Runningart2004 wrote:
Rigged.....
Let's say we stop buying from China tomorrow. Factories all move back to the US and we are this isolated little kingdom....like 1880s US or whatever. What happens to the cost of those goods now that they are being produced here? They actually go up! It costs more to manufacture goods here period. Now, with the unemployment so low these companies are going to have to throttle salaries through the roof. Guess who pays this increase? Yep, the consumer. Now the price of goods is doubly bad.
Shipping production out of the US is a good thing.
Alan
The dear leader has a plan to deal with that. He will just ask the fed to print some stimulus dollars to bail out all those impacted businesses, just like he’s done with the farmers that he hosed in these rounds of tariffs. His plan is to kick the can and let the next undefined number of generations deal with the fallout.
Of course, that won’t work to relieve the cost hikes of that scale. We are talking about almost everything we touch coming from China, so it’s actually not possible to cease buying their goods (whether finished goods or raw material and labor inputs). And if we tried to transition trade from them to other nations all American businesses would still get crushed with the foreign competition trading with China getting the cheaper inputs. There is no way around it but trump might actually believe this is some kind of binary match against China.
It’s Econ 101 that this $hit wouldn’t end well for us. Now Rigged and other trumpanzees will say “but China!” yes they are hurting too but 1) that doesn't warrant playing chicken with our and the global economy, 2) China can arguably sustain the blow much longer than we can, certainly from a political perspective, and 3) it is not smart to push the world’s second largest economic power to the limit - they can unleash a few weapons on the mkt that would bring everything down.
Part of the problem is we have millions of Americans who get a hard on at the prospect of other “enemies” (as labeled by Trump) suffering, like China, Iran, migrants of color, etc. They get excited when they see this and any reasoning goes out the window because trump has told them all that these are very simple problems and it’s someone else’s fault.
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