I recently came across two interesting works that made me think about trade balance. First written by Christopher Caldwell, it discovered rust in France.
The process Guilluy calls Méropolisation reduced the Franci Society to two. With 16 dynamic urban areas (Paris, Lyon, Marseille, Aixen Provence, Toulouse, Lille, Bordeaux, Nice, Nantes, Strasbourg, Grenøble, Rennes, Rouen, Toulon, De Ayren and Montpellier), the world’s Rest Area offers complementary urban supplements. All of that company and many paying jobs going withck. Here too, the cheap labor of entrepreneurs, engineers and CEOs, fashion designers and models, filmmakers and chefs and Oher, tariff-free consumer goods, and a new market for billions of people, is making globalization a rumoured place of such a thriving place. However, globalization does not bring such galvanizing effect to other parts of France. A city that has been alive for hundreds of years – Tarbeth, Agnen, Albi, Vezies – Lee Lee, Girui’s words, “Desertification,”
Gilley doubts that, as we traditionally understood, every place exists in France’s new economy for workers. Paris offers the most impressive case. As it flourished, the City of Light layered and remembers London and American cities such as New York and San Francisco in this respect. It is a place for billionaires, immigrants, tourists and young people, and there is no space for the median of French people. Paris now drives out those who were once considered synonymous with the city.
As such, Europe suffers from many of the same issues relating to American populist rights. But do you know that Europe doesn’t have? A big trade deficit. In fact, the EU is a massive trade surplus. France itself has a small trade deficit, but it is too small for economic implications. (Currently estimated by economists at 0.1% of GDP.) So, what exactly is the problem if the rusty belt of Europe is not caused by international trade?
Think of a simple model in which the global market share of manufacturing falls from 20% to 10% of the workforce over decades. You may wonder how this kuppen without a significant trade deficit. The answer is simple – automation.
This type of process does not lead to what is needed for a high overall percentage of unemployment, as new jobs are being created in the service industry. However, the process is not uniform. While manufacturing-focused regions can lead to depression, cities featuring innovative services sectors can thrive.
The French rustbelt suggests that international trade is not a major issue, and presents what perceptual observers have known this all along. This is Hillbilly Elegy’s JD Vance:
“We talk about the value of hard work, but the reason we don’t work is to submit injustice. Obama downloaded the coal mine or all the work went to the Chinese.
Vance is correct. We need to stop lying to blame China for our rusting.
The second story appeared in the Financial Times, which discovered a surplus of Switzerland’s Persisisnt trade.
The world’s richest major economy has bushes in powerful currency and powerful manufacturing bases. The Swiss franc has had the highest performance currency for the last 50, 25, 10, and five years. It’s been near the top even in the past year when I staged the more troublesome currency Aging of Comtebac. Nohing allows you to compare durability strength.
However, Switzerland also denies the assumption that strong currencies will undermine the country’s trade capabilities by complementing exports. Its exports are rising, approaching the historic top-class Bock as a share of Swiss GDP (75%) and as a global share of exports (nearly 2%).
Protectionists sometimes argue that trade surplus hurts in unfair ways. They argue that total countries achieve surplus by portraying “mercantalist” policies, such as making wage depressing in low currencies. In contrast, most economists believe that trade surplus reflects the fact that saving countries operate capital accounts where they buy more foreign assets than they sell. They see the capital with dogs and current accounts looking at the tail.
Consider Germany and Switzerland. It’s also difficult to think of two similar countries. Bush countries focus on high-quality manufactured products such as precision machinery. Both have a culture of saving money. Most Swiss speak German. And both countries tend to operate a permanent trade surplus.
Sometimes, by artificially suppressing their currency (euro) by achieving this surplus. However, Switzerland achieves similar results with the highest currency and very high wages in the world. Looking at these two cases side by side, it is far more reasonable that Germany and Switzerland’s high savings rates are leading to a trade surplus. Only Germany has something close to weaker currency (and even the euro is not so weak).
