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57 sats \ 8 replies \ @Undisciplined 26 Aug 2024 \ on: Chinese Yuan Overtakes the Dollar: BRICS Drive De-Dollarization Surge econ
I suspect the US could still rug them, by dropping all these stupid sanctions.
Drop the sanctions ~ and the US car industry is dead tomorrow.
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Then that means we're wasting resources by pretending to be good at making cars. Good riddance.
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What can the USA produce today at a competitive advantage relative to other economies?
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It's still a very productive economy, there's lots of stuff that can be made in America.
Also, the way comparative advantage works, you don't really have to worry about aggregate productivity. Specialization and division of labor are almost always welfare enhancing.
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China has gutted the industrial heartland of the USA over the last 30 years because they produce things cheaper and smarter and so if you take out the auto sector now then you need to find other jobs or see even greater dislocation, unemployment and despair.
The USA is only still solvent because of its global USD hegemony enabling $35 Trillion debt- but this is not sustainable much longer.
Biggest exports from USA today are military hardware and banking services- ie death and debt.
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America is not the wealthiest nation on Earth by pure chance. It's because it is still very productive.
Now, will there be major economic adjustments because of China's growth? Sure. The nature of a market economy is constant change and adjustment. That's creative destruction.
I don't know exactly what the final result will look like, but I do know it won't be China producing everything and America producing nothing.
I think so, yes. But either The Donald nor Kalamari will do that.
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