You can’t turn on the TV without the talking heads talking about how nothing is made in America anymore. In addition to that, they use scaremongering tactics to call out Chinese imports and try to leverage our fears against this country.
We are big fans of globalization and international trade. Here at Bandholz.com we see no problem if 100% of our resources came from other countries – that’s assuming that the market decides it’s the best solution. Lots of industries are distorted by government intervention. For example high fructose corn syrup is literally in every product because of the subsidies the corn industry gets, and the obscenely high tariffs for importing cane sugar.
Ultimately, when goods can’t cross borders - soldiers will. Unfortunately, not everyone thinks that free trade and free markets are good for Americans. They are protectionists at heart. For those people I think it would be valuable to point them to this article on Fool.com. Morgan Housel takes on these three very common myths.
- Most of what Americans spend their money on is made in China.
- We owe most of our debt to China.
- We get most of our oil from the Middle East.
Read the article here: 3 Misconceptions That Need to Die