Re:China
by vkou on Wednesday November 20, 2019 @02:47PM
(#21587703)
> he price for an iPhone could go from ~850$ to ~2000$[2]. Now imagine that this happens for every good that is produced largely in China and think again if bringing back a few ten thousand jobs is worth the total loss of consumer welfare in the states.
And it wouldn't matter one whit, because 90% of the expenses of the average American aren't going into buying consumer goods.
They go into buying transportation, medicine, education, food, and housing (With the price of housing rising to consume all of the middle class's economic surplus). None of those things are made in China.
Housing is the most fun one, because no matter how much people save, the price of houses rises to eat all of those savings. The only reason for why a house can cost a million dollars, is that people have saved that amount of money up. If that money weren't there, housing prices would be lower.
And it wouldn't matter one whit, because 90% of the expenses of the average American aren't going into buying consumer goods.
They go into buying transportation, medicine, education, food, and housing (With the price of housing rising to consume all of the middle class's economic surplus). None of those things are made in China.
Housing is the most fun one, because no matter how much people save, the price of houses rises to eat all of those savings. The only reason for why a house can cost a million dollars, is that people have saved that amount of money up. If that money weren't there, housing prices would be lower.