From: clams casino <cc@invalid.cc>
Newsgroups: alt.politics.trump,alt.politics.liberalism,alt.politics.democrats,alt.politics.usa.republican,alt.fan.rush-limbaugh,can.politics
Subject: Re: Companies Planning on Prospering By Raising Prices Like They Did
Date: Fri, 15 Nov 2024 10:39:13 -0700
Organization: A noiseless patient Spider
On 11/15/2024 8:23 AM, Siri Cruise wrote:
> AlleyCat wrote:
>> Funny, how he did that 8 years ago and we prospered.
>
> <https://news.osu.edu/how-soybeans-became-chinas-most-powerful-weapon-in-trumps-trade-war/>
>
https://prosperousamerica.org/economic-view-tariff-jumping-investment-the-success-of-the-2018-washing-machine-tariffs/
Tariff-Jumping Investment
Finally, it should be noted that by incentivizing both LG Electronics
and Samsung to open and then expand manufacturing facilities in the
U.S., the U.S. achieved the best of both worlds: the tariffs led to the
creation of more U.S.-based competitors, with more jobs, more
competition, and more product innovation done here, while only a
minority of washers purchased here were affected by tariffs.
Economists in the developing world have a phrase for this phenomenon:
tariff-jumping investments. For developing countries, with large
domestic markets, high tariffs can be an effective means of
incentivizing international companies to locate production within a
countryâs borders. Badri Narayanan, currently a Fellow and formerly the
Head of Trade and Commerce at prime minister Narendra Modiâs policy
planning think tank NITI Aayog, and an Affiliate Professor at Boston
College, points out that high tariffs on automobiles, combined with low
tariffs on auto parts and investment liberalization, has enabled India
to build a large and successful domestic automotive industry that is
truly global. In 2022, global auto trade association OICA figures show
India built 5.46 million vehicles, ranking fourth in the world, ahead of
Germany and South Korea.
The same principle can apply to the U.S., which although not a
developing country, has lost much of its industrial base. Today, the
U.S. has a larger, more successful, and more competitive residential
washer industry thanks to the tariffs.
The goal of industrial policies like targeted tariffs should be to build
domestic industries to create growth, investment, employment, and an
upward trend in worker incomes. Of the two major domestic manufacturers,
Whirlpool recently reported modest (1%-2%) growth in its domestic market
and is exiting foreign markets. In recent reports it stressed to
investors that its goal is to rein in costs to achieve 10% earnings
margins. (As a subsidiary of a Chinese multinational, GE Appliance
reports no financial figures, making it hard to judge its economic
performance.) It would not be surprising if either of these companies
reduced staffing levels in the coming years. But employment count is not
the critical metric. Itâs more critical to have enough companies and
competition so the more successful companies are creating jobs even if
others are losing, and the industry as a whole remains healthy. That has
positive effects for the upstream and downstream industries that supply
the appliance industry and for the economy as a whole.