President Trump

waspish said:
Don't what's the problem for any government to put there country first as in there people buying there own made products? Other counties can do the same to any other Country! Someone explain to me why I'm wrong if I'm wrong?
Click to expand...

It’s the closed economy model vs the open economy model. The closed model seeks to trade/be self sufficient within its own borders and protects industries with tariffs and trade barriers. The open model encourages cross border trade and investment and freer movement of goods and people (services).

North Korea is a closed economy. South Korea is an open economy. In short the open model works better which is why the Western developed nations are largely open economies.

Closer to home, you can see the difference in Eastern Europe with the growth in wealth of countries like Poland. Previously they were part of the Soviet Bloc which was a closed economy and now are part of the EU a trade bloc that actively facilitates trade and movement between European countries.
 
waspish said:
Yeah see that it's why prices have stayed pretty competitive in this country for so long till Covid and world going to shit was of immigration to our country! You seen the minimum wage in America though the federal one?
Click to expand...
Yep it’s about $7 and they voted against raising it, still they can get their kids in Florida to work all night to make up for it!
 
As I understand it the US has a massive budget deficit and a massive trade deficit and any less important country would be in serious shit.
What makes it different is the dollar is the world's reserve currency. A lot of the dollars that China has, get sent back to the US to buy treasury bills. With this money the US can import more from China. It's a symbiotic arrangement.
However the US looks in greater jeopardy.

Trump probably had to do something. Whether his approach will work is highly debatable. An increase in domestic production will need immigration to start with.
 
MillionMilesAway said:
That seems to be the argument, just put forward in a terrible way.

It may be that in 5 years the US manufacturing sites are up and running, it works out in some trade objects. It's not going to miraculously happen though, and certainly not overnight, which seems to be what is being sold to the public.

As you say, it's not going to apply on everything - why on earth is Sri Lanka going to import much from the US when it can be obtained cheaper and more locally.
Click to expand...
Why would the US car industry invest billions in car plants only for the whole nonsense to collapse in a few months?
 
Vic said:
Why would the US car industry invest billions in car plants only for the whole nonsense to collapse in a few months?
Click to expand...

The is true across all hi tech industry.

It takes $bn and many years to build a capability. More years than Trump has to go this term.

These tariffs are so obviously idiotic it's hard to imagine them staying long term. So the risks against anyone making that sort of investment is huge.

For lower tech industry, you have to explain how US workers will start taking up employment in sweatshops to make cheap T shirts that are no longer economic to import from Vietnam.

So it's an economic disaster scenario all round.
 
robbieh said:
As I understand it the US has a massive budget deficit and a massive trade deficit and any less important country would be in serious shit.
What makes it different is the dollar is the world's reserve currency. A lot of the dollars that China has, get sent back to the US to buy treasury bills. With this money the US can import more from China. It's a symbiotic arrangement.
However the US looks in greater jeopardy.

Trump probably had to do something. Whether his approach will work is highly debatable. An increase in domestic production will need immigration to start with.
Click to expand...

There is nothing wrong with a trade deficit. A country is not a company and has no balance sheet or P/L account. If a company in the US imports cheap reading glasses from China it generates wealth for the US economy. The docks that receive the import, the company that transports/stores the import, the shops that employ people to sell the import, the sales tax on the import.

The US is a huge consumer machine that sucks in goods and services and grows on that consumption. Restrict that consumption or make it too expensive and the economy ceases to grow and starts to retract. You have to keep feeding that machine. The entire US economy is built on that machine.
 
KS55 said:
Look it up yerself lazy git!
Click to expand...
"The initial Indian railway network was built and owned by private British companies, who relied on capital raised in Britain with a 5% guarantee backed by the Government of India, but this didn't mean the British government was bankrupt, rather they were incentivizing private investment through guarantees."
 
Are we not forgetting that any short term loss until they're up and running with manufacturing their own stuff is being made by the billions they're saving from aid cuts, federal cuts etc
 
BlueMoonAcrossThePond said:
On the bright side, this is bound to be such an economic catastrophe that Republicans are going to lose by very large margins in upcoming elections.
Click to expand...

There's a quite important assumption in that statement. I hope your assumption is true as well as the outcome of said elections!
 
roubaixtuesday said:
The is true across all hi tech industry.

It takes $bn and many years to build a capability. More years than Trump has to go this term.

These tariffs are so obviously idiotic it's hard to imagine them staying long term. So the risks against anyone making that sort of investment is huge.

For lower tech industry, you have to explain how US workers will start taking up employment in sweatshops to make cheap T shirts that are no longer economic to import from Vietnam.

So it's an economic disaster scenario all round.
Click to expand...
Unless it's all the redundant federal white-collar workers that DOGE has sacked, who would take the motor manufacturing jobs? The industry has always needed immigrant labour.

 
moomba said:
You've got to ask yourself why people buy imports. Generally because your country doesn't have the capacity to manufacture the goods (that's the sort of thing you look to develop over decades, not days), or the goods can be made cheaper so are more affordable to the consumer.

Why do cars and car components move from US to Canada to Mexico and back? Because the car companies see that as the best, most effective, most efficient way of produce an end product.

Also you look at the countries exporters, no doubt they will be hit with reciprocal tariffs which will make it much harder for them to survive.

Tariffs as a rule aren't the worst thing, if they're targeted and if they're planned.

This is just a shitshow.
Click to expand...
The real reason they buy imports though is corporate greed. We’re seeing it on a scale rarely if ever seen in history and, unless someone has the balls to stop it, this spiral will just continue.
Apple, for example, sell phones for £1000. I can’t believe that they couldn’t make those phones, in the US, for somewhat less than £1000. They don’t, because corporate greed and share prices have become the drivers for everything.
At home, M&S sell jackets for £100 but they’re made in Bangladesh. I’m sure they could be made for less than £100 here but greed says they must buy them cheap and sell them dear.

All Trumps stuff will do is, once again, enrich the already ridiculously wealthy even more, whilst pushing more people into penury.

Also, make no mistake, there will be a serious cull of existing US workers rights, once the realisation of true costs are realised.
 
robbieh said:
As I understand it the US has a massive budget deficit and a massive trade deficit and any less important country would be in serious shit.
What makes it different is the dollar is the world's reserve currency. A lot of the dollars that China has, get sent back to the US to buy treasury bills. With this money the US can import more from China. It's a symbiotic arrangement.
However the US looks in greater jeopardy.

Trump probably had to do something. Whether his approach will work is highly debatable. An increase in domestic production will need immigration to start with.
Click to expand...
I wouldn’t bet on the dollar retaining its position as the world’s reserve currency. It’s no coincidence that the price of gold is hitting record highs on an almost daily basis.

It’s not inconceivable that we could be returning to the gold standard such is the stupidity of the fools managing the US economy. Not good for anyone but potentially less bad than depending on the dollar being a stable currency.
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top