Re: Dumping

From: John Clark (jonkc@worldnet.att.net)
Date: Tue Dec 25 2001 - 21:39:35 MST


Mike Lorrey <mlorrey@datamann.com>

> And, no, John, dumping is NOT free trade if the government is
> subsidizing the market.

A gift is part of free trade. If India is dumping then India is giving a gift to
the America Taxpayer. India is a poor country so I don't think it's wise to
give such an extravagant gift, in fact it's pretty stupid, but that is not my
decision to make. If somebody insists on giving me something I'm not
going to say no. As I said before selling something for less than it costs
to make it is not the path to riches.

>Dumping is predatory trade, and is typical of monopolists.

"Predatory trade" is just a euphemism for low prices.

> think about the costs of dumping that are externalized:
> foreign company A dumps its products on our market, which drives
> domestic company B, C and D into bankruptcy,

Yes, companies B, C and D might go bankrupt, but meanwhile domestic
companies E,F,G, H and I thrive and hire more workers because they use
the cheap product that foreign company A makes as a raw material. If a
foreign country can make a product cheaper than we can then it's foolish
to make it ourselves, we should do other things that we're better at.

        John K Clark jonkc@att.net



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