Comment on How can you oppose tariffs, while supporting a hardline against China on Taiwan?

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litchralee@sh.itjust.works ⁨2⁩ ⁨days⁩ ago

I agree that requiring certain industries to be based domestically is the best route

This isn’t what I said at all. What I meant was, for service businesses (eg car dealerships, warehouses, restaurants) and heavy industry (eg oil refineries, plastics and chemicals, composites like wind turbine blades or aircraft fuselages) which practically must remain within the country, support those endeavors by making it easier or cheaper to operate, so that an internal economy for those products develops locally. Trying to force stronger internal ties would inevitably lead to resources and incentives spent where they’re not most needed.

If you don’t tariff everyone, how does that bring manufacturing back? They’ll just move to the next cheapest country, and then you’re playing whack-a-mole.

I’m not sure if you saw my Mexico example or not, but manufacturing that moves from China to Mexico would still further a USA policy of reduced economic dependency on China. It doesn’t matter so much that it’s not “Made in USA” so much that it’s not “Made in China”, if that’s the desired economic policy.

And that doesn’t even include the knock-on effects that anchoring the Mexican economy would create: economic migration – when people move from a place of poorer economic condition to a richer economic place – would naturally abate if the Mexican economy grew. Economic opportunity also displaces gang warfare and drug distribution, in part.

The alternative is to apply huge subsidies for manufactures to ignore Mexico and set up shop in the USA, but then the cost of land, labor, and capital is substantially higher, and the products less affordable because they must be higher priced to pay for those means of production. Why do all this when Mexico or Canada are right next door?

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