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It leads to market separation. No one outside the US will buy US made when they have cheaper Chinese cars as an option. And the US can’t force external competit
by AnotherGoodName 2y ago
It leads to market separation. No one outside the US will buy US made when they have cheaper Chinese cars as an option. And the US can’t force external competitiveness to emerge with those subsidies in place. Not to mention internally having to buy more expensive transport has knock on effects to the entire economy.
- MR4D 2y agoIn a way, that doesn’t matter for the US. Consider that the US has an enormous trade deficit. If the US brought to even, then all those exporting countries with large surpluses would be in bad shape. This is a complex problem, and when the US is the importer from the world, the mere decision to stop importing would send shockwaves through trade everywhere.
- InDubioProRubio 2y agoThe problem is -the us exports one thing en mass- security. And its starting to use that for shakedowns- which is the moment everybody becomes his own sheriff.
- pfdietz 2y agoAnd at this point that would also benefit the US. That mass security is not cheap.
- lossolo 2y agoIf you are running $2 trillion deficits, then of course you will have trade deficits. You are an importer of goods and an exporter of USD. The problem will arise when your debt becomes unsustainable and alternatives to the USD emerge for settling international trade. This would lead to a decline in demand for USD, a drop in demand for U.S. debt, and reduced capital inflow into the U.S. stock market (end of recycling), essentially leading to a collapse of the current U.S. economic model.