Because they weren't taught about the market. On purpose. Because people who don't know how things work, won't be able to use it to climb the ladder.
Also, companies are already closing plants and laying off workers because of the crash. Those 900 people who lost their jobs today care very much. And that was just day 1. When the other countries start swinging back, it's gonna get worse.
Overall forcing companies to come back to America by making them save even a singular dollar will make them come back and that will way out weight the over valued market going down 20 30 points.
Paying the tariff is still cheaper than spending millions-billions building an entire manufacturing plant that may not be needed if he repeals the tariffs in 2 weeks. Or 2 months. Or 4 years if someone else is in control and repeals them all. Corporations have plenty of money to just pay the tariffs and wait this out because they don't eat that cost. They pass the cost on to us, the buyers.
While just paying the tariffs, businesses can also just move the product through another country where the tariffs aren't as high. This reduces their cost and is still considerably cheaper than building a plant here.
It takes years to build a manufacturing plant, especially for things like computer boards. Meanwhile, there are no new jobs so people are starving and becoming homeless while waiting for it to get built. People will die while waiting.
Prices will rise tomorrow regardless of what happens. Because he's been so back and forth on them, companies aren't reducing prices when he pulls back the tariffs. So it's going to hurt much faster than building a new manufacturing plant can help.
We still can't manufacture all of the raw materials to build EVERYTHING here in the US. Which means we'll still have to import those materials and every material imported will have a tariff on it. So if it takes 5 things, it will be tariffed 5 times before it's even built. It's STILL cheaper to build it somewhere else and then pay the tariff 1 time to ship it to the US.
Lol. Bro is an MBA and has never heard of competetive advantage.
You'll never make watches as good as the swiss.
You'll never make more cheap plastic stuff than the chinese.
You'll never grow as much or as good coffee as Brazil.
All of these are there because of competitive advantages these countries have producing these goods. For the US to feasibly produce those things would take decades of expertise, all of the factors in nature coming together and massive investment in order to succeed, and before it does, and even IF it does, the consumer will be left eating the price hike, making everybody effectively poorer.
Look at the steel tariffs from the first term he was in office - created 1-2k jobs in the steel sector, dropped 75k jobs in manufacturing that required that steel in order to operate.
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u/MyrrhSlayter 1d ago
Because they weren't taught about the market. On purpose. Because people who don't know how things work, won't be able to use it to climb the ladder.
Also, companies are already closing plants and laying off workers because of the crash. Those 900 people who lost their jobs today care very much. And that was just day 1. When the other countries start swinging back, it's gonna get worse.