I am always amazed that people always look at one side of the equation when they talk about economic issues. Start with rent control, must be great for the renters, right?
American goods are more expensive than Chinese goods. So if you are spending more money onto American goods, you will have less money for everything else. So maybe we can all cut back to our basic needs and at least all the dollars will be staying in US, right?
No! The only thing left for US economy is its ability to innovate. But innovative companies also need US consumers to throw money at them when they are in their early development stages: think about all the latest drugs, think about first generation ipod, think about Kindle…
If the American consumers are throwing money at American products with less value, they will have nothing to spare for the innovative companies’ expensive but unique products. And that will eventually kill US economy because all it can compete with others is innovation, not the cost of the labor.
That said, whether US products offer better or worse value is an entirely different debate. For the record, I do most of my grocercy shopping at Henry’s and I just love that place. And I hardly ever go to Walmart. I am not rich enough to waste money on the Warlmart stuff that doesn’t last long.
