the "new normal" in the US

[Michael74]

...its going to be undercut by brazil...

Not if we have deflation. Then we will once again have competitive prices on the global market. We will once again be #1. He who sells the best products at the best prices gets the customers.

Attempting to force people to buy our products with tariffs doesn't work in the long run.

 

[jasonc]

Then we must be prepared to defend them.

n

Yes, that's it exactly. Jobs go where the dollar buys more. We need some good deflation in this country.

one dollar buys 1000000 pesos. where you are going to get cheap labor? oh mexico! or whatever nation. see its not that simple. deflation too much of it is bad.

 

[Michael74]

...where you are going to get cheap labor?...

Machines build most products nowadays. He who has the best gadgets wins.

Deflation is good. Shoppers benefit from it.

 

[jasonc]

Not if we have deflation. Then we will once again have competitive prices on the global market. We will once again be #1. He who sells the best products at the best prices gets the customers.

again, that is naïve. see my comments about what greening did and that did more to citrus then fiat ever could have. in fact so much so that in my state we cant have personal orange trees as the state will come by and remove them at no cost if they are sick. why? because any sick tree can even if miles away kill an entire grove.

a stronger dollar will not guarantee industry will come back. its not that simple. if brazil doesn't have canker, greening and what not in their citrus. they will be able to sell citrus. they don't from what I have heard but we do.

http://www.theledger.com/article/20051118/NEWS/511180432

 

[jasonc]

Machines build most products nowadays. He who has the best gadgets wins.

Deflation is good. Shoppers benefit from it.

so how does that help. cheaper land in mexico.
so that negates your position. we don't need to produce anything in America. see how things have changed? he who makes the products will benefit. it can be made stateside or foreign. cheap foreign land will be the key with plants. how does America compete with that will be interesting? land giveways?
lg is a Korean company. it means lucky goldstar. it sells a lot. phones. TV's refrigerator. yet its not made in America too my knowledge

things are not going to be the same.

 

[Michael74]

again, that is naïve.

That's not a logical thesis, it is ad hominem.

Capitalism depends on price to allocate resources to their most efficient use. Bank central planning of CPI prices prevents capitalism from working properly. We wind up with things like millions of empty McMansions, instead of the type of houses that youngsters want to buy, and can afford.

What we need is to let the free market set prices. Then capitalism will once again work properly. The trend is for free market CPI prices to improve (deflate) as productivity improves.

 

[Michael74]

...cheaper land in mexico.

We have far more land in the US, and much of it is affordably priced. No one will build a factory in downtown LA or NYC, but land is quite affordable in parts of Texas and such.

 

[Christ_empowered]

I don't think un-fettered capitalism is a good idea. Plus, its not the way other wealthy, post-industrial nations are going. Look at Europe.

 

[Michael74]

Indeed, consider Europe. They have been desperately bailing out their banks for years.