True. But either way with these tariffs prices are going up and margins go down even if a business makes and sources everything on home soil. Which in turn means the American standard of living will go down since people can buy less even in the best case scenario.
The logic of protectionism is that then more Americans find work manufacturing these things, which would in turn increase the standard of living.
There is no doubt that the US population fared best, when most of the economy revolved around manufacturing and Chinas rise of the middle class has been the result of manufacturing being offshored from countries like the US and in the EU, coinciding with a downfall of the middle class in the respective countries.
Don’t get me wrong. I don’t think that we would be able to get back to these “good old days” (in economic terms, not in other aspects) with the tariff regime of Trump. Also onshoring of manufacturing only can do so much if a factory that used to employ a thousand workers now brings the same output with a hundred workers because of higher automation.
As long as the distribution of wealth and return on capital is not changed fundamentally, we will not get back a broad middle class enjoying economic security.
There is no doubt that the US population fared best, when most of the economy revolved around manufacturing
Was that back when the top marginal tax rate was over 90% and the effective corporate tax rate was over 50%?
I wonder why the population fared best back then… Oh well, I guess we’ll never know. It must have been due to there being manufacturing jobs, right? Yeah lets just say that.
There is no standard of living in america, it greatly depends on where you live, what groups you are part of, and how much income you can generate. The difference now is that its not just the poorest that need to deal with this anymore.
True. But either way with these tariffs prices are going up and margins go down even if a business makes and sources everything on home soil. Which in turn means the American standard of living will go down since people can buy less even in the best case scenario.
The logic of protectionism is that then more Americans find work manufacturing these things, which would in turn increase the standard of living.
There is no doubt that the US population fared best, when most of the economy revolved around manufacturing and Chinas rise of the middle class has been the result of manufacturing being offshored from countries like the US and in the EU, coinciding with a downfall of the middle class in the respective countries.
Don’t get me wrong. I don’t think that we would be able to get back to these “good old days” (in economic terms, not in other aspects) with the tariff regime of Trump. Also onshoring of manufacturing only can do so much if a factory that used to employ a thousand workers now brings the same output with a hundred workers because of higher automation.
As long as the distribution of wealth and return on capital is not changed fundamentally, we will not get back a broad middle class enjoying economic security.
Was that back when the top marginal tax rate was over 90% and the effective corporate tax rate was over 50%?
I wonder why the population fared best back then… Oh well, I guess we’ll never know. It must have been due to there being manufacturing jobs, right? Yeah lets just say that.
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There is no standard of living in america, it greatly depends on where you live, what groups you are part of, and how much income you can generate. The difference now is that its not just the poorest that need to deal with this anymore.