this post was submitted on 04 Apr 2025
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The whole plan was to move production back to the US. The thing though is, that you can't make Americans sit and sew Jeans that sell sell for $15 or assemble electronics for $6/hr
Maybe you could 100 years ago, but there is s a reason why we trade across the world and its not because we are kind. It is because it makes companies more money.
This will be mostly messy for the US. The rest of the world now has tarrifs on the US. But US now has tarrifs on the whole world. Any other country can look into expanding in new markets now, but the US has shut all its doors
Yeah we can't make everything.
Not only do most of those low level factory jobs suck we simply don't have the workers, we're at less than 5% unemployment.
Nor does the US need to make everything.
The US is a service economy. It makes money through capital and intellectual property. Being the first to innovate means also having the opportunity to wedge yourself as a permanent middle man and charge people around the world to pass go.
Think Uber eats for example. If I order food in Toronto from a Toronto based restaurant fulfilled by a courier in Toronto, 30% of my payment is going to them in silicon valley for managing that order.
Similarly, when you purchase an app on Google or Apple store, they are collecting 30%.
If I am in Norway purchasing a game on Steam from a Norwegian developer, you guessed it, 30% is going to Steam.
This is America's strength now, not making t shirts, shoes or cars entirely domesticallty.
Most of the world was ok with paying the markup for convenience.
Since the US have gone rogue, many are calling for an end for respect to US intellectual property. Perhaps each country should have its own Uber, app store etc so that the cut can stay within our borders.
One case: Uber was charging 30% commission for managing rickshaw rides in India (a country with relatively low purchasing power per capita).
It was only after domestic options like Rapido or Namma Yatri undercut them that they moved to a subscription based model, charging drivers 20 to 40 rupees daily, rather than taking an exorbitant commission of 30% per ride. To India's credit, it has a robust IT sector located in one of its major cities (Bangalore) which helps promote competition in this case.