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by Johnny555 402 days ago
The USA could bring manufacturing back, but not with tariffs.

They can't tell businesses "Look, we've dramatically increased your cost of doing business, made your products more expensive (which will likely lead to lower sales) and we're forcing you to spend extra capital by paying tariffs on your products... Now all you need to do is come up with billions of dollars to build the factories that build your product and eat the high costs for the 5 - 10 years it will take to build the factories. We don't care if you're a small business that only sells $1M of product a year, if you want to reduce your costs, you need to build the factories."

Of course, the question is whether Americans really want those factory jobs -- do parents aspire to have their children work in a factory assembling iPhones? There's only so many Robot Technician jobs to go around (despite the promise of unlimited high paid technician jobs, for the forseable future there will be plenty of menial factory jobs)

2 comments

I don't know what jobs will be left. As our benefits have dried up. e.g. retirement, healthcare, job stability. Every article I've read basically said workers are going to need to be very adaptable. Forget about the lives your parents, and or grandparents had. That is gone. AI is only going to make things worse. I'm not anti-immigrant but H1-B has made the U.S. dependent on Indian labor, as it has done exactly what it was never supposed to do i.e. replace american workers with cheaper foreign labor, this is largely due to Indian Contract companies that are rife with fraud (both conservative and liberal administrations have found that). So, IT has lead the way to professional gig work i.e. contracts with either no benefits, are very high cost ones. Without protection, there just will not be stable jobs in this country. Forget retirement, most of us probably can't afford basic health care. Don't even think about dental care. In my mind, we are entering a new feudal age. No it won't be land based, but it's the same thing. Land was just the leverage for power, now it might just be net-worth and/or position. In general, American's are becoming poorer. I see us looking more like other nations with a largely poor populous. I'm guessing the rich already see most of us, like the nobles of old as peasants, with the same or similar justifications for bigotry. Divine right, or the rest are just dumb, and uneducated and only fit for manual labor, until we die (early).

P.S. I love sherlock holmes, and from that have some fascination of Victorian England, I just never thought we would go back to it. It was great if you were a noble and/or rich, but most of the populous wasn't either and suffered. All from my understanding, so historians or just more historically knowledgeable people can correct me.

This has very little to do with "bringing mfg back."
Expand on that. Because the stated reason is to bring manufacturing back to the US.

Perhaps you’re calling bullshit and proposing that something else is going on.

Calling that out specifically would be beneficial.

A stated reason is bringing manufacturing back to the US, just one of many various, contradicting reasons that have been thrown out there. The administration has been throwing so many different justifications at the wall that shift over time; there hasn't been a commitment to any actual stated goal.

And indeed some of their actions don't even line up with bringing manufacturing back to the US as a goal; like the whole concept of 'reciprocal' tariffs being different country-by-country. And making a big deal out of 'making deals' with countries to lower tariffs.

Not to mention that if bringing manufacturing back to the US was really a primary goal, there are better ways to accomplish it than forcefully and recklessly driving the US into a deep economic contraction -- because it'll mean investing a lot of capital in building a lot of manufacturing capacity, and business doesn't like investing huge amounts of capital during a downturn, and we're on the cusp of the mother of all downturns because even if capital gets sank into rebuilding domestic manufacturing, it's going to take years before it can come online.

What I think is really going on is that a lot of wealthy people got wealthier by exploiting opportunities that arose from the 2008 crisis; and they want another bite at the apple, so one is being manufactured.