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The vast majority of Americans will be hurt even more when product prices double just to subsidize a handful of jobs. If there's such strong interest in ensurin
by shaky-carrousel 2y ago
The vast majority of Americans will be hurt even more when product prices double just to subsidize a handful of jobs. If there's such strong interest in ensuring some people have a salary—regardless of the cost to everyone else—we might as well drop the pretense and just pay them directly.
Except, of course, if we did that, the government wouldn't be able to hand those factories over to their friends or political allies. That's the real feature of these "industrial policy" moves, not a bug.
Argentina has been running a nearly identical playbook for decades: impose high tariffs and taxes on imports, hand out subsidies to politically connected local manufacturers, and claim it's all in the name of "national production" and "job creation." The result? Inefficient, uncompetitive factories that only survive because they're protected from global markets. Consumers get stuck paying absurd prices for low-quality goods, innovation dies, and the overall economy stagnates. The only real winners are the cronies who cash in on state favors.
If the U.S. goes down that same path, just like Argentina, it's not going to end in a manufacturing renaissance. It's going to end in inflation, stagnation, and a bunch of overpriced junk no one wants to buy.