4 ms·
Near term inflation but more broadly increasing paralysis of business investment of all stripes in the fact of a wildly unpredictable political landscape.
by msy 2y ago
Near term inflation but more broadly increasing paralysis of business investment of all stripes in the fact of a wildly unpredictable political landscape.
- rogerrogerr 2y agoThe general path of the country is fairly clear at this point - business that manufacture closer to consumers will have fewer issues with the government. Even Biden kept a bunch of Trump1 anti-China policies in place. If I was directing investment at a large business, onshoring manufacturing would be a no brainer in many businesses. Mexico might be the happy medium, but I’d really push for US manufacturing facilities with high automation levels to hedge against labor cost.
- throwaway48476 2y agoMost of the post 2016 China exit investment was to other cheaper southeast Asia countries. My phone was made in Vietnam.
- doctorpangloss 2y agoYour phone was made in the US. They’re all black rectangles. The reason you picked the phone you use is because of the software, written here. All the LTV is tied up in software and services. Almost all made by Americans. To me, the status quo is very good - there can be unlimited valuable software written but people only need one phone. A policy of pro manufacturing doesn’t necessarily make sense in each specific.
- throwaway48476 2y agoThe value of software without the hardware to run it on is 0. It's like starting an AI company with no GPUs.
- lukas099 2y agoPeople definitely pick phones for hardware too.
- johnnyanmac 2y ago>the reason you picked the phone you use is because of the software, written here No, I picked it because of hardware too. You can't just say "your sandwich was made in america because the bread was made here". I didn't order bread, I ordered a whole sandwich. And honestly, the sentiment of the software being American made is also more suspect by the day.
- runamok 2y agoYup. My wife's company moved production lines from China to Thailand.
- rsanek 2y agowhich is a win! less concentration in a single country, particularly a hostile one, is a positive outcome
- johnnyanmac 2y agoThis isn't going to end with more companies building domestically. Trump disrupting the CHIPS act shows that isn't his goal.
- verdverm 2y agoIf it is half the cost to produce it over seas, 25% more is still much less than on shoring. On shoring is more than just the CoG, it requires capital investment which may no longer be needed in a year or four. It's not a simple or no brainer decision for most of the tariff targets with them being so broad