The world needs the US to buy its plastic knickknacks and electronic doodads

[Liberal_in_LA]

U.S. once again cast as world's consumer of last resort
As Europe cuts spending and China ramps up exports, the U.S. is being looked to by trade partners to once again consume. But with U.S. unemployment high and incomes flat, that may spell fresh trouble.


Reporting from Washington — As Europe cuts spending and China again floods the globe with low-cost goods, Americans are once more being cast as the world's consumers of last resort.

With U.S. unemployment still near 10% and workers' incomes largely flat, that may be a prescription for fresh trouble.


If U.S. consumers can abstain from a "shop till you drop" lifestyle, their savings rate will grow and their debt loads will shrink. Those trends could strengthen the country's long-term economic health but also could cause more short-term pain in the form of slower job and wage growth.

Conversely, if Americans revert to their free-spending ways, financed by credit cards and other forms of debt, the country faces the risk of more bubbles such as the ones in housing and finance whose rupture the world is still recovering from.

Many analysts see the U.S. already heading back down the free-spending path.

"Europe and Germany will pursue austerity. Asians will pursue exports. We will be the only buyer," warns Clyde Prestowitz, a former trade negotiator in the Reagan administration and author of a new book, "The Betrayal of American Prosperity."

http://www.latimes.com/business/la-fi-global-economy-20100620,0,1603901.story

[babylonsister]

1. Bipartisan bill would stop government from buying Chinese items

Maybe some critters are finally seeing the light?


Bipartisan bill would stop government from buying Chinese items
By Vicki Needham - 06/18/10 03:59 PM ET


A bipartisan bill introduced Friday would prohibit the federal government from buying Chinese products and services until there are changes in trade policy.

"When China fails to play the rules, U.S. tax dollars should not be used to buy Chinese-made products," said bill co-spondor Sen. Sherrod Brown (D-Ohio). "American workers and manufacturers can compete with anyone in the world, but they deserve a level playing field."

China must stop manipulating its currency, stop massively subsidizing production and start opening its markets, Brown said in a release.

"Despite being a member of the World Trade Organization (WTO) for 10 years, China prevents American and other foreign companies from bidding on Chinese government contracts through an indigenous innovation program," Brown said in a release.

The U.S. can't challenge the program at the WTO until China agrees to sign onto the Agreement of Governmental Procurement, which would allow American companies to bid on Chinese government contracts.

more...

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=8591824

[Liberal_in_LA]

3. Walmart shelves would be empty

[MadHound]

2. Good luck with that,

When you have over sixteen million unemployed, tens of millions underemployed, tens of millions underwater on their mortgages or otherwise struggling to get out from under debt, I doubt that there's going to be much buying going on. That's one of the reasons our economy hasn't picked up, because we're not out spending, thus creating jobs in retail and service sector area.

That's why it is always a bad idea to get rid of your manufacturing sector, like the US did, it makes pulling out of economic downturns extremely difficult.

[amandabeech]

4. Without manufacturing here, many more of our stimulus dollars end up overseas.

It is no wonder that we got so little lift from all the money spent. It doesn't just circulate here.

I read a lot of Krugman, who wants much more stimulus. I've never read anything from him that suggests that our trade deficit means that our stimulus lacks power.

Of course, if Krugman admitted that, his and every other economists pure free-trade beliefs would be much harder to maintain.

No one can leave the free trade religion alive.

[Rex]

5. Sorry but really rich people fucked everything up so I refuse to use

a credit card, buy gas when I don't need to travel, won't keep money in the bank and have PAID OFF EVERYTHING so I guess what I'm saying is NO. I will not spend a dime, not so wealthy assholes can make more money off toxic children's toys. And I hope millions can do the same thing, but I doubt it because most Americans are up to their eyeballs in debt.

[msongs]

6. a replacement wheel for my $40 hand truck costs $30 lol. That's Ace hardware for ya nt

[Liberal_in_LA]

7. ouch! kinda works that ways with cars. Little dents cost $2K for $15K car