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by BytesAndGears 526 days ago
> American companies will never go below whatever the Chinese widget costs

Why not? If there are 3 American companies with similar costs, would all of them just say “well, the price is the price?” Or would there eventually be one who realizes they can take more market share from the Chinese companies by undercutting them?

1 comments

> Why not?

It was probably incorrect to say never, and there is another reply to me mentioning price elasticity which applies here for sure.

> eventually be one who realizes they can take more market share from the Chinese

Yes, on a longer timeline that is possible but in the short to medium term, it doesn't seem realistic for domestic producers to undercut and make profit. Initially you're building factories, refining processes, training workers, etc. which requires capital and investment.

Yeah, that's fair. I guess I'm ok with raised prices in the short-term if it brings more stability and better working conditions + environmental management in the long-term.
I feel like it’s out of step to think those promoting tariffs are the same as those who want environmental management and/or that Americans when they have even less money to spend because of higher prices will care to either.
Yeah probably not the environmental management, but likely they are in favor of the other point I made earlier about leveling the playing field by ensuring American companies are competing with others who value similar working conditions and standards to the US, rather than giving an advantage to countries who exploit their workers even more than the US.

Though, I can’t speak for them, and my opinions on reducing the outsourcing to countries who largely disregard the environment and human rights, are my opinions regardless of their motivations