Trump Abandons his Own Tax Plan

Raising the cost importers pay via tariffs does change the math, and an analysis based on the new landed cost might reveal an opportunity to onshore, using your example, TV manufacturing. A problem is, we didn't simply offshore a single TV "manufacturer", we exported (in stages) a TV manufacturing network. The advantage China has now, besides still lower labor costs, is that they have, beside assembly, a "glass guy" next door, a "rare earths processor" guy across the street, an electronic parts maker on the other side, and all the infrastructure, rail lines, power, etc. all there now, in close proximity, with labor towns (read barracks) near too. To reverse this evolution will take years, and the investment is going to raise the cost of American made TVs in the short term anyway. And we haven't even considered we'll probably have to pay Americans devaluated relative wages, and relax our environmental protection costs (a price China has, until recently, largely ignored) if we ever want to get TVs, post-tariff rate hikes, for $400. As I said before, offshoring is the normal and working as intended operation (if profitable) of capitalism.

Additionally, we'd be subject to retaliatory duties on our exports to China because we would lose our case at the WTO, so you're killing sales for our exporters to that market. Tear up the WTO you say? Go ahead, then China can do the same, makes no difference.
 
I believe that free trade is ultimately the enlightened approach, but not with currency manipulation, unequal worker's rights and lax environmental standards in countries like China and Mexico.
 
I believe that free trade is ultimately the enlightened approach, but not with currency manipulation, unequal worker's rights and lax environmental standards in countries like China and Mexico.
Trump has nothing to do with trade or currencies. He just says he'll fix what most of the people complain about. We've been complaining for years at least 8, and now the establishment government and media seems shocked. They are shocked because they never bothered to listen to our complaints or take them seriously.
 
Trump has nothing to do with trade or currencies. He just says he'll fix what most of the people complain about. We've been complaining for years at least 8, and now the establishment government and media seems shocked. They are shocked because they never bothered to listen to our complaints or take them seriously.

I'm not sure Trump's the answer, but he didn't make ten billion dollars by glossing over complicated financial details.
 
I believe that free trade is ultimately the enlightened approach, but not with currency manipulation, unequal worker's rights and lax environmental standards in countries like China and Mexico.
What you're talking about is fair trade - free trade amongst nations with comparable cost structures (labor, regulatory, environmental etc). We all support fair trade. Not free trade with slave labor third-worlders.
 
Raising the cost importers pay via tariffs does change the math, and an analysis based on the new landed cost might reveal an opportunity to onshore, using your example, TV manufacturing. A problem is, we didn't simply offshore a single TV "manufacturer", we exported (in stages) a TV manufacturing network. The advantage China has now, besides still lower labor costs, is that they have, beside assembly, a "glass guy" next door, a "rare earths processor" guy across the street, an electronic parts maker on the other side, and all the infrastructure, rail lines, power, etc. all there now, in close proximity, with labor towns (read barracks) near too. To reverse this evolution will take years, and the investment is going to raise the cost of American made TVs in the short term anyway. And we haven't even considered we'll probably have to pay Americans devaluated relative wages, and relax our environmental protection costs (a price China has, until recently, largely ignored) if we ever want to get TVs, post-tariff rate hikes, for $400. As I said before, offshoring is the normal and working as intended operation (if profitable) of capitalism.

Additionally, we'd be subject to retaliatory duties on our exports to China because we would lose our case at the WTO, so you're killing sales for our exporters to that market. Tear up the WTO you say? Go ahead, then China can do the same, makes no difference.
That's exactly why we got completely fucked. And why exporting "manufacturing jobs" offshore's allot more then just manufacturing jobs. There's the support network that goes with it (supply chains, engineering, finance, warehousing, transport). AND then there's the knock on effect or the flow-through of each new dollar spent into the economy. The factory worker buys a car. The dealership pays the sales guy. The sales guy buys groceries, who pays the grocer, who pays the butcher, who pays the slaughter house who pays the farm etc.

Asia already has massive tariffs against American goods. That's what China and Japan have done - tariffs against imports/subsidies to exporters/debauch currency to promote exports.
 
That's exactly why we got completely fucked. And why exporting "manufacturing jobs" offshore's allot more then just manufacturing jobs. There's the support network that goes with it (supply chains, engineering, finance, warehousing, transport). AND then there's the knock on effect or the flow-through of each new dollar spent into the economy. The factory worker buys a car. The dealership pays the sales guy. The sales guy buys groceries, who pays the grocer, who pays the butcher, who pays the slaughter house who pays the farm etc.

Asia already has massive tariffs against American goods. That's what China and Japan have done - tariffs against imports/subsidies to exporters/debauch currency to promote exports.
I will admit that at the very least it's good to see someone around here on Team Right who believes in the multiplier effect.
 
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