It’s asinine to scoff at “low value” manufacturing. It’s more of the same from the globalist crowd that doesn’t really acknowledge America as a country. It’s just a market.
Economics Thread
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It’s asinine to scoff at “low value” manufacturing. It’s more of the same from the globalist crowd that doesn’t really acknowledge America as a country. It’s just a market.
Well, when you don’t artificially inflate the cost of foreign production, that shift can happen gradually. For instance, we can skip the step where things get a lot more expensive because domestic production is currently labor-intensive, then the mass layoffs when automation is economically viable.
Why would it happen at all without intervention?
For the same reason you let the free market determine a wage instead of introducing a high minimum wage: the inflationary effects. Innovation can happen as quickly as a company wants, but government action aimed at forcing their hand used to be a thing I thought y’all hated.
It might not? Replacing human, even non-American jobs with robots isn’t a cause I’m willing to pay more for though.
Sounds great until the previously domestic production of other goods is also automated thanks to the increased appetite for development of automation. But at least we’ll have higher prices!
Absolutely not - and our energy prices make these future factories much cheaper in comparison to other nations.
Automation will take time. So production will either be more expensive due to American labor in the short-term or goods will continue to be imported and be more expensive. If the consumers have already adjusted to higher prices due to American production, prices probably won’t drop all the way back down to pre-tariff levels anyway, but that’s a much more speculative argument on my part that I’m not making now.
And if firms could do that without raising prices and potentially impacting sales, they’d be working on it anyway without a tariff making it harder for me to buy things.
Yes they probably are. We pay for it when domestic production is still being done by humans that make more money, and also potentially when companies elect to expedite the creation of automated solutions. That cost is typically felt less by consumers because firms need to remain competitive in the market and can’t increase their prices just to gain future advantages. When the government disrupts the free market by raising the cost of production synthetically, that equation can change.
No that is just paying for the cost of labor not the cost of R&D and if orgs are going to recoup that via pricing then they are subject to competing interests from others thst won’t do the same.
And I’ll continue to repeat this - the boogeyman of increased costs will prove to be something slightly higher than immaterial and will be offset by other factors that bring down the American diction’s daily costs. The end result will be better for the country and is.
