If you look on the shelves of all major retailers - and even the local “mom and pop” store- you will find Chinese manufactured products. This is not limited to Wal-Mart or to the United States . South America and Africa have also been flooded with Chinese products.
What do you want Wal-Mart to do, stop selling Chinese made goods? Wouldn’t K Mart and Target and other retailers simply pick up the supply “slack”? As far as China being Communist, they have simply evolved from being a command Communist economy to a command capitalist oligarchy. As far as undercutting American manufacturers, the Japanese and Koreans beat the Chinese long ago. Honestly, when was the last time that an American made a radio, a TV, or any other consumer electronic?
Ultimately, or arrangement with China is untenable. The U.S. trade deficit is so huge, and the Chinese holdings of U.S. dollars are so enormous that China will eventually have to “float” their currency. To date, China has kept the Yuan artificially cheap compared to the dollar to promote exports. When the Yuan is allowed to float, and it finds its proper exchange rate with the dollar, a trip to Wal-Mart will be as expensive as a trip to Nordstrom’s is today.
As for Ayn Rand, she would detest the Chinese system for it authoritarianism, corruption, cronyism, and ineptitude. But the U.S. made a deal with the devil - the Federal government and private sectors have sold $100 billions of debt to China and this keeps the U.S. economy afloat. Singling out Wal-Mart is a bit silly.
China
What do you want Wal-Mart to do, stop selling Chinese made goods? Wouldn’t K Mart and Target and other retailers simply pick up the supply “slack”? As far as China being Communist, they have simply evolved from being a command Communist economy to a command capitalist oligarchy. As far as undercutting American manufacturers, the Japanese and Koreans beat the Chinese long ago. Honestly, when was the last time that an American made a radio, a TV, or any other consumer electronic?
Ultimately, or arrangement with China is untenable. The U.S. trade deficit is so huge, and the Chinese holdings of U.S. dollars are so enormous that China will eventually have to “float” their currency. To date, China has kept the Yuan artificially cheap compared to the dollar to promote exports. When the Yuan is allowed to float, and it finds its proper exchange rate with the dollar, a trip to Wal-Mart will be as expensive as a trip to Nordstrom’s is today.
As for Ayn Rand, she would detest the Chinese system for it authoritarianism, corruption, cronyism, and ineptitude. But the U.S. made a deal with the devil - the Federal government and private sectors have sold $100 billions of debt to China and this keeps the U.S. economy afloat. Singling out Wal-Mart is a bit silly.
John Galt