Quote:
Originally Posted by mike1498
Taxing the crap out of China will just create dead weight loss. Maybe you create a few jobs in America but less of that product will be purchased. Also, that doesn't really mean their wages will go up (especially in relation to inflation). You have to remember, we need to tax them just so our labor costs are even.
The reason why we lost jobs to China is that they are able to keep labor costs down. Taxing them doesn't mean we can all the sudden raise the wages of workers.
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Cheap labor in China existed long before our terrible trade policies were implented. We lost jobs to China as a direct result of those poor policies. We allowed them to take production from us. In fact, we incentivised it. Stupid.