On May 14th, President Biden raised tariffs on specific Chinese goods to: 25% on steel and aluminium 25% on lithium ion electric vehicle batteries 25% on PPE 25% on some critical minerals 25% on ship to shore cranes 50% on solar panels 50% on semiconductors
Economics Professor Michael Hudson, who grew up in a Marxist household and has a chair in Peking University in China, has some useful insights about Chinese economics. The most cogent is his observation that American labor is overpriced and has to be because of the high cost of living in America. China developed social infrastructure at such a level that Chinese workers can live well on much smaller salaries. This is because of low cost of housing, free education, access to healthcare, clean transportation, and so on. America would have to turn over its entire social system to match China's efficiency in labor. Likewise, Chinese universities graduate a multitude of engineers and physicists, while American universities' most valued degree is in business or law.
Another insight from the good professor is that when Biden speaks of "democracy versus autocracy" he is not aware that he actually means an oligarchy versus a nation strong enough to resist the financial sector of oligarchs to control an economy.
Professor Hudson's SUPERIMPERIALISM shows how the Americans have monetized international debts to cover balance of payments deficits which, until only recently, were caused by US foreign military adventures (and bases).
Finally, an insight from MMT advocate Warren Mosley who sees exports as essentially gifts, similar in essence to the 'gift economies' of antiquity. Thus, an import is an asset while an export is a liability, the reverse of what is the normal view. What neoliberal finance thinks of exports is little different from the mercantilism of past centuries.
Hudson's insights are excellent. Let's remember that those high living costs form a big chunk of the income of the US rentier elite, protected by oligopolistic corporations and bought and paid for politicians and judges. As the US elite's abilities to extract value from the rest of the world diminish it will only intensify the extraction at home, increasing the cost of living even more. Their own greed will stop them from taking the steps necessary to rebuild US productive capabilities.
With respect to exports, look at how Africa has been exploited through export agriculture while African nations lose the ability to feed themselves!
Economics Professor Michael Hudson, who grew up in a Marxist household and has a chair in Peking University in China, has some useful insights about Chinese economics. The most cogent is his observation that American labor is overpriced and has to be because of the high cost of living in America. China developed social infrastructure at such a level that Chinese workers can live well on much smaller salaries. This is because of low cost of housing, free education, access to healthcare, clean transportation, and so on. America would have to turn over its entire social system to match China's efficiency in labor. Likewise, Chinese universities graduate a multitude of engineers and physicists, while American universities' most valued degree is in business or law.
Another insight from the good professor is that when Biden speaks of "democracy versus autocracy" he is not aware that he actually means an oligarchy versus a nation strong enough to resist the financial sector of oligarchs to control an economy.
Professor Hudson's SUPERIMPERIALISM shows how the Americans have monetized international debts to cover balance of payments deficits which, until only recently, were caused by US foreign military adventures (and bases).
Finally, an insight from MMT advocate Warren Mosley who sees exports as essentially gifts, similar in essence to the 'gift economies' of antiquity. Thus, an import is an asset while an export is a liability, the reverse of what is the normal view. What neoliberal finance thinks of exports is little different from the mercantilism of past centuries.
Hudson's insights are excellent. Let's remember that those high living costs form a big chunk of the income of the US rentier elite, protected by oligopolistic corporations and bought and paid for politicians and judges. As the US elite's abilities to extract value from the rest of the world diminish it will only intensify the extraction at home, increasing the cost of living even more. Their own greed will stop them from taking the steps necessary to rebuild US productive capabilities.
With respect to exports, look at how Africa has been exploited through export agriculture while African nations lose the ability to feed themselves!
First class analysis. And love the links. Thank you!