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by rm_-rf_slash
3759 days ago
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We don't have to manufacture everything here. It makes sense to do microelectronics in China because of factory network effects. Need a widget? My buddy at the factory down the road can ship you a million by Friday. But we can manufacture textiles, plastics, metals, and so much more that we grow, extract, and refine here. The only reason China is so competitive is because of ridiculous energy subsidies and an artificially weak currency compared with the US dollar, which is also being artificially strengthened as a generally weak global economy seeks refuge in reserve currencies. I dress well. I am currently wearing a designer shirt made in Pennsylvania. It cost me about 20% more than designer shirts made in China. If all shirts of similar quality were raised to that price due to tariffs, it would only marginally affect my buying habits. A $120 price tag is not a big deterrent for someone who buys similar shirts for $100. I just want to look good. And right now, I do. |
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The general accepted wisdom is you don't want your economy regressing back to being built on low skill manufacturing jobs. Nor do you want your trading partners to inact retaliatory tariffs. Im sure the Americans buying the 10 dollar shirts will tend to be more upset at price increase. https://en.wikipedia.org/wiki/Smoot%E2%80%93Hawley_Tariff_Ac...