Wednesday, January 19, 2011

Thanking China For Stealing Our Jobs

. Wednesday, January 19, 2011

Look, if China subsidizes green technologies, and then those technologies are created and sold at below-market prices to the U.S., then that is a very good thing for the U.S. It means that China is effectively paying for part of our energy conservation (and, by extension, our energy consumption, since green technologies drive down the price of fossil fuels). Munger nails it:

Look, if the only way you can make money is to pay more than 100% of the purchase price in subsidies, you don't want to be in that business.


Conversely, if you can pay less than 100% of the purchase price to get the product, then that's a really good transaction. This Chinese policy hurts Chinese people and helps American people. In fact, it doubly helps us, because not only do we get solar panels are much lower prices, but we also no longer have to subsidize American production with tax dollars. That money can now go to other productive uses.

We should be pleased. Maybe Amy Chua can have her kids write a really nice "thank you" card.

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Thanking China For Stealing Our Jobs
 
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