Paul Krugman's takedown of Trump's economic blatherings.

[radind]

(05-17-2016, 09:18 PM)playwrite Wrote:

(05-17-2016, 02:01 PM)Kinser79 Wrote:

(05-17-2016, 12:00 PM)playwrite Wrote: As to the dollar losing its appeal, do you think it's better for oil producers to sit on millions of barrel of black goo held in expensive supertankers off shore just waiting for a natural disaster or ISIS to spill it all over their shores?  If you want to sell the stuff and keep your population happy, you're going to have to take somebody's currency one way or another.  If you take the Chinese Yuan instead of US dollars, you're just going to have to buy some Chinese stuff or convert it n the FX markets so you can buy some US or Euro stuff.

Maybe you haven't noticed but the Chinese sell lots of stuff.  As for buying US stuff the chief US exports are grain and lumber...last I checked raw materials.  Those can be found elsewhere.

Really?  When an Chinese-manufactured iPhone sells anywhere in the world, how much of the revenue goes to China v. US?

And again, the U.S. is much more a self-contained economy.  China is trying to emulate us.

 The manufacturing of iPhones in China involves more than the raw costs. I have seen an  article showing that most of Apple’s profits are in the USA, but did not see it in a quick search.

Quote:http://www.businessinsider.com/you-simpl...wed-2012-1
… "The real reasons Apple makes iPhones in China, therefore, are as follows:

• Most of the components of iPhones and iPads — the supply chain — are now manufactured in China, so assembling the phones half-a-world away would create huge logistical challenges. It would also reduce flexibility — the ability to switch easily from one component supplier or manufacturer to another.
  
• China's factories are now far bigger and more nimble than those in the United States. They can hire (and fire) tens of thousands of workers practically overnight. Because so many of the workers live on-site, they can also press them into service at a moment's notice. And they can change production practices and speeds extremely rapidly. 
  
• China now has a far bigger supply of appropriately-qualified engineers than the U.S. does — folks with the technical skills necessary to build complex gadgets but not so credentialed that they cost too much.
  
• And, lastly, China’s workforce is much hungrier and more frugal than many of their counterparts in the United States.”…
  

https://hbr.org/2016/05/what-you-wont-he...aign-trail
… "If you were to walk through some of those foreign factories, you would get a very different picture. Almost every sophisticated manufacturer uses some kind of lean production system that pulls raw materials in from a warehouse. And if you look at where the raw materials came from, you would find they come from all over the world. During a recent visit to an Asian factory that assembled sophisticated medical instruments, I saw sub-assemblies from Massachusetts and other parts of the United States, Singapore, China, Japan, and Malaysia.”…

… “Since there is no supply chain in the United States, you couldn’t make it in America if you wanted to — unless you imported each and every part, and by the time you packed them up and shipped them, it would cost more than importing the completed touchscreen.”…