Firms produce goods for households - that's us - and provide us with incomes, and that's even better, because we can spend those incomes on more goods and services. That's called the circular flow of the economy.

The lower cost of Chinese goods means we can spend more on other goods and services.

The philosophical point is that our happiness and wellbeing is not based on incomes rising. This is not just the wisdom of sages but of ordinary people. Prosperity is more social and psychological: it's about identification, affiliation, participation in society and a sense of purpose.

In business, real jobs profitably produce goods and services that people value more highly than their alternatives. Subsidizing inefficient jobs is costly, wastes resources, and weakens our economy.

The overwhelming majority of my rated wealth consists of investments in companies that produce goods and services.

We spend money we don't have, on things we don't need, to make impressions that don't matter.