Why always blame China?

Moderator: Good Habit

Why always blame China?

Postby Good Habit » Thu Jan 13, 2011 10:15 pm

It has become some recurring theme among American comentators, like recently (again) from Paul Krugman, to complain about the unfair advantage China get's from it's undervalued Yuan, although, sometimes, with inflation in China rising, even the advantages seem doubtful...

http://krugman.blogs.nytimes.com/2011/0 ... -transfer/

Fact is, however, that the US economy suffers from to little aggregate demand, and it would do so even if Chinese products would be a bit more expensive. As Krugman often (correctly) notes,what would be needed would be way more stimulus spending, but that's not what Obama and Congress are likely to do. So, instead of pointing out that fact clearly and consinstently, we return to the 'blame China' game.

But the US would have it in their hands to create sufficient AD for full employement, if they could bring themselves to accept a higher deficit, and particularly, more targeted spending.

So, the blame China game put's the blame where it doesn't belong (this doesn't mean that all is well in Bejing, but that's not the issue here), and spares those who would righfully deserve it (the US political and financial elite).

While, unfortunately, if you wan't to have a political impact - it is often necessary to use scare and blame tactics, if this campaign should show a positive effect, it should adress the just fears, and blame the real responsibles - that would, in that case, be: make people afraid that they will lose social security and Medicaid, and that their kids could loose their education and future, and blame it on deficit hawks and banksters. And then, point out, that the Fed can create as many dollars as necessary, but it' shouldn't do so for bailing out banks involved in ponzi-shemes, but for financing Soc.Sec, healt care for all, jobs for the unemployed, education for the young, and excellent infrastructure for the future.

But what target could blaming China serve? Unless this results in a war scare big enough to deficit spend WW II style to 'keep America safe from the yellow peril', it will do nothing to revive the American economy. So the only purpose could likely be - shift blame away from Obama (where it would belong) and shift it to China (where it doesn't belong), and hope that this distracts voters enough from the facts that the President can get a second term.. (undeservingly...).
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