Emma Tyler, Chapter 11, Question #6

In Chapter 11 of Naked Economics, I learned a lot concerning the topic of International Economics. The passage I found most interesting was about America's problem with "dissaving"- the farmer analogy. The analogy used two farmers growing corn; one was Farmer America and the other Farmer China. Farmer America had some troubles organizing and rationing out hid corn and needed up with a need to borrow some corn from somewhere else in order to have corn to plant next year. On the other hand Farmer China ends the analogy with extra corn even after he rationed out the amount he need to plant next year. It was helpful for Farmer America that Farmer China had this extra corn to give because then Farmers America got to do everything he wanted. Then Wheelan stops the analogy to describe the problem with this system. I always knew that the US was very dependent on China's goods, which would be detrimental to our economy at some point, but what I did not know before reading this chapter was that the relationship between China and America could potentially very extremely harmful to a China as well if it continues at this rate. Wheelan then mentioned that the relationship between the two will have to end but there are so many ways that it could end, we just won't know until it happens, which is kind of scary.