We constantly hear that China sells us too much stuff at too low of a price. The story goes, if the Chinese would just raise their prices and sell us less stuff, we would be much better off. After all, by everyone paying higher prices and having less access to goods and services, we would have more money to invest in new businesses and therefore create new jobs
So why then does President Obama want to force China to sell us more stuff! Won’t this destroy jobs? Aren’t we going to be more reliant on China for rare-earth minerals? Haven’t we learned our lesson with oil?
The Obama administration Tuesday intends to escalate its trade offensive against China, a move heavy with political overtones, by pressing the World Trade Organization to force the export giant to ease its stranglehold on rare-earth minerals critical to high-tech manufacturing.
Seriously though, it drives me crazy how the United States government thinks it can tell people what to do. Raise your prices! Sell us less of this! Sell us more of that! It’s like markets can’t function without direct intervention from the President (substitute any politician actually) himself.