John Stossel & Lou Dobbs - American Free Trade

As Stossel and Dobbs discuss the meaning of free trade, Lou gets schooled in the distinction between a spending deficit and a trade deficit. http://www.LibertyPen.com

Category:

News & Politics

Tags:

• economics
• debt
• deficit
• liberty
• government
• market
• conservative
• China
• protectionism
• libertarian
• subsidies
• manufacturing
• in

[Runesocesius]

I think it's odd how he wrote a book on the subject and wasn't aware of the basic principle of the issue. It's like writting a book on chess and not knowing the bishop moves diagonally.

[eagleeye1975]

What Lou is not understanding here is that every dollar that flows OUT of our economy causes each dollar that stays IN to be worth more in that time. Those dollars WILL find their way back to us, because after all, they have no value to anyone else BUT us. If China has so many of our dollars, they can trade them to Japan, or Australia, but eventually, ALL of those dollars have to find their way back to our shores.

[FSUSW15009]

@eagleeye1975 What you and the clods on the panel don't understand is that china buys T-bills, assets, and financial products with most of the money. This equates to making money with money. Where does the money they make with their money come from? Our economy. This system doesn't create jobs, especially not good paying jobs like our own manufacturing base used to. They also keep a reserve. The dollar is artificially stronger and serves to mask our ever declining wages.

[LucisFerre1]

@eagleeye1975 This ancient argument isn't a very good one in our contemporary times. The international currency is the US dollar. (really $100 bills). When someone in Singapore builds a bridge in HK, they transact in American dollars, and that's always the case.

[LucisFerre1]

Why have 300 US employees manufacturing $15 hats when you can have 300 US employees importing and distributing $5 hats? In one scenario, you have 300 employed and a guy with a hat. In the other, you have 300 employed, a guy with a hat + $10 in his pocket. That's MORE WEALTH for our nation. And he's going to spend that $10 bucks at the local butchers. = more domestic jobs.

TRADE CREATES WEALTH.

[LucisFerre1]

04:03, back up and punt, head scratch and stutter, LOL.

[ElJefer]

It's interesting to note that those who support liberty on the show are more respectful than those who want to restrict liberty.

[xaviqaz]

@nicenter1 What has changed in the last 25 years is the volume of imports. The dollar system has allowed americans to live beyond its means, gettind into debt by spreading wealth around the world. US imports (around 2 trillion a year) sustain millions of jobs worldwide. That´s why the US dollar is so well accepted, no matter how crazy the monetary and fiscal policies are.

[xaviqaz]

@nicenter1 The US manufacturing output is larger than the german, french, italian and british output combined. The share of manufacturing as a share of (deflated) GDP is pretty stable for decades. USA is a world leader in every industrial economic sector. Think about any sector: industrial machinery, agricultural and earthmoving equipment, medical equipment, chemicals, aerospace, semiconductors, etc