“Buy American” mass email

Here’s the mass email I received. My response is below:

open quoteDid you see that Diane Sawyer has a special report coming up this week? They removed ALL items from a typical, middle class family’s home that were not made in the USA . There was hardly anything left besides the kitchen sink. Literally. During the special they are going to show truckloads of items – USA made – being brought in to replace everything and will be talking about how to find these items and the difference in price etc.. It was interesting that Diane said that if every American spent just $64 more than normal on USA made items this year, it would create something like 200,000 new jobs! WAS BUYING FOOD THE OTHER DAY AT WALMART and ON THE LABEL OF SOME PRODUCTS IT SAID ‘FROM CHINA ’

FOR EXAMPLE THE “OUR FAMILY” BRAND OF THE MANDARIN ORANGES SAYS RIGHT ON THE CAN ‘FROM CHINA ‘

I WAS SHOCKED SO FOR A FEW MORE CENTS I BOUGHT THE LIBERTY GOLD BRAND OR THE DOLE SINCE IT’S FROM CALIF.

Are we Americans as dumb as we appear — or — is it that we just do not think while the Chinese, knowingly and intentionally, export inferior and even toxic products and dangerous toys and goods to be sold in American markets?

70% of Americans believe that the trading privileges afforded to the Chinese should be suspended.

Why do you need the government to suspend trading privileges? DO IT YOURSELF, AMERICA !!

Simply look on the bottom of every product you buy, and if it says ‘Made in China ‘ or ‘PRC’ (and that now includes Hong Kong ), simply choose another product, or none at all. You will be amazed at how dependent you are on Chinese products, and you will be equally amazed at what you can do without.

Who needs plastic eggs to celebrate Easter? If you must have eggs, use real ones and benefit some American farmer. Easter is just an example. The point is do not wait for the government to act. Just go ahead and assume control on your own.

THINK ABOUT THIS: If 200 million Americans refuse to buy just $20 each of Chinese goods, that’s a billion dollar trade imbalance resolved in our favor…fast!!

Most of the people who have been reading about this matter are planning on implementing this on May 1st and continue it until June 1st. That is only one month of trading losses, but it will hit the Chinese for 1/12th of the total, or 8%, of their American exports. Then they might have to ask themselves if the benefits of their arrogance and
lawlessness were worth it.

Remember, MAY 1 TO JUNE 1st !!!!!!
START NOW.

Send this to everybody you know. Let’s show them that we are Americans and NOBODY can take us for granted.

If we can’t live without cheap Chinese goods for one month out of our lives, WE DESERVE WHAT WE GET!

Pass it on, America …… BUY AMERICAN !!!!! close quote

My response:

open quoteI’d like to briefly point out two of the several economic fallacies evident in this mass email.

1) The idea of a trade deficit is mostly nonsense. The whole discussion of trade deficits serves only to employ government economists. If I buy bread from the baker across the street, he is profits because of the value he puts on my money, and I profit because of the value I place on his bread. Replace the street with an international border and the example should be identical with both of us enriched by the exchange, however there will suddenly be a $4.99 trade deficit (or whatever the cost of bread). Government economists will write lengthy articles. Opportunistic politicians will make courageous speeches about the controls which need to be placed over the economy. It’s nonsense. Governments don’t trade. People trade. The more they’re allowed to do so, the better.

2) Paying more money for identical goods will not create “something like 200,000 jobs,” regardless of what Diane Sawyer says. It will destroy jobs. Rather than repeating the argument (which I’ve done more often that I thought possible), I would refer anyone who’s interested to chapter 11 of Henry Hazlitt’s classic “Economics in One Lesson.” It’s available for free here: www.hacer.org/pdf/Hazlitt00.pdf

In fact, if you’ve been learning economics from Diane Sawyer, I recommend the whole book — for everybody’s sake.

“The curious task of economics is to demonstrate to men how little they know about what they imagine they can design.” ~ F.A. Hayek

Have a good day and please don’t trespass on my property.close quote

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