this post was submitted on 10 May 2024
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I'm usually against tariffs but in this case it seems like a pretty fair tit for tat to China basically removing the budgetary concerns for their manufacturers that said manufacturer's international counterparts won't have.
Subsidizing local production for local markets is fine enough, but exporting products made with an infinite money glitch active is more or less an intentional play at market capture.
And before some sinoboo tries to gatcha me I do also object to examples where the west subsidizes domestic production for international markets.
I want a $10000 car that would normally be inflated to $30000 in the US.
I’m no lover of China, but fuck the capitalist auto companies.
You can't make that same car in the United States for anything like the same price. Even ignoring the Chinese Governments heavy subsidies there's still a massive cost gap due to worker compensation, cost of compliance with safety regulations, cost of compliance with environmental regulations, and a whole host of other things.
The cost of manufacturing in the United States is radically higher than it is in China and that simply isn't fixable unless you're going to unwind Union pay deals, remove environmental laws, and reduce safety restrictions.
You cannot have both, so which are you choosing? Are you going to go with your wallet like a self absorbed capitalist or are you going to support union workers, stronger environmental laws, and more worker safety?
While I can’t say any of this is wrong, you’re missing likely the single biggest component inflating the cost of US manufacturing: profit margins. Every step of the supply chain has a profit margin attached. Sometimes just a few percent, but often double digits. These compound, so a 5% margin on a simple component will see an additional 15% when sold as part of an assembly, which is then marked up another 20% when sold as part of the finished good. There’s also financialization which burdens US companies. Companies generally need to take loans to fund their operations, and end up having to pay heavy interest fees and rent which also drives up cost. Workers and environmental protections are more expensive, but in practice they are relatively minor compared to a lot of other inefficiencies US industry struggles with.
That's true in China as well. The only difference is in the price of what is being marked up.
Well, there's also less corruption and more free competition to lower pricesin the US.
Bless your heart, sweet summer child.
You think there's more corruption in the US government than the CCP? That China's market is more free? Give me a break.
Doesn't the USA have much higher wealth inequality than China's? If so, is that not the result of corruption? If not, so you consider the visible symptoms of it?
As I said, I'm talking about the US gov vs Chinese gov.