Re:The Economic Consequences of Major Tax Cuts for the Rich ...
by throwaway6734 on Monday July 26, 2021 @02:00PM
(#27962776)
The American middle class didn't get wrecked though. People had more capital on hand due to cheaper goods that they were able to spend on other industries and services.
If manufacturing didn't go to China it would've went to Vietnam or another country with cheaper low skilled labor. Long term automation will eat those jobs anyways
Re:The Economic Consequences of Major Tax Cuts for the Rich ...
by jjoonathan on Monday July 26, 2021 @02:13PM
(#27962995)
Oh? The American middle class didn't get wrecked? I'm sure all the opiate addicts on disability roll will love to hear about all the capital they have on hand due to cheaper goods.
Re:The Economic Consequences of Major Tax Cuts for the Rich ...
by throwaway6734 on Monday July 26, 2021 @02:25PM
(#27963181)
Many actions could have been taken to prevent people from struggling to adapt to a changing economy such as:
* Subsidies for relocation
* Subsidies for retraining
* Subsidies for drug rehabilitation
All of which could have been funded by the greater economic growth generated by trade. If you want Americans to pay more for goods to subsidize the cost of living of groups of Americans, make it a transparent tax. Don't hide the cost in greater coats for goods.
Also where was this concern when these same issues were hitting poor urban regions throughout the 80s and 90s?
Also, the numbers you cite seem pretty dubious. Yes, if you want to do onshore manufacturing today, it's twice as expensive, but propagating that all the way into the cost of the goods assumes 100% of the cost is in manufacturing, that there would be zero economy-of-scale benefit from retaining our manufacturing base, and it assumes no benefit to your income from the increased economic re-circulation. Those... aren't neutral assumptions.
This is a separate matter from the one in TFA but the players and strategies are similar.