531–540 of 1001 posts
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china isnt an enemy nation unless we decide we want to fight them
Or, if they decided to take lands belonging to allies. Though after this administration I'm not sure we'll have any allies left.
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Yes climbing the value chain was a necessity for nations like China. But in the US popularized in the 90's, was a business strategy trend that strongly discounted the value of long term capital investments - particularly for this discussion, investment in factories. They do require extra management attention and they do tie companies to strategies in longer time frames at lower margins - but they deliver long term va…
Agreed. Well articulated. >Many US business elected to chase short term growth, and short term and higher margins and minimize long term investments. I would like to add that this was due to the influence of Milton Friedman. He put the emphasis on shareholder returns being the most important, without considering the survival of the company itself.
Yes, more evolved financial markets provided easier access capital, but, as it so happens in those types of situations, access to capital and enjoyment of said (liquid/financial) capital became a target in itself, the rest of society didn't matter. In fact, the whole (Western) society was moulded around (liquid/financial) capital, it became its raison d'être.
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This is the part that is so frustrating to me, and not just with regards to tariffs. It's that I see the extremes being so laughably bad (though not necessarily equally - I'm not "both sides"-ing this), and more ludicrously bad is that I've seen positions that don't follow these extremes as being derided now as "centrism". E.g. before the administration's attack on higher education, I do believe a lot of elite univer…
You’ve been conned if you think overactive DEI was anything more than a minor annoyance in 99% of American universities. Did some people overdo it in a destructive way? Of course. But it wasn’t anything that was going to lead to major problems. The problems come from the folks who can’t just roll their eyes and move on but instead feel personally attacked and hold a permanent grudge instead of realizing that they the…
The other day I saw the results of a poll [1] where 80% of Americans thought the *country* would be better off if more Americans worked in factories. However, only 20% of Americans thought that *they* would be better off if more Americans worked in factories. It was surprisingly bipartisan. In other words, people like the idea of this, but no one actually wants this. [1] https://www.ft.com/content/845917ed-41a5-449f-…
Americans are cosplaying (voting their belief system, not what they'll do, the "revealed preference"), as they do as farmers [1] [2] [3] [4], as they do as "rural Americans" [5]. It is an identity crisis for tens of millions of people [6]. Their crisis is our shared political turmoil. Happiness is reality minus expectations. From the piece: "The people most excited about this new tariff policy tend to be those who’ve…
I do find it interesting that a lot of these same people are against raising the minimum wage because "it will bankrupt all the businesses" but somehow think that bringing manufacturing for the goods they buy back to the US won't do the same. At best, going from off-shore labor costs of say $15/day to $15/hour (minimum for US workers) is an 8x multiplier and will somehow magically work but a 1.5 multiplier on minimum wage is just untenable for any business.
Honestly, it is mostly an emotional response around "fairness". They don't want others getting a "raise" when they don't "deserve it". However, everything they get is 1000% deserved. The greatest trick the rich ever pulled was convincing the middle class that all their woes are the fault of the poor. The political comic of "That foreigner wants your cookie!" captures it pretty well (imo).
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Would interesting to know what percentage themselves or their own children wanted to work at a factory. Can tell with a huge degree of confidence for all practical purposes thats 0. Its always easy to expect other people to make sacrifices working these jobs, while imagining you and your kids working office desk jobs.
Is everyone on hacker news so entitled and privileged they cannot even imagine an American citizen wanting to work for a living? I absolutely would work a factory job if it paid 100k+ and meant owning a home someday. Instead I got 100k student loans and make 60k at a desk and I'll never have a life outside of work because I simply can't afford it. I'll be 35 this year after 12 years of working and just starting to ha…
That is not going to happen.
> China generates over twice as much electricity per person today as the United States. Why? This appears to be completely wrong? All the stats I can find say that the US has about 4x the per capita electricity generation of China. Other than that it seems to be mostly good points, especially the overall one: you cannot do this overnight. > If you’re building a new factory in the United States, your investment will a…
> Other than that it seems to be mostly good points, especially the overall one: you cannot do this overnight. It's annoying Americans were given only two choices - offshoring is great and let's keep doing it, and, as you say, the opposite, meth-fueled let's bring back manufacturing overnight. The kind of slow and steady protection and promotion of home-grown industry that China and most of Asia so successfully used…
The US faces a much tougher hill to climb though in regards to bringing manufacturing back. China had it easy because they had most of what you could want; a huge labor force that could upskill to manufacturing (the rural poor population), cheap labor (kind of an extension to point 1 but also includes their lower COL and wage expectations over all), and low environmental barriers.
To bring manufacturing back to the US is a way harder lift; we have a lot tighter labor market, if we shift a lot of people to manufacturing someone needs to take the jobs they leave. We (well I at least don't enjoy the idea of going back to when rivers caught fire on the regular) don't want to strip environmental protections back to a level to make it cheap to dispose of waste. The best targets are low labor, high price, high skill goods, like, I don't know, chip manufacturing!
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I don't know why people keep thinking that China will attack Taiwan. It took HK and Macao without a shot. I think China is following Sun Tzu. "subduing the enemy without fighting," is the epitome of strategic thinking in his book, The Art of War. This means achieving victory through cunning, deception, and maneuvering, rather than through direct confrontation and bloodshed" They are increasing their military knowing…
What I still don't get is what could China possibly want with Taiwan? Naval routes? Just negotiate and use money instead; it'll be cheaper than war. Brainpower? Just offer higher salaries to come work in China. Taiwan is a tiny island smaller than Florida with only 20m people.
2) Political legitimacy - successful unification would be a nationalist victory for the CCP
3) Strategic importance - key geographic asset. It lies in the first island chain, a line of US-aligned territories that can potentially restrict China's naval access to the Pacific. Control over Taiwan gives China more leverage over sea lanes critical to global trade and security influence in East Asia
4) Economic, technology bonus points - Taiwan is a global tech powerhouse, especially in semiconductors. TSMC is the world's leading chipmaker.
5) Global power dynamics - unification would weaken US influence in the region
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I think the mistake here is the model of low-skill/high-skill labor is not a useful distinction. Manufacturing is high skill period, however there are low-infrastructure and high-infrastructure products and factories. The labor wages themselves are a factor, but an increasingly minor factor in product costs. By bypassing investment in US manufacturing skills and infra, the US sat itself on the sidelines for the abili…
> The labor wages themselves are a factor, but an increasingly minor factor in product costs. Not disagree with your main points, but labor inputs are still very much a huge part of product costs, and often the biggest driver of where to build a new factory when a company is scaling up. Companies aim to build their new factories wherever there's a sufficient pool of cheap labor with the necessary skills.
Of course, even where labor cost is truly inconsequential, you would still do that as all the correlations that come alongside cheap labor are still very attractive to manufacturing.
The other day I saw the results of a poll [1] where 80% of Americans thought the *country* would be better off if more Americans worked in factories. However, only 20% of Americans thought that *they* would be better off if more Americans worked in factories. It was surprisingly bipartisan. In other words, people like the idea of this, but no one actually wants this. [1] https://www.ft.com/content/845917ed-41a5-449f-…
Everyone wants more manufacturing in the US, but nobody wants to be a factory worker. People would rather starve or go homeless than work in a factory. Until Americans overcome their pride, this is going to make building manufacturing in the US very difficult.
"But if factory wages are good then products will be expensive"
No, because the wages for the factory worker is less than 1% of a products shelf price.