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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (149424)	6/27/2019 7:25:08 PM
From: marcher	Read Replies (1) \| Respond to of 218057

reich on u.s. v china (if previously posted, please excuse the duplicate): --Xi Jinping might possibly agree this weekend when he meets Donald Trump on further steps to bring down China’s trade imbalance with the US...But Xi won’t agree to change China’s economic system. Why should he? The American economic system is focused on maximizing shareholder returns. And it’s achieving that goal. Last Friday, the S&P 500 notched a new all-time high. But average Americans have seen no significant gains in their incomes for four decades, adjusted for inflation. China’s economic system, by contrast, is focused on maximizing China. And it’s achieving that goal. Forty years ago China was still backward and agrarian. Today it’s the world’s second- largest economy, home to the world’s biggest auto industry and some of the world’s most powerful technology companies. Over the last four decades, hundreds of millions of Chinese people have been lifted out of poverty. At the core of the American system are 500 giant companies headquartered in the US but making, buying and selling things all over the world. Half of their employees are non- American, located outside the US. A third of their shareholders are non-American. These giant corporations have no particular allegiance to America. They’ll do whatever is necessary to get their share prices as high as possible – including keeping wages down, fighting unions, reclassifying employees as independent contractors, outsourcing anywhere around world where parts are cheapest, shifting their profits around the world wherever taxes are lowest, and paying their top CEOs ludicrous sums. At the core of China’s economy, by contrast, are state-owned companies that borrow from state banks at artificially low rates. These state firms balance the ups and downs of the economy, spending more when private companies are reluctant to do so. China’s core planners and state-owned companies will do whatever is necessary both to improve the wellbeing of the Chinese people and become the world’s largest and most powerful economy. ...The Trump tax cut did squat for jobs and wages but did nicely for corporate executives and big investors. Instead of reinvesting the savings into their businesses, the International Monetary Fund reports that companies used it to buy back stock. But wait. America is a democracy and China is a dictatorship, right? True, but most Americans have little or no influence on public policy – which is why the Trump tax cut did so little for them... Instead, American lawmakers respond to the demands of wealthy individuals (typically corporate executives and Wall Street moguls) and of big corporations, those with the most lobbying prowess and deepest pockets to bankroll campaigns. ...Instead of trying to get China to change, we should lessen the dominance of big American corporations over American policy... The simple fact is Americans cannot thrive within a system run largely by big American corporations, organized to boost their share prices but not boost Americans. robertreich.org