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Neoliberalism Has Met Its Match In China
Brown, Ellen http://dissidentvoice.org/2019/08/neoliberalism-has-met-its-match-in-china/
Publisher: Dissident Voice Date Written: 08/08/2019 Year Published: 2019 Resource Type: Article
Unless China starts playing by neoliberal rules Trump's economic war with them will lead the US to a race to the bottom or isolation from international markets.
Abstract:
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Excerpt:
When the Federal Reserve cut interest rates last week, commentators were asking why. According to official data, the economy was rebounding, unemployment was below 4% and gross domestic product growth was above 3%. If anything, by the Feds own reasoning, it should have been raising rates.
Market pundits explained that we're in a trade war and a currency war. Other central banks were cutting their rates, and the Fed had to follow suit in order to prevent the dollar from becoming overvalued relative to other currencies. The theory is that a cheaper dollar will make American products more attractive in foreign markets, helping our manufacturing and labor bases....
As economist Michael Hudson observed in a June interview with journalist Bonnie Faulkner, making American products cheaper abroad will do little for the American economy, because we no longer have a competitive manufacturing base or products to sell. Todays workers are largely in the service industriescab drivers, hospital workers, insurance agents and the like. A cheaper dollar abroad just makes consumer goods at Walmart and imported raw materials for U.S. businesses more expensive.
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