3 Economic Misconceptions That Need to Die

Discussion in 'Politics' started by ProvidencePlant, Jan 7, 2013.

  1. 3 Economic Misconceptions That Need to Die - DailyFinance

  2. +1 Buddy!!! people need to know the facts and although they can be a VERY challenging bunch to educate, they still should know.:hello:
  3. Well, the problem isn't with sending our money to China. However many goods we buy from there is pretty irrelevant. When we give our money to China, they don't put it in a shoebox! They have to use that money and unfortunately they're using that money to buy US debt and perpetuate American consumerism! But a great deal of it is also about opportunity cost. If factories in China can make TV for a $100, one that costs $150 to be made in America, then that's $50 that's being saved by the American consumer. It's the same concept with shirts from Venezuela, and processed coconut from Jamaica.

    But the first myth is just stupid. Of course we don't spend a majority of our base income on goods from China -- that's ridiculous, no one believes that. You have to examine this from a dual-availability perspective. For example, can people in the US by housing from China? No, so that's irrelevant. Can they buy their day-to-day groceries from China? No, so that's irrelevant. And what it comes down to ARE the little knickknacks, the things that are available from China AND from the US -- that's where we take the loss.
  4. I think our consumption of oil produced domestically should be more than 49%
  5. Great post. I only read a lil. Cause I'm tired but ill be back

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