Trade deficit: How to beat China and other exporters

It is known that the U.S. has a very large trade deficit with China.  It appears to concern many.  But there is a perfect solution.  I have heard rumors :-) that Chinese labor is no longer as cheap as it used to be.  China has been a successful exporter, it has been growing, standards of living have been rising and so have the wages.  Now, companies start hunting for cheaper labor in other parts of the world (this is assuming that they are hunting the cheaper labor because skilled workers naturally cost more).  The solution is to stop worrying about beating China in export war, let it export away, which will raise standards of living and cost of labor in China even further, and maybe one day American labor will even become cheaper than the Chinese — well, anyway, theoretically speaking.  A little humor will do, as I do not really believe in wholesomeness of Chinese government that much.  At least not today.   // *

++++ Please see links in comment provided by Andrey.  These are an excellent edition to this topic.

2 Responses

    • *

      Very true, and these are some excellent links. Thanks! // *

      July 31, 2012 at 2:28 pm

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