Justin Stewart3 said:But isn't that exactly what customs duties are for? To drive up the cost of imports so that domestic production gets a fighting chance? It’s easy to talk about boosting local manufacturing when you don't fully grasp the mechanisms required to make it happen... though shouldn't it be obvious that domestic industry can't survive if the government doesn't protect it through import limits? Almost every major global industry, without exception, grew under protectionist economic policies. If American industry wants to grow, why should it be any different?
That might have been the case if America hadn't pushed so hard to join the EU. Now, we're forced to play by their rules. I don't suppose anyone expects the EU to look kindly upon tariffs, especially when they don't even exist between member states anymore.
Global industries used to rely on protectionism to grow, but I guess that isn't really how things work anymore. They are strong enough today because that old-school protectionism provided them with a sufficiently large and robust production base back then.
What people in America just don't seem to grasp, I think, is that our only real shot at jumpstarting production is to make sure it's competitive—meaning cheaper, I suppose—than in other EU nations. Given how much everyone is currently focused on cutting costs and moving manufacturing or services over to Eastern Europe, maybe there's a narrow window for America to find its footing there.
I wasn't strictly implying we should only focus on starting our own domestic production, even if that would be the ideal scenario; I was more referring to creating favorable conditions to attract manufacturing investment here in America.
And the fact that 97% of the banks are foreign-owned, mostly issuing consumer loans that end up buying foreign goods, surely doesn't help the cause, which I guess is reflected in our rapidly growing debt levels.