A good point on globalism
I read an article today about the EU and Brexit from the PoV of someone involved in negotiating with businesses to operate in the UK under the EU and the effects of pulling out of the EU. And, when it was all said and done, I realized, the same thing applies to all protectionist agendas.
The quick version is, the biggest companies get the biggest by being international players. They won't bring headquarters or factories or major numbers of jobs into countries which make playing on that international stage more difficult. And, in fact, many will even relocate if matter change.
A lot of people hailed Trump's tariffs and "buy American" sentimentality. And, it resonated even here in Canada with my parents and many around me telling them that they will actively avoid buying American.
To be fair, there are stark differences behind grassroots movements to buy local and government imposed rules and sanctions. But, at the same time, they are also very intertwined. People in increasingly shrinking industries started these sorts of movements in the US years ago. And, the support for the government on this topics is based in what these movements started.
In short, as these movements grew in popularity, but failed to yield tangible results, increasing numbers in the voting communities sought means to make the fight go the way that wanted. Tariffs and new trade laws give that.
But, it is a double edged sword. The rules and tariffs imposed simply make the US an unattractive place to do business in those industries and alienate old trading partners. So, while domestic consumptions ticks upwards, global consumption of American product declines. So too does global investment. In the short term, Americans probably will see gains rather than losses. Which is the worst trick of the whole thing. As major companies move out or refuse to create more jobs in the US, it creates a temporary boom for the smaller local companies. This creates a false sense that the "Buy American" movement is working.
Meanwhile, jobs are being lost or not being created which would have been otherwise. And slowly, international demand for American product will dry up. Increased competition created due to the false promise of an economic boom fueled by the local-only movement will eventually cause situations to become worse than they ever were.
Attracting foreign investment, both for companies to invest there, and countries to export from there require the same thing. The promise of BOTH talent and a market which enables global access.
Tariffs are the enemy of global access. It doesn't matter if you're an advanced economy with some of the best and brightest. If my goods are effectively trapped in that country if I manufacture them there then I can't be competitive on the global market there. I'll try and make do with local talent. Or work with my local government to make getting permanent visas easy for the talent I need and simply pay them better to work for me in another country.
While many people think of countries like the US and Canada as immigration countries, that is only the case because more people come than go. But, certainly, a LOT of people go as well. And, if the jobs continue to go elsewhere, so too will the people.
ALL of the major economic powerhouses in the world today became so on the exact same premises. They got big by letting immigrants in. Focusing on economic growth. And strengthening trade relations with the rest of the world. Not a single, major, 1st world country became so thanks to tariffs or a buy local policy.
The quick version is, the biggest companies get the biggest by being international players. They won't bring headquarters or factories or major numbers of jobs into countries which make playing on that international stage more difficult. And, in fact, many will even relocate if matter change.
A lot of people hailed Trump's tariffs and "buy American" sentimentality. And, it resonated even here in Canada with my parents and many around me telling them that they will actively avoid buying American.
To be fair, there are stark differences behind grassroots movements to buy local and government imposed rules and sanctions. But, at the same time, they are also very intertwined. People in increasingly shrinking industries started these sorts of movements in the US years ago. And, the support for the government on this topics is based in what these movements started.
In short, as these movements grew in popularity, but failed to yield tangible results, increasing numbers in the voting communities sought means to make the fight go the way that wanted. Tariffs and new trade laws give that.
But, it is a double edged sword. The rules and tariffs imposed simply make the US an unattractive place to do business in those industries and alienate old trading partners. So, while domestic consumptions ticks upwards, global consumption of American product declines. So too does global investment. In the short term, Americans probably will see gains rather than losses. Which is the worst trick of the whole thing. As major companies move out or refuse to create more jobs in the US, it creates a temporary boom for the smaller local companies. This creates a false sense that the "Buy American" movement is working.
Meanwhile, jobs are being lost or not being created which would have been otherwise. And slowly, international demand for American product will dry up. Increased competition created due to the false promise of an economic boom fueled by the local-only movement will eventually cause situations to become worse than they ever were.
Attracting foreign investment, both for companies to invest there, and countries to export from there require the same thing. The promise of BOTH talent and a market which enables global access.
Tariffs are the enemy of global access. It doesn't matter if you're an advanced economy with some of the best and brightest. If my goods are effectively trapped in that country if I manufacture them there then I can't be competitive on the global market there. I'll try and make do with local talent. Or work with my local government to make getting permanent visas easy for the talent I need and simply pay them better to work for me in another country.
While many people think of countries like the US and Canada as immigration countries, that is only the case because more people come than go. But, certainly, a LOT of people go as well. And, if the jobs continue to go elsewhere, so too will the people.
ALL of the major economic powerhouses in the world today became so on the exact same premises. They got big by letting immigrants in. Focusing on economic growth. And strengthening trade relations with the rest of the world. Not a single, major, 1st world country became so thanks to tariffs or a buy local policy.
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