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originally posted by: dubiousatworst
a reply to: luthier
Consumer Price Index is a flawed measure, as it is dependent on a basket of goods. The main influence that causes inflation is M3, not tariffs. Sure tariffs can increase inflation in the short term, but only if there is no source of a replacement good available locally.
The reason Trump is threatening to print money is because it will tank the Yuan, as it is pegged to the dollar, and in order to maintain the trade levels that China requires (aka their dependency on imports of foreign raw materials). If China is forced to re-peg at a higher exchange rate to greenbacks, they lose their ability to import these raw materials. That is why they buy US debt in the first place, to use it as a vehicle to import raw materials.
originally posted by: Phoenix
The American worker was betrayed and left behind by politicians on both sides of the aisle.
In 1980 a full time worker making $10 an hour could afford a modest but reliable auto, pay for 2 bedroom apartment, afford groceries and take a driving vacation once a year. That was me as a young person starting out so dont tell me it was untrue, I lived it!
Fast forward 40 years and starting wages in many if not most locals are still $10 an hour but prices have far outpaced that wage. With domestic demand will come better wages.
Our politicians allowed circumstances/policy that brought this situation forth and its refreshing to see one actually doing something after all this time for the worker.
originally posted by: luthier
a reply to: midnightstar
We have a fairly balanced economy. Our industry is heavily automated to compete with Asian wages and to keep the CPI low for inflation.
Made in USA would be a massive inflationary experience for the us until we completely automate everything and AI gets closer to AGI.
Protectionism is not a free market ideal. It is sometimes necessary when employment is low to protect remaining job infrastructure.
As a negotiation tool it fails. It's very simple why..in 6 years maximum another politician or Congress can change any political work used in market intervention and propose a new philosophy
Why are you scared of China?
originally posted by: Aazadan
a reply to: RadioRobert
And where do you get that skilled labor? These people wanting factory jobs have none of those skills.