Sam, I understand the complexity of managing balances in the context of a dynamic capitalist economy. European growth would contribute to demand in the United States, but I don't see how it would divert Chinese exports from the United States unless the supply of Chinese exports were relatively inelastic.
On Wed, Feb 02, 2005 at 03:04:58PM -0500, Sam Gindin wrote: > > Perhaps an analogy may clarify this. The extent of post-war American > dominance was > a problem for the US beyond any geopolitical considerations. The US needed a > healthy Eruope/Japan for a healthy American economy. The revival of > Europe/Japan did create some headaches for the US but it dod not challenge > American dominance (in spite of some of the expectations in the crisis of > the 70s because they were by then integrated into the American empire). > Today, the US remains dominant and the problems it does have, such as the > trade deficit, reflect not Europe/Japanese strength but their weakness. The > US would love them to both be growing again and absorbing some of the > Chinese imports now concentrated on the US (as well as more American > exports). -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
