Tuesday, January 18, 2011

What US Needs to Compete With China And Rebuild Middle Class

An article in the NY Times, “For Chinese Leader’s Visit, U.S. to Take a Bolder Tack” this morning (January 18, 2011) says, “President Hu Jintao of China is coming to town Tuesday, and American officials say President Obama will be taking a far more assertive stance as he greets his biggest global economic rival.”

Right. Based on historical precedents in the ongoing colonization of the US by China, it is clear that nothing positive will come out of this meeting.

If Mr. Obama were serious, he would loudly clamor for this:
  • A Value Added Tax, like every non-colonized industrial state has. A VAT promotes exports, discourages imports, discourages offshoring of corporate profits, and encourages domestic saving.
  • Impose tariffs on Chinese goods that are manufactured under conditions that do not meet our environmental and labor health and safety standards.
  • Impose tariffs on Chinese goods that receive government subsidies that confer a comparative advantage to Chinese manufactured goods (almost all of them).
  • And for good measure, eliminate US subsidies for fossil fuel suppliers, and grant more subsidies for a sustainable future with a real middle class: let’s subsidize our renewable energy industry just like China does, and create millions of well-paid, union jobs for Americans.
read more: free trade

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