U of C: China reduces U.S. income inequality

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For the past 20 years or so the US has been living way beyond its means, and this manifests itself in a soaring Current Account Deficit.

The only reason this is continuing (which flies in the face of Econ 101) is because the Asian countries are helping to plug this hole to finance their expansion. So unless Joe Sixpack is willing to take a 40% loss of purchasing power, China is beneficial to him. But whether the US Dollar can continue its status as the Gold Standard will be questioned.

I suspect if cheap Made In China goods were restricted, the same people who pushed for this measure would cry about the soaring inflation this would cause.

Ultimately if the current leadership there is unwilling to allow greater social freedoms, then the alternative is to bring over a billion people into the global economy. If thousands of students were to converge of Tiananmen Square tomorrow, then they can't economically or socially or politically afford to send tanks and cover everything up.

In the meantime everyone this side of the Pacific should know "ni hao".