The USA shot itself a long time ago. The status quo was a "managed decline" as the rest of the world continues to enrich itself at the expense of the American people.
The new tariffs are there for negotiation leverage. There will be pain in the process of unwinding decades worth of terrible trade policy with hostile nations, but the bandage needed to be ripped off before these government and foreign parasites manage to completely collapse the US economy.
So in the short term, yes, it's probably going to be tough. But it was already going to be tough because the entire economy is fake and gay and has been propped up with fake and gay fiat currency and debt bubbles.
In the long term, however, which is what anyone who isn't a fucking moron should be focusing on, they will probably be massively beneficial to the US.
During WWII, as a matter of fact. We had agreements with the Continental powers (Bretton Woods) for how the post WWII economy would work (spoiler alert, kinda like NAFTA 50 years early). No one in Europe honored their end of that agreement.
After WWII, we set up the Marshall Plan. We threw money at Europe (except England, because fuck them, amirite?) like drunken sailors in a whorehouse. A lot of this money kept people from starving (by making their agriculture as effective as American ag was) or from turning Communist (by propping up their industry and keeping people at work instead of rioting).
Then there was NATO. U.S. protects the western European powers, on the condition that every member contributes at least 2% of their GDP to their defense budget. Guess what? They didn't.
So, for 80 years, the U.S. has been fixing everyone's economy, either for free, or for very low cost, and in return... we've been told to spend more for NATO, SEATO, and just suck it up about the Chicken Tax, Yankee.
Europe, known for raw prosperity and definitely not also being in a managed decline led by the same people doing it to the US.
it is terrifying how quickly you people can be brought to hate your brothers because a wall-kisser said so. alternatively, it is terrifying how it seems that 75% of this site is a fed operation rather than natural traffic.
Trump's game of chicken with tariffs, DOGE, leftist love of mass migration, and leftist bloodthirst for a world war with Russia has the same root cause. All of western civilization is on the brink of a mutual currency crisis, courtesy of Rothschild central banking printing us into insolvency to prop up untethered fiat currencies backed by mania rather than gold and silver. We are closing in quick to the verge of GDP to debt where raising interest rates will also increase inflation (((interest))).
The problem is that the US economy has been stuck in a pattern of extremely short term thinking.
Cheap foreign labor does have the immediate effect of raising the material standards of living for the lowest rung. But measured in terms of decades this effect is only temporary as it erodes manufacturing jobs.
Worse, when combined with a persistent trade deficit it also erodes investment. The lower classes primary form of investment is in their home, but massive foreign reserves of US currency leads to property speculation, pricing people out of the market.
Historically economic forces like these would have been reset with a good war (giving the state a reason to screw over foreign players), but nuclear weapons have taken war off the table.
So, we're forced into a situation where the only viable path forward is to go through hard withdrawal. Cold turkey, cut off the cheap labor supply and force price discovery to occur for domestic labor. In the short term, that means giving up ALL the material improvements that were gained from the cheap labor.
Trust us, there is light at the end of the tunnel. But the tunnel might be a few decades long.
but giving up the financial stability and power of the us dollar for a schizophrenic trade policy that literally nobody seems to understand and that changes every day seems like a worthless mess
If you thought the US economy/ dollar was stable you haven’t paid much attention to anything in the past 30 years.
The US have 3 issues to resolve. Production/Jobs, Finance/Debt and Military/Power.
A long period of outsourcing production has left the US vulnerable in many areas and has removed vast swathes of jobs making previously productive demographics unproductive and reliant on welfare. Tariffs incentivise reindustrialising and reverses this process because tarrifs are applied when goods enter the country. To be competitive locally those imported goods will need to be manufactured locally. Company wants to dodge? Build/start a factory, cue jobs etc. Extreme numbers over a long enough period (years, likely multiple terms) required to force hands and make it better than waiting for favourable political climate that might undo it.
Finance/Debt is all bout 10 trillion of debt incurred during covid that needs to be refinanced within the next year or so. Also why DOGE is so important atm. Tariffs can improve the inflow/outflow equation of the overall economy and create a large enough reduction in interest rates so that debt can be refinanced at a lower rate. Main goal is to head off an irreversible debt spiral that the US is staring down the barrel of. China is in a similar boat and it is bad for China for similar reasons that it would be good for the US.
Military/Power is all about China and how military supply lines have 100s of failure points because they rely on China for materials/technology etc. Not a great position to be in for a superpower and their military to be at the mercy of an immediate global competitor. They'll be focussing on bringing those requirements back to US shores or being more reliant on reliable allies for those items.
That's broadly what's going on. Each individual piece can be better resolved with other methods but tariffs are the one tool in the toolbox that can actualy resolve all of those if applied correctly. I susupect tariffs will be rolled back for the most part as everybody decides to play ball and renogotiate trade deals (inflow/outflow rebalancing) and it will make moves towards isolating China in Global Trade.
The problem is that we are not ready for a global trade slow down. We need years to build more factories and a labor force. We're bargaining from a position of weakness in most cases.
Nobody is going to build those factories without an upset.
Everyone's been saying for years, maybe decades, in the US and Europe, that we need production capabilities. Yet nobody ever did anything because nobody wanted to rock the boat or risk anything.
Nobody is going to build those factories without an upset.
This is true but I don't know if it will work. There's a huge risk that companies view this as a comparison between:
Invest a bunch of money in US factories that won't be operational until 2028 or later
Do nothing different until 2028
The next 4 years are down for everyone regardless and then it's a question of if they thought these policies will outlast Trump. Practically, I think this is the kind of thing that has to be done at the start of a two-term span and winning that second election would be a bitch because voters are short-sighted and there'd be a deluge of globalist contributions to the opposition. Or it needs to be done through legislation that can't be undone day 1 of a new president.
If they think the tariffs will go away before the new production is on-line, there's not really financial pressure to invest.
The USA shot itself a long time ago. The status quo was a "managed decline" as the rest of the world continues to enrich itself at the expense of the American people.
The new tariffs are there for negotiation leverage. There will be pain in the process of unwinding decades worth of terrible trade policy with hostile nations, but the bandage needed to be ripped off before these government and foreign parasites manage to completely collapse the US economy.
So in the short term, yes, it's probably going to be tough. But it was already going to be tough because the entire economy is fake and gay and has been propped up with fake and gay fiat currency and debt bubbles.
In the long term, however, which is what anyone who isn't a fucking moron should be focusing on, they will probably be massively beneficial to the US.
During WWII, as a matter of fact. We had agreements with the Continental powers (Bretton Woods) for how the post WWII economy would work (spoiler alert, kinda like NAFTA 50 years early). No one in Europe honored their end of that agreement.
After WWII, we set up the Marshall Plan. We threw money at Europe (except England, because fuck them, amirite?) like drunken sailors in a whorehouse. A lot of this money kept people from starving (by making their agriculture as effective as American ag was) or from turning Communist (by propping up their industry and keeping people at work instead of rioting).
Then there was NATO. U.S. protects the western European powers, on the condition that every member contributes at least 2% of their GDP to their defense budget. Guess what? They didn't.
So, for 80 years, the U.S. has been fixing everyone's economy, either for free, or for very low cost, and in return... we've been told to spend more for NATO, SEATO, and just suck it up about the Chicken Tax, Yankee.
Europe, known for raw prosperity and definitely not also being in a managed decline led by the same people doing it to the US.
it is terrifying how quickly you people can be brought to hate your brothers because a wall-kisser said so. alternatively, it is terrifying how it seems that 75% of this site is a fed operation rather than natural traffic.
Trump's game of chicken with tariffs, DOGE, leftist love of mass migration, and leftist bloodthirst for a world war with Russia has the same root cause. All of western civilization is on the brink of a mutual currency crisis, courtesy of Rothschild central banking printing us into insolvency to prop up untethered fiat currencies backed by mania rather than gold and silver. We are closing in quick to the verge of GDP to debt where raising interest rates will also increase inflation (((interest))).
The problem is that the US economy has been stuck in a pattern of extremely short term thinking.
Cheap foreign labor does have the immediate effect of raising the material standards of living for the lowest rung. But measured in terms of decades this effect is only temporary as it erodes manufacturing jobs.
Worse, when combined with a persistent trade deficit it also erodes investment. The lower classes primary form of investment is in their home, but massive foreign reserves of US currency leads to property speculation, pricing people out of the market.
Historically economic forces like these would have been reset with a good war (giving the state a reason to screw over foreign players), but nuclear weapons have taken war off the table.
So, we're forced into a situation where the only viable path forward is to go through hard withdrawal. Cold turkey, cut off the cheap labor supply and force price discovery to occur for domestic labor. In the short term, that means giving up ALL the material improvements that were gained from the cheap labor.
Trust us, there is light at the end of the tunnel. But the tunnel might be a few decades long.
Dodge v. Ford Motor Company is the worst Supreme Court decision of all time
If you thought the US economy/ dollar was stable you haven’t paid much attention to anything in the past 30 years.
Do you think having completely 0 tariffs has been good for america in general
The US have 3 issues to resolve. Production/Jobs, Finance/Debt and Military/Power.
A long period of outsourcing production has left the US vulnerable in many areas and has removed vast swathes of jobs making previously productive demographics unproductive and reliant on welfare. Tariffs incentivise reindustrialising and reverses this process because tarrifs are applied when goods enter the country. To be competitive locally those imported goods will need to be manufactured locally. Company wants to dodge? Build/start a factory, cue jobs etc. Extreme numbers over a long enough period (years, likely multiple terms) required to force hands and make it better than waiting for favourable political climate that might undo it.
Finance/Debt is all bout 10 trillion of debt incurred during covid that needs to be refinanced within the next year or so. Also why DOGE is so important atm. Tariffs can improve the inflow/outflow equation of the overall economy and create a large enough reduction in interest rates so that debt can be refinanced at a lower rate. Main goal is to head off an irreversible debt spiral that the US is staring down the barrel of. China is in a similar boat and it is bad for China for similar reasons that it would be good for the US.
Military/Power is all about China and how military supply lines have 100s of failure points because they rely on China for materials/technology etc. Not a great position to be in for a superpower and their military to be at the mercy of an immediate global competitor. They'll be focussing on bringing those requirements back to US shores or being more reliant on reliable allies for those items.
That's broadly what's going on. Each individual piece can be better resolved with other methods but tariffs are the one tool in the toolbox that can actualy resolve all of those if applied correctly. I susupect tariffs will be rolled back for the most part as everybody decides to play ball and renogotiate trade deals (inflow/outflow rebalancing) and it will make moves towards isolating China in Global Trade.
The problem is that we are not ready for a global trade slow down. We need years to build more factories and a labor force. We're bargaining from a position of weakness in most cases.
Nobody is going to build those factories without an upset.
Everyone's been saying for years, maybe decades, in the US and Europe, that we need production capabilities. Yet nobody ever did anything because nobody wanted to rock the boat or risk anything.
This is true but I don't know if it will work. There's a huge risk that companies view this as a comparison between:
The next 4 years are down for everyone regardless and then it's a question of if they thought these policies will outlast Trump. Practically, I think this is the kind of thing that has to be done at the start of a two-term span and winning that second election would be a bitch because voters are short-sighted and there'd be a deluge of globalist contributions to the opposition. Or it needs to be done through legislation that can't be undone day 1 of a new president.
If they think the tariffs will go away before the new production is on-line, there's not really financial pressure to invest.
I doubt they will be built now, either. There is too much uncertainty.
We'll see when the dust settles. All this current hysteria is meaningless until they've come to an agreement.