Analysis from a Tariff Policy Expert
"Even today, there are still people defending U.S. tariff policies, analyzing the 'deeper significance' of tariffs. Their characteristic is to speak seemingly correct statements under 'grand narratives' that are actually unhelpful or even harmful for future predictions, all to gain followers. It is clear that they are currently experiencing a situation where both sides lose.
Here are three hard facts that will make them uncomfortable:
1. The manufacturing capacity of goods is the real GDP; printing money is soft power and is illusory. If you are not provided with goods, the paper currency in your hands is no different from waste paper. What awaits you is only hyperinflation. For example, costs that are ten times that of China.
2. The export of soft power relies on warships and cannons, but times have changed. You definitely cannot win if it is right at China's doorstep. China’s current status is similar to that of the U.S. during World War II, seemingly the second in the world, but in reality, it has the first-class capacity for rapid troop deployment. Don’t try it; if you do, the seating arrangements will truly be reversed.
3. The world credit that the U.S. has accumulated over the past 80 years has recently been significantly depleted. Conversely, the depletion of one side's credit will become the accumulation of another side's credit. The mad tariffs might quietly lead to the establishment of a new credit consumption system in the future."
Manufacturing returning? What are you thinking? There are two hot examples online. One American farmer explains why he chooses Chinese agricultural machinery. The reason is simple: the most basic U.S. machine costs $44,900, while the Chinese-made machine only costs $15,000, which is one-third cheaper than the American machine, and its performance is much better. Another American talks about why he supports American-made products, citing the example of Zipp lighters, but he forgot how cheap disposable lighters are...
