Posted on 02/25/2020 12:30:35 PM PST by Rebelbase
Thats part of the problem and it feeds on itself.
The downside to our economy and domestic manufacturing is very real
The Berry and Kissel regulations specify American suppliers and american produced content for military procurement to help maintain our network strategic domestic suppliers.
You have no idea how hard it can be to manufacture to Berry specs because of a lack of domestically produced products. It is, in fact, all but impossible to be totally Berry compliant from the ground up because of lack of a domestic supplier for every single part of the process
We worked hard to rebuild our network of critical domestic suppliers when the War on Terrorism exposed just how bad our manufacturing capability had been eroded but much of those rebuilding effort and the investments made were significantly wiped out by the disastrous budget sequester deal that killed off many new suppliers
We need a really high uniform across the board import tariff. Then get out of the way.
The amount you don’t understand about supply chains is truly impressive.
The value of the imported parts is one thing, but if a factory in Alabama does not HAVE those parts, then the whole line must shut down. That’s where it hits GDP.
There’s also the impact that frozen Chinese activity has on global DEMAND. You’re seeing the collapse in energy prices for example. That effects US energy producers. China is the global engine of growth and has been for 20 years. If China really stops buying industrial commodities, then the whole world economy crashes into recession.
You know little about macro economics. To quantify this: then we would need to know of the 9% GDP of imports ( 5% comes form China ), how much of that is component related parts? 1%, 2%? We import lot of useless crap from the ChiComs. Madri Gras beads and coat hangers and such.
The stock market is telling you that it’s not primarily Mardi Gras beads.
You mean hyped up ignorance, stupidity and fear.
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