tag:blogger.com,1999:blog-7820485130017459619.post33679645752393454..comments2023-10-24T01:46:47.151-07:00Comments on CynicusEconomicus: What Is Going On In The World Economy?Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7820485130017459619.post-40147325697313460982008-12-31T01:18:00.000-08:002008-12-31T01:18:00.000-08:00Firstly, why is it not possible to have an economy...Firstly, why is it not possible to have an economy which is primarily based on post-industrial services?<BR/><BR/>IBM made a decision to sell off their PC business because they recognised that knowledge work had a far higher profit margin. Surely, their success can be extended to the broader economy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-17256404663021189032008-07-18T01:43:00.000-07:002008-07-18T01:43:00.000-07:00"...the only way forward would have been through a..."...the only way forward would have been through a gradual devaluation of their currencies which, whilst making individuals, poorer, would have helped their manufacturing industries remain more competitive, and thereby slow the exodus of industry overseas. It would have been a painful adjustment, but it would have retained capital within the western economies, slowed the competitive growth of China, and would have allowed a relatively painless adjustment."<BR/><BR/>Hi<BR/><BR/>One thing I don't quite understand is that you imply that China's debut in the world economy was always bound to make the West poorer. This makes me wonder why it was in our interests to trade with them in the first place. From what you say, if we had simply made a decision to ignore China we could have carried on living in the way to which we had become accustomed. I suppose this is basically protectionism, and I am sure there are sound reasons why it wouldn't work, but it is a reasonable conclusion to draw from your piece..?Anonymousnoreply@blogger.com