Will tarrifs actually work when a country barely produces anything themselves? I have my doubts
Discussion
You hate the country you live in.
Leave.
And if you like the country you live in, work to understand it and fix it. Itâs not a binary.
Imagine if those countries simply decide to not import their goods to the US of A. đ¤ˇââď¸
But BRICS' primary goal is to drop the petrodollar for crude oil and that's the real worry.
To be honest I donât think. China produces material way cheaper.
This administration is trying to strengthen the dollar by bringing back manufacturing back to US.
Iâm torn on the tariffs. I see the âwhyâ. The goal is to onshore the manufacturing. We need that for self-sovereignty. âNot your keys, not your coinsâ resonates. Well, among nations, ânot your manufacturing, not your ability to defend yourselfâ. Plus the outflow of wealth. Tariffs are a hard and undesirable short-term ask. And they have a long and hard path to desired result. Itâs a painful low time preference move, but who knows if itâs the right nationstate lever to pull or not. Are there others? More passive and graceful ones? In UX I lean toward âpath of least resistanceâ improvements. But this doesnât mean I create resistance on the undesirable user flow. I just make the desired path better and I let the migration of feature usage prove me correct. Tariffs are âadding resistanceâ. What is the graceful way of inviting the desired change vs pushing away from the current undesired practice of offshoring our manufacturing and draining aggregate wealth?
Free-market economics, locally. An outsourced global manufacturing hub is resulting in political pressure being extorted in order to further extend dominance, allowing dependance to take root. It may be a simplification but I imagine that like with UX, we now see trends where the path of least resistance is not what we want or need anymore. Do people actually know what they want and need? Consumer/ developed nations would be actually doing okay by dealing with the challenges of not being able to buy so many finished goods, running trade deficits fueling political tension. If a nation can achieve food security and maintain defence, the enxt logical question should be what can it produce and develop for its own neeeds. Protectionism might be spun as an ugly word, but it's a reaction to a mirror-image of itself.
Donde entra el comercio no entran las balas. Frederick Bastiat
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Then again, it has been posited that there is some bluffing/threatening at play, to get better cooperation from other countries. But you eventually have to deliver on your threat to retain credibility, so choose threats wisely.
I need to read some Rothbard on the matter. I donât know the moving parts well enough.
USA global production
#2 goods (China)
#1 food
#1 energy
All government interventions are harmful because there is no incentive to use stolen money efficiently
They'll work to create massive inflation in America.
Since America is the only buyer affected but the seller still has the rest of the world as customers it really is a self own.
Keep in mind for double stupid you are making this threat to brics countries, which means they are actively trying to uncouple their economy from the US economy already. This helps their goal.
Ex-china Brics countries will likely continue to impose and increase tariffs on china's exports as will many Global South countries who can not continue to absorb china's lack of domestic consumption.
Yes it will work because the USA is a consumer country and it holds the world's reserve currency.
That's the point of tariffs. They will penalize corporations that produce overseas and that will raise their operating costs. You can you raise it enough until it will be too expensive to produce overseas.
Corporations need America since the USA is the ones consuming everything with credit.
Without the USA consuming many countries would callopse. It's a massive scam that benefits the USA at the expense of the 3rd world slaves.
The USA holds all the cards because it has the world's reserve currency.
Tardiffs alone won't work. This is a massive operation. Military is planning this not just Trump.
I know exactly what they are planning. They will remove massive regulations on energy as well because you need cheap energy in order to bring back manufacturing.
USA is winning and will win. As for 100% tardiffs on countries that don't go along with the USA dollar.
What Trump means is the new USA dollar that they will be launching. Not the federal reserve note.
They can't tell the people that there will be a new USA dollar because it means the old dollar goes POOF.
Biggest transfer of wealth happening. USA is FREEDOM.