4 ms·

wish the biden administration would give manufacturers a tax break to manufacture in south america. It would enrich our neighbors to the south and possibly put

wish the biden administration would give manufacturers a tax break to manufacture in south america. It would enrich our neighbors to the south and possibly put a dent in drug trafficking and illegal immigration. Making asia rich doesnt help us nearly as much as making south america rich.

boringg 4y ago
Hmm but wouldn't that just flow into the hands of the cartels?
duxup 4y ago
Is South America a viable place to setup this kind of manufacturing? Mexico has a lot of car / parts manufacturing as far as I know but beyond that I don’t know.
- limitedmage 4y ago
  Nokia used to have a big factory in Mexico. Brazil already makes iPhones since it’s cheaper due to their insane import tax.
  - ticviking 4y ago
    That seems to me like their import tax is working. I wish more countries had import taxes of this sort, they tend to push the nation to be a bit more diversified in their economy since they provide air cover for small local concerns.
    - duxup 4y ago
      Increases the cost for locals though doesn’t it?
      - ticviking 4y ago
        For things they don’t produce sure. But my hope is that they would wind up having better economies since their Local economy might be a bit shielded from international trade
        duxup 4y ago
        I'm not sure being shielded from international trade and economies of scale go hand in hand.
    - zip1234 4y ago
      Doesn't really work for small countries.
    - toast0 4y ago
      > That seems to me like their import tax is working. Kind of. And you can see it worked for India; they started making iPhones there because of the import tax and over time are exporting iPhones from India. But there's a lot of products that aren't big enough to justify production in multiple locations, and Brazil tends to get those very late, if at all, because the import tax makes the prices way too high. Maybe video games aren't important, but Brazil has a wildly different experience with them than the rest of the world, because of the import tax. Also, I think only the really populous countries can manage this style of tax. With smaller countries it's easier to accept the loss of sales and avoid the expense of local production.
  - FabHK 4y ago
    Makes them or assembles them? (Genuine question, ie what percentage approx of the value chain is generated there?)
- zimmund 4y ago
  Mexico is not South America...
Der_Einzige 4y ago
Doing this, and significantly enriching south America, particularly it's tech scene, will dramatically hurt US tech worker wages. South America is in the same timezones as us. A lot of the failures of outsourcing are due to time zone differences...
akmittal 4y ago
That wont work in any democracy, how will this be justified to the US people. It was difficult enough to fund semiconductor manufacturing in US(CHIPS bill).
vsskanth 4y ago
You don't need tax breaks. Free trade agreements are good enough. Case in point - Mexico.
bpicolo 4y ago
Doesn't much of South America have insane import taxes? They'd have to solve that first.
- deleted 4y ago
  [deleted]
Havoc 4y ago
Don't think tax breaks are enough to close the gap. Cheap labour is...very cheap

boringg 4y ago

Hmm but wouldn't that just flow into the hands of the cartels?

duxup 4y ago

Is South America a viable place to setup this kind of manufacturing? Mexico has a lot of car / parts manufacturing as far as I know but beyond that I don’t know.

limitedmage 4y ago
Nokia used to have a big factory in Mexico. Brazil already makes iPhones since it’s cheaper due to their insane import tax.
- ticviking 4y ago
  That seems to me like their import tax is working. I wish more countries had import taxes of this sort, they tend to push the nation to be a bit more diversified in their economy since they provide air cover for small local concerns.
  - duxup 4y ago
    Increases the cost for locals though doesn’t it?
    - ticviking 4y ago
      For things they don’t produce sure. But my hope is that they would wind up having better economies since their Local economy might be a bit shielded from international trade
      - duxup 4y ago
        I'm not sure being shielded from international trade and economies of scale go hand in hand.
  - zip1234 4y ago
    Doesn't really work for small countries.
  - toast0 4y ago
    > That seems to me like their import tax is working. Kind of. And you can see it worked for India; they started making iPhones there because of the import tax and over time are exporting iPhones from India. But there's a lot of products that aren't big enough to justify production in multiple locations, and Brazil tends to get those very late, if at all, because the import tax makes the prices way too high. Maybe video games aren't important, but Brazil has a wildly different experience with them than the rest of the world, because of the import tax. Also, I think only the really populous countries can manage this style of tax. With smaller countries it's easier to accept the loss of sales and avoid the expense of local production.
- FabHK 4y ago
  Makes them or assembles them? (Genuine question, ie what percentage approx of the value chain is generated there?)
zimmund 4y ago
Mexico is not South America...

Der_Einzige 4y ago

Doing this, and significantly enriching south America, particularly it's tech scene, will dramatically hurt US tech worker wages. South America is in the same timezones as us. A lot of the failures of outsourcing are due to time zone differences...

akmittal 4y ago

That wont work in any democracy, how will this be justified to the US people. It was difficult enough to fund semiconductor manufacturing in US(CHIPS bill).

vsskanth 4y ago

You don't need tax breaks. Free trade agreements are good enough. Case in point - Mexico.

bpicolo 4y ago

Doesn't much of South America have insane import taxes? They'd have to solve that first.

deleted 4y ago
[deleted]

Havoc 4y ago

Don't think tax breaks are enough to close the gap. Cheap labour is...very cheap