Posted on 12/02/2016 8:21:34 AM PST by MaxistheBest
The scope of the vision of America presented by President-elect Trump yesterday is breathtaking. .... He is rewriting the social contract binding Americans, and challenging trade and industrial policy orthodoxy head-on.
Charles Krauthammer of Fox News now gets ...
“These conservatives have to accept the fact that you have to sacrifice economic efficiency accept for equity. If you don’t you’re going to lose the country. And in the end it’s worth it to create social peace. That’s what the model is here.”
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.... the United States must maintain a manufacturing sector. The shift of manufacturing to low wage countries is not a law of nature, not an inevitability, and not a path that America will take in the future. We cannot abandon the regions of our country that have devoted themselves to manufacturing.
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There are many factors that affect the attractiveness of such strategies to companies.
The cost of capital
Depending on the cost of capital, investment decisions change. There is well over a trillion dollars in corporate wealth sequestered from the American economy by our highest-in-the-world corporate profits tax that will be enthusiastically repatriated under the new tax regime being promised.
Regulatory obstacles
rump has promised sweeping reform, and yesterday emphasize how he had learned from executives at Carrier that regulations ere even more expensive than the wage differential, in costing out the option of the Monterrey factory versus investing in next-gen manufacturing in the USA.
(Excerpt) Read more at americanthinker.com ...
Bump!
When you have Corporations saying they owe nothing to their country, it won’t be long before the People feel the same way.
I have issues with this statement as written. It is never "worth it" to give in on values for the sake of social peace. Even if someone is potentially violent, systematically doing something immoral to mollify the thug is not acceptable. If a social contract is worthy on its own merits, that's different and social peace may be considered a bonus, but I do not approve of rewarding the thugs who threaten to riot.
Most of our problems come from high taxes and regulations on our end, trade and currency games on the other. There is a lot of gunk to get rid of...nobody is talking about having the government pick winners and losers
regarding national security Charles made a very strong statement and made it with a smile.
He said something to the effect that when the little boats come out after our ships, Trump can say to the Mullahs “you’d better stop that or I’ll get Mad Dog after you”
A president that can call on the Mad Dog is to be feared
What is called “Free Trade” is actually more properly “Managed Trade” The theory was you could use the massive strength of the US Economy to absorb fiscal problems like the ones that lead to the rise of Hitler in Germany around the world.
In a post WW2 world this maybe made sense. However, given how vastly different the world is in 2016, it time we reexamine our assumptions and reconsider what the current US Trade policy really should be.
Government has become the chief impediment to manufacturing in the US. Through taxation and regulation the federal government prevents capital from being invested in local communities. The ravenous maw of bureaucracy is reducing our nation to pauper status. Ultimately even the parasitic government will succumb to the murder of its host. With the election of Trump the citizenry has voiced a resounding NO to the continuation of leftist government.
Why would this be a learning experience?
Every person in business should already know that regulatory expenses for out weigh wages especially if you handle any type of chemical or hazardous material that EPA has its claws sunk into.
I am all for keeping our water and air safe and clean but the hoops that these companies have to jump through to manufacture a simple item is ludicrous.
This is not mentioning the labeling requirements on the packaging. They have to put it in 5 different languages and cover every known accident that could happen down to a paper cut.
Sheer madness.
Trying to open some of these bottles requires removing 4 seals before you can get to the liquid inside. Plus the lid is double child proof. Keeeerap.
“..He has not mentioned the national security dimension of such a policy, but it is obvious to all but a few theorists that you cannot maintain a strong nation if you depend on others to do your manufacturing.”
This is EXTREMELY important to security. One has only to review the history of WW2. Our industrial strength was very key to winning that war. It is essential.
I understand the point, but the problem is that “economic efficiency” is the product of free choices made by free men in a free market.
This is going to be an uphill battle for the Trump administration. US business interests have been furiously offshoring industry for over 25 years now.
One whole generation.
Look at china today. That USED to be the US industrial base.
The result of this is the rise of the “snowflakes”. Millenials have never witnessed what it was like when the US was an industrial powerhouse.
Kraut just can’t accept the reality that the “new, better” jobs never showed up. When they do, I have every confidence that Americans will be glad to grab them. You don’t want to send the buggy whip manufacturing overseas if there is still a market for them until the new, better jobs are here. Big difference.
The learning experience is knowing which specific regulations are causing the problem. The EPA won’t tell you but talking to affected companies can
Ever since Bill Clinton got China in the WTO...
Didn't Perot also say there would be a giant sucking sound if NAFTA passed?
Then Perot vanished from the scene, the problems grew and the GOP could only offer income tax cuts as a solution.
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