Quote:
Originally posted by sebastian_dangerfield
India and China could drop all restrictions and tariffs and whatever they have in place, but that's not going to come anywhere near bridging the cost of our domestic production vs. foreign labor production. Our companies are always going to shop for the cheapest production.
And though I don't know, I'd wager China and India don't need what they get from us 1/10th as much as we need what we get from them.
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That's not true. If Japan, India, China, and the Middle East stopped stockpiling US dollars, the cost of imports from those countries would increase by like 30%, so imports from those countries would fall. Costs in Asia would increase dramatically if countries there enforced patent and copyright law, instead of allowing rampant piracy, so Asian countries had to pay for IP or invest in R&D instead of just stealing from US companies.
And 30% makes a big difference. For example, WSJ coverage says that engineers in India are now making 70% of what engineers in the US do.
