“...The Trump and Biden Administrations paid $5.8 trillion in COVID relief, equal to roughly a quarter of US GDP, and extended unemployment benefits, in effect paying large parts of the workforce to stay at home. This had the double effect of increasing demand for goods (especially the consumer electronics that the United States imports from China) while decreasing supply.
Lack of labor has worsened some critical bottlenecks, notably including transportation. The American Trucking Associations estimate that the US is short of 60,000 truckers....”
No incentive to invest, so they bought stock instead? What?
I had to go inside a Wal Mart store yesterday. What CHEAP looking merchandise on the shelves. Definitely not made in America.
“....Wong explained in a June 2021 study published on the website of the Federal Reserve Board of Governors:
The United States’ bilateral goods trade deficit with China appeared to have narrowed substantially since the escalation of the U.S.-China trade conflict in 2018, or so US trade data suggest. By contrast, the Chinese data tell a much different story: The deficit, as implied by China’s bilateral surplus, nearly reached historical highs by the end of 2020.
Historically, the discrepancy between these trade balance figures had remained fairly predictable and stable. But with the onset of the trade conflict, US-reported import values from China have fallen more sharply than the China-reported export values to the United States. Two reasons are likely responsible for this phenomenon: (1) US importers underreporting Chinese imports in order to evade US tariffs, and (2) Chinese exporters reporting higher exports due to changes in tax incentives in China.
In this note, we find that the majority of the shift in discrepancy can be explained by the first factor, with an estimated $10 billion annual loss in US tariff revenues due to underreported US imports....”
“The poor condition of America’s supply chains is another part of the story.”
And it’s caused internally by the unions.
wy69
Covid shutdowns destroyed the economy.
Whatever the criticism of Trump’s response toward the problem, he is the only national politician to even attempt to address the problem of a collapsing industrial base, and an offshoring of our industries. He was pushing to bring industries back, and the tariffs were intended to give incentives for companies to at least leave China even if they didn’t return to the US.
Any politician who doesn’t have a plan to bring industry home doesn’t understand the problem. Or is owned by the Chinese.
Nonsense!
Tax cuts are the best incentives to invest there is.
Of course the dumb ass morons who run these big firms would much rather do stock buy backs, putting even more money in their own pockets.
cutting depreciation allowances for capital equipment in order to pay for a lower basic corporate tax rate.
Who does that?
Oh wait, the same very woke Biden voting dunbasses who are running these large companies into the ground.
Don’t get too excited. Most of it is for masks and hand sanitizer, gloves and hazmat suits. They need us to keep buying because they have an overstock.
Thanks, Joe Xiden
See/ Visit my tagline for a Big-Step in the Right direction.