The USA had been living in denial for decades, not realizing the world is passing them by. The USA pretends that it is still the leader to be followed by the rest of the world, just by keeping innovations from outside the USA from competing against its too big to fail entities. It is like giving them a wheelchair to move around and expecting them to run in the Olympics competing against others.
Denial and pretensions have left the USA floundering in EVs, shipbuilding, infrastructures, high-speed-rails, space exploration, manufacturing and now in aviation and AI as well. Keeping out competition by erecting tariffs is going to do more harm than good for its EV, semiconductor and AI sectors in particular. They were now left in shock and awe with the likes of BYD (not to mention may other Chinese EV makers), Huawei, DJI and DeepSeek and needing sanctions and tariffs to keep these out of the USA. For how long?
Preventing competition does not encourage innovation, which is why USA manufacturing is unable to make things cheaper than others. Trying to erect hurdles and handicapping others with sanctions and tariffs is not going to make USA industries more competitive. As they say, blowing out someone else's candle is not going to make the USA candle shine more brightly.
Anonymous
1 comment:
The USA is just categorically unable to compete and just using tariffs to bring others down to their level of incompetence. When a country cannot produce anything that others want, and using tariffs to prevent others from making cheaper things to sell to it, that is basically cutting its nose to spite its face.
Globalization is all about comparative advantage and economies of scale. Who can make things cheaper for everyone is what the world wants, not who can make things more expensive and forcing others to buy from it. This defeats the whole purpose of investing in places that offers such comparative advantage and economies of scale to profit from it. What the USA is doing is a retrospective move that does nobody any favor.
The irony is that the world needs to progress and innovate to bring prosperity to as many as possible. Not the other way round that the Anglo-Saxon Whites have done over the centuries. The Anglo-Saxon White's century of domination is over. This is the Asian century and after that will be the century of the Africans.
Post a Comment