mcmachine
Aluminum
- Joined
- Apr 16, 2014
- Location
- Western Mass
I have a customer whose stated goal is to send everything to china.
I get it… it is cheaper!
As a consumer I make many choices by price. Harbor freight would not exist if many did not make such financial decisions.
Trump has cut taxes…overdue!
Trump is now engaged in a trade skirmish in the hopes to right the ship.
I believe where he went wrong is by using tariffs (the stick) when he should be using the carrot.
Instead of tax cuts for corporations he should have gave a tax credit (the carrot) for corporations who hit targets of domestically sourcing products.
Bottom line is corporations will only respond to running the numbers, and whatever way makes fiscal sense is pursued.
We didn’t get to this trade imbalance overnight and it will take some time to fix the problem.
If corporations were incentivized to source domestically by way of tax cuts over time it will change.
The triggering threshold for a tax cut could increase over time and start a trend where demand and manufacturing could over time grow.
One thing I know is you cannot control others you can only control yourself.
This cannot be fixed overnight.
Even if China conceded overnight to equalizing trade we could not pick up the slack.
Manufacturing has slowly been killed over decades.
I have no illusions of Chinas ability to deliver quality parts.
China is more than capable of doing so….I am not bashing China.
They are doing what is necessary to protect their interests…we cannot control them.
So why not try to control what we can…ourselves!
Employ tariffs where necessary 2.5 percent vs 25 percent for cars for example.
Incentivize and reward corporations financially for sourcing domestically! Once the numbers make sense they will make a logical decision to do so and China does not have to be in the conversation
Until it makes sense financially it will never happen. Government has to provide the environment for such decisions. China and corporations will not respond to an internal moral compass.
Corporations will only run the numbers
China will, like any one of us welcome another PO
Thoughts?
I get it… it is cheaper!
As a consumer I make many choices by price. Harbor freight would not exist if many did not make such financial decisions.
Trump has cut taxes…overdue!
Trump is now engaged in a trade skirmish in the hopes to right the ship.
I believe where he went wrong is by using tariffs (the stick) when he should be using the carrot.
Instead of tax cuts for corporations he should have gave a tax credit (the carrot) for corporations who hit targets of domestically sourcing products.
Bottom line is corporations will only respond to running the numbers, and whatever way makes fiscal sense is pursued.
We didn’t get to this trade imbalance overnight and it will take some time to fix the problem.
If corporations were incentivized to source domestically by way of tax cuts over time it will change.
The triggering threshold for a tax cut could increase over time and start a trend where demand and manufacturing could over time grow.
One thing I know is you cannot control others you can only control yourself.
This cannot be fixed overnight.
Even if China conceded overnight to equalizing trade we could not pick up the slack.
Manufacturing has slowly been killed over decades.
I have no illusions of Chinas ability to deliver quality parts.
China is more than capable of doing so….I am not bashing China.
They are doing what is necessary to protect their interests…we cannot control them.
So why not try to control what we can…ourselves!
Employ tariffs where necessary 2.5 percent vs 25 percent for cars for example.
Incentivize and reward corporations financially for sourcing domestically! Once the numbers make sense they will make a logical decision to do so and China does not have to be in the conversation
Until it makes sense financially it will never happen. Government has to provide the environment for such decisions. China and corporations will not respond to an internal moral compass.
Corporations will only run the numbers
China will, like any one of us welcome another PO
Thoughts?
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