Comment by toomuchtodo

12 days ago

The solution is to pay everyone a living wage, regardless of job, and disconnect healthcare from employment. Lots of inertia against those ideas though. So, instead, "good manufacturing jobs" is the parroted point. Any job is a good job if you can live off of it.

(tariffs do nothing to address labor shortages in healthcare, teaching, and other domestic service based sectors, for example)

That’s a solution of human rights and is orthogonal to becoming competitive to China. No question human rights needs to be fulfilled and we need to pay people living wages.

But the conversation here has he orthogonal goal of being competitive with China as well. I can assure you just paying everyone living wages is one of the main reasons why we are not competitive with China. It’s the main reason why China is beating us today.

So paying everyone living wages doesn’t really do anything to solve the problem because the products created by people who are paid living wages are by definition more expensive due to labor costs.

What tariffs do is they allow us to pay people living wages and sell expensive products and still be competitive because products from China are tariffed to be the same price.

  • > So paying everyone living wages doesn’t really do anything to solve the problem because the products created by people who are paid living wages are by definition more expensive due to labor costs.

    They aren't though. In America, "Paying living wages" always means "pay way more", because America underpays labour and overcharges for literally everything (products, services, basic cost of living -- every product on American soil has a insane profit margin on it)

    In China, "Paying living wages" doesn't necessarily mean "pay labor more", because they have stronger control over pricing and margins, so it often actually means "make orgs charge way less".

    You end up with Chinese folks living in a major city in China, with a 2bed apartment that costs $200USD/month, and a meal out cost $2USD/each, cars that start at like $6k, and they get paid $5USD/hr, but they feel like they're living well, despite only making around $640USD/month, because they can save 10% of their income each month, and have like 40% of their income as discretionary spending, and still get to own their apartment.

    But in the US, a 2bed apartment in a big city like that costs at least $2,000/month or more, a meal out there costs at least $20/each, and a basic starter car starts at like $26k, so you can pay someone in a ostensibly-"high labor cost" job of $20/hr, and they feel like their constantly underwater, and have zero chance of ever owning a home, because they only have like 20% of their income as discretionary spending, and they can't save anything at all. (and that's before we even mention differences like how you don't have to worry about being hit with a crazy bill for an ER visit or an Ambulance in China, but Americans have to worry about that 24/7/365).

    (It's the same reason many American's dream of getting a job in Europe and leaving the US, because despite making less money-on-paper, you get to generate more real wealth and do so with less life risk and life stress)

    The Factories and the labor pool and the infrastructure being absent in the US is hard to solve for, of course -- but it isn't even the hardest part of any of this. The American view of capitalism would have to be completely rewritten to be more diverse, more equitable, and more inclusive to Americans who do actual labor, before Americans could be anywhere close to competitive with most of these Chinese industries.

    • That's right now. For China to even get to the state they are in now, workers were heavily, heavily exploited.

      In fact exploitation is the reason why they are the way they are now.

      2 replies →

    • PPP is the only way to compare expenses between different economies. You can't just convert RMB into dollars and say "see how cheap they have it".

  • "What tariffs do is they allow us to pay people living wages and sell expensive products and still be competitive because products from China are tariffed to be the same price."

    Tariffs don't do that necessarily. Maybe a tariff applied to a specific strategically important product or industry, could achieve that. Basically you are then subsidizing an important sector of the economy in a way that is economically inefficient and will make us all poorer in favor of some other interest like national security. The kinds of tariffs applied by the Trump administration cannot even achieve price competitiveness because price is nowhere in their extremely dumb equation. They cannot achieve national security because they are applied to inputs and outputs. They cannot achieve anything useful. They can only make us all poorer.

> Any job is a good job if you can live off of it.

No, just no.

There is a high variance in job qualities beyond pay.

Work hours, over time, outside vs. office jobs, repetitive Vs. varied, physical and psychological impact, etc.

  • Those are preferences, and unique to each individual. I work in trades, I work the overnight shift, and I do 4 10's. I wouldn't want to change any of that. Someone else will feel more at home in an office, and that's okay.

    The important part is having a job, that you enjoy, and that allows you to live comfortably while saving for the future. It can be in IT, sales, management, maintenance, whatever - but some people will rather leave a more tangible, visceral, and physical difference in their work at the end of the day, and their preference does not make it a worse job.

    • > Those are preferences, and unique to each individual. I work in trades, I work the overnight shift, and I do 4 10's. I wouldn't want to change any of that. Someone else will feel more at home in an office, and that's okay.

      No, those are not only preferences, they also have objective health impacts.

      Working nights typically decreases life expectancy.