4 ms·
They were the first movers so they cornered the market with an inferior product. Now that China has no hope of capturing the market to extract rents the next be
by zeth___ 8y ago
They were the first movers so they cornered the market with an inferior product. Now that China has no hope of capturing the market to extract rents the next best alternative is to make extracting rents impossible, destroying the business model of the US companies who rely on said rents.
In terms of a trade war this has all the downsides of dumping products on the US firms with none of the downsides to the rest of the economy outside of the very top end of the supply side.
- analognoise 8y ago'Inferior product...rent seekers' - Yeah, that's why the Soviet Union started the silicon revolution, and why the Chinese currently lead the field, right? They open sourced their fabs, and random farmers on collectives would come home (while starving) and make improvements in fab technology by candlelight. If only they had you to guide them, with your advanced knowledge of economics, trade and process technology.
- zeth___ 8y agoEvery communist nation had a much larger high technology sector than similarly developed capitalist nations. Unless you want to talk to me about the fabs in Portugal and Mexico in 1990 when compared to the ones in Bulgaria and the USSR you're making my point for me.
- analognoise 8y agoYeah that's why engineers from Soviet Societies would scale barbed wire fences at the risk of getting shot to get here! Communism is great if you like hunger and oppressive stupidity. "But it's never really been tried!" - No, it has: it is fundamentally incompatible with freedom and/or intellect. Nobody is buying what you're selling, champagne socialist.
- zeth___ 8y agoSomehow there weren't that many engineers in Guatemala. Plenty of child prostitutes though. I guess capitalism really gives you want you want.