Something I read made me look into the article Chinese Money in the U.S. Dries Up as Trade War Drags On in The Dreaded New York Times.
Growing distrust between the United States and China has slowed the once steady flow of Chinese cash into America, with Chinese investment plummeting by nearly 90 percent since President Trump took office.
This is a very complicated economic and political balance to be weighed about China’s investing in the USA. I don’t have the expertise to conclude what is the best policy. It looks like we will see as this mindless experiment plays out. Perhaps some experts with a broader point of view than the Trump administration will study this issue and come up with some suggestions. After all Trump won’t be in office forever.
Maybe the proper approach to take is for the governments of China and the USA to work together to come up with the proper balance of policies that will be best for the workers in both countries. Instead of a trade war, or a trade agreement that only considers the interests of the oligarchs, we could have trade agreements that are mutually beneificial for all citizens of both countries. What a wonderful world it could be.
One of the things that makes our workers not competitive with workers in other countries is the high cost of living overhead we impose on our workers. The overhead I am thinking about is the cost of debt service in the private sector from the financialization of our economy for the benefit of entities that make money from lending money. We think rising real-estate prices are good because home owners can enhance their stagnant wages with capital gains on their real-estate. Actually it is the mortgage lenders that make money by granting larger and larger mortgages to cover the risi8ng cost of real-estate.
If we removed the high cost of financing our lives (including student debt, credit card debt, mortgage debt, and automobile loan debt) and removed the high cost of health care, our own workers could compete on a more even playing field with the rest of the world.