Earlier this year President Trump was complaining that China was guilty of currency manipulation. Cheap prices were giving the Chinese a competitive advantage, evidenced by a trade balance between the two nations that, last year, was $347 billion in favour of China. So what’s the best way of dealing with the strength of the Chinese economy. Prof Steve Keen suggests that the President was right at the onset – reindustrialise and wait for China’s main advantage, cheap labour, to diminish in importance. Sadly, his plans have gone by the wayside, so they’re stuck with Chinese imports for a long while yet. But could other nations follow China’s lead?
October 3, 2017