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My guess is that the increase in tariffs had little, if anything, to do with it; the article doesn't mention it but does cite CHIPS and the IRA. If anything th
by deeg 3y ago
My guess is that the increase in tariffs had little, if anything, to do with it; the article doesn't mention it but does cite CHIPS and the IRA. If anything the tariffs were one of the causes of our recent spike of inflation.
My own opinion is that 40 years of globalization have lifted a billion people out of poverty and now the global pay scales aren't so vastly different. It is becoming more economically viable to produce things in the US. (Which will also put pressure on higher inflation.)
- nickff 3y agoHas any manufacturing facility supported by the CHIPS and Science Act been completed or made operational? The parent commenter is citing manufacturing employment numbers, which are unlikely to be impacted by prospective factories. Has the Inflation Reduction Act had any positive impact on manufacturing either? Its main provisions seem to be related to economic redistribution, climate change, and infrastructure, all of which may have long-term impacts on industry and employment, but don't seem to have done much in those areas yet.
- sh34r 3y agoCHIPS/IRA was the carrot. The tariffs, sanctions, rampant IP theft, supply chain shocks, Chinese lockdown labor shortages, specter of global conflict, energy shortages, etc were the stick. I suspect the whole is greater than the sum of the parts. Organizations are not rational robots that weight every factor and risk optimally. The conversation is probably more just wild gesturing at everything while cargo cult mentality takes over in the dozen boardrooms that control a majority of economic activity.
- refurb 3y agoWasn't the CHIPs act passed less than a year ago? The 800,000 is over the last two years.