"Paul Hovnanian P.E." wrote in message
diainc...
Ed Huntress wrote:

[snip]

Here's something that seems to surprise everyone: US manufacturing output
lies between 2.2 and 2.5 times that of China.

We just see a lot of Chinese goods because they cater to the low price/low
cost end of the market. The US excels at building the sorts of things that
Caterpillar and Boeing make. But not things like vice grips.

Very true. Actually, the US excels at making vise grips, too, but not at a
competitive price. If China succeeds in getting its domestic consumption up
to "normal" rates, the balance of trade could come much closer to balance.

Not that "balance" is the holy grail, either. The idea should be to
encourage our own economic growth. That's what the Chinese are doing, with
exports, so it's a tricky job to keep things on a path that benefits both.

A negative balance of trade is not necessarily a bad thing. Declining
employment is a bad thing. One does not necessarily follow the other,
especially in the medium- and long-term.

--
Ed Huntress