|
|
 Originally Posted by BananaStand
How's that prediction working out?
Nobody calls Krugman as big of a loser as I do.
It's only bad news if you don't live in America. I'm sure you and your professors are viewing this through some kind of "globalization" lens
The globe isn't even a part of it. In closed economy models, increasing real costs for the same result lowers value.
This statement is only true if you stop thinking right there. However, spend about two more seconds pondering what this could mean, and then tell me how it's not a good thing. The higher price makes LG's product less competitive. In order to remain competitive LG must reduce it's cost. It can do that by moving operations to the US, which it is already doing, for precisely this reason. This relieves the pricing problem and replaces korean jobs with american jobs.
I agree. There is a lot more to it.
No, the article is presenting a piece of anti-Trump propaganda disguised as an economic story. The headline reads, in effect, "Trump made stuff more expensive for you" When the auto industry moved jobs to Mexico, did the news media run headlines like "Dodge Rams are about to get cheaper"
They're reiterating a pretty standard view of a simplistic view given by economists.
|
Reply With Quote