1 step towards winning a trade war

Intel D’s🥜
Jun 13 30 Comments

Holy 💩 guys, we are taking manufacturing back to the Midwest from China / overseas. Wisconsin paid for a large portion of the $10B factory, but it’s 13,000 US jobs from Foxconn. For reference, Foxconn has >1M employed in China. I know that they have recently gotten an Indonesian facility up and running too.

Ex: If a $10,000 Oracle server costs $12,500 with tariffs, large enterprise businesses can convince a supplier (Foxconn) to move to the US!

What do you all think?

www.cnbc.com/amp/2019/06/12/foxconn-wisconsin-factory-will-not-just-make-tvs.html

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TOP 30 Comments
  • Twitter
    Oomnj

    Twitter

    BIO
    It’s all shitposts and jokes - get a sense of humor!
    Oomnjmore
    Was Already decided under Obama
    Jun 13 2
  • Google əๅɓoo⅁
    That’s 770K per 38K/yr job.
    Jun 13 4
  • Twitter
    Oomnj

    Twitter

    BIO
    It’s all shitposts and jokes - get a sense of humor!
    Oomnjmore
    There should be a total ban on importing servers from overseas on national security grounds
    Jun 13 3
    • Equinix MbHm32
      Then you won’t get any servers at all. All servers today are manufactured in China including HP and Dell
      Jun 13
    • Twitter
      Oomnj

      Twitter

      BIO
      It’s all shitposts and jokes - get a sense of humor!
      Oomnjmore
      Good -
      Jun 13
    • Target / Eng tmDe33
      Now that's a spicy hot take ♨️♨️♨️
      Jun 13
  • Facebook PqXs
    Maybe. Foxconn promised a bunch of stuff last year but last I heard nothing materialized in their Wisconsin “factory” yet. Also, Terry Gou is running for president so Foxconn may be both showing attempts at diversification and trying to get on our good graces. Who knows if they mean it.
    Jun 13 1
    • Intel D’s🥜
      OP
      Maybe I’ll listen to the White House press session, but the image is a groundbreaking ceremony. Reading an older article now, Wisconsin’s legislature has already passed a $3B incentive. Fabs can take ~1-1.5 years to construct, install equipment, and start the lines.
      Jun 13
  • Google / Eng 🍑☁️
    Making things more expensive for American consumers is not worth just 13k jobs. The government spent 3B in incentives, but what about the total increased cost to consumers due to tarrifs?
    Jun 13 11
    • Google / Eng 🍑☁️
      The cost to consumers per job created is huge. We'd literally be better off just taxing everyone a little bit extra and paying the American would-be factory workers to sit on their ass all day. And damaging China has no direct benefit to consumers
      Jun 13
    • Lyft ihb47
      Google, you’re making the same silly mistake recognizing that American citizens are consumers, but then selectively ignoring the fact that they’re also potentially producers. You have to look at the holistic implications. Yes there is a potential the prices could rise, though to date we haven’t seen any evidence of that.

      Also you’re right there’s a cost involved in moving it won’t necessarily be cheaper right away, but there’s no reason to think that eventually a new stable state emerges with efficient supply lines that I have the same net cost. Especially considering trying to slow cause it vanishes were already eroding.

      Finally, you ignore the fact that this is about Waymore than just the cost of goods. We’re talking about our number one strategic competitor so there is security and long term foreign policies implications of play as well. Considering that we haven’t seen any price rise so far this sounds like a great deal to me
      Jun 14
    • Google / Eng 🍑☁️
      You're reasoning about this in a vacuum. The evidence that you're saying doesn't exist, does in fact exist. Tariffs have been very widely studied by economists, who often disagree on many things, but who almost universally agree that tariffs are harmful to the economies who impose them.

      There's not even really a partisan divide on this issue. You can find a lot of both conservative and liberal sources, reputable ones, that talk about how tariffs are bad. If anything, liberals typically are the ones who more often get it wrong.

      I feel like I'm taking crazy pills watching educated conservatives defend tariffs. Free trade has always been a central part of the Republican platform. Even now, prominent Republican senators who usually vote with Trump are complaining about the tariffs.
      Jun 14
    • Intel D’s🥜
      OP
      I’m liberal AF, which is probably why I see any positive outcome here. China subsidized the tech market to win? Fine, we will 💩 in their hand and turn around to subsidize the same here.

      Is it the optimal strategy to build an economy? Probably not, but when the global market is this consolidated, it’s time for intervention against an adversarial country who seems more and more like a seedy-looking-hiding-in-the-corner-hoodie-guy country.

      I will maintain that the tariff strategy shouldn’t be used against allies. One day we will go to war again, it’s inevitable. We need support on the ground, unified economic sanctions, and a strong, unified global perspective.
      Jun 14
    • Lyft ihb47
      Google, You’re right the tariffs have been demonized during the neoliberal hegemon era. Both political parties, a.k.a. the uni party were all learn on globalization.

      Anyone who’s paying attention realizes that there is a realignment underway where nationalism / populism Eroding both center left and center right. Beyond the theory though, look to the evidence In front of us, inflation and consumer price index is are not yet anything to worry about. That alone should tell us that these theories are just that, controversial and subject to change.

      As far as not using tariffs against allies, that’s a nonsensical distinction. It’s just a tax, and you got a remember all of our allies have tariffs on our imports which are on average universally higher than what we impose. Because of our history of excepting asymmetric trade deals, probably for Geo political reasons, or an excellent position to gain from any rebalancing.
      Jun 14
  • LinkedIn spa pos
    Give them 100% tariff now. Trump administration is not ambitious.
    Jun 13 1
    • Intel D’s🥜
      OP
      Let's be humane. There are PM's across the country that would suddenly get aneurysms and heart attacks.
      Jun 13
  • Apple / Eng
    T1m Cook

    Apple Eng

    PRE
    Facebook, Google
    T1m Cookmore
    Laugh. Minimum wage will simply triple the price..
    Jun 17 0

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