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Joined 2 years ago
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Cake day: July 4th, 2023

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  • I do understand the allure of “we should make things again”, and the security implications of maintaining a local manufacturing capacity and workforce - but I think people from advanced economies are incredibly myopic about what it actually looks like to develop that capacity back.

    It’ll be difficult for the US to compete on price with countries like China, which have a much better developed manufacturing sector and lower wages / cost of living, even with steep tariffs applied to inflate the prices of imported goods.

    They’d probably have to subsidise production in the short-term, and invest heavily in capital to automate production to the greatest extent possible so as to avoid needing to ask Americans to accept lower living standards to stand a chance.