CNBC reports that a Chinese State-Controlled newspaper has warned that if America starts putting tariffs on Chinese goods, that it will cancel American Boeing plane orders and replace them with European Airbus planes.
So in this example of capitalism, Europe sells planes. America doesn’t. Because all the countries in the world are competing with each other.
The article went on to say: “‘But the Chinese newspaper was not convinced Trump would go through with his suggestion, calling it “‘merely campaign rhetoric'” and questioning its legal validity.”
3 Observations About This Story
- Why wasn’t the U.S. media using this kind of example during election coverage? Instead we had talking heads debating email servers. We know part of the answer: many American political reporters don’t really know how business works… other than they need ratings to make money.
- The politicians didn’t exactly help either. On both sides of the aisle the candidates spoke out against free trade. Guess we’ll find out in 2017 whether it was rhetoric. Now before you get mad, remember the reason you can afford a computer in your pocket and a device that projects Christmas lasers on your house is because it was made in a country with a comparative advantage making those items.
- The good news, is we have a solution! Less partisan surrogates in the media, and more experts explaining how stuff actually works. We think the right place for surrogates is in Arrested Development. Bring back Larry Middleman, and have some professors explain capitalism to him. He will deliver the details to you in an entertaining way. Win-win!