How does creating a local industry of cheap knockoffs help the US economy exactly? What you’re describing is turning the United States into a random poorer country. That plan only makes sense if the ultimate goal is to diminish the United States economy and its influence in the world. That benefits China and India. It doesn’t benefit the United States domestically.
Here’s a better idea, invest in your people to create an economy and society that doesn’t rely upon raping other country for labor and materials.
humanspiral@lemmy.ca 3 days ago
Yes, and it will be expensive either way. When you buy a bag of imported tube socks for $5. You’ve got tube socks in a fair trade. When you pay $20, you have 4x less tube socks. The foreign seller can still buy US agriculture, resources, or houses, or bonds to lower our interest rates with the money without forcing you to overpay for tube socks. Globalization has multidirectional benefits.
surph_ninja@lemmy.world 3 days ago
Multidirectional benefits maybe, but most of the negative effects of shipping interruption are experienced by the receiver. You’re assuming any company has the capacity to make the socks here at all (to meet our needs). Production limits will cause most people to do without, regardless of if they could pay the increased cost.
humanspiral@lemmy.ca 3 days ago
I think your point is, first the tube socks go to $20. Then someone (maybe a Chinese who is now global expert in sock making) in US figures out a way to make them for $19, 2 years after their investment.
surph_ninja@lemmy.world 3 days ago
My point is there’s shortages, along with probably hoarding & scalping, and many people simply go without socks for years. It takes time to build up manufacturing capacity.