Well said, David!Calling China a "Red Storm Rising," [Lou Dobbs] blamed the US government for allowing manufacturing jobs to go abroad and creating a "...dependency on China for our clothing, computers, consumer electronics and a host of other products..."
Mr. Dobbs is incorrect. The US is not dependent on China for these products no more than I am dependent on McDonald's for lunch. Firms choose to have their goods made there because it's cheapest and if China disappeared, we would still have them; they would just cost more.
Dependency implies the US economy is vulnerable which is why this word is so completely inappropriate for describing outsourcing. Opportunities like moving factories to China makes the US economy more resilient, not less. Options can never make a person worse off.
Wednesday, May 03, 2006
China, McDonald's and Foreign Trade
My classmate, David, writes this excellent summary of why foreign trade is good (emphasis mine):
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