Global trade drove the cost of supplies and goods down to the lowest available prices, so while setting tariffs may encourage local production because it makes overseas less attractive, the price of goods still goes up on both scenarios.
If moved locally, there will be more local labor required for production but it’s not clear if that is a net benefit.
Hypothetically under globalism more developed countries shed their “dirty manufacturing labor jobs” and move more people upmarket. Of course this is matter of nonstop debate among economists because as we all know the whole population of a country can’t move upmarket together and a lot of people were/are screwed because of lack of education and opportunity to develop themselves.
In an ideal implemention of this, more people would be moving to the arts, self expression, and technology, while fewer are involved in survival activities like shelter and food.
I think the unsolved problem now is that average people believe way too much of that wealth went to the top while the middle class is working harder than ever and getting less.
It’s also dumb to just assume that foreign companies can just flip a switch and start building/assembling whatever they sell in America. You need facilities, you need to hire employees, you need to train employees. You can’t just pick up your factory, drop it in Kansas, and just slot people into the building to work it right away.
Also, unless your plan is to exclusively export to the US, then it’s less cost effective to open up new facilities in the US. You just raise prices and and have the consumers take the hit for the tariff. There’s also the problem of logistics for raw materials for whatever products your manufacturing. Those also tend to cost more to acquire stateside.
The worst part is that policy is only a single bullet in the policy foot gun Trump has loaded. It gets even more expensive when the low cost labor is suddenly deported and/or put in camps. Which I realize isn’t even the worst thing about the immigration policy, but just pointing out that it too has consequences to these same people.
What do you mean my car is now valued for so much less? Well see all the parts are all manufactured overseas, so we have to pay tariffs to acquire the parts and they cost much more. Higher repair costs, lower value. Also, your car insurance just went up.
Repairs on any products you currently own, more expensive.
Don’t worry, in 10 years these prices will stabilize and we’ll still have 8 dollar an hour minimum wage, but a new car only cost 80,000 starting. Well that’s MSRP, Desantis banned direct sales of ICE cars without going through a dealership, so they need their cut.
We were going to subsidize vegetable based meat substitutes to drive the cost of food down, but instead we decided we should ban lab grown meats from existence, and not subsidize the vegatable based meat because if I I don’t know if I’ll like it, NO ONE else is allowed to try it!
Sure, but the whole concept relies on Americans being too wealthy and need to pay more for their stuff. They’re lazy and need more work to do.
And with all the poverty about, people working multiple jobs, the gig economy turning minimum wage evasion into “well you chose to do it”, I’m surprised that over half the country agreed with the billionaire about that.
I mean the whole point is paying a tariff so American companies make the goods instead for less.
But if paying Chinese poverty wages and tariffs is still less than paying Americans to do it, then guess what they’re going to do?
Global trade drove the cost of supplies and goods down to the lowest available prices, so while setting tariffs may encourage local production because it makes overseas less attractive, the price of goods still goes up on both scenarios.
If moved locally, there will be more local labor required for production but it’s not clear if that is a net benefit.
Hypothetically under globalism more developed countries shed their “dirty manufacturing labor jobs” and move more people upmarket. Of course this is matter of nonstop debate among economists because as we all know the whole population of a country can’t move upmarket together and a lot of people were/are screwed because of lack of education and opportunity to develop themselves.
In an ideal implemention of this, more people would be moving to the arts, self expression, and technology, while fewer are involved in survival activities like shelter and food.
I think the unsolved problem now is that average people believe way too much of that wealth went to the top while the middle class is working harder than ever and getting less.
It’s also dumb to just assume that foreign companies can just flip a switch and start building/assembling whatever they sell in America. You need facilities, you need to hire employees, you need to train employees. You can’t just pick up your factory, drop it in Kansas, and just slot people into the building to work it right away.
Also, unless your plan is to exclusively export to the US, then it’s less cost effective to open up new facilities in the US. You just raise prices and and have the consumers take the hit for the tariff. There’s also the problem of logistics for raw materials for whatever products your manufacturing. Those also tend to cost more to acquire stateside.
The worst part is that policy is only a single bullet in the policy foot gun Trump has loaded. It gets even more expensive when the low cost labor is suddenly deported and/or put in camps. Which I realize isn’t even the worst thing about the immigration policy, but just pointing out that it too has consequences to these same people.
What do you mean my car is now valued for so much less? Well see all the parts are all manufactured overseas, so we have to pay tariffs to acquire the parts and they cost much more. Higher repair costs, lower value. Also, your car insurance just went up.
Repairs on any products you currently own, more expensive.
Don’t worry, in 10 years these prices will stabilize and we’ll still have 8 dollar an hour minimum wage, but a new car only cost 80,000 starting. Well that’s MSRP, Desantis banned direct sales of ICE cars without going through a dealership, so they need their cut.
We were going to subsidize vegetable based meat substitutes to drive the cost of food down, but instead we decided we should ban lab grown meats from existence, and not subsidize the vegatable based meat because if I I don’t know if I’ll like it, NO ONE else is allowed to try it!
Welcome to America, home of our grave
Raise the tariffs?
Sure, but the whole concept relies on Americans being too wealthy and need to pay more for their stuff. They’re lazy and need more work to do.
And with all the poverty about, people working multiple jobs, the gig economy turning minimum wage evasion into “well you chose to do it”, I’m surprised that over half the country agreed with the billionaire about that.
The people I talked to thought tariffs would nt change prices. Also thought they were for a free market.