Yes it is a tariff. I gave this a lot of thought a …

• Tags: China, Money, Politics, Rankings, Statistics, Taxes, USA
  

Comment on Look Who Owns The USA… by Red Comet:

Yes it is a tariff.
I gave this a lot of thought a 10% VAT on all transactions would be a bad idea.
It would negatively impact the sell of durable goods.
If you made VAT on everything including necessities like fuel and food it might even cause riots and justly so.
But making imports of trash from China a little more expensive would not harm the economy.
So some guy has to buy $40 vs 35 dollar for a DVD player he would not even complain.

It also would level the playing field with other countries who choose to actually try to follow environmental protection and human rights laws.
China does things that would not even float in Mexico or Vietnam etc.
Such as making people work 80 hours a week for $12 a day and live under conditions that would be illegal even for prisoners in the first world.

A lot of assembly jobs would move to near by Mexico to avoid the carbon and human rights abuse tax.

This would be good for the US by helping immigration and the Mexican factories would buy chemicals and microchips made in the US helping the US industrial economy.
Some may even move to automation and be inside the US.

To be fair I would allow a Chinese company to wave the human rights abuse tax if the factory can be toured and it shown the workers are given fair pay ,work reasonable hours, and are provided proper home.
Another requirement it must be privately owned vs state owned.

The biggest loser from China’s dominance of manufacturing was not the US but the rest of the developing world.

Red Comet made other comments on this post:

• Look Who Owns The USA…:
  

  @ Anon 3:00 Germany and Japan are partly why I say energy must be cheap for a healthy economy their economies are in worse shape then the US’s. Efficiency can’t answer all the problems some things such as freight trains are already getting close to maximum Carnot efficiency. Then there’s the diminishing returns with increased complexity. A Prius does not get much better mileage then a Geo Metro or VW diesel which is less complex. In fact under some conditions it’s actually worse. Any engineer …

• Look Who Owns The USA…:
  

  I’ll give you a politician hogtied with a bow.

• Look Who Owns The USA…:
  

  The Treaty of Versailles specifically Article 231 planted the seeds for WWII.

• Look Who Owns The USA…:
  

  I take it you failed history class. What happens is the government gets deposed , the old monetary system abandoned and those who held the debt just have to eat the losses. This could be good or this could be bad. Mexico defaulted on their debt numerous times and installed a new government each time. Napoleon tried to collect on the debt anyway and invaded Mexico. http://en.wikipedia.org/wiki/French_intervention_in_Mexico All this really did was help contribute to the fall of his regime. In the …

• Look Who Owns The USA…:
  

  I meant GDP.

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