Comment Re:He's Not Wrong. (Score 5, Interesting) 221
Americans aren't paid enough to be able to afford American-made products. Simultaneously, American workers cost so much that it is way more profitable to do the manufacturing in foreign countries.
This isn't going to be fixed by encouragement, nor by tariffs or import bans. This will just recreate the conditions of the late 1920s when warehouses were awash with consumer products that nobody could afford to buy. It was one of the factors that plunged us into a depression, and it absolutely can happen again.
We are going to need another decade-long depression to fix this.
I mean, maybe in theory it would be possible to fix this through the right balance of regulation that blocks cheap imports AND pulls wages up AND stimulates more factory construction in America so the products we need will be available in sufficient amounts, AND keeps the prices down through competition. It may be slightly more possible for simians to aviate from my posterior, however. The people who must sacrifice the most for that to happen are the very people who hold all the political power (since the USA functions as an oligarchy, and only appears to function as a democracy).
So, a good old-fashioned depression will hit the holdings of the super-rich hard enough that actual meaningful regulation can come out of it. Though it will be all the rest of us who suffer from it the most.
I would really like to be proven wrong about this. I only know what I have learned about economics from a few elective courses in college. Maybe someone who knows more about this than I do can provide a more realistic narrative and prediction.