On Thursday, October 14, 2021 at 8:02:57 PM UTC-4, pothead wrote:
> On 2021-10-14, chrisv <chr...@nospam.invalid> wrote:
> > -hh wrote:
> >
> >>What I find ironic about the whole supply chain bit is that it is classically
> >>the Republican posture that Capitalism is infallible and they oppose all
> >>Government meddling into the operations of Enterprise ...
> >
> > What I think is funny is all these companies and their "just in time"
> > manufacturing model. Sure, it's saves inventory costs, when things
> > are running like a well-oiled machine. But the Suez gets stuffed-up
> > for a few days and it's a disaster.
>
> Valid point.
> Auto manufacturers are notorious for "just in time" parts supplies.
JIT has spread well beyond automakers; its pretty much everywhere
and has been so for over a decade.
> > Then, when something even bigger happens, it's a fscking calamity that
> > costs untold $billions and supply shortages up the ying-yang.
> >
> > And one company in Taiwan makes about HALF of the world's
> > semiconductors! What happens if we get cut off from that?
>
> The USA has lost control of manufacturing and sold out to the Asia
> Pacific companies all in the name of saving money and maximizing
> profits for the shareholders.
Offshoring started in the PC industry under Ronald Regan, because of
his tax incentives. It takes years & years to build up capabilities like a
chip foundry (& talent to run them), so it will take just as long to bring
them back...assuming that we're willing to pay.
> This was so evident during the early days of the pandemic where PPE
> could not be supplied because guess who controlled the market.
Less esoteric stuff can often slide around chasing the cheapest labor;
textiles (clothing) commonly does this ... there will be a ~5 year period
where its all made in Malaysia .. then it moves to Vietnam .. then off to
the next country, etc.
> Trump was trying to bring manufacturing back to the USA along with
> energy independence. He was somewhat successful but overall I think
> he failed.
Where was Trump successful in bringing back any manufacturing? Even
the steel plant stuff wasn't even up to weak sauce: that segment had a
few plants open but more places had layoffs/closures:
<
https://www.latimes.com/politics/story/2019-10-29/steel-industry-faces-a-bleaker-future-than-when-trump-moved-to-rescue-it>
>
> Biden OTOH is making a complete mess of things. People don't realize
> that confidence in world leaders plays a role in stock prices,
> interest rates, manufacturing and literally everything financial.
> When the market gets skittish, bad things can happen.
> It's not all a matter of factual data because if that were true,
> everyone with a high powered computer could game the market.
>
> If Biden were smart, and he's not, he would immediately cease the
> begging OPEC and oil/gas companies and stop the blame game while
> instituting a "Made In America" program on a huge scale where for
> example chip manufacturing was brought back to the USA.
Enterprise isn't going to do that without them having a financial incentive.
Tariffs don't cut it, so what's your plan?
> Dump some of the social program pork in his various trillion dollar
> bills and work the America first angle.
> He would be a hero.
What one person complains as pork, another sees as a necessity for
being an enabler to employers to get workers. Case in point, the US
lags far behind its counterparts in the aid it gives to families for child
care, which limits families from being able to afford to have both parents
enter the workforce (or more accurately, changes the equation such that
the only time it pays for both to work is when both jobs are superior pay):
<
https://www.nytimes.com/2021/10/06/upshot/child-care-biden.html>
> And most people would gladly pay a little more to have goods
> manufactured here in the USA rather than being at the mercy of
> foreign actors.
There's no "Buy American" filter on Amazon.com that one can use, and
even if there was, most Americans like the idea but won't open their
wallet all that much to support it.
Case in point, 63% say that they're not willing to pay more than 5% extra:
<
https://www.forbes.com/sites/deborahweinswig/2018/04/27/consumer-trends-support-demand-for-made-in-america-but-will-shoppers-pay-up/?sh=5437c5605cf1>
(and only 16% are willing to pay more than +10%)
>
> IMHO Biden could turn his disastrous presidency around with one
> major speech promoting America first, manufacturing brought back to
> America and leaving China etc.
>
> Incentives to corporations to return to USA and stiff penalties for
> those who set up shop for tax reasons in places like Ireland.
> No trickle down bullshit either because that is just a scam to enrich
> the already rich.
That's already being advanced by Biden with the 15% Global minimum corporate tax:
<
https://www.nytimes.com/2021/10/08/business/oecd-global-minimum-tax.html>
Of course, we will have to do something about shutting down South Dakota's tax scamming:
<
https://www.theguardian.com/news/2021/oct/04/pandora-papers-reveal-south-dakotas-role-as-367bn-tax-haven>
> We need to stop being held hostage to other countries.
> One day it's chips for everything from cars to microwaves and the
> next day it's toilet paper.
> It has to stop.
>
> This would be my advice to Biden.
-hh