Open Thread

geithner pokes at china publicly but I wonder if he’s bent over when he yapping with them privately

“It’s called “specialization.” The manufacturing of items and components moves to the most efficient operator/manufacturer. There are also economy of scale issues. It’s not economical or practical for every country to manufacture everything within its own borders. Most countries cannot. The US is probably the only country that THEORETICALLY could do so. That said, we cannot supply all of our own energy needs”

Yeah, I don’t think protectionism is the most economic, but that doesn’t mean it doesn’t provide the most good to the most amount of people. I’m trying to think of ways that the chronically unemployed and undereducated can get back to work.

On a side note, I would think world travel is more interesting when people don’t all have the same stuff.

“Was there not an interruption of oil supplies after Katrina and the BP disaster? Does not the price of wheat go up if the weather in the Midwest goes haywire? Point being, disasters strike both overseas and domestic supply chains.”

Yeah, the govt would have to intervene in the event of disasters here, but helping one country out when in need is better than all of the countries in the world that rely on one little widget from japan going off line because of one country’s disaster.

“The crisis in Japan, where you mention the global supply chain, is one of the strongest reasons for MORE global production, i.e. Japan buying more compnents from China, Korea, etc, just the sort of thing you are arguing AGAINST.”

First, not arguing, just trying to bat around some ideas.

Second, I’m thinking of the axel manufacturer in Arkansas that can’t build axels because he’s waiting on a part from Japan. If he were just making American cars with American parts, his shop wouldn’t be off line for the next few weeks.