We’re violating trade agreements with our tariffs. But giving tax breaks to companies that re-shore industry would also likely violate trade agreements, because it would create ‘unfair competition’. Kinda like the way that China has given subsidies to certain industries–such as solar panel producers–has created unfair competition, since they have far lower costs than other solar panel producers. As such, tax breaks and incentives would probably also hurt our trade relations, because we would essentially be taking jobs out of other countries. …But that would probably hurt out relations with other countries far, far less than what we’re doing now.
Honestly, there’s not a great way to bring manufacturing jobs back in a way that doesn’t harm our relationships with other countries, or our national interests in some way. By purchasing shit from companies with lower labor costs/standards of living/higher levels of labor abuse/etc., we’ve undercut our ability to produce the same goods at a competitive price while also keeping our own standards. Even if we went back to pay ratios between workers and executives that existed 50 years ago (I think that lowest to highest ratio in large companies was about 150:1 in the late 60s), that wouldn’t be enough to keep our living standards, avoid labor abuses, and still be competitive with shit we get from China.
This is compounded by the fact that we do have some of this manufacturing in the US, because it’s more-or-less required by the Barry Amendment (USC 10 §2533(a)). But the costs are astronomical. Take a backpack made by Mystery Ranch. Their Black Jack 80–identical to the USSOCOM SPEAR Patrol bag they make, just with another name–is $1200. The version that’s made in Vietnam and is not Barry-compliant, was about $400. The materials and craftsmanship were substantially identical, but the fabrics were sourced from outside the US, and the manufacturing was done outside the US. There’s no reasonable way that the US gov’t can subsidize those kinds of costs.
Weeelllllll…
We’re violating trade agreements with our tariffs. But giving tax breaks to companies that re-shore industry would also likely violate trade agreements, because it would create ‘unfair competition’. Kinda like the way that China has given subsidies to certain industries–such as solar panel producers–has created unfair competition, since they have far lower costs than other solar panel producers. As such, tax breaks and incentives would probably also hurt our trade relations, because we would essentially be taking jobs out of other countries. …But that would probably hurt out relations with other countries far, far less than what we’re doing now.
Honestly, there’s not a great way to bring manufacturing jobs back in a way that doesn’t harm our relationships with other countries, or our national interests in some way. By purchasing shit from companies with lower labor costs/standards of living/higher levels of labor abuse/etc., we’ve undercut our ability to produce the same goods at a competitive price while also keeping our own standards. Even if we went back to pay ratios between workers and executives that existed 50 years ago (I think that lowest to highest ratio in large companies was about 150:1 in the late 60s), that wouldn’t be enough to keep our living standards, avoid labor abuses, and still be competitive with shit we get from China.
This is compounded by the fact that we do have some of this manufacturing in the US, because it’s more-or-less required by the Barry Amendment (USC 10 §2533(a)). But the costs are astronomical. Take a backpack made by Mystery Ranch. Their Black Jack 80–identical to the USSOCOM SPEAR Patrol bag they make, just with another name–is $1200. The version that’s made in Vietnam and is not Barry-compliant, was about $400. The materials and craftsmanship were substantially identical, but the fabrics were sourced from outside the US, and the manufacturing was done outside the US. There’s no reasonable way that the US gov’t can subsidize those kinds of costs.