All other things being equal, free trade is ultimately phenomenal for countries and individuals. Using money as a medium of exchange, I trade my finance/accounting/leadership skills and experience with people who are good at making groceries, building cars, giving dance lessons, etc. Win-win.
But the key part is about things being equal. When one party – let’s say, China – has the system rigged in their favor by world trade organizations, is manifestly corrupt and evil, steals from you, spies on you, lies to you about pandemics, abuses their citizens, has no free speech, etc., then things are obviously not equal. It would be foolish to continue to buy, say, 95% of your antibiotics from them. Keep in mind that they are so evil that NBA players, coaches and leaders will criticize Trump 24×7 but punish anyone daring to offer the mildest criticism to China.
So this was good to read: Coronavirus pressures US manufacturers to bring plants home from China:
The COVID-19 pandemic has America rethinking its reliance on China for not only key medical supplies but production capacity in general after Beijing clamped down on exports of critical items used to combat the disease. . . .
“One of the things that has happened with this pandemic is it’s revealed to everybody the limits to our digital superiority and our software and all the things that we’ve innovated in technology,” Sen. Marco Rubio, R-Fla., told FOX Business’ Maria Bartiromo. “You still have to be able to make things. You still have to have industry and industrial capacity as a country. And we’ve given a lot of it away.”
Indeed, only about 11 percent of U.S. gross domestic product comes from manufacturing today, down from almost 40 percent in 1945. . . .
Although cheaper Chinese labor remains a factor in companies’ decisions to make their products in that country, it’s not the advantage it once was, Freeman said. Instead, China lures companies with tax breaks and other incentives, as well as the appeal of its domestic market.
That’s one of the many reasons that Trump’s tax cuts were so important. When countries have lower taxes that often swings financial decisions. Back in the 90’s Compaq sent tons of business to Singapore because their tax rate was zero while the U.S. rate was 35%. That meant that even if you got free labor, buildings, machines, etc. it would still be more profitable to build in Singapore than the U.S. Our corporate tax rate doesn’t need to be zero, but keeping it lower will remain important if we want jobs back.
President Trump has repeatedly called on U.S. companies to bring their operations back home, moves that would likely provide a spark to a labor force that has over the past four weeks seen 22 million workers lose their jobs, at least temporarily.
That’s one more reason the Left will fight the obvious. Although temporarily the Democrats realized they need to have their Joe Biden Talking Doll (TM) pretend to be harder on China than Trump has been. Of all their lies, that is a grand one. Anyone paying attention knows how hard he has been on them long before Covid-19 and how Biden has been in bed them for a long time.
He believes the COVID-19 experience will cause many companies to “rethink the safety and security of reliance on global markets,” and that there will inevitably be some movement of capital-intensive — not labor intensive — production back to the U.S. . . .
The U.S. Chamber of Commerce “supports a robust commercial relationship with China,” he added, but also understands the “need for some rethinking of that relationship.
I quit trusting the Chamber of Commerce years ago. Those “Republicans” are the ones who brought us ridiculous levels of illegal immigration. The Dems get the votes and these country club Republicans got cheap labor.
Rubio agrees. He told Bartiromo that the current level of U.S. dependence on China’s industrial capacity has put our country “in a very dangerous situation.”
“I hope that one of the things that will come about now is a broad consensus in this country that we have to be able to make things in the United States,” he said.
The same goes for oil and gas. Fracking and such has been one of the greatest wins in our history, as it has provided jobs and reduced dependence on foreign oil. Guess which side fights that 24×7?
I’d gladly pay more for clothes and such knowing that it created jobs in the U.S. I hope we do bring a lot back from China.