The truth seeker
Get Rich or Die Tryin'
You just described why the chinise were kicked out of the US in 1882 they made cheaper and better products than the whites they took over the west coast Anglos got jealous and kicked them outChina is a bigger internal industrial market. It has more heterogeneous logistical systems, having a larger export-import share. The US is technically too big to fail in this semi-globalized world economy, but one thing is that these functions re-routes supplychain order in favor of China as Trump is just putting speed brakes on his own lane in a race, where China can just reroute to a longer but still faster track to the same destination. America was never a necessity, only a big preference. Americans don't understand this. Humans adapt, the Chinese are the best at this, and these are issues that only make them more self-sufficient than ever.
Trump is pointing at China but implicitly wants to elicit Americans to build more vibrant domestic industrial capacity that they don't want since large production companies rely on worldwide outsourcing processing.
Another thing tariffs do in the long term, if Trump maintains them, is that China can raise the production cost for their factories that produce smart technology to gain back the losses on the surplus.
The economy can rarely be maintained. It is like water it will find the nooks and crannies to flow out from. America cannot act like an imperialist anymore, trying to block the flow of water.
What I say is correct, but according to a Princeton study, the research to overcome the hurdles on the company level to re-route is actually costly:
"We study unanticipated tariffs in a setting with firm-to-firm supply relationships. Firms conduct costly searches and negotiate with potential suppliers that pass a reservation level of match productivity. Global supply chains form in anticipation of free trade. Then, the home government surprises with an input tariff. This can lead to renegotiation with initial suppliers or search for replacements. Calibrating the model’s parameters to match initial import shares and the estimated responses to the US tariffs imposed on China, we find an overall welfare loss of 0.12 percent of GDP, with substantial contributions from changes in input sourcing and search costs. (JEL D72, F13, F14, L14, O19, P33)"
"Firms search for partners to form their chains. Search is costly. Matches vary in productivity. Relationships are governed by short-term contracts that can be renegotiated at any time. Sunk costs generate stickiness in relationships, but renewed search occurs in response to large shocks."
Trump has effectively changed how global supply systems function, and it is impossible to say even if the stochastic changes will even benefit the United States, since no one can capture the value of these systems within a short temporal horizon. The short-term measures make things unpredictable. There are benefits to lasting systems because you can feel the iterative changes in macro trends over half a decade, where running diagnostics and economic health is more robust. This is changing. When our grasp of the health of financial macro-systems fails, is when we're in trouble because that means the essential component that deals with "anticipation" of market forces becomes obsolete, a major factor in capitalism. This means more volatility.
America is shaping a world it has an objectively less grasp on. Its old methods of forming economic relations, veiled in political superiority, are less charming than ever. As kids these days say, Americans are losing aura, big time.
There is an ironic effect, Trump says, "if we do this, you will really feel how big an effect we have on the world." I say, "No, you don't really know how big of an effect this is going to be. Soon you will have less grasp on the basic things that make the average company arrange to best suit for its potential."
People dont understand that, although you can scream how globalists are evil, you can't reverse things and close borders and expect no tsunami to happen when the system is in shock. After the wave is gone, the ground-level things are not recognizable. There is no advantage for America in a world it has less understanding of. Offsetting the equilibrium only gives other more prepared actors the chance to re-arrange to their benefit.
At the end of the day, these tariffs reflect America's growing insecurity and incompetence. It is world-leading in many things, yet its share of that is receding because the outside world is catching up, with China representing this symbol for its growing fear of sharing the world, basically. America has narcissism and does not want to be a country, but the country. But it has done nothing for decades to prove that it deserves that. Does that mean China is a better country? I would struggle to give that justification. But we are talking about how the ironic American one-man showism is biting it from behind. Here is the irony: if America wants to be America, it has to stop being "America." It has to be different for once, and do things right.
To the average intelligent person, this pathetic display of Trump looks nothing short of a meltdown, which is not funny. Only concerning. Because what America does will affect everyone. This notion that China will become the new Big Brother is unrealistic. I'm afraid the world is messed up when America realizes it is a has-been and will only drag the world down with it when it comes out of its delusion.
I once saw a documentary that characterized corporations as psychopaths, giving a diagnosis through pathological analogy. America is a class A narcissist. According to Noam Chomsky, China's threat to America was only about how its economic success would mean America could no longer rule the world. Which is basically true. Other people's success is an issue for a narcissist, right? Listen to this, America, a smaller country, is basically telling China, the biggest country in Asia, to stop having ambition to garner more influence in Asia and stop it from advancing on its regional competitive ground, the Indo-Pacific sea. Biden was actually worse for China's economy than Trump's first term. But now we'll see how it is. Still, the entitlement of sabotaging other countries' economic success has always been a thing the Americans do. I find it so ironic that a lot of Somalis who yap about American idealism on one hand, cry about foreign influence in their home country on the other. You're in support of America's history of foreign policy, doing horrendous things, one after another, then you have the audacity to cry about the UAE's dealings in the Horn of Africa. Hm?
The American political class thinks China's indigenous innovation is a national threat... Let that sink in. Many of you have not read between the lines and think the threat means hackers in China are playing with America's security (that shit probably happens thoguh, ngl). No. What scares America is China's natural domestic growth. Only a devil is threatened by other people's success and wants to sabotage it. There is no moral quandary about this. If you say that is the right conduct, then you're a devil. By the way, I'm not a pro-China guy. That country has a lot of flaws that I have mentioned here before. China has its own extremities that are quite severe. I say this to the guys who always have to jump to the low-hanging fruit whenever they're faced with something beyond a sided propaganda shit-fling fest.
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