If the goal of the trade war is to hurt China as we push them to change, it’s working.
China’s economic growth rates are definitely falling. But—as we recently showed on Townhall Finance—the jobs are leaving China, but they’re not coming to the U.S. Jobs are heading to other parts of emerging Asia, often still employed by Chinese-owned companies.
And doesn’t that make sense?
As we slap tariffs on China, markets push supply chains further down the labor scale, not up to high wage America. Markets are highly fluid. Throw a rock in the stream and the water finds its way around it.
For most of human history, China was the world’s economic superpower. The U.S. did not surpass China until we abolished slavery, repealed the war-time income tax and established sound money.
We need to go back to that basic formula, the one that that permitted us to end Chinese dominance in the first place: Universal human dignity, low taxes and sound money.