Post

I'm skeptical of Pettis arguments in this piece. Even with tariffs, China (& others) have spent decades building manufacturing expertise, supply chains, and infrastructure. You can't simply price-advantage your way past that kind of industrial ecosystem. 1/ www.foreignaffairs.com/united-state...

foreignaffairs.comHow Tariffs Can Help AmericaEconomists have drawn the wrong lessons from the failures of the 1930s.

Jonas Nahm

@jonasnahm.com

28 Dec 2024

Take semiconductors or electric vehicles - it's not just about cost. It's about specialized knowledge, supplier networks, and skilled workforce that take years to develop. Tariffs don't solve for that. 2/

Jonas Nahm

@jonasnahm.com

Finally, the employment benefits Pettis promises seem theoretical at best. Real reshoring would require massive investment in training, infrastructure, and rebuilding entire industrial bases - not just making imports more expensive. 3/3

28/12/24, 11:01 pm1 repost16 likes

Chase B

@godkingchase.bsky.social

29 Dec 2024

I think a lot of what Pettis writes is theoretical and probably shouldn’t be taken too literally.

Jim Obey

@jimob1.bsky.social

29 Dec 2024

'If' China dumps Treasuries in response to tarriffs (and internal pressures) this may result in a new system with state policies flowing out of a different set of organising principles/incentive structures. How states would actually react is another question.