Quote:
Originally Posted by retiredguy123
(Post 2385782)
My point is that the U.S. has minimum wage laws, tax laws, and other employment laws. China has lower wages and other employment standards designed to produce lower priced products. So, if you want lower priced products, why not just import them from China? But, violating your own laws to make cheaper products is being hypocritical because you are admitting that you cannot compete with China without breaking your own laws.
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You and I seem to be talking past each other. I don't understand what you are saying. People hiring and underpaying undocumented workers has no impact on China. China is not competing to update my landscaping or cook my food or clean the hotel room.
Chinese labor, and Vietnam, and Cambodia, and almost any other nation is cheaper than US labor. We all know that and understand why a US manufacturer would use foreign factories to make products. The question becomes what if anything should be our policy.
Should the US accept that we are happy to have others do the work as it saves us money or should we insist that we need to have stuff made here even if it costs a whole lot more to do it that way. Don't forget that other nations will watch what we do and react.
We could tell Maytag that our government will subsidize the building of a nice new washing machine factory. Tax abatements, new roads, even use Army labor to build the facility if you want to go all out. But next, where does Maytag get the metal to make the machine? Buy it only from US Steel? What if it is cheaper to buy Steel from outside the US and ship it here (only cheaper because the cost of labor and materials to make that steel was cheaper abroad). Do you now say all the raw materials must be from the US? Only use natural gas that was drilled here, only use iron ore that was mined here, it gets very complex.
But now you have a washing machine that costs 4,000 dollars where the same machine from China was 1000. So you slap an import tax of 3000 on the Chinese machine and we all happily buy made in America. Or do we? No we make our old machine last longer which makes Maytag less profitable than projected, so we have to prop it up to keep it in business.
Meanwhile China is not happy they are not selling us washing machines because we slapped a tax on it.. So they retaliate and refuse to buy our products.. and we sell a lot of stuff to China. In 2023 China bought
165 Billion dollars of US products. Keep in mind what China buys from us they can get elsewhere.
Google Soybean exports to China to read about how this works in the real world. We put a tariff on Chinese materials and they retaliated against our soybeans and other items . This caused us to lose export income to such a degree that the US taxpayers ended up bailing out soybean and other farmers over
27 Billion Dollars through Feb 2020
You say, but look how the cost of soybeans dropped as the farmers had to sell them and didn't have the Chinese market. You're forgetting that you are also paying the taxes to the government they are passing on to the farmers. You are losing money here, not saving.
So obviously we should therefore cancel our tariffs on Chinese steel so they cancel the soybean retaliation. Not so simple. We don't want to depend on Chinese steel and deem it, correctly, as a vital industry. And no politician wants to see those TV ads about how he is soft on China because it is too complex to expect the public to follow all the reasoning. China bashing is a favorite tactic even in this thread.