Made in China, Paid by America’s Inequality - Arthur Kroeber
The Post-World War II Narrative and U.S.-China Relations 00:00
U.S. foreign policy since World War II has relied on the narrative of democracies defeating fascism and communism, leading to a world of converging democratic, market-based systems
China challenges this narrative by being a highly successful authoritarian system, with a ruling party that still calls itself communist
U.S. elites have not accepted the legitimacy of China's political system, creating persistent difficulties in the relationship
Some current U.S. tensions with China are seen as scapegoating, distracting from pressing domestic issues like income redistribution and macroeconomic policy
China accounts for 20% of the global economy and about a third of global manufacturing, with the expectation these shares will increase
China's subsidization of low-cost production benefits global consumers with cheaper goods
Consequences for U.S. Manufacturing and Social Compact 01:27
A major cost for the U.S. has been the loss of a diversified manufacturing base, which is important for large countries to employ many workers and maintain economic stability
The shift toward a highly financialized U.S. economy in the early 2000s, spurred in part by economic arrangements with China, has damaged the U.S. social contract
There is an open question about how to integrate China's increasing power and industrial capacity in a way that is sustainable for societies worldwide
Establishing agreed rules for how China interacts economically with other countries is necessary to ensure all parties feel they benefit from globalization
Currently, a global consensus on these rules has not been reached