Comment by darby_nine

Comment by darby_nine 2 days ago

4 replies

> I don't think the government applying such levers to change how the market allocates capital probably won't be a win for economic output or quality of life.

Cuz letting it manage itself works so well

convivialdingo 2 days ago

Agreed.

Even the premise that it was always cheaper to manufacture abroad is flawed in many respects as Congress subsidized offshoring over many years as part of an effort to encourage globalization.

Companies often receive massive tax breaks with write-offs to close US plants, tax credits, zero percent import duties, and lower overall tax rates by shifting their profits and losses through offshore banks.

In many respects profitability has most often been determined by the policies we subsidize. and for decades those policies were essentially all in for the benefit of offshoring.

Comparing the actual cost of production by location is far more complicated than just the cost of materials and labor when there are so many subsidies and policies involved.

chaos_emergent 2 days ago

I think the statistics he cited actually make that case

  • darby_nine 2 days ago

    ...compared to what? Growth is just one way of representing market health, and it's one that is typically pushed by capital for obvious reasons.

    If you're talking about efficiency or productivity, you don't need markets for either of these, you just need any kind of economy to work with. Industrialization only intersects with markets (or capitalism for that matter), they aren't the same thing.