quote:Originally posted by Noah The African:quote:Originally posted by toussaint:quote:Originally posted by Noah The African:
If I am a company in the USA and I got a billion dollars to invest, a billion dollars that when spent will create jobs and income, and I invest that money in China....where is the NET GAIN of an infinite pie? The fact they China gets the investment and jobs means that we don't get the investment and jobs. Somebody wins and somebody loses....ZERO SUM.
That's like saying when I buy something from someone, every person other than that someone loses. Ridiculous.
No one in either side is made worse off in your hypothetical. A company is taking its own money and investing it. It's not taking someone else's money. There's no zero-sum here.
Well...you seem to not understand that competition produces winners and losers and hence by its nature represents a zero sum. Given population growth, there need to be economic growth and job growth just to keep up with providing opportunity for an expanding population. Thus, when there is capital to be invested which creates jobs and income for peoples. Geographic locations compete for the investment dollars. Some win and some lose. Even within the United States, there has been a migration of investment dollars to the Southern Region and away from the Northern Region. Thus, opportunity has thus shifted from the North to the South and that is why jobs and people are flocking south. Obviously the South gain is to the North's loss. Obviously Asia's gains are the US loss.
It is not at all obvious that A's gain is B's loss. That's why your argument about manufacturing jobs fell flat.
If a US company takes its profits and invests them in China, tell me, who has "lost" something? Investment seekers in the US may have "lost" competition for investment dollars, but they have not lost anything tangible. They are just as well off as they were before the US company decided to invest its profits.
Some specific group may not be as well off as they could have been, but that does not mean "worse off" for zero-sum purposes.