|Ah.. where to begin on this trade, tariffs, and Trump stuff.|
I was in Hong Kong in the early '80s. China was a closed country, trade didn't exist. Hong Kong was under British control until 97. China was not an exporter. What happened?
Initially it was US corporations exploiting the Chinese cheap labor and authoritarian ability to organize resources and labor. We went into China, they didn't come here. Instead of building factories here, we built them in China. They were the latest, best designed, and dirt cheap for our manufacturing. Instead of rebuilding an aging tech plant here, we moved them there. The Chinese were smart, or fearful, that our moving our production there would make them a vassal state. The big thing they did again and again was insist on 51% ownership, sharing technology knowledge.
I talked with many US corporate idiots who actually said, "the Chinese are great cheap labor, but they'll never learn how to engineer, design, or produce anything on their own." Boy did they learn quickly.
We literally built China's manufacturing export machine. We (the WalMarts, the Apple's, etc, flooded China with factories while ignoring renovating, upgrading, employing US workers. Why? Because it was so darn profitable and still is although other countries are now even cheaper but not as populous or organized. If you want to blame someone for the rise of China, don't blame them, blame US corporations. This US led effort has also critically undermined the strength of our own middle class. We traded jobs for cheaper goods.
This doesn't change the fact that more money goes there than they buy from us. That the balance of payments grossly tilts in the Chinese favor. But Trump could, instead of raising a wall of tariffs that WE have to pay for; he could do everything to force US corporations to invest here, rehire the American assembler, rebuild factory floors, pull investment out of China into Kansas and Pennsylvania. But they won't and he won't. The container ships from China are something we created.
| Reply to TheNextGoogle - Msg #2786687 - 05/13/2019 20:51|
Re: Yup, but it's ok for the other side to export everything to help their economy,,,
Don't want to upset the apple cart.
It's about time someone stood up against the lopsided trade deal.
Not sure why people are against that,,,
Not matter what business you're in, you wont survive by continually
losing money to the competition.
My take is the market is freaking out over a potential temporary downturn, because so many buy so many of their components from China, therefore if the prices go up, they'd have to find a cheaper,,,
Also it creates uncertainty, and the market hates uncertainty
My opinion, which along with a dollar 75 gets me a cup of coffee oh, I guess that saying used to be 50 Cents - is it should have been done 20, 25 years ago. In addition to Chinese workers working for so much less, it's heavily subsidized by the government.
The reason why it hadn't been done before, is I have to agree with Trump, in the past United States presidents had the same intellect as high school presidents.
I think he should make the tariffs permanent, and across the board, back to protectionism. This would give the companies reason to Tool up.
My original field is engineering. In the past I would call up agencies and say I was a mechanical designer, then they would discuss what particular type of experience I had. Since then, in recent history, when I would call up an agency and say I'm a mechanical designer they would say - what's that?
Our country used to make all sorts of everyday items, then in the seventies late 70s they gave up. I didn't think they would be able to get away with it, and since then the national debt has done nothing but go up.
Since then it's been kind of a crazy economy, they seem to think they're going to generate money by continually shuffling money around.
In the seventies and beyond that, there was a whole lot of quality jobs created by Manufacturing. Since then with the new generation, they have no comprehension of it, no memory of it, don't know anything, and don't want to know anything.
The mentality of creating wealth, but actually manufacturing something, is long-lost.
All in all, I'm glad I'm in my sixties and not my twenties. But at least now we have a president that knows his head from a hole in the ground.
Interesting CNBC, Cramer video on the trade war - points out how little w...