Re:The coming long-run slowdown in corporate profit growth a...
by leereeves on Sunday October 30, 2022 @12:10PM
(#33395681)
It actually seems like we agree.
> Even now, the Fed ... doesn't want Americans to go through inflation.
Exactly. The Fed's current behavior shows that they probably would not have lowered interest rates so much if the resulting inflation hadn't been countered by lower manufacturing costs.
> American labor has no leverage when compared to Chinese labor
Yes, and this was, I believe, that issue that
photochemsyn was referring to. If manufacturers making products for the American market had to obey American labor laws (and other regulations), then American labor would at least be competing on equal footing.
> Even now, the Fed ... doesn't want Americans to go through inflation.
Exactly. The Fed's current behavior shows that they probably would not have lowered interest rates so much if the resulting inflation hadn't been countered by lower manufacturing costs.
> American labor has no leverage when compared to Chinese labor
Yes, and this was, I believe, that issue that photochemsyn was referring to. If manufacturers making products for the American market had to obey American labor laws (and other regulations), then American labor would at least be competing on equal footing.