4 thoughts on “How much longer can the global trading system last? | Michael Pettis

  1. […] How much longer can the global trading system last? | Michael Pettis […]

  2. […] How much longer can the global trading system last? | Michael Pettis […]

  3. frankaquin0 says:

    Pettis… [correctly in my opinion] argues that the costs to the US already outweigh the benefits.
    This just means (in part) that the US companies that transferred their jobs overseas gambled the US’s economy and lost; but they didn’t gamble their own money. They argued that job transfer would (presumably by divine intervention) make the US wealthier, all the while knowing it would simply make themselves wealthier by enjoying near-slave labour costs and not having to pay tax in the US (or anywhere really). The notion that wealthy companies make a wealthy economy only holds true if the wealth flows down through employment or taxation. Just living in a town of billionaires doesn’t make you rich.
    In other words the US isn’t the world’s shock absorber anymore because it can’t afford to be.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s