The trade war, has accounted for a tumultuous time in our history. The stock market declined significantly, and is still in a state of limbo. As neither head of states nor, investors do not know what to expect from these trade wars. It is difficult to see how the tarrifs could be reciprocal, regardless Americans are getting federal jobs slushed, the veterans affairs is slashed, among many other critical administrators who are seeing both their budgets and employees slushed
I get it, the D.O.G.E. whatever it is, because only congress has the power to create agencies and administrations. It by definition, does not get any of its power constitutionally, and neither does the executive branch have the power, to arbitrarily create agencies. It is rather ironic, that Elon Musk who is supposedly taking a chainsaw to the waste in government; has been himself a big recipient of large government payments for space-x and subsidies for Tesla. As a matter of fact most billionaires, become billionaires because of the government.
Besides that, America has initiated a trade war with China. Needless to say it is a little too late. What China practices is controlled capitalism, meaning the state is in charge and in control of businesses and are ultimately the deciding factor, as to whether they will pivot this company to success or not. China having a large population without jobs, and the government investing extensively in manufacturing and creating deals with Western countries. Have let their human rights abuses go unchecked. From unfair wages, to horrible working conditions.
As Americans our original instinct, would be to leave the job, and find something that pays better. Whereas the Chinese create millions of graduates, thousands of them send to the United States for education for a reason. Now in China there is a massive influx of individuals with education, a large chunk of them getting education abroad.
This comes down to whether you believe intellectual property is justified. Unlike other libertarians I believe in intellectual property, some maybe against it, stating it doesnt take capital to create information, therefore all information should be open source. However it takes money to research, and resilience to persevere with a new product, until it gets public recognition, and the brand is trusted enough to gain the profits they aspire to. Them stealing intellectual property allows them to profit of what American companies are making, by making it a cheaper price but at the expense of American profits. One of the consequences of outsourcing jobs, is that the people learn how to make the product, and can make the products, outside the company.
With all these graduates coming from America. This has supercharged the stealing of intellectual property, of which the Chinese government has secretly funded or turned a blind eye to. This is not just a problem that happened, the American people caused it on themselves by moving manufacturing to China, to exploit the lack of human rights and meager working conditions, perpetrated and kept hidden by the C.C.P. at some point the American oligarchs chose profit over human rights, cause it makes more money.
Thus the companies that chose not to outsource their labor overseas, lost out on the competition as they could not compete paying fair American wages. Now, women who you used to take care of households entered the market, and then minorities that weren't allowed to work, were released to the market. Though both of those things are a good thing, everything comes at a cost.
The sudden influx of minorities and women to the work force, created more demand than supply of jobs, but technology was increasing productivity and the wages increased along with productivivity. With the sudden influx of all these workers, wages could stay stagnant while prices increased with persistent inflation. Our manufacturing jobs all gone to China,.America has come to rely heavily on finance and the service sector.
Most of what we use from iPhones, to androids, to computers are made in China. In sweatshops and avenues they cannot make that much. Trump relented on the tariffs on electronics, whereas China's tariffs stand and have cancelled a multimillion dollar deal with Boeing for their planes.
This is not a good idea because the chinese own large chunks of united states bonds, and debt. If they dump these, it will cause problems with financing the federal government. It seems to me that this government has bitten of more than they can chew. America no longer has the leverage that it use to.
While America was busy implementing their policies by forces, the Chinese were building infrastructure in Africa and Asia, and joined the BRICS alliances. Since Trump trade wars more than half the population of the planet are a part of the BRICS countries. Our push to have the United States dollar as the global reserve currency by force, has pushed other countries to join BRICS use their own currencies or currencies with large stable countries within the organization.
I understand Trumps frustration the C.C.P is not playing by fair free trade rules. Trump can't have his cake and eat it too, we cannot have a strong dollar and strong exports simultaneously, this will always result in a trade deficit. As the American consumer can afford more, with little currency, but it will take lots of capital for people to afford American goods,because the wages and high prices for resources are included in the price,.plus a strong currency, makes it harder for the world to afford American goods.
China has participated in currency manipulation, to keep their exports affordable and sometimes the government will fascilitate dumping of products for cheap in countries economies, to run the domestic companies broke. The price of cheap commodities, is the loss of domestic jobs, and a further dependence on China. With the Belton road initiative, china created the infrastructure for trade with developing countries that have resources needed for near future technologies.
China now processes more than 80 percent of all the Earth's rare earth, and is exporting most of its goods to Asia and Africa, not the United States. Some have stated that seventy percent of what is in Walmart, is made in China or has parts made in China. Trump had to make an exception to technology as most of our phones,.and computers are made in China.
Protectionist policies won't bring back manufacturing, maybe a few companies getting government favors, will bring back it's manufacturing to America, but most will not, and the tariffs will move more jobs to India, where labor is cheaper. It seems that America is frantically struggling to hold on to its position as the global hegemony.
Unfortunately times are changing and we are witnessing the slow collapse of an empire. We need China way more than they need us. Our own manufacturing is done in China. They know how to make our own products for cheaper, we cannot compete at those prices. Our greed for profits moved all our manufacturing to China, and the tarriffs will only serve to make everything more expensive,.and pushes China and other countries away from the dollar and towards the BRICS nations. The West depends too much on China, to have leverage in trade wars. This will not end well for us, it's already crushing the stock market.
This seems less than a strategy, than America frantically struggling to maintain its global super power position. However the Chinese economy is now larger than our own, or is in the process of surpassing it. China posses nuclear submarines capable of hitting the United States, and has been doing military drills around Taiwan.
Taiwan, makes the chips we use for our computers. Though china does not yet posses the possibility Taiwan does, they want to annex it back to mainland China, so they can posses the technology; control United States access to badly needed chips, silicon valley badly requires, and trade routes between Asia and China which is largely facilitated by the Taiwan straight.
The United States has bases in Japan and south Korea, and has vowed to protect Taiwanese democracy, and has patrolled multiple air craft careers and other sea vessels in the Taiwan straight to deter Chinese attempts at Taiwan. However the tariffs have weakened American soft power in Asia, and the tariffs have pushed counties suck as Vietnam, to side with China,as they are now a more stable and reliable trading partner and ally.
The tariffs have created global uncertainity as they are not recipripricol but are unilateral nonetheless. The United States has more money, therefore they buy more than everyone else, therefore trade deficits are inevitable, a tarrif because we need them more than they need us. Only hurts the American consumer, and China is no longer dependent on American imports, so the United States will suffer more from the tarrrifs than China will, with its Belton road initiative, facilitating greator global trade, than it doea with the United States.
The United States has isolated itself from its allies. Will make products more expensive from the consumers, and it will take years, even if somehow American labor will become cheaper, and will attract those companies back; which is highly unlikely. The tariffs will not compensate for the tax cuts to the rich, and if it seems that it is, it's only because the sales tax will be higher for the rest of us.
These protectionist policies will only serve the oligarchs, and it is doubtful that the tarrrifs will be successful, as they are already cutting back. Because of lobbying the rich control the government and 10 percent of them, own 90 percent of the stocks. So they are not happy with the stock prices dropping so low, concessions will have to be made.
As the stocks drop, will we witness another large transfer of wealth to the top 1 percent, who own more than the bottom 50 percent own more, as they have the capital to buy cheap stocks and once the tariff fiasco is over, will profit millions as the market corrects itself and millions will have lost their I.R.S. We are witnessing the collapse of the Chinese American relations, and a war might be provoked over Taiwan.