There is no gas shortage...

superchuck500 said

I agree, but that it overly simplistic (as I'm sure you'd concede).

Part of the equation is that we willingly consume products from external sources because its cheaper that way. China is the perfect example of this. We could actually make most of the things we buy from China. But it isn't economical.

For a fascinating look at the economic relationship between the U.S. and China, read this article (I swear I'm not working for Atlantic, the two cites are a total coincidence).


Full Article - strongly recommended if this interests you-
The $1.4 Trillion Question

Click to expand...

but thats the results of free trade policies (IE with China) If tariffs were placed on these goods the price would be/would have been when we still had manufacturing more on par with the prices of products made domestically.

Now that we have moved into NAFTA we are multiplying the effects from the Chinese free trade policy.

So we get cheaper goods so comsumer americans can buy more and feel like the economy is going better than it is.

But we are addicted to cheap imports, if Free trade with China, and Nafta ended tomorrow, it would cripple the economy.