Mrtennis, I am not trying to be crosswise with you. Your post permits the inference that we should let the free market set the price and let the chips fall where they be. That's ok. I'm not a communist.
But if you're also saying that if one can get the same quality widget for less, then buy cheaper -- even if the competition is not on a level playing field. Then I must respectfully disagree.
Compete -- yes, of course. But not when the stuff we import is made under slave labor conditions or back door subsidies (e.g., direct grants or even indirect as through currency manipulation).
Here's an idea: the federal government has all those workers who like to regulate sh*t. Here's a job. They can start with strategically important industries. They ensure that (i) there is no foreign government subsidy of the products we import, (ii) the labor component reflects US standards of minimum wage, OSHA, EPA, and basic health insurance, and (iii) the currency is allowed to reflect free market supply and demand.
If the US dollar is weak because we're giving more US chits to foreigners than we're taking in -- then so be it. The cost of goods will go up and companies may be encouraged to build plants here here.
Did you hear that the US may be the world's largest energy producing country in the next 5 years or so, even more than Saudi. Do you why? In large part because the price of oil has risen to the point where it's economical to drill. Sh*t, half the territory of North Dakota has oil wells on it.
If the foreign country still wants to have their workers live in cardboard huts, no problem. The US can simply impose a countervailing duty that can be used to pay displaced US workers income replacement benefits.
Look our standard of living will decline because income will not keep up with the cost of goods and services -- but it WILL happen sooner or later anyway. How much longer can we import more widgets than we build for ourselves? How many more people will remain unemployed or underemployed before we realize that the US dollar over time will have to decline because foreign governments and investors will simply not want to take cheap dollars for their wares. Would you??
The world is not that complex. It's all about barter, using money as chits to trade. If someone is holding a lot of US chits, he can dump them or invest them in securities and demand high interest rates. I wish it were that the chits could return to be invested in US industry, but I suspect that the capital will fly out the US back door into foreign countries anyway.
There is an imbalance -- it will correct itself one way or the other. The correction could be catastrophic like 2008/9 or it can be managed so we can have a soft landing.
So when will our elected leaders stop the crap and tell us the truth and prepare the country for what's coming. They also need to stop the smoke and mirrors that it's just about taxes. It's about basic supply and demand and the cost of production. Taxes only affect the balance on the margin. IMHO
In the meantime, until the "inside the belt" bozos act like real leaders, buy American if at all possible. Where's Harry Truman and Ronald Reagan when we need them.