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> We will have to pay more, and we should, for those things. No. US labor costs are high and working conditions are better, in large part, because US labor is
by mlyle 1y ago
> We will have to pay more, and we should, for those things.
No. US labor costs are high and working conditions are better, in large part, because US labor is worth it and US productivity is high. That labor is spent in high value industries and is often highly skilled.
We should accept we're better at some things and trade according to the principle of comparative advantage.
- ericmay 1y agoI don't disagree with you, but I think it would be better for society if we had fewer gig workers and Wal-Mart greeters, and more artisans who become more price competitive.
- mlyle 1y agoI don't think making things more expensive for consumers is going to help that happen. I think it's going to steepen the divide between capital and labor. And most of the products we're talking about that are coming in via de minimis are not exactly competing with US "artisans." Indeed, I'm helping train future US artisans, and we depend upon being able to get input components cheaply and consistently, which is becoming more and more of a problem and endangering my programs being able to do as much.
- ericmay 1y agoBut as I look around with our current trade strategy (pre-tariff) I've only seen exactly what you describe happen - the divide between capital and labor has only increased exponentially, and as prices have gotten lower people we see less entrepreneurship, less new business starts, fewer products made in America, and more consolidation into Wal-Mart scale corporations. > And most of the products we're talking about that are coming in via de minimis are not exactly competing with US "artisans." Sure they are - they're much cheaper, mass manufactured goods which people default to because they are only exposed to the price of the product. Raising the prices of those goods makes artisan products more cost competitive.
- mlyle 1y ago> and more consolidation into Wal-Mart scale corporations. I think this has more to do with the effective abandonment of antitrust mechanisms. > Raising the prices of those goods makes artisan products more cost competitive. Look, I don't want an artisan UART board, and I don't think that my programs can ever afford "artisan UARTs." I'll just give up teaching this stuff to students instead.
- ericmay 1y agoI don't know what you mean by artisan UART board - artisans and craftspeople don't, in my view, need to have anything to do with programs or universities or teaching or students - like you sit at home and work on making stuff, maybe you can sell it at a farmer's market or if you make something really good start your own business which could just be a single shop you run. Not to suggest there aren't or can't be training or teaching programs, but that's not a requirement. Today that's much more difficult because a bar of soap at Wal-Mart is $1 or something and entrepreneurs can't make stuff that cheap when they're making it by hand using real ingredients or honing a specific craft - and it doesn't even end up with shelf space. The suburban, 1-stop-shop big box retailer, drive your SUV down the highway to buy cheap stuff from not America model drives down entrepreneurship and closes off small competitors and artisans. > I think this has more to do with the effective abandonment of antitrust mechanisms. That's a factor but not the primary one.
- mlyle 1y agoI buy stuff -- small circuit boards, electronic components, unusual milling cutters, bearings, etc. The existence of these things as commodities lets me do a lot of deep EE and ME work with high school students. The US will not build a supply chain for these at any reasonable price. And shouldn't. These should be commodities and US labor should focus on higher value things. (Not to mention that US suppliers don't really like selling at low quantities and most don't really love selling to education or hobbyists). Tariffs just directly make my programs less feasible. Note that de minimis-- which we're talking about here-- has something to do with what's at Amazon because of drop shippers, but basically nothing that is sold somewhere like Walmart.