[Vision2020] Dispel the anti-growth myth

[Andreas Schou]

Jeff --

Which is to say that you support taking advantage of market
inefficiencies, so long as those market inefficiencies benefit capital
over labor?

-- ACS

On 10/30/07, Jeff Harkins <jeffh at moscow.com> wrote:
> Andreas,
>
> Interesting question.
>
> I don't.  But I also know that the best long term strategy for
> addressing protectionism schemes is to offer relatively unfettered
> free markets, including parity in foreign exchange currencies.
>
> Many Americans don't know this, but we did effectively the same thing
> with US currency (gold standard) by setting the US currency to a
> fixed gold exchange price of  $32 per ounce.  We learned, the hard
> way, that that type of economic policy doesn't work.
>
> Free floating exchange rates (without fixed parity) is the de facto
> standard for international trade.  Sooner or later the Chinese will
> realize that and their currency policy will change.  Further more,
> the international currency traders will arbitrage any gains or losses
> in the Yuan.  It is tough to move from controlled markets to free
> markets - incentives and wealth shifts have to be carefully
> cultivated.  The Soviets have experience with this as well.  I am
> guessing that China's foreign currency exchange policy is in part an
> attempt to alleviate some of the anomalies that arise when moving
> from a controlled economy to a free economy.
>
> Cheers
>
> At 09:03 AM 10/30/2007, you wrote:
> >Jeff --
> >
> >With regard to protectionism--you *are* aware that China's peg of the
> >yuan to the dollar gives them a substantial export advantage? And
> >undervalues their currency by roughly  35%?
> >
> >Why is it that you support foreign protectionism?
> >
> >-- ACS
> >
> >On 10/30/07, Jeff Harkins <jeffh at moscow.com> wrote:
> > > Oh BJ,
> > >
> > > You're fishing for a response huh.
> > >
> > > My record on advocating economic development for Moscow through
> > > exports is well established.  But unlike you, so is my record on
> > free markets.
> > >
> > > The Chinese have every right to compete with us.  Fortunately, the US
> > > government (and many of our trading partners) have used "market
> > > access" to begin to address Chinese human rights issues, pollution
> > > and a host of other problems). From what I am seeing with Chinese
> > > students in the classroom, that policy is having significant
> > > effect.  And so, they are becoming a part of the world stage.  They
> > > are hosting international golf tournaments, world class events (FIFA
> > > soccer) and so forth - .  But why would you target only China.  There
> > > are a lot of low cost producers out there in the world and many of
> > > them are causing the transfer of jobs to their country.  Many US
> > > firms have moved their production facilities to Mexico.  Would you
> > > ban them as well?
> > >
> > > WalMart is a US based corporation.  You want to control them - and
> > > let's suppose you do.  Who's next?  What US company would you target
> > > next?  What country of origin is next on your list?  Where does it
> > > end for you?
> > >
> > > And WalMart and any other store or business has the right to purchase
> > > Chinese goods for sale in the US.  You might want to walk around the
> > > retail stores in Moscow and look to see how many of them carry goods
> > > imported from China as well as other foreign imports.  Why don't you
> > > use your powers of persuasion to convince those stores to carry only
> > > products that you believe they should carry.
> > >
> > > Protectionism simply doesn't work.  The correct path is competition -
> > > level playing field or not, I bet on the talents of US businesses, US
> > > education and US employees.
> > >
> > > Oh - I have not observed anyone making a claim that the "dark store
> > > ordinance" was involved.  The only reference was to a "dark
> > > store"  which I think everyone will recognize - it was dark.
> > >
> > > At 12:20 AM 10/30/2007, you wrote:
> > > >It's always amazing to hear the same people who want a Wal-Mart
> > Super Store
> > > >also say that Moscow should
> > > >
> > > >  "...attract businesses that produce goods and/or services for export and
> > > >pay good wages."
> > > >
> > > >Do they not understand that Wal-Mart's practice of importing
> > most goods from
> > > >China has resulted in the loss of 4 million+ manufacturing jobs in the US?
> > > >
> > > >Also, for those who think the Dark Store Ordinance is so bad, the old
> > > >Tidyman's is not big enough to be considered a Dark Store.
> > > >
> > > >B. J. Swanson
> > > >
> > > >
> > > >
> > > >=======================================================
> > > >  List services made available by First Step Internet,
> > > >  serving the communities of the Palouse since 1994.
> > > >                http://www.fsr.net
> > > >           mailto:Vision2020 at moscow.com
> > > >=======================================================
> > >
> > > =======================================================
> > >  List services made available by First Step Internet,
> > >  serving the communities of the Palouse since 1994.
> > >                http://www.fsr.net
> > >           mailto:Vision2020 at moscow.com
> > > =======================================================
> > >
>
>