Economics Thread

I’m not gonna pretend like some these aren’t great developments. They are.

But they will be years in the making, and effect won’t be felt for some time. Passing some tax reform and spending cuts will make people feel better in the short term
 
One thing I still just fundamentally don’t understand how making all goods from China arbitrarily more expensive than it otherwise would be for American consumers fixes anything for anybody. China and other countries with massive populations are going to always be the best places to produce cheap shit because their labor markets are inherently cheaper due to the amount of participants per capita. If we move all that production to another country that presently has less financial power than China, we will just begin the cycle anew. Wage slaves in China will be replaced by wage slaves in India, Bangladesh or Indonesia and we’ll pay the price to arbitrarily move their operations. Then those countries that are full of humans stacked on top of each other like sardines will use that newfound wealth to exert control on the market.

And with our flat 10% rate being the absolute best case scenario, China also will now have the opportunity to immediately strengthen its position in other markets, will it not? There ceases to be any incentive to open up your markets and trade barriers with the United States if you know that the best your exporters can hope to do in return is 10%, which is a pretty substantial tariff rate. Wouldn’t China just be able to leverage that for favorable deals with countries impacted by our scattershot policy?
 
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