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Post by Flop the Nuts on Mar 9, 2007 12:44:10 GMT -5
I don't agree with your argument regarding taxes on imports, but for the sake of discussion:
If China uses more oil while making cheaper goods for the US, doesn't some other country use less oil because they are getting squeezed out of the market for those goods?
Say that we were getting 1,000 widgets from country A, and country A was using 1,000 units of oil to produce the widgets.
Now, we get those 1,000 widgets from China, and China is using 1,000 units of oil to produce the widgets.
Doesn't country A cease making the more expensive widgets? Maybe not immediately, but in the mid to long-term? Why doesn't the net change to oil consumption zero out?
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Post by Big on Mar 9, 2007 12:48:46 GMT -5
Because the other country can make only 200 of them due to higher labor costs. So, now you have 5 more times use of oil.
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Post by Big on Mar 9, 2007 12:52:22 GMT -5
If people can afford it, they will often buy 5 jackets instead of 3, 10 pairts of shoes instead of 5 and have two cars instead of one. This causes oil prices to go up because oil is needed to make those products.
Do people desperately need 10 pairs of shoes? I don't think so. However, people don't think that way, especially women.
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