I say cut out the government subsidies.
not a bad idea. However, since costs are so much higher here, the price to consumers of said prodcuts will be significantly higher, possibly lowering sales and profitability.
Free trade is probably the greatest economic development to happen to the world in the last 20 years. Why would we want to regress to protectionism? Tariffs just promote incompetence among local companies, increase misery for consumers, discourage innovation, and in the long term don't even protect the jobs they were intended to protect.Originally Posted by Cephus
Last edited by Kandahar; 01-24-11 at 11:24 AM.
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What I'm sure we don't disagree on is the need for more people in this country to have more prosperity and more buying power. The biggest problem our economy is facing right now is massive unemployment. Bring jobs back here. We need them.
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Some good questions here. Though I am no expert I'll try to answer them as best I can.
The next thing economists will say is bringing in money from outside the country. This also is what manufacturing can do. Only difference is selling the product outside the country. This is why exporting goods is so important to any country. In fact that is one of the biggest reasons that China has been able to catch up to the US so quickly in terms of wealth. They increased thier production of goods by creating and bringing in factories from other countries.
So no it is not just about the jobs. Though that is certainly another major factor for this idea. The wealthier a population the more money will be circulated, which helps keep any economy going. The only way to make the population wealthier is by keeping the population working and getting paid. One of the biggest reasons for a recession is people stop buying things. If people have money, and know that they will continue to make money, the more they will be willing to spend.
I'm not really sure about what to do if the corporation recieves subsidies from other governments. Perhaps in this case we could say to go ahead and allow them to use factories in other countries...however they would have to create an equal amount of factories/jobs in the US? Put it on a 1:1 basis. Though I am unsure of how this would affect prices... Ultimately the questions that you have in this paragraph would have to be answered by people far smarter than me.
As for what constitutes government asssistance? We can keep it simple to start out. Any company that recieves monies/subsidies from any government agency would be subject to my idea.
As for whats to stop a competitor? Copy right infringments. Pretty much any company will put a copy right on any product...often in many different countries. And they will do whatever they can to keep that copy right as long as possible. Since my idea only allows for a company to have to make the product in the US for a certain amount of time they will eventually be able to move the manufacturing over seas. Between copy rights and them being able to eventually move to "greener" pastures they should be protected in this way.
Hope I satisfactorily answered at least most of your questions.
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