Mercantilism, Relative Gains, and the U.S.-China Relationship A recent survey in
ID: 1144269 • Letter: M
Question
Mercantilism, Relative Gains, and the U.S.-China Relationship
A recent survey in America asked respondents whether they preferred a high growth world in which ‘the average American’s income doubles, but China grows faster than the United States and China’s economy becomes much larger than America’s’ or a low growth world, in which ‘the average American’s income increases by only 10 percent, but the U.S. economy remains much larger than China’s.’ A majority (50.7%) preferred the low growth world...
What do you think? Are 51% of Americans correct to focus on maintaining their position over China even if this means less absolute prosperity for themselves? Are they wisely looking beyond mere economics to the broader implications of a much stronger China? Or is this kind of thinking outdated and self-destructive?
Explanation / Answer
The type of thinking which Americans are showing now might have been successful during pre globalization era but in the era of globalization where entire world is a global village now, preference towards a low growth model with the idea of dominating another economy might be outdated and self destructive. If the United States concentrates on its growth only then it will be more fruitful and helpful for the entire nation.