Comment by scottLobster
8 hours ago
Plus, China's growth to this day is built on the back of foreign, primarily American, consumption. If they ever beat us too badly, they go down with us.
They'd need to find alternate consumer markets to alleviate this, and what are their options? Domestic is out, China hasn't managed to create a domestic consumer market with their current demographics, which are only getting worse as their baby bust deepens.
Europe? Similar demographic issues, simply not enough consumption to replace the US and greater economic protectionism.
The 3rd world? Maybe, but first you have to develop it, and even if you could manage that they have nationalist impulses of their own. You think India is going to willingly offshore their industry to China on the scale of the US?
The American system for all its many flaws is extremely dynamic. Trump and his policies are mostly bad adaptations, but they are attempts at adaptation, and the attempts aren't going to stop. The US has changed radically in the last 10 years; there's no reason it can't change just as radically in the next 10.
Why must the consumption be exported?
Why can't they build for themselves?
Because that would lead to mass unemployment and deindustrialization, as China lacks the wealth among the lower classes and the demographics to consume everything that it produces.
Wealth is made.
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