| General > General Technical Chat |
| May be more opportunities for EE in the USA coming... |
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| Mr. Scram:
--- Quote from: maginnovision on May 13, 2020, 06:03:41 am ---If cogs goes up so does the price. People will get used to it. I don't think that part is a huge issue. Just result in higher tariffs on imported goods to even things out despite labor costs in different markets. Is it really a big deal if people can't buy as many smart watches, smart speakers, smart phones etc...? Probably help some people get their priorities in order. I used to work in manufacturing and really liked it. I'd love to see more of it here again. --- End quote --- Tariffs just disadvantage a country compared to the rest of the world. The rest of the world has the economy of scale. The US market is big, but not big enough to even that out. The tariffs are ultimately paid by American citizens and not the overseas companies. You just end up tying your own shoelaces together and trying to run with the rest of the crowd. |
| maginnovision:
The tariffs wouldn't be about other countries though they would be about raising the consumer costs to equal or higher than of the american produced goods. It would be the way to not only move manufacturing to the US but make sure that US citizens are also purchasing it. That's the only way I see it working. Manufacture here and make sure people buy it by making it so that there is no advantage(other than normal stuff, features, design, preference, whatever...) to buying goods from foreign sources as opposed to domestic. |
| Mr. Scram:
--- Quote from: maginnovision on May 13, 2020, 11:07:50 pm ---The tariffs wouldn't be about other countries though they would be about raising the consumer costs to equal or higher than of the american produced goods. It would be the way to not only move manufacturing to the US but make sure that US citizens are also purchasing it. --- End quote --- You're essentially subsidizing US factories with a tax on consumer goods. You might call it redistribution of wealth. Come to think of it, I never thought I'd see US citizens so openly arguing for what are essentially communist or socialist ideas. The inevitable result is a more restricted economy, which cannot compete with less restricted economies overseas. If something as simple as a computer costs twice as much, US companies cannot hope compete with the rest of the world. There's no chance of a level playing field. |
| maginnovision:
--- Quote from: Mr. Scram on May 13, 2020, 11:16:55 pm --- --- Quote from: maginnovision on May 13, 2020, 11:07:50 pm ---The tariffs wouldn't be about other countries though they would be about raising the consumer costs to equal or higher than of the american produced goods. It would be the way to not only move manufacturing to the US but make sure that US citizens are also purchasing it. --- End quote --- You're essentially subsidizing US factories with a tax on consumer goods. You might call it redistribution of wealth. Come to think of it, I never thought I'd see US citizens so openly arguing for what are essentially communist or socialist ideas. The inevitable result is a more restricted economy, which cannot compete with less restricted economies overseas. If something as simple as a computer costs twice as much, US companies cannot hope compete with the rest of the world. There's no chance of a level playing field. --- End quote --- Every moderately sized business and larger is already subsidized by tax breaks, rebates, and refunds both at the federal and state/local levels. The entire EV market is subsidized federally for example, with some states offering even more. You're pretending these things don't already happen. I'm not arguing for any of this. I think it'd be great if ALL our manufacturing could come back home but I personally wouldn't want there to be any incentives other than the companies having the guarantee that they wouldn't have their goods locked down where they couldn't be used. Using tariffs wouldn't be redistributing wealth though, it'd be giving people perspective on the cost of goods based on our standards of living. They'd be free to spend their money on whichever goods they wanted. The tariffs would only be about levelling the market regardless of where the goods come from. A microwave from India would be roughly the same cost as one from Japan or America. If the costs were the same for the domestic and foreign version some people would prefer the domestic version, keeping that money from leaving the country which is a good thing for the domestic markets. The problem comes when you go extreme like North Korea and you can't actually manage to do everything domestically and costs for foreign goods you require, even when some production is domestic, are so high that your currency is all but useless. You either pay and the domestic costs skyrocket or you only produce what you're able to domestically. Realistically things probably won't change much but this covid crap where some countries are holding goods or goods aren't able to move freely could push some companies to move things around, a sort of rebalancing of assets globally. |
| Mr. Scram:
--- Quote from: maginnovision on May 13, 2020, 11:34:10 pm ---Every moderately sized business and larger is already subsidized by tax breaks, rebates, and refunds both at the federal and state/local levels. The entire EV market is subsidized federally for example, with some states offering even more. You're pretending these things don't already happen. I'm not arguing for any of this. I think it'd be great if ALL our manufacturing could come back home but I personally wouldn't want there to be any incentives other than the companies having the guarantee that they wouldn't have their goods locked down where they couldn't be used. Using tariffs wouldn't be redistributing wealth though, it'd be giving people perspective on the cost of goods based on our standards of living. They'd be free to spend their money on whichever goods they wanted. The tariffs would only be about levelling the market regardless of where the goods come from. A microwave from India would be roughly the same cost as one from Japan or America. If the costs were the same for the domestic and foreign version some people would prefer the domestic version, keeping that money from leaving the country which is a good thing for the domestic markets. The problem comes when you go extreme like North Korea and you can't actually manage to do everything domestically and costs for foreign goods you require, even when some production is domestic, are so high that your currency is all but useless. You either pay and the domestic costs skyrocket or you only produce what you're able to domestically. Realistically things probably won't change much but this covid crap where some countries are holding goods or goods aren't able to move freely could push some companies to move things around, a sort of rebalancing of assets globally. --- End quote --- It is redistribution of wealth. A cheap microwave is tariffed to be more expensive. That's money taken directly out of the pocket of the consumer and put into the pocket of the domestic manufacturer who would otherwise not exist. Reverse distribution, perhaps? Keeping domestic money in the domestic market also means keeping foreign money out. A US company with twice the operating costs cannot compete with companies elsewhere. Many American companies make their money overseas and that will come to an end. Trade worth billions will be lost. Tariffs aren't going to change that as those only protect the internal market. |
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