Quote:
Originally Posted by afc wimbledon
the problem with this is China owns a huge chunk of US debt so the US risks having the cost of its debt going through the roof if it screws with the balance of trade, the US is like your stupid kid that pays off one credit card with another card, constantly juggling debt it can never pay back.
Businesses that return to the US will do so with massively automated factories, so wont employ many to do the work, those that cant automate will stay in the cheapest countries because Labour will always be cheaper than taxes in labour intensive industry.
Nothing about Trumps plan works outside of a being a good soundbite to get a not particularly bright electorate to vote for him.
The parallels with Brexit are very close, both are insane for the economies of the countries involved, but are attractive to a populous that wishes their countries could go back in time to some idyllic past when Britain had an empire and the US was supreme
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Oh Wimbledon, nice to see a post you made without some veiled insult.
Yeah the US is in a pickle with China, but continuing to go down this road of operating with a large and growing larger deficit isn't going to help the situation. Yes automation has changed manufacturing, but it was inevitable. That's why you need at least a two pronged solution of lowering taxes on business and some foreign tariff to level things out a bit. You can try to get tougher on China abusing trade regulations as well. This is a more proactive plan then maintaining the status quo and further selling out to the globalists multi-national corporations with TPP.
Ross Perot was right about NAFTA 20 years ago, simply continuing with these agreements isn't going to change the trend that we've witnessed. Encouraging the free market with minimal government intervention and making it easier for small businesses to compete, will help with innovation and job creation.