Comment by SoftTalker
5 days ago
Yeah pretty funny to see mostly the same people calling for a $20+/hr "minimum wage" on one hand, and bemoaning the tarrifs on the other hand. They will tell you that if you can't pay your employees that much, then you don't have a viable business. But they will turn around and whine about how their cheap Chinese crap purchases are now going to cost what a "viable" domestic producer would have to charge.
It's easy to look at the internet at large see people with these contradictory takes. But 1) these groups may consist of entirely different people who are vocal about different topics, or 2) the wide brush obscures critical context.
I support a $20 minimum wage AND
I think tariffs can be justified, especially when we use free trade to ignore the external costs to the environment and the arbitrage of exploitative labor AND
I have a problem with implementing tariffs in such a shotgun, ill-considered, shoddy way lacking clear strategy or intent
Most people bemoaning the tariffs are doing so because they understand that production will not actually come back to the US. It's not that these people hate Americans and don't want domestic manufacturing (or to pay for it), it's that they can see the reality that this isn't what's actually going to happen. Instead, the price of goods will just rise.
A lot of these people too have been saying "buy local!" or "support black businesses!" for a while now. They're not the same people bemoaning the lost of hyper consumerist plastic junk.
I'm pretty far to the left, and I'm actually fine with tariffs on China in principle for exactly the reason that you mention. Tangentially, I don't think that "free trade" can ever be meaningfully free when goods flow freely but workers can't move to where the high-paying jobs are - it's a recipe to create market inefficiencies that companies can profit from.
However, the fact of the matter is that our economy as it exists right now relies on cheap goods from China. This can and should be changed, but a meaningful plan to do so would last years of careful incremental changes if the goal is to benefit Americans as a whole. This is emphatically not what this admin is doing.
I'm a lefty lib and, like lots of us, I've wanted restricted trade with China since we granted them MFN status in the '90s. I think that was a bad idea in the first place.
Neoliberalism is not popular and never was. Donors like it. Workers don't. The only reason either party could stick to it and still win elections, is because both stuck to it. Neither "defected".
Tariffing Canada and Mexico? The EU? Yeah, not so much. And it makes working against Chinese trade far less effective and more-costly.
Claiming these aren't a tax on Americans? That's just a lie. Chaotically switching your message and actual policies day to day? That's not how you foster investment in factories that'll take years to be net-profitable. Working against the CHIPS act? What the literal fuck, that's exactly the kind of thing you [edit: the "you" here is the administration and their boosters, not necessarily "you", the poster] claim to want! That was a really good idea!
So, I agree with a tiny amount of the overall policy, while finding its implementation incompetent, and the other parts to work so strongly against the effects of the part-I-like that I find desirable, that I doubt my motivations for wanting to reduce trade with developing authoritarian states and the administration's are even the same.
If you want to restrict imports from China, it is somewhat necessary to restrict trade from Western countries as well, in order to prevent evasion by trans-shipping (until and unless they restrict Chinese imports as well).
Canada has been laundering Chinese aluminum and steel, Malaysia has been laundering Chinese ‘honey’, etc.
There were way cheaper and more-effective ways to achieve that. And that's not why the administration says they're doing this, anyway. It's because we have trade deficits, period. Or it's because of fentanyl, since that was the justification for the invocation of emergency powers that're letting the executive impose tariffs at all.
>If you want to restrict imports from China, it is somewhat necessary to restrict trade from Western countries as wel
A good strategy would be not to impose tariffs all goods, just the more important ones, and you would do it WITH your allies. Threaten the same tariffs on allies as China if they do not get on board. You could even use the leverage to get China to increase domestic consumption so they aren't exporting so hard.
Trump's policies aren't going to achieve what he thinks they will.