- Joined
- Dec 25, 2019
1. If the reindustrialization stuff was "just PR" then Trump wouldn't be going on camera, repeatedly, telling these nations that the easiest path to no longer being tariffed is investing in American manufacturing. He would not be following the blueprints from 2019 that made blue collar wages accelerate faster than white collar wages. We already have nations that are no longer being tariffed because they've capitulated to American demands, even if it's not directly related to the topic of manufacturing. "We will spend money to begin constructing manufacturing plants in the USA, but in the meantime we'll use our factories overseas" is all you have to say to this guy.People really need to consider the idea that all the reindustrialization talk is mostly just PR, and that really the purpose of this large tax increase is to raise revenue for the government. See, I've been watching Trump's second term, and what I am seeing is austerity.
"Austerity refers to a set of economic policies that a government implements to control public sector debt, often involving spending cuts, tax increases, or a combination of both."
The DOGE stuff was about spending cuts, and the tariffs are a tax increase.
Pretty much all the stuff the US imports is still going to be imported, just with large taxes on it now. I don't know why people think that a shrinking economy is going to be great for reindustrialization, except for the fact that this was the PR campaign behind these huge new taxes. Basically if you are an American you are either going to have less savings, or less food and other goods. But you are still going to be buying your goods from poor countries where they are manufactured (or grown or fished) because it's still going to be cheaper than making them in the US. Besides, since the US economy is going to shrink quite a bit, there is going to be less available capital to build industries in the US. I mean I haven't heard that "All the money from the tariffs will go to subsidize US reindustrialization," or that even any of it will go to that, have you? It's just a tax increase to get more money from you and give it to the government. That's what it's about, it's not that complicated really.
2. "The stuff the USA imports" will no longer be imported if it doesn't sell, especially finished products. The situation we're looking at involves already-manufactured goods arriving in the country, costing too much for most consumers and signaling to their country of origin that sales will tank (and will remain low, if not end, if the prices don't change.) If this is a problem, see above. Domestic corporations (such as lumber or mining companies; it may shock you these still exist in America) are probably not going to ignore an obvious opportunity. As I mentioned earlier, we don't need foreign Amazon or eBay con artists flooding the market with phony companies to offload badly-made goods as fast as possible, then running off with the bag when your Christmas lights catch on fire, leaving no one to sue for damages.
3. China is about to become an exporter economy who loses 20% of its total revenue during a financial crisis. Yes, America's influence on their economy is that large. The Chinese will attempt to press places like Europe, southeast Asia and Australia harder for business, which isn't realistic since their trade relations are at max capacity and China's about as boorish as Trump (probably moreso) when it comes to negotiations. This should surprise no one who's read a history book since China is historically a nation of revolving dynasties speared by their own hubris. You will see a Decisive Tang Strategic Victory before the United States starts visibly hurting.
4. Your overall argument doesn't make sense to me. DOGE is gutting redundant departments and engaging in spending cuts; tariffs are taxes according to Rand Paul, ultimately amounting to a revenue increase alongside revitalizing employment sectors, yet none of those "taxes" are going to go to the president's goals that he campaigned on, has not stopped talking about (reindustrialization) and is taking huge gambles to pursue. What?
5. We had much harsher tariffs in 2017 that had a larger impact on the stock market and things like bonds. Nothing happened. The United States can afford to call itself a premium market due to its sheer size (remember: 20% of China's total exporter economy) and enforce that idea through things like tariffs. America can easily out-last China and collapse their attempts at an economic revival if they decide to engage in a trade war. Journalists who make money off sensationalism will tell you otherwise, despite not looking at (and if they did, not understanding) data presented to them, and should be treated like traitors.