this post was submitted on 17 Mar 2025
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Leopards Ate My Face
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A better plan would have involved local subsidies and tax rebates for various industries that have the ability to be cheaper than existing outsourced infrastructure if they were to be developed with a large enough economy of scale, to incentivize them to engage in local production.
And for industries in which we wouldn't experience lower prices even with larger local economies of scale, such as those involved in mining mineral deposits we simply don't have enough of here in the states, we just... wouldn't do anything to tariff anybody or provide incentives if it wouldn't be something we were capable of benefiting from via local production?
These other methods would make things more expensive too, (albeit much less so) but they would directly incentivize local production, and crucially, only cost money when production was actually made locally. Nobody would get a tax rebate or subsidy if nobody was actually starting local production. With tariffs, however, everyone begins paying a higher cost, regardless of if local manufacturing is even happening, let alone if it's cost effective or possible in the first place.
Tariffs are just an inefficient way of incentivizing local production compared to other options, because they primarily exist to punish other countries and their economies, rather than uplift our own. They can be used to incentivize local production, but if not properly linked with subsidies, rebates, and job programs, they aren't terribly effective at doing that, and they will almost always lead to higher prices on an ongoing basis.
You’re singing my song. Everything you’re saying is spot on.
I think the eventual solve will be small batch manufacturing capability, progressively complex according to population density. But those means of production will need to be nationalized for planning & control, and it’s simply not possible under capitalism.
But the current power structure is built on “market solutions” by using collective punishment to force capitalists to make concessions without directly regulating them. It’s the whole reason the fed manipulates interest rates.