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All else being equal, companies are going to use the source of labor that results in the cheapest product they can produce. No one is forcing companies to move
by 827a 2y ago
All else being equal, companies are going to use the source of labor that results in the cheapest product they can produce. No one is forcing companies to move this kind of manufacturing to the United States. A 10% (let me reiterate that: TEN PERCENT) tariff on incoming goods is inflationary, but by very little, and quickly absorbed by companies and consumers. No one is moving their labor supply from China to the US to avoid a ten percent tariff; US labor is more expensive than that, and there are fifty other places around the planet you could find cheap low-skill labor that aren't on Trump's shitlist.
But you won't believe any of that, because you want all this to happen. You're a doomer; doomers and preppers secretly want the doom they predict to happen, even if they won't admit it to themselves.
- ActionHank 2y agoFor now they are going with the tide, because they don’t want to relocate head office. If trump’s terrible plans are rolled back there’s no harm. If they aren’t rolled back they will undergo the costly move to relocate. The world is a bigger market than USA and just about every other country has cheaper labor and no tariffs. It’s just logic, I have no emotion tied to this.
- 827a 2y agoYour "logic" (masking) conveniently avoids the point I raised: That these tariffs are being enforced to the tune of 10%. That isn't enough to alone justify this level of investment, or relocation of significant production capacity. Obviously, Apple agrees with this, because the investments they're making aren't as far as I can tell a relocation of capacity from China to the United States, but rather greenfield investment in high-skill research and development. Apple has also made significant investment into advanced silicon manufacturing in the United States; something they also did not rely on China for previously. > The world is a bigger market than USA and just about every other country has cheaper labor and no tariffs. Have you done zero research into this? The EU imposes a tariff on Chinese EVs. India imposes insane tariffs on all imported electronics. China tariffs Australian wine. Russia tariffs agricultural products from the EU. Brazil tariffs all imported automobiles. The list goes on. Tariffs are everywhere, everyone uses them for something.
- ActionHank 2y agoI guess we have the benefit of seeing it play out.
- lenkite 2y ago> The world is a bigger market than USA and just about every other country has cheaper labor and no tariffs. "no tariffs" -> "heavy tariffs".