Wouldn’t the government have to spend a lot of money to set up the resources to support it? and considering the number of companies in the US using stuff from other countries, the government may start forcing citizens or companies to cover the rest.
Once the resources are set up, wouldn’t there need to be a large workforce willing to work for less to keep the companies profits the same? I’m not sure if companies will pay workers more to make less than going overseas.
Would this all lead to companies leaving or not entering the US market because of the cost? They wouldn’t have to spend loads to build new factories, pay workers higher rates or pay the tariff.
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You have already put in far more work to understand the situation than most in the administration.
more or less right just add to your thought process that automation is a thing. so the wages would have to be lower than cost to automate. If a robot system can do it at a cost of 1-2$ an hr, than I am not replacing that with a human unless I a paying them significantly lower. Because humans are a pain in the ass
It hasn’t occurred to the Trumpets that there is a good reason that America imported goods from many other countries – and that was because those countries could do it better and cheaper. Now their prices are being artificially inflated by tariffs so that American companies can compete?? How does that make sense for people buying those goods? How do tariffs make America richer since it is Americans who pay the tariffs??
Flabbergasted.
It is delusional to think that everything the people need will be manufactured in the US. It is also unlikely that anyone will be accepting the same wage as people earn in low cost countries.
Also any new factory built will be highly robotized, eliminating the need for many people there. This is the only way to be competitve and it will only work in a limited number of industries.
What being advertised by Trump, does not make much sense to be honest.
They’d still enter the US market because it’s huge and relatively rich.
It doesn’t. Even if we were the best at producing everything (we’re not), it would still not be to our advantage. There is a principle called “comparative advantage”. Imagine that there’s a doctor out there who is also an AMAZING receptionist. Even if they are the best receptionist in the world, they (and everyone else) is still better off if they hire a different person to be their receptionist, because it’s more valuable to have a pretty decent doctor all the time and a decent receptionist all the time than to have a pretty decent doctor half the time and an amazing receptionist half the time.
EVEN IF you are better than someone else at doing something, it is not necessarily good for you to do it. You should do what you are best and most valuable at.
Even IF the US is super good at making cheap injection-molded plastic crap, we can and should leave that for China and Taiwan and the like, and focus on what we are good at.
Cue snarky comments about what we’re “good at”.
Yup its gonna take a loooong time and ain’t gonna be that good
Hey, it doesnt.
or when was the last time (in america) you’ve seen 500 workers in a building stitching $3 tshirts together working 7/7 for 20h per day? :]
Im sure thats what trump aims for, right?
right?
not to create $500 tshirts but “made in america”, because “everyone” made SO MUCH MONEY, that he is tired of winning of making SO MUCH MONEY
/sarcasm
That’s the cool thing, it doesn’t.
You won’t get a satisfactory answer through an economic lens.
Through a political lens, people want manufacturing jobs back. They want to go back to a time when a person could graduate high school, get a factory job in their hometown, and support a family. Those parts of America that have de-industrialized are the ones that have been swinging firmly to Trump’s side.
This will be especially important if they were to go to war with China. But outside of that, it’s employment opportunities and less reliance on other countries, especially China, which usually weaponizes any reliance on them.
The factories that do get setup in the US will be dark and fully automated.
Blue collar workers might get a job cleaning the toilets, but that’ll be about it.
Production of necessary items should be here, drugs, energy, and there should be a capacity to harvest natural resources. The problem is that we gave most of those things up and outsourced to the rest of the world for cheap. Keeping wages low and cost/satisfaction of living affordable.
covid was a mistake and showed that only big businesses are needed, small business is non essential. Whether it’s tariffs or government there’s a culture shift needed. Slavery/cheap labor shouldn’t exist. It should be replaced by innovation/freedom . Only that way can we all be essential, otherwise it’s the elite ruling over the masses. The WEP,WHO shouldn’t dictate how Americans can survive.
It doesn’t.
The US is mostly responsible for this free trade global market as it exists anyways. So, for the US to sabotage it as if they’re getting a bad deal is disingenuous anyways.
All the industries they’re talking about reestablishing haven’t even begun to be properly set up, so to even start this “trade war” without anticipating that the people you’re fighting against won’t acquiesce to your will is stupid on its face.
It’s actually provoking aggression in an arrogant way, which is why I don’t believe any nation should agree or work their way around it. Just answer in a reciprocal manner.
It’s an illusion to help make the rich richer and make the rest have to work longer and harder just to get by
The concentration of wealth to the very few and the massive wealth gap is the real problem. This wont fix it especially with clowns like lutnick spilling the beans about automated factories. This is NOT about american workers, it’s about more profit. (Which is not shared)
Making everything in the US benefits the economy by creating more jobs, supporting local companies, and keeping money circulating within the country. It can also lessen the need for imports and improve trade, which strengthens the economy over time. Additionally, it encourages innovation and helps domestic industries grow.
Worked 10 to 12 hours, 6 days a week in a car factory. Will kill myself before doing that again. They must think more pay. Not happening. Tragic
The point is to make USA indipendent, so it can go in war against the world.
Yes. And time. Creating factories and infrastructures for production at country level is a big task. Also the environment needed to be destroyed is not irrelevant. And let’s not start to talk about pollution… Trump already removed the laws for environmental protection EXACTLY for this.
Sure, a lot of not specialized people doing bad, ripetitive and dangerous jobs and with low wages. Usually illegal immigrants are used for it, but Trump persecuted them for votes. Musk and companies around the world are focusing on humanoid intelligent robots EXACTLY for this scenario.
Depend of the interests. Many will, but others could accept to remain. However if the countries will put their own tariffs … no international company would stay in that confusion. This is EXACTLY why Trump is upset about retailation.
The only potential benefit I can think of is self sufficiency.
So true. People in India work for a dollar a day. When jobs come back to America where wages are way higher inflation will sore.
Sorry but productivity? Is everything in an economy. The rest is just spin and manipulation for political gain.
Not gonna happen. Company will just find loopholes
That’s just how they’re selling what they’re doing. It’s not the actual goal
OP, what kind of set up that the government has to do are you referring to?
Maybe we just just isolate the US like what Japan did centuries ago
This right here is part of the disconnect. The resource commodity markets don’t work like that. It’s a global market with global prices for a reason. Every form of resource extraction has costs and revenues. These economics dictate if a mine or a well gets built and continues production. The global price fluctuates based on supply and demand. If there’s not enough of a certain commodity the price rises to incentivize more production, if there’s too much the price declines which eventually forces higher cost producers to shut down, limiting supply and supporting the commodity price until supply and demand balance.
Every resource deposit is different with different economics. If the USA has deposits and they’re economical they would be developed already. There are two ways USA could force development. One is hand out cash to reduce upfront capital costs to build the mine and infrastructure, improving the economics or control commodity prices to improve economics.
A real world example is uranium. Reading the other day about a deposit in the USA with an average grade of 0.18% U3O8 looking to get developed. Across the northern border in Saskatchewan Cigar lake has a grade of 17% U3O8. This means that for every ton of rock that’s extracted, moved and processed in cigar lake almost 100 tons need to be extracted, moved and processed in the USA deposit to get the same amount of marketable material. Every ton of rock has costs associated with extraction, movement and processing. There is variance pending the type of mining being done but a 100:1 ratio is hard to overcome. In this case the price of uranium would have to be substantial higher for the USA deposit to be economical. With higher uranium prices nuclear power plants could become less economical to build and operate comparative to other types of power generation.
Simply put to produce everything in the USA some commodities would have to rise substantially in price where the end result is the products that utilize these commodities could be priced out of the market.
Not only that, but it will be more expensive if we were to just replace all the jobs that we sent over seas to now be employed by Americans because we have workers regulations and OSHA. A lot of these jobs that Americans would have to do have been done in countries that didn’t value their workers well being, and had little regulations and poor working conditions which lead to very cheap conditions and product and high profit. We outsourced slavery to other countries, and now we are going to take back that labor here somehow and it’s going to massively decrease outflow if not standstill it and it’s going to cost us many many times more to get a small fraction of what Americans have come accustomed to. This is going to be a massive drop in the American standard of living. The companies here in America will see no profit in employing Americans and keeping the factories safe when they didn’t have to do that when the products were coming from China and India. I just don’t see corporate America even beginning this, because there’s no way they will see any profit under this status quo. How can they make a profit and still give their CEOs like half the company wealth each year? They will sooner stop production than take money from the CEO and give it to the workers.
It won’t. But it will help a dictator be in full control of what people have access to. Things that make you go hmmm.
It makes us slaves to the government..
It’s between doing this and paying more or continuing to ignore other countries using child labor just so we can get our products cheaper. I would rather pay a little more than exploit children.
But to each their own I guess.
It doesn’t.
Trump is moron.
Navarro is a moron.
Republican congressmen are toadies.
Does this answer your question?
Your instinct is correct. A good example to illustrate this is US iron ore/steel production.
US iron ore production peaked at 120million tonnes per year in the 1950s. It has fallen to 60million tonnes, steel production has a similar trajectory.
Production of iron ore did not drop because they ran out of ore reserves to mine, and they didn’t drop because we stopped using steel. They dropped because it became more profitable for capital to employ Americans doing highly specialized/ technical labour, and just importing steel from abroad.
Bringing back low-level manufacturing to the USA will definitionally make everyone poorer. If more of your people are working lower productivity jobs then you can not produce as much shit as you did before. both for trade and for consumption.
Like let’s say the automotive industry employs 100 000 people who are mostly just assembling parts manufactured in Canada, made from steel smelted in Mexico, made from ore mined in Peru.
There’s a 18-25 year lead time on producing extra worker so to bring all that production on-shore now you have to split up your workforce: 25k mining ore, 25k smelting steel, 25k making parts, 25k assembling (made up numbers). The same number of people are getting 1/4 of the work done. You can keep the assemblers well paid, if you pay rest of them like Peruvian miners, etc. but the total productivity of these 100k workers has dropped massively.
Producing everything in the USA is going to be
prohibitively expensive, because US workers earn a LOT more than workers in Asia or South America (due to the high cost of living in the USA)
almost impossible because of the need for raw materials that aren’t available (or can’t be produced) in the USA.
Just looking at musical instruments – a Made in Mexico instrument from Fender retails for about HALF of what a comparable Made In America instrument costs. The two instruments are built using the SAME parts – wood, hardware, electronics – but the labor costs in California are more than double the cost just 185 miles further south over the border in Ensenada, Mexico.
This was before the tRump tariffs, which are going to raise the cost of MIA instrument for everyone, because many of the parts are NOT made in the USA. Even if the pickups are wound in the Fullerton factory, the copper wire is probably coming from Chile, Peru, Congo, or China. And the hardware (tuning machines, bridge, etc.) is likely coming from Europe or Japan. Even US manufacturers are probably NOT using US steel because of the price. Aluminum is likely sourced from Canada. Not to mention the fingerboards, which are usually Pau Ferro or Palisander, grown in Brazil or Bolivia, and the maple necks which are … Canadian Maple.
So even the “Made in America” only really means – final assembly in America, with foreign-sourced parts.
Jobs.
Trump said there would be a minor disruption, just a bump in the road.
It takes years and years to build new plants. Robots will be heavily used since they don’t want to pay Americans a decent wage.
So, if you wait 10 years, maybe you might get a janitor job at these new plants.
Well how will it not help the economy it might take a while to kick in what companies are already coming back have plans restoring factories and building here. Look you employ American workers who pay American taxes who spend their hard-earned money in America. So not only you create more jobs you create more tax revenue and these people spend their money in America. You know companies like Nike Ford Apple I understand it’s going to take a lot more money to make an iPhone or a lot more money to build a Ford truck in Detroit versus Mexico. Put long-term this will make America not depend on anybody right now we are dependent on China for so many things we have everything that we need in this country
It would create jobs. The whole point is to eliminate the overseas advantage of cheap labor.
If the Chinese can build a wiget for $10 because they use slave labor, and the US can produce it for $15 because we don’t, then the US product is uncompetitive. If however Trump hits it with a 75% Tarrif then the Chinese product cost $17 and the US product is competitive.
We don’t have the infrastructure currently-so we aren’t going to be able to afford imported goods, or make our own, and when we start making our own, they’re going to be expensive.
The only way to have similar prices to what we were enjoying, is to dismantle workers rights. Look at Florida and wanting to make highschool kids work over nights on school days. Administration is very anti union. They got a plan.
Only the dumbest of fucks would think that manufacturing jobs that are cheaper to perform with AI and automation are going to provide the pay and amount of work that is being touted. Two options-barely above slave labour or mass unemployment while automation makes your cell phones.
This administration is going to take away retirement funds, standard of living, employment and basic necessities away from the populace, and believes cities aren’t going to burn.
If you voted for this-you are the dumbest of fucks. Before the MAGAs jump to attempt to tear me apart based on the stereotypes of non conservative men force fed down their gaping throats-I hunt, I have a beard, I have children-sons, I can fix shit, worked in the trades, I eat meat (and grow a massive veg garden to feed my family!), my hair isn’t dyed, and I don’t wear sweaters. I am friends with gay dudes and lesbians, and have bested your asses in bars, when you your cheap beer gives you confidence to shout hateful shit. Read some history so you can better understand what the adults in the room are saying. Just sick of having to get through 7 back and forth comments telling you your attacks are not hitting the marks you think they are, get creative!
Shift the tax burden from an income tax to a consumption tax shifts the tax burden from the rich to the poor.
It’s not about making things in the US or returning manufacturing or any of the other talking points.
It’s about shifting the tax burden onto the poor and off of the wealthy
Plus the amount of 100% sourced US parts for USA made products is extremely low and I can’t think of one off the top of my head. Even farmers who grow food here, have equipment that is expensive and built overseas.
In THEORY it keeps money circulating purely within the US which IN THEORY helps the economy
In practice it… it’s going to cost more and some companies are going to realize that they can make more money by simply forcing the government to make contracts to get around the tariffs… and some companies that can’t do that will just not participate
Like it’s going to get a lot worse before it decides if it’s going to get better or not.
” Overtime pay will be a thing of the past “
Donald J Frump
Your post has just demonstrated that you are smarter than all of the current administration.
More jobs means more money which means lower costs of American goods but without the infrastructure for it we have to wait for it to be built in about 3 years or more to see the results of this plan! It’s a good plan. The best of plans. What could go wrong? Or we just buy goods from Russia and North Korea…those imports aren’t subject to tarrifs!
It doesn’t. That’s stupid. There’s a reason that no country in the world does this, except countries like North Korea that has no choice. Even other huge countries with tons of people don’t do it because it is the least efficient way to meet a country’s needs. The most efficient is trade.
This is where “you’re going to be punished now for not producing locally” and “it takes five years minimum to spin up a local factory” collide
That’s what’s neat it can’t and it won’t.
The main argument for it is bringing back manufacturing jobs. We aren’t really in a place where that makes sense.
corporations aren’t willing to pay livable wages to people now… what makes people think the manufacturing jobs created onshore will be any better. Cost of goods will still go up either way, regardless of whether wages go up because it’s much more expensive to hire onshore workers than outsource to foreign countries where labor is much cheaper.
Thinking ahead and planning things out isn’t exactly the current administration’s strength.
It won’t because ppl won’t make a living wage.
It doesnt.