Attention Economy


Friday, April 6, 2018

International Political Economy and Trade Wars

U.S. Needs China More Than China Needs the U.S.

Trade Wars in a Winner-Take-All World

High Tariffs on Chinese Imports Would Weaken America

Nobel Laureate Paul Krugman on US-China Trade Squabble

Nobel Laureate Joeseph Stiglitz notes:
“Even if Trump had no economists advising him, he would have to realize that what matters is the multilateral trade deficit, not bilateral trade deficits with any one country. Reducing imports from China will not create jobs in the US. Rather, it will increase prices for ordinary Americans and create jobs in Bangladesh, Vietnam, or any other country that steps in to replace the imports that previously came from China. In the few instances where manufacturing does return to the US, it will probably not create jobs in the old Rust Belt. Instead, the goods are likely to be produced by robots, which are as likely to be located in high-tech centers as elsewhere.”