With respect to your response to my question about China’s devaluation and it’s purchases of our treasuries and the effects on interest rates, I feel like you’re talking over my head a little to be honest. I keep going back and studying your response and getting bits and pieces, but I still really struggle with that one. Can you break it down a little more fundamentally? Or suggest an incremental study plan that covers the fundamentals so I can get a better grip?
I know that’s a huge thing to ask, and that an economics class at my college may be a better way to understand these things, but I don’t trust the government schools to teach me correct theory, and since I can’t afford a private school, I feel like that’s what makes the Liberty Classroom so valuable.
Also, I understand the idea that when manufacturing is shifted to China, it’s nothing to fear because the division of labor will make it so that employment here is just shifted to different sectors. But in concrete terms, what would that look like? What are our manufacturing jobs replaced with? What opportunities for good jobs are opened up for Americans? I understand the theory, and I work in a law office, so my job isn’t threatened, but it seems to me like good paying manufacturing jobs for people who don’t have white collar skills are being sent to China, and all my friends now have to work at Lowe’s or some other crappy job because there aren’t enough good paying jobs available. How does the division of labor replace good paying blue collar jobs with something equivalent?
Also, I understand that the money sent overseas through our imports sometimes comes back into our economy when foreigners buy assets here. But how is that neutral or beneficial to Americans? How is it that we wouldn’t benefit more if those private assets were purchased by Americans, rather than by foreigners?