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What short term profits? The car industry has among the lowest margins in the entire economy. Moreover the chips were never outsourced. Toyota never made its o
by dcolkitt 5y ago
What short term profits? The car industry has among the lowest margins in the entire economy.
Moreover the chips were never outsourced. Toyota never made its own chips, nor is it feasible to. You seem to have some sort of idealized view where a company internally manufactures everything it needs starting from raw materials. That’s not how it works, and that’s never how it worked.
- ren_engineer 5y ago"silicon valley" is the name because of all the chips that used to be made here, US used to lead the world in chip manufacturing Toyota is just a symptom, every other car manufacturer and other industries are facing shortages as well. The US economy is now strangled because our supply chain got outsourced for "efficiency" that didn't account for potential disruptions
- lotsofpulp 5y ago> Instead they should put a massive tariff on any chip not made in the US. Companies that invested here would be rewarded for loyalty Voters would have rewarded politicians who supported these tariffs by voting them out of office for making all their toys more expensive. Everyone likes cheaper stuff and more stuff in the short term.
- ren_engineer 5y agovoters have complained about stuff being made in China for years and if it was framed from a nation security perspective you'd get wide bipartisan support. The current chip subsidy program literally just got wide bipartisan support, it's extremely popular
- lotsofpulp 5y agoNow that the effects have been felt, yes. But not a few decades ago when the majority were enjoying cheaper goods. Even now, I do not see broad support for tariffs in order to bring production back to the country.