> If that doesn't happen, how many of them will get bank loans to get them out of this mess?
I think you have just affirmed what I have said.
USA is world's biggest, but an extremely fragile economy which is full of businesspeople too used to bailouts from a caring government. It's a bigger miracle it never seen major crisises from "encounter with reality" before.
> We truly are talking about a Lehman Brothers scale of a problem, and as Ryan pointed out, the only way to fix this is to unblock the ports. So if you're eventually going to have to do it, why not do it before millions of companies go out of business as opposed to only after that's happened?
I think it's essential in a capitalist market economy to let the market forces to do their job, and for Lehmans to pop from time to time. USA faces such a big crisis during every new "Lehman Brothers moment" exactly because it never lets its Lehmans fail.
Now, imagine China will embargo USA next time... Trade with USA is just a few percent of China's GDP today.
I did intern in BestBuy 10 years ago, and I know what insane portion of profit comes from around Xmass. I honestly want the US to really fail here, and fail hard, and have a Lehman moment again. It's vitally important for the US to finally have such crisis to turn the ship around, pun intended.
Or the next time, spoiled US kids will find out that there are way worse things in life than missing their new iphone 15 for christmas.
I don't disagree that the US made a huge mistake when it outsourced its production (for all the reasons you mentioned). But the solution is not to rip off the bandaid and view millions of businesses as collateral damage. You'll notice that the Chinese government is great at playing a long game, eg: Taiwan. We need to do the same.
The only way we can get better at long games is to examine what's driving our current weakness in that area. My guess is that it has to do with the dynamics of presidential terms. To get re-elected, you have to achieve something big in the first four years, and anything big will piss off the other half of the country and will make you lose the congressional elections at the end of your second year. So the solution is to either do something big that buys you favors with both political parties (literally nothing comes to mind), or to get it done in the first two years. China, in comparison, has been plotting the takeover of Taiwan for decades, and is very strategically, step by step, moving in that direction. If this was the US, the only option would have been a quick invasion or a start-stop effort every 4-8 years.
This isn't just Xmas gifts, it's servers, routers, hard drives, you name it, stuff that's vital for businesses. We have long delays for much of our IT infrastructure at my company due to this.
I think you have just affirmed what I have said.
USA is world's biggest, but an extremely fragile economy which is full of businesspeople too used to bailouts from a caring government. It's a bigger miracle it never seen major crisises from "encounter with reality" before.
> We truly are talking about a Lehman Brothers scale of a problem, and as Ryan pointed out, the only way to fix this is to unblock the ports. So if you're eventually going to have to do it, why not do it before millions of companies go out of business as opposed to only after that's happened?
I think it's essential in a capitalist market economy to let the market forces to do their job, and for Lehmans to pop from time to time. USA faces such a big crisis during every new "Lehman Brothers moment" exactly because it never lets its Lehmans fail.
Now, imagine China will embargo USA next time... Trade with USA is just a few percent of China's GDP today.
I did intern in BestBuy 10 years ago, and I know what insane portion of profit comes from around Xmass. I honestly want the US to really fail here, and fail hard, and have a Lehman moment again. It's vitally important for the US to finally have such crisis to turn the ship around, pun intended.
Or the next time, spoiled US kids will find out that there are way worse things in life than missing their new iphone 15 for christmas.