Obama says that under Clinton average income increased 8,000$ while under Bush, average income decreased 2,000$. He doesn’t say however that free trade with China was negotiated and agreed upon under Clinton.

What if its not free trade with the Chinese but unfair trade.

What if the Chinese don’t invest in anti-polluting equipment like US companies have to do. What if the Chinese don’t invest in health and safety like US companies are required to do. What if chinese companies don’t invest in technology but rather steal and copy proprietary technology and R&D, don’t respect licenses and engage in illegal production. What if Chinese companies are subsidized through their regional banks and hence don’t have to pay interest and don’t deduct depreciation. What if the advantage of the Chinese is not related to low labour costs but to the effects of the previously mentionned factors.

What if plants in the US were being closed because of the above factors. In a 100 million $ mill, I estimate the cost of anti-pollution equipment, health&safety, technology licenses, interest and depreciation to be between 40 and 50% of the operating costs of such a mill not to speak of the additional initial investment. Is it any wonder US mills are shutting down at the current speed. Who in his right mind would invest huge sums in such a context. The chinese aren’t smarter than the US, they just cheat and deceive. Low labour costs are only an insignificant part of the equation once transport costs are factored in. Somebody should advise Mr. McCain accordingly. I’m all for free-trade but let’s not continue to be so naive.