I have pondered this a little, as to why this seems to be the route the administration is taking. The best explanation I’ve had is that Trump is taking a card from China’s playbook.
Several years back, China weakened their currency with the goal of creating an environment that’s more embracing to external companies wanting to setup manufacturing plants in their borders. With how this administration is speaking about boosting manufacturing, I can see these two narratives being in conjunction with one another. The problem I see here, though, is that those jobs were spurred on by lower wages as a result of that weaker currency, which I don’t quite see as a goal the US should be striving towards.
Yes, given enough time, it’ll pay itself back off, but this still seems like a subpar avenue, especially as one of those American workers that’ll feel the impact. Whether that’s truly the result or goal is anyone’s guess, best I can do is speculate.
I have pondered this a little, as to why this seems to be the route the administration is taking. The best explanation I’ve had is that Trump is taking a card from China’s playbook.
Several years back, China weakened their currency with the goal of creating an environment that’s more embracing to external companies wanting to setup manufacturing plants in their borders. With how this administration is speaking about boosting manufacturing, I can see these two narratives being in conjunction with one another. The problem I see here, though, is that those jobs were spurred on by lower wages as a result of that weaker currency, which I don’t quite see as a goal the US should be striving towards.
Yes, given enough time, it’ll pay itself back off, but this still seems like a subpar avenue, especially as one of those American workers that’ll feel the impact. Whether that’s truly the result or goal is anyone’s guess, best I can do is speculate.