Morgan Stanley’s Stephen Roach has a report on the fallout of China being falsely blamed for the decline in employment in the American manufacturing sector — a massive tariff. Never mind the recent articles that seem to prove conclusively that increased productivity is responsible for the manufacturing sector shedding employees, blaming China is a lot easier. After all, what’s the alternative? Telling businesses to not be so darn efficient? I’m as ready as anyone for the economic doldrums to come to an end and for employment to go back up, but scapegoating and knee jerk reactions just aren’t going to get us where we need to go, any more than tax cuts for the rich. One thing is certain — a big tariff on Chinese goods means a cost of living increase for every single American.