The Limits of 'Made in America' Economics

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OddTrader




The Limits of 'Made in America' Economics

Trump's widely-anticipated steel tariffs are likely to end up hurting the heartland.

China Stringer Network / Reuters

Annie Lowrey Jul 20, 2017


https://www.theatlantic.com/business/archive/2017/07/made-in-america/534339/?utm_source=feed

Thus, manufacturing businesses outside the steel industry are lobbying against the Trump tariffs too. “Inevitably, the imposition of across-the-board higher tariffs or other restrictions on imports of steel into the United States would only widen the existing price gap by increasing the price of U.S. steel and thus the cost of U.S.-built vehicles,” the Detroit car makers wrote in a letter to Commerce. So are economists. “Additional steel tariffs would actually damage the U.S. economy,” reads an open letter to Trump signed by the former Federal Reserve chairman Ben Bernanke and the Nobel laureate Joseph Stiglitz, among others. “Tariffs would raise costs for manufacturers, reduce employment in manufacturing, and increase prices for consumers.”

Why do it, then? The sense among trade experts is that Trump just wants to: He has long promised to attack countries that he perceives as having an unfair advantage, and wishes to do so in an attention-grabbing, poll-driving, and openly oppositional manner.

More broadly, Trump could be doing far more to aid manufacturers through measures such as infrastructure investment and workforce-development. “He has his program to make the United States competitive again,” said Harry Moser, the founder of the Reshoring Initiative, a group that promotes domestic manufacturing. “The things he wants to do are mostly the right things: lower corporate tax rates, less regulations, some kind of border-adjustment or value-added tax, that would help a lot. He’s started to show interest in the skilled workforce.”
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JackRab said:
Trump just needs to devalue the dollar by 25%... that will make the US competitive again...
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your remark is voodoo economics at its best. if devaluation and depreciation of the currency was a solution brazil, venezuela and argentina would be among the richest countries in the world.
 
zdreg said:
your remark is voodoo economics at its best. if devaluation and depreciation of the currency was a solution brazil, venezuela and argentina would be among the richest countries in the world.
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effect of weaker currency of earnings is the real deal. see germany. as long as you actually got stuff to sell.
 
America should be great again.Throw out all immigrants, no real patriots left in your government, except for mr.Trump?McCain is too old and sick - the only real patriot alive afaik.I love America even though i`ve never been there.
 
NominalSpeculator said:
effect of weaker currency of earnings is the real deal. see germany. as long as you actually got stuff to sell.
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Exactly... Germany's economy is very strong... strongest in Europe... that's mainly because the Euro is currently low compared to the USD and perhaps several other currencies.... which is helping their exports massively.

The same would go for the US. You can't compare the US/Europe with Venezuela or Brazil... those are still immature economies. Especially Venezuela, that country is f%$#ed. Politically in shambles and economy isn't much different. A lower currency for them doesn't do anything, since it's all going tits up overthere. Brazil has it's fair share of issues as well... and Argentina only a short time ago was bankrupt... those things all affect the state of the economy.

Europe and USA are totally different. They have mature leading economies. If the US wants to compete with other mature economies, their products/exports need to be of good quality and priced correctly... a lower USD will definitely help with the latter.... no voodoo necessary...
 
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Good points O Trader+ i dont have problem with Andrew Carnegie selling X [ US Steel] I think Carl Ichan did real well buying a new steel mill some years back. You are right. Even if Canada is dumping spruce lumber in US. I like Canadian spruce + US pine. So they should try to settle it out of court, not more tariffs[ more tax], not a carbon tax/border tax;cut taxes as your link liked.:cool:
 
murray t turtle said:
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Good points O Trader+ i dont have problem with Andrew Carnegie selling X [ US Steel] I think Carl Ichan did real well buying a new steel mill some years back. You are right. Even if Canada is dumping spruce lumber in US. I like Canadian spruce + US pine. So they should try to settle it out of court, not more tariffs[ more tax], not a carbon tax/border tax;cut taxes as your link liked.:cool:
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The thing is a chairing committee of an organisation needs to generate a 5-year plan and a 10-year plan with visions.

A country may need also 20-year plan as well as 50-year plan.

With a systemic approach! Rather local optimisation one.

It might be the fate for a country like Japan if no more new jobs would be generated due to suddenly AI and robots are now popping up in order to replace human labours.

That should be a foreseeable thing. If not, a contingency plan must be urgently devised in responding to the sudden change.

That would be people would like to hear from the administration, because people can see and feel the daily pressure and development. LOL
 
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