inbalance” in the yearly trade figures between the two countries is growing by stunning numbers.
Intellectual property products are now 55% of U.S. exports according to the U.S. Chamber of Commerce BUT it is extimated that over 80% of business software in use in China is pirated and that 90% of movie and music dvds are pirated. The ability to steal what would otherwise be an area of export growth to China is not going to lessen the continually rising merchandise trade deficit for the U.S.
The shock to wage earning capacity of U.S. workers will be a hindrance to the capacity of the U.S. to promote freedom for capitalism around the world.
Haha! You sent two in response to one article? That would be hilarious if they printed them both one after the other. It would really drive home the point that Meyerson’s articles are so full of fallacies, you can’t fit a full rebuttal within the Washington Post’s word limit.
This absolute dollars vs. intelligible rates is a horrible, horrible problem with journalists and pundits. And it works like clockwork. When a Republican is in office conservatives report debt as a percent of GDP and liberals report absolute debt. When a Democrat moves in it flips – conservatives start using scary numbers that end in “-illions”, and Democrats start talking in percents. Since most journalism is about leaving an impression, rather than actual analysis it can be very effective.
Another rate/absolute comparison I hate is when people try to argue that the Bush tax cuts were a “gift to the rich” because the richest X% got the lionshare of the benefits. Don’t get me wrong – I’m in the group that agrees that the tax cuts were irresponsible, but the fact that they’re irresponsible doesn’t translate into them being a gift to the rich.
I’d be all right with percents with the current administration. There’s no way that you could sell me that growth in debt and deficit that has occurred in the past year is responsible.
Usually, conservatives flip to “-illions” when a new letters are added to the front of that. When we’ve been talking about deficits in the hundreds of billions for years, a trillion dollar deficit does have some dramatic effect. One would hope it would be enough to wake the walking dead in the U.S. out of their zombie-like “change” stupor. Btw…A friend send this to me the other day. Explains where the whole “Change” thing came from:
http://bighollywood.breitbart.com/mpatterson/2009/11/14/obama-the-woody-boyd-candidate/
Right – and at least once you’re talking in percentages then we can put that to the side and argue about whether those percentages are responsible or not. Obviously I think it would be irresponsible NOT to run these deficits. But whether the debt burden is “unprecedented”, etc. etc. – can no more be discussed in absolute terms than Meyers can discuss trade in absolute terms.
Right – and at least once you’re talking in percentages then we can put that to the side and argue about whether those percentages are responsible or not. Obviously I think it would be irresponsible NOT to run these deficits. But whether the debt burden is “unprecedented”, etc. etc. – can no more be discussed in absolute terms than Meyers can discuss trade in absolute terms.
“Obviously I think it would be irresponsible NOT to run these deficits.”
That’s funny. To me, you might as well say slavery works in some cases and it would be irresponsible not to allow it.
“Obviously I think it would be irresponsible NOT to run these deficits.”
That’s funny. To me, you might as well say slavery works in some cases and it would be irresponsible not to allow it.
Trust me – you sound just as goofy
Trust me – you sound just as goofy
I’d be all right with percents with the current administration. There’s no way that you could sell me that growth in debt and deficit that has occurred in the past year is responsible.
Usually, conservatives flip to “-illions” when a new letters are added to the front of that. When we’ve been talking about deficits in the hundreds of billions for years, a trillion dollar deficit does have some dramatic effect. One would hope it would be enough to wake the walking dead in the U.S. out of their zombie-like “change” stupor. Btw…A friend send this to me the other day. Explains where the whole “Change” thing came from:
http://bighollywood.breitbart.com/mpatterson/2009/11/14/obama-the-woody-boyd-candidate/
Haha! You sent two in response to one article? That would be hilarious if they printed them both one after the other. It would really drive home the point that Meyerson’s articles are so full of fallacies, you can’t fit a full rebuttal within the Washington Post’s word limit.
This absolute dollars vs. intelligible rates is a horrible, horrible problem with journalists and pundits. And it works like clockwork. When a Republican is in office conservatives report debt as a percent of GDP and liberals report absolute debt. When a Democrat moves in it flips – conservatives start using scary numbers that end in “-illions”, and Democrats start talking in percents. Since most journalism is about leaving an impression, rather than actual analysis it can be very effective.
Another rate/absolute comparison I hate is when people try to argue that the Bush tax cuts were a “gift to the rich” because the richest X% got the lionshare of the benefits. Don’t get me wrong – I’m in the group that agrees that the tax cuts were irresponsible, but the fact that they’re irresponsible doesn’t translate into them being a gift to the rich.
one of the US’s big exports has been government debt, in which the Chinese have entrusted a trillion dollars.Suckers!I wonder which trading partner should feel more aggrieved
one of the US’s big exports has been government debt, in which the Chinese have entrusted a trillion dollars.Suckers!I wonder which trading partner should feel more aggrieved
This is another fact that I did not know because the MSM will not report it. Another reason I have recommended your blog to others.
Thanks