US president says he will ask Saudi Arabia and Opec to lower oil prices; reiterates there are "only two genders".

US President Donald Trump told world business leaders on Thursday to manufacture in the United States or face tariffs, in his first major speech to global leaders since returning to the White House this week. … “Come make your product in America and we will give you among the lowest taxes of any nation on earth,” Trump said today, speaking remotely to the World Economic Forum (WEF) in Davos, Switzerland.

“But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff,” he added.

  • Saleh@feddit.orgEnglish
    0·
    7 days ago

    Which in turn stimulates local production, which in turn leads to economic growth…

    Seriously people, Protectionism is a tried and tested method. In the right circumstances it is a powerful tool. The question is, whether these circumstances apply in the current US, but look at all industrialized nations. They used protectionism to grow their industries and now they oppose other countries protectionism to keep them small.

    https://en.wikipedia.org/wiki/Protectionism

    • kewjo@lemmy.worldEnglish
      0·
      7 days ago

      from your own source

      There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth.

      A 2016 study found that “trade typically favors the poor”, as they spend a greater share of their earnings on goods, as free trade reduces the costs of goods

      So to reduce costs of goods we will make cheap items from China cost more so USA made can compete at a higher price. why doesn’t the math work here? how does this result in a better economy?

      • Saleh@feddit.orgEnglish
        0·
        7 days ago

        In the right circumstances it is a powerful tool. The question is, whether these circumstances apply in the current US

        Is what i said.

        So to reduce costs of goods we will make cheap items from China cost more so USA made can compete at a higher price. why doesn’t the math work here? how does this result in a better economy?

        Because then manufacturers in the US employ people in the US, who then have more money to consume in the US. That requires the government to also work towards good wages though. Also it allows for industries to grow so they can use economics of scale to drive down their production prices and then their consumer prices.

        Again, for developing industries it can be crucial and is tried and tested. The question is whether that is what the US needs right now.