07-08-10, 04:55 PM
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#9
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My Mood:
Join Date: Mar 2010
Posts: 246
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Re: My way of fixing the US economy
Two words: Mercantilism [en.wikipedia.org]and inflation [en.wikipedia.org].
But the two short answers are:
You don't want to raise the import taxes, because the countries you want to export to will do the same. Also, the fact that a lot of consumer products are made where labor is extremely cheap (read: workers are exploited) allows us all to buy a lot of products at what we consider reasonable prices. For example, I doubt if you could afford the computer you're using right now, had it been made in a developed country end-to-end. Not to mention your cellular phone.
You don't want to print more money, because the value of the overall money in the circulation doesn't change anyhow. So by printing more money, you just make the money worth less (prices go up). The only party who wins from printing money is the government, which effectively make the money you have in your hands less worthy. Which is some kind of tax on money. Pretty quickly, that currency becomes unpopular, and people start using foreign currency instead. And then hell breaks lose.
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