Total global trade has recovered and with it economic growth.  Instead of fighting over imports and exports, how about total trade volumes. As that post and the one it links to make clear, the phrase “Made in the USA”, “Made in China”, or whatever other country is irrelevant because the supply chains are global. Supply chains are the firms that add a piece to the product along the way until the entire thing is assembled. The things they add might be a physical object such as a transistor, they could be intangible things like software.

No one country can create its own stuff and be wealthy, just as one family or neighborhood can.  People in those groups specialize and have different skills.  Some people will spin their wheels making a single pair of shoes while another can get several done.  The slow poke needs to find something else to do that he is good at, likes doing, and adds value.

Advertisements