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Read the NYT piece again: it cites evidence the trade deficit is a major problem. Of course, since accepting this means admitting that Trump is correct on trade
by blusterXY 10y ago
Read the NYT piece again: it cites evidence the trade deficit is a major problem. Of course, since accepting this means admitting that Trump is correct on trade, the authors immediately write-off the evidence by insisting that these jobs would eventually disappear anyway. So can we really blame China?
Unfortunately, the problem is not about keeping any particular job so much as keeping the American economy vibrant enough to create new jobs as the old ones disappear. This requires the economy to operate at full employment, which requires adequate aggregate demand, which requires... well... there's your problem with the massive trade deficit and Chinese protectionism. Put more simply, if the Chinese were purchasing as much from the United States as they were selling into it, there would be a lot more job opportunities in the industries selling to China. Those would drive up wages and create competition to hire those newly unemployed.
Incidentally, it is worth remarking on the fact that China is going through the same pattern of automation and labor dislocation as the United States. The country also has an endemic problem with rent-capture and corruption that works against an efficient private sector. Despite this, the economy is doing much better at job creation largely because of the country's mercantilism: its politically engineered trade surplus ensures adequate demand in the southern export-oriented parts of the economy, while state control of the financial sector serves to redistributes gains from trade to the SOE sector etc.