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How do you maintain wage and standard of living differentials with the rest of the world when transportation is as cheap as it currently is without a productivi
by ericd 6y ago
How do you maintain wage and standard of living differentials with the rest of the world when transportation is as cheap as it currently is without a productivity gap, tariffs, or a carbon tax (increasing transportation cost) to make local manufacturing more attractive?
Besides, there are big strategic reasons to maintain a strong domestic aerospace industry, even if it increases costs in the short run.
- missedthecue 6y agoLike Adam Smith pointed out, the ideal set-up is to maximize imports and minimize exports. This will make your nation richer over the long run.
- ericd 6y agoIf you do that, don’t you have to essentially export money? Which can then be used by your counterparties to buy up your nation’s productive assets, and diminish the effective savings of your populace via asset inflation? Also, aggregate wealth of a nation isn’t the only thing we should be targeting. You can increase the overall wealth while simultaneously demolishing the wealth of the large portion of your populace involved in domestic manufacturing.