Both China and India are Amazing Stories of Poverty Reduction... We Should Stop Demonizing Them

[JDPriestly]

93. But we import far more from these countries than we export -- even at their cheap labor prices.

And the export and production figures of the US are suspect because we calculate them, as I understand it, based on the value of the finished products, and those finished products can and do contain parts manufactured in other countries.

There can be no denying that Americans overall are poorer than they were 40 years ago. We have not had waves of foreclosures like those we are having now since at least the 1930s.

We will change our trade policies sooner or later. Our current "free trade" policies may be working for India and China, but they are not working for ordinary Americans. If we had tax and welfare policies that compensated American workers for the lost jobs and income, then there would be less resentment. But as long as we reward the rich for creating jobs in China and India, we won't have job creation here -- at least not enough of it.

Just recently, I went into the 99 cents store early in the morning. In the line in front of me was a homeless man with less than a dollar to spend. He was ready to cry because he had enough to pay for a small sack of candy for his breakfast, but did not have enough to pay taxes. Fortunately, he did not have to pay tax. He was so incredibly happy when the cashier told him there would be no tax.

What can you buy for $1.25 in the US? A candy bar, maybe. Maybe a couple of tomatoes. At certain times of the year you can buy more, but really, it is very hard for unemployed Americans right now.