- Joined
- Jun 1, 2010
- Messages
- 339 (0.07/day)
System Name | Very old, but all I've got ® |
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Processor | So old, you don't wanna know... Really! |
It won't. The companies will just find other "cheap" workforce, in some other countries, within "peoples country" proximity. As simple as that. Because many resources, including the silicon itself, mostly comes from there. No matter how much someone wants, the resource origin, and logistics have huge impact on production. So what then, apply taxes on the materials?It will force US companies to build manufacturing at home, as well as increasing prices in our country.
But us being in control of more manufacturing / factories is a good thing, even if it costs us more. Especially as we come up to geopolitical concerns regarding China.
Another reason is the amount of products made. It will take ages, in order to achieve at least some portion of the capacities the current factories have. Even with 100% correct and corrupt-free funding and managment, with least bureaucracy delays and hurdles.
The whole situation is complete falsehood. This is simple gouging. Everybody knows, that US won't start to make all improrted stuff overnight, in-house. Not because it will get pricey. The companies already ask enormous prices, like this has been made in-house, and the workforce salaries are only the tity tiny bit of that. The true reason is:
1 The tax money will never reach the destination, e.g. the production capacities it supposed to fund, due to obvious reasons.
2 Another is (no offense but...) because the US has not enough personnel, capable of making e.g. complex electronics. And if there is, not many qualified staff, would go work in factories for lower wages.
3 And most importantly, the companies themselves won't allow this, because they will become liable, and would have to report about every step of the production and profits. Or will have to "import" "cheaper" workforce, in order to keep the margins they want. And this is entire point, why they decided to move the production overeas in the first place. They can have any margins, and yet are not accountable for anything.
The worst thing is that, since the US is the primary market for many companies, especially the CPU/GPU makers being of US origin, it will affect the prices in other countries as well. Doesn't matter, will the companies rise MSRP, in order to include higher import taxes or not. The sellers all across the globe take the US prices as an example, as base threshold, and add their margins on top of that. This is sad, but it's how this works.
Unfortunately, this will impact China way less than the US itself. It would be tough, but they will find new markets, e.g. EU, considering the recent increased "friendship" between them.China can't stop trading with the US or it would absolutely destroy their economy and probably lead to anarchy in China.
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