And under Trump, the steel tariffs have basically forced Ford and GM to stop making sedans in the USA and instead make them in Mexico. Ford Focus: moved to China (Ironically). Ford Fusion: Cancelled. GM Volt: Cancelled. Harvey Davidson: moving to Europe.
Things aren't exactly simple, and I am not convinced that the tariffs + tax cuts have helped the American worker at all. US Manufacturing is down for two months in a row now, and I don't see it getting any better any time soon.
We're at a point where the Trump-defenders need to start explaining exactly what these tariffs are supposed to do and why they think the tariffs are helping. The tariffs have been in effect for well over a year, do you have any evidence that they're helping yet?
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Frankly, I don't care how much we hurt, or help, China. It was supposed to be "American First". So lets talk about America and whether or not these policies help Americans.
Youre thinking in the short-term. Of course there are going to be short term economic losses for the US when Trump announced the bans and the tariffs. But its only short term until the west figures out how to defeat the communists. In the long term, theres gain, not just in the economy of western countries, but most importantly gain in human rights, human dignity, and most of all, liberty! China's oligarchs would get mad at the CCP when the economy starts going to shambles and when they cant take their money out of the country.
> But its only short term until the west figures out how to defeat the communists.
The Berlin wall fell nearly 30 years ago and the USSR has collapsed shortly thereafter.
China's method of governance isn't anything like the communists. They're actually building advanced economies, as the builder of iPhones and lots of other equipment.
China is authoritarian, and probably best described as "legalist" (medieval Chinese philosophy). China engages in a system closer to capitalism, see Alibaba, Huawei and Baidu.
China's "communist party" is only communist in name. Although they're against human rights, they are welcoming of capitalists. Its why Tesla is building a factory there, even with the threat of Tariffs, because the rising Chinese middle class is actually working for that country. China is unfortunately, discovering an "authoritarian capitalism", some kind of crony capitalism which benefits the party and ultimately builds markets (Chinese Stock Market and Chinese Mega-corps are on the rise. Foxconn, Alibaba, Huawei, etc. etc.)
I feel like the "authoritarian capitalism" trope is inaccurate.
China introduced some elements of capitalism and liberty into its economy, but clearly retains government control over what would otherwise be independent companies.
Whether it chooses to exercise that control is immaterial -- the CCP obviously believes very strongly that if needed it has that control.
And legally, it does.
In that respect, China looks much more like the late-stage Soviet Union, where a diversity of political power groups (some allied, some opposed) give the illusion of a free market to a command economy.
Building advanced economies sure, I agree with that. Building a better society? I doubt that. Theyre an Orwellian state because they know that without the propaganda and massive human rights intrusions, their communist party would crumble instantly. If the people actually believed in their own leaders, the CCP wouldnt have to use all that propaganda and censoring to further their cause.
Theyre an advanced economy yeah I agree with that. However, their markets are not open to foreign companies at all. Not a single western company can compete in China because of the tech theft and spying, and most of all because all the big companies are not private at all, theyre just communist institutions that are disguised as "private companies". If any western person uses an app like WeChat they would be so weirded out by the UI. That is because companies like Facebook and Google evolved that big organically, while companies like WeChat or Weibo or whatever evolved unorganically, their users are forced to use those apps.
And on top of that all, theres just no doubt whether theres tech theft. Most of the big companies in China are that big due to the fact that they blatantly just stole the tech and theyre not even trying to hide it. Theres countless of instances of this occurring, and its very surprising to me that the West just woke up.
Look at Hong Kong. Because of the West, HK has had a taste of what freedom looks like, and they would fight a lot to get back their liberty!
Fraternité, Égalité, Liberté!!!!!!!!! You can only compete with bullies if you are a bully yourself. With fire with fire!
It's too early to tell. Wars of any kind, including trade wars, are a short term cost hoping for a long term gain. If the Chinese economy is hurt more than the American economy that is one level of success. Then, if manufacturing moves back to the US and other Western hemisphere nations that's another level of success.
The trade war, as far as I understand, started largely because companies were complaining about Intellectual Property being stolen. Although I figure the larger reason is China is a threat to American global influence, and we're trying to make sure we're the dominant country.
Regardless, I don't know how you quantify "if the US economy was hurt" in a consistent and accurate way. I'm sure some would want to use the S&P 500 or our GDP as a single measure. Neither of these things would immediately account for whether the obvious goal (not having IP stolen) or less obvious and quantifiable goal (dominance and global influence) are maintained, or suppose there's some other goal I don't know about, but it's more complex than saying we produced more value this year than last year.
I picture someone saying, "Look the S&P 500 went down, therefore the 'trade war' failed, see!" I'm not saying you would say that, I just think your definition, "if the US economy was hurt, then its a failure" leaves room for vague interpretation, where virtually any metric could be selected as proof of failure.
> The trade war, as far as I understand, started largely because companies were complaining about Intellectual Property being stolen.
The Midwest doesn't care about intellectual property rights. IP rights is mostly a west-coast (ie: Hollywood / Silicon Valley) thing. Ford and GM aren't the ones having their tech stolen by China... its Cisco and Apple who have to worry about that stuff.
Frankly: we all know why the trade war started. The trade war started because Mr. Trump got elected and ran on the platform of starting a trade war. Its that simple.
Now its up to the supporters of this platform to put up and explain to the rest of America the situation. Its been three years, and election year is next year. Its time to show off your results.
Basically any long term goal has short term costs. Building a new road costs money up front.
We don't want jobs just to come to the US. We want to help build the economies of the people scrambling across our border too. So jobs in Mexico is great, as long as there's also new jobs in the US.
Carrier moving their jobs to Mexico was a key element of Trump's platform, and a major reason why Trump got elected. Trump's base does NOT want the jobs to move to Mexico.
>The Republican presidential nominee rolled out the new talking point during a surprise trip Wednesday to Mexico, and explained it further on Thursday. In his telling, a prosperous Mexico and Latin America means less illegal immigration to the U.S. and more markets for American exports.
> A supporter of President Trump is considering moving his company's production headquarters to Mexico in an effort to avoid Trump's tariffs on Chinese imports, according to The New York Times.
...
> “I just feel so betrayed. If we fail because the company is being harmed by the government, that just makes me sick," he added, saying that he expects that his profits in 2019 will be cut in half because of the tariffs.
This is the actual politics of the people. Now go ask all your Trump supporter friends if this move was a "success" for Trump's tariffs, an intended result.
Let's be clear about which groups of "jobs" we're talking about. Of course Trump and his base don't want the set of jobs already in America to leave America for any destination. Trump wanted to hold up Carrier as an example of keeping jobs in America and it was a failure.
There's another set of jobs which is the massive manufacturing base in China which provides goods for the US and elsewhere. We would like those jobs to come to the Western hemisphere, including and especially but not limited to the US.
Things aren't exactly simple, and I am not convinced that the tariffs + tax cuts have helped the American worker at all. US Manufacturing is down for two months in a row now, and I don't see it getting any better any time soon.
We're at a point where the Trump-defenders need to start explaining exactly what these tariffs are supposed to do and why they think the tariffs are helping. The tariffs have been in effect for well over a year, do you have any evidence that they're helping yet?
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Frankly, I don't care how much we hurt, or help, China. It was supposed to be "American First". So lets talk about America and whether or not these policies help Americans.