My opinion is that instead of tariffs, he should be adopting policies intended to provide positive reinforcement of the manufacturing industry, capital investment, R&D, etc. The more you manufacture, the more steel and aluminum you use, and the more steel and aluminum you can sell. With the spread of industrial robots, we should be experiencing a manufacturing renaissance. Our high wage structure is not a hindrance when robotics do the expensive grunt work. He needs to tell industry to get with the program. The tech sector needs to jump-start the robotics industry. Then the manufacturers need to start using robots.
The problem with the WSJ is that they had no problem with George W. Bush’s spending and debt.
He will get sued and lose, Republicans set up a system that has a mechanism to stop this, Democrats got tired of charging this windmill
Maybe he knows this and this is just for show
In historical conflicts, it’s been said that he with the most steel wins.
I read the other day that the Chinese produce something like ten times the amount of steel the US does. (IIRC, the numbers were something like 810 million tons vs 80 million). China produces half the steel in the world.
The peaceful way to look at this, through the lens of microeconomics, is that they built up this huge capacity because of their manufacturing and because of their incredible urban expansion. Then, you look at the plants themselves, and although some may be inefficient, it may be better to manufacture and dump steel than to leave them depreciating and idle.
The non-peaceful way to look at it is “Guns and Steel.”
The tariffs will motivate some steel capacity expansion in the US, but it isn’t going to close the production gap all that significantly. Maybe it is aimed at halting the atrophy of our steel and aluminum making industries... as a defense measure more than a trade measure.
All speculative on my part. I don’t sit at the decision table.
I’m not sure that massive mobilizing of robots is going to be the solution. I remember the story about Henry Ford showing Walter Reuther through his new mechanized plant and bragging about how few workers would be needed to produce his cheaper cars. Reuther’s answer, “Yes, great, but who is going to be around to buy your cheaper cars.” An important problem in US is lack of good trade education in our secondary schools, and lack of apprenticeships. No wonder we are winking at so much illegal immigration. The goal of No Child Left Behind was college education. However, there are many who have no interest in college or lack certain skills to make it a good choice. I had one son with severe dyslexia who dropped out in the 10th grade. I used to have him help me with carpentry and other construction activities. He is now in his 40’s, happily married with children and his own small contracting/construction business. My other son was a restless type like his father. He graduated straight into the military, has over 20 years (82nd Airborne and Special Forces). Plans to retire soon and have his own small business. He had left after his first enlistment, but was not happy with civilian work. When I asked what was bothering him, he said, “I like getting up at 6 am and running 5 miles.” His hyperactive son also enlisted as soon as he graduated.
dila813: I asked my Market savvy friend what “mechanism” promoted by Republicans might stop the tariff move in it’s tracks. He said The World Trade Organization. I don’t understand why the important tariff story is not listed at Breaking News.