Scheer Intelligence It’s all kicking off with China
21 snips
Feb 4, 2025 
Ben Norton, journalist and editor-in-chief of Geopolitical Economic Report, dives into the evolving U.S.-China relationship, unpacking tariffs and their impact on low-income workers. He shares his experiences living in China, illustrating local reactions to U.S. politics. Norton discusses China's unique blend of socialism and market mechanisms, focusing on competition in consumer goods and state control. The conversation touches on the legacy of financial deregulation and its repercussions for global trade, providing a nuanced view of contemporary economic dynamics.
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Tariffs as Taxes on Consumption
- Tariffs are essentially taxes on consumption that disproportionately affect low-income workers.
- This is because lower-income individuals have a higher marginal propensity to consume, meaning a larger portion of their income goes towards purchases.
Supporting Global Labor Rights
- Supporting labor unions and fair wages in countries like China can benefit both American and Chinese workers.
- This approach promotes global worker solidarity instead of pitting workers against each other.
China's Production Efficiency
- China's low production costs aren't due to low wages, but rather factors like a robust supply chain and high worker productivity.
- The country has strategically developed its industries and invested in automation, leading to increased efficiency.