Gou is talking about billions of dollars of investment . Fifty thousand jobs etc, however the number crunchers say with most components coming from China and Korea, the numbers don't stack.
American Economics Thread
- Thread starter Bernard
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Gou is talking about billions of dollars of investment . Fifty thousand jobs etc, however the number crunchers say with most components coming from China and Korea, the numbers don't stack.
As I suggested earlier, they could deduct it out of the annual aid money. I don't have the latest figure. In 2013 it was about. 450-500million.
I would not be surprised if Trumps popularity rating go up because of the silent numbers that approve in what Trump is doing but don't say so.
He has made moves to get the stalled pipeline in motion as well. Back in NZ that would have another fours after the call for more endless reports.
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Zool
Junior Member
I was reading an article a week ago that talked about one of the challenges with this idea being the lack of a component 'ecosystem' in the US, versus how China has created 'tech parks' where multiple component manufacturers that integrate into some of these commercial products, are situated near to each other to increase efficiencies.
Just so happens I found today another piece discussing the same issue, among others, that need to be addressed for a such a move to be competitive.
b787
Captain
Mexico is not going to pay
If our government ever pays, its signing its death sentence first as a party, the PRI lead by Pena Nieto is highly disliked, if the people ever knows, in Mexico discontent will grow.
Second, if Trump uses remittances, it will affect the family economy of millions, basically impoverishing millions, this will increase hate to the government, Pena Nieto has a popularity below 12%.
Second if Mexico Pays is signalling south America, cut ties with the USA they have betrayed Mexico as they did betray Argentina in 1982.
Trump will fail, even if he builds his wall, white people are old, the goods price will sky rocket, tax the cars made in Mexico you are shooting your selves in your feet, 40% of each car made in Mexico by ford has US content, basically taxing your own goods.We will survive believe me, Trump will make us stronger, but he will make you weaker.
You wall will not stop immigration, many illegals around 60% come by airplane, try to control visas you will destroy to tourism to the USA, and Mexican Mafia also can build tunnels, you have a huge coast too.
China has now the technology and can flood the region with their goods, your ultra strong dollar, will reduce your imports to Mexico, just to mentions cheese and gas, a dollar a 25 pesos per dollar will kill Mexican imports from the USA, your higher salaries will kill your exports to Mexico and what you are doing to Mexico will tell in South America do not depend in the USA, do business with China, Russia, Europe, Asia.
You are doomed, China will sell your debt, your dollar will have inflation, your protectionism will make Mexican goods more expensive, and your old american white people with high salaries will not allow youi to compete, taxing Japanese cars, or Chinese or German cars will not solve the fact Mexicans we can build cars as good as American workers, your cars have bad quality compared to Japanese, tax them, you are only making your cars less affordable and each action has a reaction, your taxing of important goods mean China, Japan, Mexico, can tax your goods too, basically you are destroying your exports, but well build your wall i am in favor, do it nations that do tat show you are afraid of competitions, burying your head in the ground won`t stop Mexico getting stronger, neither China sweeping your goods from the shelves else where, remember the other side can always respond
Blackstone
Brigadier
In addition to challenging supply chain problems, the final products would not be price competitive with foreign manufacturies. One example is a piece I saw from Bloomberg news saying an iPhone that American consumers pay around $700 for today may go as high as $2,000 under Trump's regime. That means reduction of living standard for most Americans, with the middle-class and lower income brackets taking the blunt of it.
Blackstone
Brigadier
Want proof the inmates are running the asylum? Here it is. Peter Navarro said Citigroup's study on BATs (border adjustment taxes) depressing retail company earnings, leading to workforce reductions "garbage study" and "scare tactics." Least we forget, this is coming from the king of scare tactics himself.
But for the notion most Americans will be worse off, these people would be comical to watch over the next four years.
But for the notion most Americans will be worse off, these people would be comical to watch over the next four years.
Blackstone
Brigadier
Good move by Samsung and LG to locate factories in the US, and they'll profit by avoiding border adjustment taxes. But, the flip side is automation would limit blue collar jobs creation, plus the companies in question are still dependent on the global supply chain for components.
b787
Captain
there are other reason why they might move, the border tax is just a bluff by Trump the World trade Organization rules go against that, plus let us see some things people in the US do not see:
Plus a few factors people do not see
Ford cancelled but not China`s Giant motors
This car is a joint Mexican-Chinese venture, the design of the car is Mexican, the Chassis and main car are Mexican, the engine and power plant Chinese
will ford be able to compete with are car made by Cheap Chinese and Mexican labor going back to the US? i do not think so but Trump thinks yes they can
vesicles
Colonel
This is why I have never been a supporter of "bring the manufacturing jobs back to the US". It's not natural and requires heavy government intervention to work. Everything about it goes against basic principles of free market economy.
I firmly believe in a small government and as few government regulations as possible. A system that takes advantage of self interest of individuals and encourages healthy competition among different parties is the best system.
Without government intervention and in a free market economy, business owners seek to lower cost and maximize profit. Two ways to do that: 1) find cheap labor; 2) automate the manufacturing process.
In a nation like the US, where minimum wage is almost a month's/a year's salary in some poor third world country, only heavy government intervention, which slabs heavy taxes and regulations on businesses, would force businesses to hire more expensive labor and allow manufacturing jobs to come back to the States. As you can see, this goes against the basic instinct of operating any business. Then to make these businesses more competitive on the international market, the government will need to heavily subsidize. Before long, the government pumps so much money into these businesses that it becomes partial owner. When you are an owner, you want to have a say in how the business is operated. If owners don't listen to the government, it will stop subsidize them and they go under... Then you get socialist government, where the government owns everything.
Then to be able to afford the subsidizing, the government will need more budget = higher taxes. That obviously comes out our pockets. Then, higher prices for all the goods now made in the USA also decreases the purchasing power = lower quality of life for all. With less sales, businesses will need more help from the Man to stay afloat. Again, more government involvement. To keep the government out, business will then need to lay off workers to minimize cost. then we go back to square one: shrinking manufacturing jobs.
As you can see, this much government intervention is very unnatural.
To get around this, companies will aim to automate manufacturing as much as possible to lower cost. Amazon just opened a brick-and-mortar store in Seattle, where almost the entire store is automated. This of course totally defeats the purpose of bringing jobs back to the US. So what to do next? Burning down all the robots, like what people did in the 1700's and 1800's? Banning the use of machines? we all go back to lines and lines of people working on sewing machines?? Welcome to the third world! Is this the kind of future we want?
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