American Economics Thread


ansy1968

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@ansy1968

Yep. As Keynes said, a vicious spiral. But fortunately Keynes also said and can be observed empirically that prices are sticky downwards. It is very hard to see price deflation (It is not impossible, but hard. Firms tends to cut production to keep prices at the same level). Which is why even in a recession, there's still inflation thought small.

And worse of all, it's the stagflation, the kind we, the older ones experienced in the 1970s. Where the economy is stagnating, and with this the price level should drop to adjust itself according to classical economists. But it never did, so we got a contraction in the economy couple with hyper inflation. Oh happy times! Lol
Hi Gatekeeper,

They may remove the tariff in Chinese goods to lower the inflation pressure. But It will be a tough call, usually the US should be in a stagflation stage right now. They are fortunate that the Dollar is an international reserve currency, I think they may not escape this time around with their over printing, negative reserve rate to undervalue the dollar and a possible challenger in Chinese Yuan.
 

supersnoop

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Someone posted about Foxconn last week, here is the same outlet's follow up story
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I wish there was comments on this story. It would be an inevitable toxic comedy/bingo game of people blaming "Chinese corporations" for slave labour (Foxconn HQ is in Taiwan, so I guess that's one-China policy achieved), Trump politics, corporate greed, and government largesse.
 

caudaceus

Junior Member
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Someone posted about Foxconn last week, here is the same outlet's follow up story
Please, Log in or Register to view URLs content!

I wish there was comments on this story. It would be an inevitable toxic comedy/bingo game of people blaming "Chinese corporations" for slave labour (Foxconn HQ is in Taiwan, so I guess that's one-China policy achieved), Trump politics, corporate greed, and government largesse.
At lest Fuyao is really hiring and running factory, see the American Factory.

As I said in Biden's thread, I worry that Biden's massive job creation program might produce a few similar results. While, it doesn't hurt that much in the bigger picture, petty Republicans will inflate them to derail Biden.
 

supersnoop

Junior Member
Registered Member
At lest Fuyao is really hiring and running factory, see the American Factory.

As I said in Biden's thread, I worry that Biden's massive job creation program might produce a few similar results. While, it doesn't hurt that much in the bigger picture, petty Republicans will inflate them to derail Biden.
To be honest, I had not followed the American political race closely due to the toxic divisions that exist.

Foxconn has also done this in Pennsylvania and Brazil as well. The question is what is the real motivation of Foxconn? Is it just to make Trump look good so they can avoid his bad side? (Taiwanese company, but heavily invested in Mainland China)

American Factory was an interesting documentary. When I heard the Obamas were involved, I thought it would be more political. However, I thought it was pretty neutral, more about culture clash and the effect on people's lives overall.
 

caudaceus

Junior Member
Registered Member
To be honest, I had not followed the American political race closely due to the toxic divisions that exist.

Foxconn has also done this in Pennsylvania and Brazil as well. The question is what is the real motivation of Foxconn? Is it just to make Trump look good so they can avoid his bad side? (Taiwanese company, but heavily invested in Mainland China)

American Factory was an interesting documentary. When I heard the Obamas were involved, I thought it would be more political. However, I thought it was pretty neutral, more about culture clash and the effect on people's lives overall.
One theory is that Terry Guo wanted to run for the president and having trump's blessing should boost his chance.
 

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