"I give China $10."
1. You want to come back to America and buy $10 or $5 worth of goods.
2. If they don't buy American goods maybe they buy American assets. Remember all imports are exports.
3. Buy goods from other countries (e.g. Italy) If they do spend $10 on the Italian vendor, the Italian vendor would go back and spend the money on an American good.
4. The "worst" thing they could do is eat the money.
Money is only useful if you can buy other goods. Therefore even if one dollar, ten dollars, or ten million dollars are "eaten" it makes our money more valuable. In all cases of giving money to China, money comes back into America. FOLLOW THE GOODS NOT THE MONEY!
It's easy to say we shouldn't allow free trade, but if we do we're back to only producing locally. We're ignoring everyone else besides Americans when we impose tariffs against free trade. We blight the American poor and outsourcing of jobs but why do we not look at the benefits given to these around the world?
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