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The thing though, is that they're not anti-US measures. This kind of thing is also necessary if we are to have a chance to compete with China. With Chinese com
by impossiblefork 2y ago
The thing though, is that they're not anti-US measures.
This kind of thing is also necessary if we are to have a chance to compete with China. With Chinese companies I can just go on a company website and buy things like synthetic sapphire, hydrothermal quartz in large sizes, silicon carbide wafers, etc. with the price right there.
Call a European, American or Japanese firm, and they'll say no and won't even give you the price. Similarly, if you look at a running shoe, what can you buy a similar shoe for from these Chinese manufacturers? 1/10th the price, probably?
This means that prices in the west have become disconnected the physical reality because of agreements between manufacturers, middle men etc. If prices are this wrong it's going to make economic calculation in the west impossible, in the same way that Hayek imagined it made economic calculation impossible in market-less systems.
For market systems to have any use it's therefore not enough for you to have secure capital ownership or something like that-- you must have actual free markets, with it being easy for new competitors to enter so that the physical simplicity of certain things becomes apparent, because if you don't the prices can be such that a thing that should cost $10 costs $100, or $1000, and then it starts distorting things at the next level, people put off buying a shoe which should cost half what their lunch costs or for a company to try to use as little of some input as possible, not realising that that input is actually cheap and easy to make.