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> Instead of gradually rebuilding the manufacturing capabilities of the US while supporting essential industries (like steel production) to create competition,
by xienze 2y ago
> Instead of gradually rebuilding the manufacturing capabilities of the US while supporting essential industries (like steel production) to create competition, they think slapping tariff will magically make the domestic manufacturing come back.
So what would you propose as the proverbial kick in the butt to encourage domestic production? And before you say “subsidies”, remember that a large segment of the population isn’t wild about those either because they perceive it to be some sort of evil tax dodge for big corporations (see: literally every time some state gives a company incentives to build a plant or office).
The reason we’re in this mess in the first place is because we chased cheaper means of production and once everything at home was gone, we just threw our hands up and went “well it’ll be too painful to fix it, anyone who tries is an idiot.”
- Qworg 2y agoWe've moved away from lower value manufacturing and are moving higher in the economic chain - that's great for us and how economics works. It isn't just chasing cheaper means of production - we can (and in a limited way have) put people to work elsewhere. We dodged this in the 90s, but we need massive training programs to move those displaced workers to new jobs + resettlement assistance to get them to where the jobs are.
- cudgy 2y agoUnfortunately, the vast majority of jobs and manufacturing is in The lower value manufacturing chain. So by chasing only the high value chain, you abandon the manufacturing operations that actually hire workers, thereby hollowing out the middle class of your country and reducing the consumers of the products that you sell. A counterproductive and shortsighted strategy.
- Spivak 2y ago> see: literally every time some state gives a company incentives to build a plant or office You're conflating two things here, the subsidies are one issue but the bigger issue is the ability for large companies to "shop around" states looking for the most favorable tax incentives. Our government shouldn't be bidding against ourselves.
- CamperBob2 2y agoOur government shouldn't be bidding against ourselves. Yes, it should, because that's how individual companies (and governments for that matter) find their optimal operating points. That is the explicit central dogma behind the United States' system of government. It works pretty well for the most part. If all the states had the same laws, policies, and taxes, there would be no need for federalism at all.
- Spivak 2y agoLooking for the most favorable tax climate is fine. The practice where states will roll out huge one-off incentive packages is where I take issue.