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It's not that I'm blaming China as much as I'm trying to explain the mechanics. Of course US consumers and corporations chose to take the path of immediate gra
by 01100011 3y ago
It's not that I'm blaming China as much as I'm trying to explain the mechanics. Of course US consumers and corporations chose to take the path of immediate gratification, leading to the hollowing out of the American working class and mfg base. But it also led to decades of low inflation, a soaring bond market, and increased standard of living for Americans overall(even though some classes, like blue collar workers(particularly men) suffered).
- karmakurtisaani 3y agoHow I'm reading your comment in the context of the topic is that if the US hadn't been involved in a costly war effort, they could have perhaps countered the moves China made by allocating trillions to support their own industry. They might not have, but at least it would have been possible without the war.
- 01100011 3y agoI don't fully understand all the dynamics, but you run into the https://en.wikipedia.org/wiki/Triffin_dilemma https://en.wikipedia.org/wiki/Triffin_dilemma if you want to be the world's reserve currency while simultaneously possessing a competitive manufacturing and exporting sector. So even if the US hadn't been involved in the war, its industry would have been hamstrung and unable to compete effectively due to a strong dollar.