The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Insufficient Chinese consumer demand
| pearly field | 01/27/12 |
| Dashing offensive school cafeteria | 04/09/12 |
| Excitant gas station quadroon | 04/09/12 |
| fishy space preventive strike | 04/09/12 |
| nubile internal respiration azn | 04/09/12 |
| aggressive meetinghouse jap | 04/09/12 |
| Hairless public bath idea he suggested | 04/10/12 |
| Self-centered sooty locale | 04/10/12 |
| comical crystalline brunch | 04/09/12 |
| aggressive meetinghouse jap | 04/09/12 |
| twisted charcoal address | 04/10/12 |
Poast new message in this thread
Date: January 27th, 2012 10:39 AM Author: pearly field How does insufficient Chinese consumer demand create trouble. Let's say that instead of producing dollars, we produced and bartered with grains of corn. Further assume that the Americans and Europeans eat a lot of corn per person whereas the Chinese eat less corn per person. Why would it be a good thing for China to eat more corn? It only seems to make sense if we want, for some strange reason, China's ability to make corn to increase. However, encouraging people to eat more corn just to improve the ability to make corn seems foolish. We may also be interested in producing lots of corn, but that would be weird. We should be concerned with social welfare. Further, why wouldn't it make sense to simply invest in corn-making tools and research. (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#19846846) |
 |
Date: April 9th, 2012 3:29 PM Author: Dashing offensive school cafeteria tl; dr (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425263) |
Date: April 9th, 2012 3:27 PM Author: Excitant gas station quadroon (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425255) |
|
Date: April 9th, 2012 3:30 PM Author: fishy space preventive strike because the chinese, in your example, already grew a SHITLOAD of corn that needs to be sold...otherwise, the chinese corn market will collapse, along with its peripheral markets such as fertilizer, farm machinery, agro-financing, etc.
this is a bad thing
i could be wrong |
|
Date: April 9th, 2012 3:31 PM Author: nubile internal respiration azn <> (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425270) |
|
Date: April 9th, 2012 4:19 PM Author: aggressive meetinghouse jap "insufficient chinese demand" is usually code for insufficient chinese demand for our exports. when this is coupled with chinese inflationary monetary policy, we have a perpetual trade deficit.
as the poaster above wrote, it can also mean insufficient demand for their domestic supply, in which case they dump excess supply onto the world market and crush our suppliers.
the moral of the story is that mercantilism/nationalism and free markets dont really work together. And while an ideal world would have the latter, that reality would require a one world government regime, and the WTO isnt strong enough for that. In fact, the eurozone crisis has turned sentiment away from international central banking/countries surrendering sovereign monetary policy (which, again, goes hand in hand). |
|
Date: April 10th, 2012 7:18 AM Author: Hairless public bath idea he suggested close. the moral of the story is economists who claim mercantilism does not work cannot explain how it has worked, marvelously, in china for three decades and is still going strong.
|
|
Date: April 10th, 2012 7:59 AM Author: Self-centered sooty locale i can see why it doesn't work when nations base it all on gold and silver (which was classic mercantilism IIRC). (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20430792) |
|
Date: April 9th, 2012 4:21 PM Author: comical crystalline brunch ME SO HAWWWNY! ME RUV U RONG TIME!! (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425560) |
|
Date: April 9th, 2012 10:13 PM Author: aggressive meetinghouse jap (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20428219) |
|
Date: April 10th, 2012 8:40 AM Author: twisted charcoal address the moral of the story is that the US economic model is based on brainwashing people to be stupid and consume way too much, and Chinese culture is either resilient to that brainwashing or their government chooses not to back it (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20430826) |