Some Refreshing Honesty in China-Bashing

This is Dartmouth B-School Professor Richard D’Aveni writing in the Washington Post over the week-end, explaining how U.S. businesses “can win against China”:

Many people argue in favor of economic efficiency — investing capital and hiring labor anywhere in the world to reap the highest returns — that is theoretically achieved by an across-the-board opening of the U.S. domestic market. But this hurts American businesses in the long term. Fierce free-market competition with countries such as China drives down prices, which may make goods cheaper for consumers but comes at the expense of healthy profit levels. …

Ah, so it’s high corporate profits he supports, and that takes precedence over lower prices for consumers.  Well, yes, if you think high corporate profits should trump overall economic welfare, then minimizing free-market competition makes sense.  On the other hand, if your goal is general economic growth rather than helping specific corporations, “fierce free-market competition” is actually a good thing!