Comment by nitwit005
11 days ago
The cheapest option would then just be to try to become allies with countries where manufacturing is growing the fastest.
11 days ago
The cheapest option would then just be to try to become allies with countries where manufacturing is growing the fastest.
Yes, China.
The policy should be collaboration with China. 50/50 state subsidized joint ventures with Chinese corporations on EVs, raw materials refining, solar panels and batteries, etc. At the same time, a gradual and predictable tariff in those targeted areas. All of this, with the explicit consent and collaboration with the Chinese government. You could kill 2 birds with one stone and focus these policies on green energy and energy independence -- lessening the effects of climate change.
That is what you would do, if you really cared about bringing manufacturing back.
As of today, there is absolutely no off-ramp. The Dem policy is basically trump lite with respect to China. We are moving in lockstep towards making them a geopolitical adversary, and for what?
Or, Mexico, Vietnam, India, etc. Despite perception, they don't have all the world's manufacturing.
None of those places have manufacturing prowess in EVs, batteries, electronics, and solar, which is largely where China has comparative advantage over the US.
But yes in general, if we want to re-industrialize, we need to move the collaboration into the physical world and out of the financial world.