Comment on Fear of cheap Chinese EVs spurs automaker dash for affordable cars

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Aceticon@lemmy.world ⁨9⁩ ⁨months⁩ ago

The “good for people” argument (which has been misportrayed here as “charity”) was made by politicians to justify tearing down the trade barriers that allowed localized higher-income bubbles within the wealthiest countries such as the US.

Once those trade barriers were down, all those jobs which had no other price protections than said trade barriers (jobs like, for example, assembly workers, but not things like Legal professions specialized in a country’s Law and which require registering with a local Law Society to practice) were suddenly competing with similar people all over the World, and a lot of countries in the World are full of people who would sell their work in those areas much cheaper than equivalent workers in high-income nations.

The people it was good for were the ones with such occupations in low income but reaasonably safe countries like China (whose income went up as manufacturing moved there) and the people who owned the means of production (who got higher dividends due to the higher profits being made by paying low-income country manpower costs and receiving high-income country prices for products and services) but nobody else as even the eventual fall in prices that occurred (slowly, as all those companies with China costs started competing on price) was not enough to make up for the faster and deeper downwards pressure on high-income country salaries due to said manpower competition with workers in countries with much cheaper salaries (hence, for example, in the mid-70s about 23% of corporate revenue in American went to salaries, whilst by 2012 it was down to 7%).

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