“If we didn’t import from China, we’d import from somewhere else.”-Henry Paulson, former U.S. Treasury Secretary

Henry Paulson is saying that if U.S. corporations didn’t have China to ship jobs to, they’d ship off U.S. jobs somewhere else.  He, and others, believe that by shipping off U.S. jobs to other countries, it helps to keep inflation down.

Of course it does, because that means less people working which brings down consumer spending which helps keep inflation down.  Inflation traditionally goes up when the economy is good and people spend more money, which is what is happening in China right now.

There is worry that the fast growing inflation in China could spread to the rest of the world.  For those countries whose economies are in trouble it’s not a good thing: “If China has problems, our problems would be more difficult.”-Henry Paulson