Ehhh. You may be right, but I'd just call it whatever happens to be very well received by the majority of the masses.
Market signals are necessary for an economy to function but protectionism doesn't erase those signals.
It very much does this. Fundamentally, that's the purpose. Protectionism exists to prevent those signals from arriving, and for the consequences of those signals to be borne out only in the future.
At worst it can keep bad businesses afloat when better ones could do better with their market share.
It can go a lot worse than that too. It can intentionally cartelize an industry to the point where all competition is stifled, all companies are extensions of government make work programs, and then the industry dies and doesn't recover due to a final bust in the market and burdensome regulations that prevent all future growth. This is basically what happened to Wales' coal miners.
But do you think America could outdo China when China is communist and protectionist? China's cheating.
Hell yes, absolutely, we could smoke the absolute fucking shit out of them. They are wildly inefficient by their very nature and have no ability to capitalize on the market in the same way that we do. They will always remain susceptible to extreme busts, and all booms must be created by extracting wealth. They have no ability to have a normal functioning economy, and any success they do have is basically because the party decreed it necessary while everyone else suffers.
The Soviet Union had a similar disastrous economy on it's hands (but the Chinese were smart enough to introduce FEZ's in order to have price discovery, where the Soviets had almost nothing). The Soviet Economy was so shit that it can be argued that they never recovered from WW2, and worse, they never actually recovered from WW1. What we saw of progress came from developments stolen from the west, or the government siphoning more and more money from other sectors to boost a specific industry or sector.
We have a far better and more diverse & adaptable economy. Honestly, I think the American economy may be stronger than I thought, because the Covid Lockdowns could have nearly destroyed us just from the initial shutdowns. I'm not saying we're properly recovering, but we aren't dead yet. That's actually stronger than I expected.
Ehhh. You may be right, but I'd just call it whatever happens to be very well received by the majority of the masses.
It very much does this. Fundamentally, that's the purpose. Protectionism exists to prevent those signals from arriving, and for the consequences of those signals to be borne out only in the future.
It can go a lot worse than that too. It can intentionally cartelize an industry to the point where all competition is stifled, all companies are extensions of government make work programs, and then the industry dies and doesn't recover due to a final bust in the market and burdensome regulations that prevent all future growth. This is basically what happened to Wales' coal miners.
Hell yes, absolutely, we could smoke the absolute fucking shit out of them. They are wildly inefficient by their very nature and have no ability to capitalize on the market in the same way that we do. They will always remain susceptible to extreme busts, and all booms must be created by extracting wealth. They have no ability to have a normal functioning economy, and any success they do have is basically because the party decreed it necessary while everyone else suffers.
The Soviet Union had a similar disastrous economy on it's hands (but the Chinese were smart enough to introduce FEZ's in order to have price discovery, where the Soviets had almost nothing). The Soviet Economy was so shit that it can be argued that they never recovered from WW2, and worse, they never actually recovered from WW1. What we saw of progress came from developments stolen from the west, or the government siphoning more and more money from other sectors to boost a specific industry or sector.
We have a far better and more diverse & adaptable economy. Honestly, I think the American economy may be stronger than I thought, because the Covid Lockdowns could have nearly destroyed us just from the initial shutdowns. I'm not saying we're properly recovering, but we aren't dead yet. That's actually stronger than I expected.