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> Having access to cheap oversea steel allows Americans to focus on building companies with significantly higher value-add. Onshoring low-value industries is a
by palmotea 2y ago
> Having access to cheap oversea steel allows Americans to focus on building companies with significantly higher value-add. Onshoring low-value industries is a massive human capital waste and an easy way to depress wages.
That's the talking point, but it's bullshit. A lot of those "low-value industries" are fundamental capabilities, and China sure as hell isn't going to let the US own the "higher value-add" areas. They dominate those next, and the US free-trade business elites will be fine with it as long as they get to make some money for themselves.
- bootsmann 2y agoBeing a high value-add area is endogenous to how hard it is for others i.e. China to reproduce. In other words, if it were easy to make GPUs they wouldn't be so damn expensive.
- palmotea 2y ago> Being a high value-add area is endogenous to how hard it is for others i.e. China to reproduce. In other words, if it were easy to make GPUs they wouldn't be so damn expensive. China's going to put the money into making GPUs, and they're going to get it right, probably sooner than later. Then they'll drive the American manufacturers out of business, like they've done in many areas before. Their government isn't beholden to the profit-focused capitalist attitude that is one of the West's biggest vulnerabilities. Also, it's pretty foolish to 1) forget power and security doesn't come from rarefied high value-add stuff, 2) that there are a lot of people that can't be employed doing stuff like making GPUs.