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Old 11-09-2012, 02:56 PM   #32
mur'phon
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Join Date: Dec 2006
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Our exports already have huge tariffs on them going to countries that we have free trade agreements with, why do you think Jeep is moving their production for the Chinese market to China? Most of the free trade agreements that this country has only work 1 way, what we need are fair trade agreements then products coming into this country from others will have tariffs just like our products going elsewhere.
Hardly, most free trade agreements concern industrial goods true, but that's because it is in the interest of the industrial countries (it's what we export). Thing is, almost all free trade agreements the US participate in are tilted towards it simply because getting an agreement is more important for (insert country) than the US. Sure, China has several mercantilistic policies in place, like just about every other country who was in a process of industrialization (with some semi exceptions). However even those are being curbed by its WTO membership.
Thing is, said shift in industrial production would A: have happened eventually (just like China is now loosing its clothing industry to cheaper countries) and B: benefits the US by making those industrial goods far cheaper for consumers. The US simply can't compete with the Chinese when it comes to producing many goods (and vice versa) trying to get those noncompetitive jobs back would be very costly just ask the (insert European country with massive subsidies for industry here).

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That is huge. A good reason to bring alot of domestic production back to the states is this: What if China all of a sudden decides it doesn't need to deal with us anymore and calls in the $1.4 trillion in debt it owns of ours and shuts us off on goods being imported by us?
And why on earth would China do that? They buy bonds, which means they can't demand you pay it all back tomorrow. They can of course stop buying more debt, but that would make the debt they already own loose most of its value (and the US would probably just default, leaving China with nothing).
Yes they can stop exporting to you, but again motive? It would hurt them as much as it would hurt you, and even if they did, China doesn't have a monopoly on terribly many essentials, so buy from someone else.

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This is a national security issue as well. If we ever end up in a world war again we are totaly screwed most of the factories that would be needed for us to build everything we would need no longer exist, we are not the powerhouse in manufacturing we once were.
If you end up in a world war again, nukes kinda makes that a non-issue.


I actually agree that income inequality is a bad thing (being a socialist Scandinavian and all). I just fail to see what it has to do with subsidizing jobs in noncompetitive industries.



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I have an idea about how to do it, give financial incentives to the companies that open businesses here in the US. For every dollar spent on payroll they get a dollar off their tax liabilty on profits, also lower the business tax rate to 18% instead of the 25% it is currently to give the true small businesses an incentive to claim the money as profits instead of as personal income.
Depends on what you want to achieve, if you want to stimulate the service sector then fine, if you want to bring industry back, eh, less fine. Also, lowering the tax rate by such a massive amount on all businesses will have to be paid for somehow, and given the deficit...


Checking out seems not to do much.
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