[Exsubmariner]

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Yes but you can argue that this system is the reason why the American standard of living must decline. All things being equal, there is no reason why an hours work by a person in America should allow him more purchasing power than a similar person doing a similar job in Romania. But of course historically all things haven't been equal.

But that's not the natural state. The more you allow free trade, the more you allow the water to find its own level, the more that everybody will have equal purchasing power. This means Americans losing some, and other countries gaining. In a state of equlibrium, that farmer exporting cheaply will make the same amount as a Chinese farmer.

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One point. That is, capitalism makes things cheaper. The more that gets produced, the lower the price. The dollar may loose value on the world stage, but developing nations will still produce goods attractive for export. Increased competition makes prices lower.

Also, the market may drive the price of some equal quality goods toward equalibrium, but all goods are not equal. American rice, for example, is actually a higher grade than most of the rest of the world. It is more nutritious and better tasting, for example than rice in Japan. My Japanese friends have all commented about this to me at one time or another. An edge in quality is a major reason to buy goods from one producer as opposed to another, even if the better quality costs more. The China-free Christmas movement is witness to this.