Outsourcing: “ Trump has identified the problem correctly but his remedy is wrong.”
It has been over a year since Trump promised tax cuts for American companies in America, and tariffs for American Companies manufacturing overseas. He also personally contacted the CEO’s of the biggest American Companies known for off-shoring, and pleaded, argued and bullied them into bringing American jobs back to America. This is one of his biggest delivered promises.
The first benefit is more jobs for Americans: moving production to America from China creates jobs in America: the demand is here, but the supply is currently from China. Reshoring brings the jobs home, where they belong. How else do you explain the lowest unemployment rate in 30 years? All those new jobs will lift people out of poverty and that will in turn stimulate domestic demand. It is known as a Virtuous Cycle in economics.
I’m not sure Trump’s remedy is wrong: it is already working to get us Fair Trade instead of Free Trade.
