patrick.net

Gotta eliminate the Tax Break for moving that allows it to apply to overseas.

We should have a national liquidation tax for offshored factories of 50%.

HEYYOU says

Go buy more Communist China exports just like Trump & his scum family have bought their share of Communism for their businesses.
How many RepCon businesses have moved their manufacturing & jobs to Communist China?
Your scum RepCon President Nixon "Opened Up" Communist China so Americans could mingle & get sick from bird flu,H1N1 & C-19.

RepCons are incapable of seeing the facts.

You say something?

It's only been some 15 years, when if you said that you weren't in accordance with outsourcing, that you were either a 'liberal' or a communist.

And then, you had these idiots with liberal arts degrees in finance (paper shufflers, not even elite prop traders), making fun of you because engineering jobs were being sent to China, India, and eastern Europe.

https://bigleaguepolitics.com/40-of-americans-are-refusing-to-buy-made-in-china-products-after-coronavirus/

40% of Americans Are Refusing to Buy Made-in-China Products After Coronavirus

https://www.dailywire.com/news/trump-takes-historic-action-to-move-pharmaceutical-manufacturing-out-of-china-back-to-u-s

Trump Takes ‘Historic’ Action To Move Pharmaceutical Manufacturing Out Of China, Back To U.S.

I have no problem sending our jobs overseas. The problem is that Chinese is stealing the technology and our jobs here in US. Look at the workers at Apple or Google, they are all Chinese incredibly. Our university which we have spent our tax money to build is filled with Chinese. And the CNN and Washington Post is filled with Chinese and someone who favor Chinese government. They have traditionally been disseminating the Chinese propaganda. Can you imagine our media is fucking our own government over Chinese government? Look at Italy during the corona virus. They had a "Hug a Chinese" day. What a freaking moron. How deeply are they involved with Chinese? idiots.

Trump is gonna take masterful political advantage of this renewed anger at chyna for causing the virus.

I'm sure over the next months we'll hear more details about which pro-usa-job and fuck-chyna-thievery moves he's making. He'll probably pitch it something like: "I'm gonna rebuild this economy and get us back booming again like we were in Jan. And, were rebuilding by bringing more us jobs back, making us safer and less dependent on chyna than ever. MAGA!"

... and he'll ride that train to the election booth, quenching his thirst with a glass of leftist tears while his opposition keeps beating the same lame "orange man bad" and "everything raycist" drums, driving american social division stats to new highs like it were some of Trump's sweet sweet stock market CAGR gains. Dems are really taking a shit on Americans lately with their liar identity politics.

zzyzzx says

https://bigleaguepolitics.com/40-of-americans-are-refusing-to-buy-made-in-china-products-after-coronavirus/

40% of Americans Are Refusing to Buy Made-in-China Products After Coronavirus

Deplorable that the other 60% are not.

APOCALYPSEFUCKisShostakovitch says

THE PRC MUST FUCKING DIE!

NO UNION!

NO VOTE!

NO GUN!

NO SWIFT NETWORK ACCESS!

YOU'RE ON YOUR OWN, YOU CUNTS!

More wisdom from our resident sage.

Companies invested a record $19.7 billion in June in the construction of manufacturing facilities, up by 18.6% from the already surging levels in June 2023, up by nearly 100% from June 2022, and up by 209% from June 2019.

The investment totals here only cover the actual construction costs of the facilities, not the costs of the manufacturing equipment and installation that can dwarf the construction costs of the building. The total cost of a big chip plant might reach $20 billion, but the construction costs are the smallest part of it. So the total amounts invested in manufacturing plants, including the equipment and installation, are much higher. But here, the amounts only refer to the construction of the plants, and can be seen as a directional indicator of total investment in manufacturing.

It’s all based on the principle that industrial robots cost the same in the US and China, that manual labor is a much smaller cost component in modern automated manufacturing, and that transportation costs (which spiked during the pandemic) and loss of Intellectual Property (IP), which is a given in China, and other risks have to be added to cost equation.

In addition, the increasingly complicated and stressed relationship between the US and China has exposed for all to see that the reckless dependence by US companies on production in China is a fundamental risk, not only for the companies, but also for national security.

No one is going to build a factory in the US to make low-value products, such as T-shirts. It’s all focused on complicated high-value products, such as motor vehicles, chips, electrical and electronic products, heavy components and equipment, etc.

The 12-month total of investment in manufacturing plants jumped to $235.5 billion, up by 19% from the same period a year ago, up by 100% from two years ago, and up by 217% from the same period in 2019.

1) examine Industrial Production (real or inflation adjusted) and its at 2007 levels, and peak value was set in 2007 as it steadily increasing 1919, when it was first tracked

so there has been no real growth in industrial production since 2007 as free trade was in high-gear by then

https://fred.stlouisfed.org/series/INDPRO

2) I was reading about the new factories being built in the USA like LG Battery plant in Arizona, VulcanAir aircraft plant in North Carolina, Samsung chip factor in Texas, and Texas Instruments chip factor in Utah.

3) Hopefully cheap electronics like LCD TVs and laptops (less than $200 in 2024 dollars) will still be available at Walmart and Amazon as the manufacturers and suppliers overseas will still be in operation.

I brought a Philco 19" TV/VCR for $99 in the early 90s. I had that 20lb monstrosity for about 15 years and many rented places. Then one day I gave it away.

America's Electricity is far cheaper than most countries. Under a Trump Drill-baby-Drill, Nuclear & Carbon-based system it will get cheaper. China can barely keep up with infrastructure needs, it is enormously dependent on foreign commodity imports TO manufacture, it's KwH electric is highly subsidized and still expensive and subject to failures from overload.

US Labor Unions no longer strangle manufacturing like they did. A modest tariff will not only bring in massive revenue, but it will make made-in-the-USA viable again. In fact, the latter IS viable without the Tariff.

The benefits of the factors in the US, plus the mere threat of tariffs or NTTBs, is enough to get foreign manufacturers to produce in the USA.

Germany is a manufacturing powerhouse DESPITE it's high electric, high wage, very regulatory economy.

AmericanKulak says

Philco 19" TV/VCR for $99

I had a 19 inch Zenith (likely made in USA) that I bought new for around $150 back in 1992 and it lasted at least 15 years before I switched to a 32 inch LCD.

That is true about threat of tariffs, as look at how Honda and Toyota built manufacturing plants in the USA. I think at least 75% of the Honda CRV is from American labor and materials.

.

AmericanKulak says

A modest tariff will not only bring in massive revenue, but it will make made-in-the-USA viable again. In fact, the latter IS viable without the Tariff

This never makes sense. Because you can't have both. Either you import yo shit and that generates tariff revenue or you make yo shit here instead. That means no more tariff revenue.

DemocratsAreTotallyFucked says

This never makes sense. Because you can't have both. Either you import yo shit and that generates tariff revenue or you make yo shit here instead. That means no more tariff revenue.

You collect tariff revenue as more and more domestic factories open. Then you start collecting corp and prop tax on domestic industry, as well as all the payroll taxes.

And you still collect tariffs because people with some money will insist on B0de or Bose or Mercedes.

AmericanKulak says

You collect tariff revenue as more and more domestic factories open

https://www.whitehouse.gov/articles/2025/06/trump-effect-higher-pay-for-american-workers/

In May, the U.S. added 139,000 jobs — smashing expectations for the third straight month, with the private sector accounting for all net job gains.
Leisure and hospitality: +48,000 new jobs
Transportation and warehousing: +5,800 new jobs
Construction: +4,000 new jobs — the fourth straight month of job increases

Wages for everyday Americans continue to rise, with real average hourly earnings up by nearly 4% over the past year — far higher than economists’ expectations.

Since President Trump took office, real disposable personal income has risen at a 7.5% annualized pace — more than three times the pace than the final year of the Biden Administration.

Native-born American workers now account for ALL job gains since President Trump took office in January — reversing the opposite trend from the past two years.

Since President Trump took office, 99.8% of job gains have been in the private sector. During the final two years of the Biden Administration, one in four jobs created were in government.

AmericanKulak says

Germany is a manufacturing powerhouse DESPITE it's high electric, high wage, very regulatory economy.

I don't know if it is government subsidized, as its very impressive how Germany builds cruise ships within an indoor facility.

I looked at the number of manufacturing jobs in the USA, and they started to go downhill in June 1998.

https://fred.stlouisfed.org/series/MANEMP

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Patrick says

Since President Trump took office, 99.8% of job gains have been in the private sector. During the final two years of the Biden Administration, one in four jobs created were in government.

and the rest were in health care and education which are highly subsidized by the federal and state guvmints

.

AD says

I looked at the number of manufacturing jobs in the USA, and they started to go downhill in June 1998.

Looks like a graphical representation of a "Giant Sucking Sound"

MolotovCocktail says

AmericanKulak says

You collect tariff revenue as more and more domestic factories open

While production switches to domestic factories, you collect the tariff. Once the domestic really gets going, then it turns around and you lose tariff revenue but collect more corp tax, income tax from employees, property taxes for the locality, etc.

Chinese subcontractors and subcorps of Multinationals in China pay no US corp tax, Chinese workers don't pay US income tax, certainly no property tax, etc. And with no tariff, they don't pay any tax. We get the goods but lose the money. With domestic manufacturing, we get the goods AND the money.

AmericanKulak says

Chinese subcontractors and subcorps of Multinationals in China pay no US corp tax, Chinese workers don't pay US income tax, certainly no property tax, etc. And with no tariff, they don't pay any tax. We get the goods but lose the money. With domestic manufacturing, we get the goods AND the money.

That can be more easily fixed by replacing FICA with a VAT.

Both imported and domestic manufacturers pay the VAT.

AmericanKulak says

With domestic manufacturing, we get the goods AND the money.

I like when you said in another post about the economic multiplier effect of building a factor such as the increase in business for existing restaurants near it, it the reverse of a ghost town or Rust Belt town.

.

https://www.mypanhandle.com/news/local-news/bay-county/3-75-million-triumph-grant-approved-for-project-clear/

see above, as an incinerator (waste to energy) plant in Panama City Florida is likely being converted to a glass factory that will employ 150 workers

WINNING ! ! !

this shows more and more manufacturing jobs are being generated in the USA since Trump's inauguration

AD says

I like when you said in another post about the economic multiplier effect of building a factor such as the increase in business for existing restaurants near it, it the reverse of a ghost town or Rust Belt town.

Thanks @AD

AD says

see above, as an incinerator (waste to energy) plant in Panama City Florida is likely being converted to a glass factory that will employ 150 workers

Excellent. And most folks here probably know, glass is more than just windows in modern manufacturing.

It’s not just the pay, it’s the workman’s comp and healthcare and retirement that employers try to avoid paying by hiring illegals. Employers are absolutely part of the immigration problem.

AmericanKulakMaximumTrumper says

xcellent. And most folks here probably know, glass is more than just windows in modern manufacturing

Is this glass the kind they will be making?

"Americans will suffer from the high costs of many items..."


Actually, the exporters are eating the costs.

MolotovCocktail says

Good. In the past American made appliances lasted decades.

Philips just announced a $150B investment.

Semi-related, RFK Jr. working to get incandescent lightbulbs back.

Incandescent lightbulbs are 100% efficient in cold weather, because the heat they give off reduces the need to heat the house.

MolotovCocktail says

AmericanKulak says

Chinese subcontractors and subcorps of Multinationals in China pay no US corp tax, Chinese workers don't pay US income tax, certainly no property tax, etc. And with no tariff, they don't pay any tax. We get the goods but lose the money. With domestic manufacturing, we get the goods AND the money.

That can be more easily fixed by replacing FICA with a VAT.

Both imported and domestic manufacturers pay the VAT.

Shoot, you could also make a foreign National specific purchase/VAT tax….

Patrick says

Incandescent lightbulbs are 100% efficient in cold weather, because the heat they give off reduces the need to heat the house.

It does not seem likely that incandescent bulbs would produce enough heat in a house to make a dent in the furnace run time. Also, that heat is joule heat like a dryer, very power hungry. The toxic and not so efficient CFLs should never have come about as a replacement for incandescents, we should have just waited for the LEDs.

MolotovCocktail says

That can be more easily fixed by replacing FICA with a VAT.

Both imported and domestic manufacturers pay the VAT.

Remember, domestic producers pay a VAT at every stage of production while the foreign good only pays it on the final product imported.

HeadSet says

Remember, domestic producers pay a VAT at every stage of production while the foreign good only pays it on the final product imported.

Yes, that is how the accounting works, but the amount collected remains the same(ish).

A 10% VAT on a good OR SERVICE produced in the US that ends up costing $100 will be $10.

Same as an imported good at the same declared cost of $100.

Walmart buys $100/ea for that product to sell at retail for $120. So their initial base VAT rate is $12 (10%) VAT. Then pay that MINUS the $10 VAT paid in acquiring that good from the wholesaler, whether it be domestically produced or import. That's a $2 net VAT payment (10% of the $20 markup over the product's $100 wholesale cost) for WalMart.

So total amounts collected between import and domestic are the same.

Plus local sales tax on top of that.

Beauty of tariffs is that VAT payable can be determined AFTER tariffs are applied. That's how most countries fuck us while claiming otherwise. Especially those lying fuckers in the EU.

$100 import gets hit with a 10% tariff. 10% VAT calculated on top of that $110 number is $11.

Whereas the domestic produced product that also costs $100 only will have that $10 VAT, not $11.

WalMart sells both at $120. But only gets the $20 markup for the domestic. For the tariffed import its $10, for which they pay a net VAT of $1.10 instead of $2 true. But they also make a correspondingly lower profit margin, too..

So which product do you think the infamously tight-assed corporate buyers of WalMart are going to favor?

The obvious answer to that presents a totally different outcome in what product sourcing our distributors and retailers are going to favor in a tariff + VAT environment compared to what we have now.

"Consumers pay the tariffs" my ass. For large economies with plenty access to capital (that's us), that only applies to rivalrous products/services that can only be uniquely supplied elsewhere or have natural comparative advantage. Like watches and chocolates from Switzerland or bananas from Equador. Most common/basic products that can be produced here will finally get the home advantage that the rest of the fucking world - even Turd World Banana Shitholes - have already figured out how to implement.

Made in America 2035

How to reindustrialize the USA is a very interesting question

If you crash the dollar, you get chaos.

If you don’t crash the dollar, your manufactured goods are not competitive with imports.

Damned if you do, damned if you don’t.

Here’s how I’d do it:

1. No permits for anything on federal lands (the “manufacturing zone”). From power plants to roads to factories, no permits required. $0 cost land leases.

2. Instant visas for people who work in the factories on federal lands.

3. All businesses must employ 51% US citizen labor at all levels in chain of command.

4. Any made in USA product that is 51% made in USA by value has 0% income taxes.

5. Over the next 10 years you tariffs increase by 25% per year on all the following (and their components): drones, rare earths, electric infrastructure, water infrastructure, agricultural tech, semiconductors, etc. 0% tariffs on machines for first 5 years then they rise at 50%/year. 0% tariff on raw materials without domestic supply, otherwise 25% per year starting year 1.

6. Over the next 10 years, the cap gains rate goes up by 2% per year.

7. Over the next 10 years, the income tax rate goes down 2% per year.

8. Suspend enforcement of all foreign IP in the manufacturing zone

9. Replace foreign language, language arts, health, physical education in school with construction, engineering, and math across the entire United States.

10. Import the US prison population to the manufacturing zone and use them as forced labor. If they refuse to work just parachute them onto a remote island.

11. Guarantee all these changes be permanent for at least 10 years

https://x.com/Molson_Hart/status/1970482021349868021