What would happen if the world opened its markets to US products?
What would happen if the world opened its markets to US products?
The average wages in India and China have the vast majority of their respective populations living in abject poverty by US standards. Health care is a joke. Indoor plumbing is a luxury, and upscale personal transportation consists of a good pair of shoes. Mexico is better off, but compared to U.S. living standards, still very primitive.
Meanwhile we have politicians claiming that these countries are refusing to open their markets to us. To that, I say "So what?"
How many dishwashers could we sell to a people that doesn't have indoor plumbing? How many cars would be imported by a country where a gallon of gasoline is priced higher than a day's pay? How many passenger jets could we sell to a country whose citizens can't afford a taxi to the airport, much less an airline ticket?
The prevalence of a cheap labor policy inherently creates a trade barrier, even if no overt or subtle government trade barriers were in place. By keeping its citizens poor, the country guarantees a trade surplus.
So, what would happen if the world opened its markets to US products?
Not a damn thing.
TD
- Taxidriver's blog
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