China Shock Has Decimated 5.7M U.S. Jobs Since the 2000s. Now, It’s Back. | WSJ Then vs. Now
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- Опубліковано 8 лип 2024
- The U.S. was flooded with cheap Chinese-made goods that helped keep inflation low in the late 1990s and early 2000s. Manufacturing jobs declined by 5.7 million from 2000 to today, in what economists call “China Shock.” Now, those imports from China are surging again in industries like EVs, semiconductors and renewable energy.
WSJ looks at what’s different this time around - and what that means for American jobs and the U.S. economy.
Chapters:
0:00 Chinese imports
0:46 Jobs
3:21 Tariffs and regulation
4:34 What’s next?
#China #Economy #WSJ
American capitalists outsourced production to China and other underdeveloped Asian countries, and also transferred high-pollution, high-energy-consuming low-end industries to Asia. Asians do the dirtiest and hardest work but get the lowest wages to pay for the Americans' high-consumption, high-waste, low-labor luxury life. Americans sit in their offices on Wall Street and reap the benefits of workers all over the world with dollars by tapping on their keyboards. Now they are pretending to be victims here again. They are shifting the conflict between American capitalists and ordinary American workers to geopolitical tensions and blaming China. How hypocritical and shameless.
Well said.
💯 USA took all the benefits, made a ton of money and now acts like they're the victim
totally correct. The only thing that need blame is that China didn't keep only on those low-cost low-end jobs and emerge on high-tech.
While American companies have outsourced production to Asian countries, this strategy has mutually benefited both regions by driving economic growth, lifting millions out of poverty in Asia, and preserving competitiveness in the U.S. High-tech and innovative sectors have flourished in America, creating skilled job opportunities and advancing technology. The portrayal of Americans as living luxurious lives at the expense of others overlooks the significant contributions of American workers across diverse sectors. Geopolitical tensions are complex, involving political ideologies and global leadership roles, not just economic strategies. This interdependence has fostered global connectivity and cooperation, highlighting the need for constructive dialogue to address global challenges together.
@@passiveincomeguide7090”Lifting millions out of poverty in asia”- bro, go check yourself in the head, you’ve been feeding yourself too much american propaganda.
Compare the wages, inhumane working conditions, and exploitation of workers in asia.
How can you say millions of people are lifted out of poverty, when US corporations need to install suicide prevention nets in their factories?
And who is profiting from outsourcing to China? American companies. What a stupid story.
I dont want to be a corporate bootlicker, but the end American consumer also greatly benefitted from outsourcing. Everyone wants to support American businesses till its time to pull out the checkbook
China did for sure and these companies had to give up trade secrets to enter china.
Right
@@kulnoorxseriously
@@kulnoorx Are cheap Chinese goods worth it at the expense of the American Worker? NO.
Here the key point that none is mentioning: Who decides if a factory is transferred to China? A bunch of American corporate guys in New York, Chicago, or in any other city, looking for savings and more profits.
The Owning Class decides and the Talking Class sells the decision to the Working Class. The Talking Class is running scared though, in the age of AI and outsourcing.
@@Catofsteel yes and it’s the fault of that factory worker who was paid 1 dollar a day on that factory floor
And why do they do that, and who do they answer to?
The answer is YOU the end consumer who chose cheaper Made in China products yourself.
@@tom23245 Don't blame consumers who are subjected to the inflation/price control squeeze first imposed by Nixon where wages were frozen while prices continued to skyrocket!
Some of us are old enough, and historically literate ehough, to have retained the memory of the inconvenient past.
Capitalists sought to "tame" workers by shipping our jobs overseas and now seek a scapegoat (but they're not bringing them back, they'r planning to send them to India, or Africa, or anywhere else)
@Polit_Burro No, people are just cheap regardless of what ideology you subscribe you. Between buying 1 excellent quality shirt made in the US for $50 or 10 low quality synthetic fiber shirts from Shein, you know they're picking Shein (because that already happened). The same applies for every other product, be it furniture, kitchenware, appliances, etc.
Why don't you count how much have the US firms earned from this China shock? Why do you only count the damage, not the benefits?
Exactly!
I'm not a fan of China. But did 5.3M jobs lost reflect unemployment rate? 100% of horse buggy manufacturing is dead, doesn't mean all the workers in that trade ended up jobless.
Because it would highlight class inequality, and this is News Corp.
Why would people losing their job care about that?
Yes. While some lost their jobs, the main beneficiary of lost-cost goods were people who shopped at Wal-Mart. In a way, China was helping keep the cost of living low for many of the low-income Americans.
Because the every day working person is getting shafted while "US Firms" make out like bandits. A small few benefit and the vast majority are damaged.
I don’t blame China for this issue in particular. I blame the US for having zero vision and allowing major corporations to do this.
True, actually there are many Chinese companies are willing to invest in the U.S and creating jobs but the U.S gov wont let it happen, for example BYD EV cars.
The vision was to improve the profits for companies so more goodies can be given back to wealthy shareholders.
Cutting prices is the main goal of major corporations
In 2010 I gave up my apartment lease to another American who was working in Shanghai. He worked for a tech firm that was a leader (at the time) of solar panels. Part of the deal that they had to set up shop in China was that they technology transfer as part of the contract. Fast forward 14 years later, and that does seem a rather short-sighted decision for his company.
@@luckyh1217because it would hurt or drive American and Japanese companies out of business. China is not an ally so why would you give your rival the ammo to shoot you with?
Now Fortune 500 companies are outsourcing white -collar jobs at a record pace to India and Central America.
I’m a victim of this, jobs I used to work are completely gone from the US
6 million jobs lost to China aren't small numbers Buddy even if it's cheap, it still costs for trillions of dollars
@@ChandanMishra-ql1bi
Sure the Americans may have lost 7 million manufacturing jobs from the height of their manufacturing days.
But they gained 53 million service sector jobs
33 million of them higher paying jobs than their manufacturing jobs
So with more jobs, more higher paying jobs, and added saving from imported goods
did the average American Invest, save, or even throw that money under the mattress????
No
they spent those added earnings, and thenborrowed to spend some more
👇
The U.S. Lost 7 Million Manufacturing Jobs--And Added 33 Million Higher-Paying Service Jobs
It’s also nonsense. The truth is that America has lost some 7 million manufacturing jobs and added some 53 million jobs in services. This is just what happens with advanced economies-it’s easier to increase productivity in manufacturing than it is in services, this is the heart of Baumol’s Cost Disease. As it was easier to increase productivity in agriculture through mechanising it than it was in manufacturing. Thus, over time, the proportion of the workforce engaged in agriculture falls, so too does the proportion in manufacturing. And given that services (with a couple of small adjustments for mining, construction and utilities) is the name we give to all the rest of the economy therefore an increasing portion of the labour force ends up in services.
Further, of those 53 million new jobs some 62% of them were in higher paying occupations than those “high paying good jobs” in manufacturing we lost. Yes, really, 33 million higher paying jobs came along to replace those 7 million lost. Which does, when you look at those numbers properly, seem like rather a good deal.
Forbes
@@ChandanMishra-ql1biDon't try to deflect the current loss to India of white collar jobs!
Exactly! And the jobs are not back, they are just moved to India, Vietnam, Mexico, etc. The corporates will keep the money to their shareholders instead of sharing a dime with the workers or the consumers. Now we just ended up with more expensive goods. This video is so biased
No... China didnt "destroy" american jobs.
Companies found it was much cheaper to outsource their production to China where labor and material costs were very inexpensive
Hard to compete with near slavery
Thus, indirectly China is destroying US jobs.
more like American companies are too greedy and don't want to invest, they just want easy pickings
@octonoozle have you seen their manufacturing ecosystem? it's crazy
It is at this point
If you extend the graph all the way back to the 80's, you see that manufacturing jobs have been declining long before China entered the picture
And unemployment in the US is at an all time low.
@@teoengchin they blame Japan for that!!!
Because other third countries entered the picture. China isn't special, it's just not a good competitor
China entered the picture before the 80's though dude lol
@@TheCommonSensible And other countries
Look at the high unemployment in China. It's not just China, it's technology and automations. Most jobs have been replaced by robots.
Who made the profits? Why not go after those who made the profits with the offshoring?
You are looking in the wrong place buddy
What worse is both US corporations and government dont reinvest their gained extra profit and taxes efficiently back into US infastructure, healthcare, education.. and have the audacity to blame other countries for its failure
america likes free markets until they start losing
China isn't entitled to American markets, wumao
Anyone who really examines the first five seconds of this video will immediately suspect the WSJ is a nothing but a propaganda farm.
True, but you're from a Chinese propaganda farm
@@stoonookw Hey, let's not rule out the Russians or Saudi Arabia..
YES; American good export and manufacturing jobs start reducing in 1972 , and America shifted to service based and to print a lot more money
This kind of articles treat audience as fool
From the comments, there are many fools in the audience
not everyone is educated like you; clearly, you are not their target audience.
BS. Blame China is easy as always.
The Irony an American Flag made in China.
Harbor freight
The Irony of APPLE Inc Products👀 Designed in California, Assembled in 🇨🇳
@@Booz2020is that really ironic? I really do think… it’s not. :)
(Seriously, though: Apple was one of the last tech firms to move manufacturing to China, and only did so when so many of their competitors did that the cost of keeping US manufacturing was no longer sustainable. Even then, they STILL produce some of their higher-end products in the US. If you weren’t around, or paying attention to tech, during the time US computer-manufacturing was slowly disappearing, you should know that Apple was under constant fire from computer buyers for the dramatically-sigh prices of their US-made machines back then. They’d already cut back on the quality of their mid and low range offerings… which their older customers decried; so the only options they had were to make the stuff to even lower standards, or to offshore (the verb) manufacturing. “Designed in the US”, in this case, is actually a big deal, as it shows they still drew the line somewhere. Other tech companies would’ve moved EVERYTHING overseas, designers and makers alike.)
@@axelkincaide6045Yeah, Im not sure with ya explanation 💬 It's just, Die Hard Apple FanBoy will always buy Apple products no matter how Expensive ARE their prices 👀
Americans don't get irony.
Usually late night, two Chinese guys on bicycles pedaled up to American factories, and in an act of sheer absurdity, they packed up all the jobs in entire factories, tucked it under their arms and quietly cycled away to China with all jobs to a new spot. This is how it happened.
😂😂
🎉Génie story 😂
So unfair report here... only the one side story.
America/ western propaganda
Why don't you tell us the other side story, wumao?
>economy is tanking
>everyone has smaller budgets
>everyone buys cheaper Chinese stuff because they can't afford American made stuff
>"surely, making the Chinese stuff as expensive as American stuff is the solution"
How do you think Japan, South Korea, and China build up their industries? Their protectionism makes America look like a joke.
It was corporate greed that caused the shutdown of American factories in the first place. If these corporations truly valued their employees, they wouldn’t have shut down these factories in America and outsourced to China, Vietnam, Bangladesh, India, etc.
Chasing ever higher profit margins and the constant need to report "growth" brought us here. It's a race to the bottom.
WSJ spitting protectionist fallacies is not what I expected to be on my bingo card this year.
很难想象
they've been doing this for ages, where have you been?
@@AZ-rg3rf some of their columnists are pro-free trade
keep blaming china for everything economical , blame russia for European / American issues, blame Iran for American / Middle East issues. blame blame blame
There are three Stooges wanting to become the Next President. They have a limited knowledgs of the economy. They still believe we are an economical superpower. They won't tell us how they will deal with coming crash. It will be so bad that America will become a third world country almost overnight.
It is what American politicans do, and heart breakingly, so many of the population follow with no questions asked
If Us keep doing this and let the guilty politicians get away with it, Us will go to toilet for sure
Yeah and what does China do during the Hong Kong Protests? Russia during Euromaidan?
@@dfdf-rj8jr China successfully decimate CIA’s plan during Hong Kong protest. Consul General Julie Eadeh met with the leaders of the protest right before it happened. There are photos everywhere.
I'm going to now buy some more items from Temu.
Thank you WSJ
Ironically America who wrote Free Trade rules before Chinese jumped in, and Ironically Chinese manufacturing used to be cheaper due to the cheap labour , but now Chinese factories are more automated than the US
They’re more expensive labor than they used to be which is why companies are shifting to other East Asian countries and Mexico.
Those automated BYD factories are run 24/7. Save the robots !.
I remember WSJ partnered with Heritage Foundation ranked China on par with Haiti in terms of economic freedom index few years ago. I guess business community didn’t buy the story. Why should we buy the story again.
Bc it is the truth?
Its like saying US is on par with Haiti in terms of gun violence 😂. You are a fool @MNTrader2012
@@MNTrader2012 haha dream on, the real truth is that u lived far and beyond ur own means.
37 trillion debt and counting.
Dior's $4500 bag, cost $100 to made. Does it creates more jobs?
love ur critical thinking
The problem with tariffs is they think the extra money will go into workers' pockets. But it actually goes to the politicians.
As long as I don't have to pay a fine for working.
How do you figure that? Did you read that from forum or sites populated by Russian trolls and Chinese wumao?
@@MNTrader2012 ? If your product gets 25% tarrif added on, as a business person it is obvious you will charge consumer to make up the difference
I guess Chinese companies will not sell in U.S. but other companies use China’s supply chains will
What does this even mean
Under 6 million jobs since 2000 seems low
Guess who shipped our jobs overseas in the first place... *The Uniparty* . WSJ wasn't complaining about *that* at the time.
It looks like you've had too much to *think* - I would be careful, lest a Uniparty Thought Police Drone catch you committing wordcrimes against the System.
Not just China, but Mexico too. USMCA/NAFTA, ate away many manufacturing jobs especially in auto sector.
Corporations started shipping jobs to Hong Kong, Taiwan and Japan in the 1970's. Then in the eighties and nineties come post takeover culture of the Reagan era. China opened up and undercut Taiwan, South Korea and Japan. Now Cambodia, Laos, Vietnam undercuts PRC. You can produce products in Serbia, Albania Indiaand Sri Lanka life rolls on. Mexico benefits from location and shipping benefit although parts and components come from PRC.
1960s was the beginning of the era of "Made in China (ROC)" and the 1980s was the era of Made in China"
Seems like the mailman blames email for being out of job.
The mail is almost obsolete, and yes email is the biggest single reason.
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Stop tariffing the Chinese EV cars, let them build the EV manufacturing here , millions of jobs
They're not building EV manufacturing the USA; that's the whole point of the tariffs.
@@philipthecow they are not building or they are not allowed to build
Then they'll have to ban those companies once they start making too much money because NAtiOaL sECuriTY
Chinese cheaper goods also enabled US dollar dominance in the large part of early 2000s especially where there were 2 wars ongoing.
And that helped who? The Cheneys? The Sacklers?
@@DonaldDucksRevenge That helped all the folks that bought imported goods as well. I mean the Dollar, not the war.
@@huckleberryfinn6578 Helped them to see their way out of jobs to buy things with? Helped wages stagnate and CEO pay increase? That it helped
cheaper goods from China don't make USD stronger; China's purchase of the US Treasuries does.
All bot comments get through
Wow
Imagine being so jealous of china exporting and trading
Usa jobs are reliant on creating issues with china😂😂😂
100% tarrif on chinese cars which are substantionally cheaper than the US counter part lol
Greedy corporations
non un patron😎 pense d"abord a sa gueule avant son pays🤗🤑
Capitalism
@@badbadbadcat it's called greed it exists in every economic system including communism
@@norger not greed but profiteering. a pure capitalist characteristic
@@badbadbadcat that's a lot of syllables for Greed again
good luck...no one in the US wants to work at the low level manufacturing; no company in the US is willing to pay the premium to sustain the US workforce...the vicious cycle brews itself.
It's more likely that the lowest income Americans will bear the cost of this in the form of high inflation. Blue collar manufacturing workers will do fine and will be in a strong position to negotiate their wages if the federal government is throwing their full weight behind this onshoring effort. With all policies, there are winners and losers.
If they paid decent like they did in the 90s, people would work it.
Lol... the auto industry "flourished" because of American protectionism. Also, the auto bailouts were conveniently unmentioned. This is one of the worst researched WSJ videos I've watched. If I wanted this level of reporting, I'd watch business insider
Worse researches lol no this is made that way on purpose. Can't have the masses blaming the corporate elites and politicians.
Large companies want to get the advantages of selling in an advanced economy. They want to pay low wages and no taxes. The world economy will collapse under pure greed and corruption.
Does the public realize if outsourcing wasn’t don’t and all jobs stayed in the USA that the consumer would be paying several times more for a product made in the USA?
Yet we say we'll go to war against China if they invade Taiwan but still continue to buy products made in China
American products lasted way way longer.
@@frankgrabasse4642 and how was your standard of living back then?
@@huntebj Good paying union job. Gone now....
@@frankgrabasse4642Ask Boeing who is real U.S. product
The decline of empires is never pretty and America is heading off of a cliff.
❤❤
US is still a rich country with plenty opportunity to go around. Just have to rid of the career politicians, the useless warhawks with delusion of grandeur and 19th century imperialist mentality syndrome, and put in someone who actually know how to run a modern economy, fix crimes, education and healthcare...
7000 views with 70 comments! That's all you need to know about this video. A huge waste of time. And, WSJ, if we're talking about USA vs China, I don't need another of your British speaking experts.
The fundamental tenet of capitalism is to serve its shareholders and not to its employees. All the money saved on shipping jobs to china is being shared to the shareholders.😢😢😢
The graph at 2:49 shows a decline in American employment, ostensibly due to Chinese competition. What it doesn’t say is the fact that we went through a massive recession after the crash of 2008. That had nothing to do with China. are they counting on people not remembering that event?
Instead of funding wor to profit few companies.
America could have given incentives for manufacturing
then companies will be lazy and start made bad products just like Boeing
Wow what a fake narrative 🙄.
It's either China or another cheaper country like Vietnam, Thailand, Mexico, or Malaysia. The problem lies in US Own issues.
American corporations have benefitted immensely from outsourcing to China. The American billionaires and millionaires increased 3-4x fold by using China as their factories. Even social marketing influencers are benefitting immensely from Chinese products.
America and Europe could've gone to Vietnam, India, Malaysia, Indonesia, Mexico, Brazil, and many African countries to manufacture their products in the 1980's-1990's, because labor wages and labor conditions were similar with China.
Why didn't they?
It was very obvious, China was committed to mass production at the greatest value money can buy. That means, they were willing to re-invest what they've earned into labor skillset, transportation infrastructure, and upgrading to a very efficient and effective manufacturing supply chain.
The US needs very critical reforms that has a balance of competitive manufacturing and service industries.
Yellow Peril rhetoric…The WSJ has long devoted itself to agitating for a US, China confrontation, somewhat of an obsession.
That is on top of a war with Russia.
Most likely they get what they wishing for.
If China wasn't constantly threatening their neighbors with invasion, then such rhetoric would be unjustifiable. But right now China is basically foreshadowing plans to engage in Nazi style imperial conquests, complete with whole races of people in concentration camps to boot. You might want to research the Uighur Muslim's sometime. So the framing of this as yellow peril rhetoric is about as invalid as you could possibly get. You seriously need to do more research on what China is doing and foreshadowing.
There is a reason why Japan is significantly bolstering its military. And likewise India. The threat of China is very real.
Yeah nice try, "Kevin Jenner"
Funding wars is expensive, the US should instead put money into the civilian economy
To put money into the civilian economy, all the government has to do is stop taxing us for working.
We already witnessed how senile Biden screwed up Afghanistan. The US is now funding two new wars.
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USA has the highest income in the world, adjusted for government transfers. Keep coping
Which traitor put in all those orders with Chinese factories that make products as good or better than made in US?
From the comments that you could see most Americans are smarter than WSJ 😂
this is futile because soon robots will do the jobs and companies will not need human workers anymore.
Right
As someone who worked in the business consulting industry, I can affirm that more American jobs went to Asia than to people crossing the southern border…
Sure the Americans may have lost 7 million manufacturing jobs from the height of their manufacturing days.
But they gained 53 million service sector jobs
33 million of them higher paying jobs than their manufacturing jobs
So with more jobs, more higher paying jobs, and added saving from imported goods
did the average American Invest,save, or even throw that money under the mattress?????
No
they spent those added earnings, and then borrowed to spend some more
👇
The U.S. Lost 7 Million Manufacturing Jobs--And Added 33 Million Higher-Paying Service Jobs
It’s also nonsense. The truth is that America has lost some 7 million manufacturing jobs and added some 53 million jobs in services. This is just what happens with advanced economies-it’s easier to increase productivity in manufacturing than it is in services, this is the heart of Baumol’s Cost Disease. As it was easier to increase productivity in agriculture through mechanising it than it was in manufacturing. Thus, over time, the proportion of the workforce engaged in agriculture falls, so too does the proportion in manufacturing. And given that services (with a couple of small adjustments for mining, construction and utilities) is the name we give to all the rest of the economy therefore an increasing portion of the labour force ends up in services.
Further, of those 53 million new jobs some 62% of them were in higher paying occupations than those “high paying good jobs” in manufacturing we lost. Yes, really, 33 million higher paying jobs came along to replace those 7 million lost. Which does, when you look at those numbers properly, seem like rather a good deal.
Forbes
@@DW-op7ly buddy you’re preaching to the choir, I agree. It’s the negative spin that Republicans put saying illegal immigrants are stealing American jobs, they’re not lol
Those were the jobs that they couldn't outsource. There's a reason why white male middle aged men have been the second leading demographic for self-cancellation of their lives (we can'ts speak plainly any more thanks to our thoughtlords among the TAlking Class who have reserved certain words for themselves, the more better to control their meaning and use)
The United States has lost 99% of all farm jobs since 1776 but American farmers have higher salaries and produce more farm goods than ever before.
chinas fault for being more competitive 😂 thought you guys believed in capitalism
Sure, why not outsource everything to China, including all strategic and nationally important industries. I'm sure they will be happy to supply the US forever, including during times of conflict, right?
The USA is just lucky China does not think in zero-sum game theory ways
Americans/we in the west would be literally dropping like flies if they did
👇
U.S. officials worried about Chinese control of American drug supply
"Basically we've outsourced our entire industry to China," retired Brig. Gen. John Adams told NBC News. "That is a strategic vulnerability."
If China shut the door on exports of medicines and their key ingredients and raw material, U.S. hospitals and military hospitals and clinics would cease to function within months, if not days," said Rosemary Gibson, author of a book on the subject, "China Rx."
NBCNews
👇
China's lock on drugs
Two pillars of Trump administration policy - combating the soaring prices for prescription drugs and equalizing the U.S. trade imbalance with China - appear to be on a collision course, drug and foreign policy experts say.
That's because the key ingredients for so many essential drugs, from antibiotics and birth control pills to treatments for cancer, depression, high cholesterol and HIV/AIDS, are purchased from China, says Rosemary Gibson, co-author with Janardan Prasad Singh of a new book called "ChinaRx: Exposing the Risks of America's Dependence on China for Medicine."
CNBC
@@user_28943 they moved manufacturing to China, and investment, because they believed if China is completely reliant on the US for growth, and progress, China would become more liberal and pro American.
That was the whole idea... To eventually influence China to follow the US.
They are changing now because they realised that plan didn't work.
They are resorting to desperate measures to curb China's growth.
But it's too late lol
China is too big now...
LOL You'll never guess who the US bought concrete aggregate from in the 1960s for use in Vietnam....
Actually Chinese companies would supply on time. They mean business
@@badbadbadcat US "Heroes in Uniform" are still witing for those Anti-ballistic vests they were supposed to get in 2003 before the illegal and unprovoked invasion of Iraq LOL
It's a good thing Chinese imports kept the cost of living low for Americans because wages here have been pretty much stagnant for years.
0.26: there is another price to be paid: American jobs' and there is a valuable price to be gained: lots of free time. Lots of free time invaluable for Europeans.
we all know this is a lie.
no tariffs. let the best companies win
America is the world's biggest most powerful imperialist warmongering empire, but plays victims and blames it's own problems onto everybody else 😂😂😂😂
"We cant let China do this to us" Meanwhile... They are shipping all their jobs to China. -Thing is. They want tax breaks, economic incentives, bailouts, guarantees and exemptions from rules and regulations before they consider bringing jobs back to the US.
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Get over yourself
I remember a few years ago when the media used to say: The lost of these jobs is no problem, now we can focus on more profitable service jobs.
Bottom line, US labor has no competing edge against foreign labor. California’s progressive politics made it far worse.
Nope . Usa created wars . China created everything else
Free trade is similar to natural evolution: if you can’t compete, it’s best to adapt and pursue something else. For example, if a product costs $10 to produce in the US but only $5 in China, adding tariffs to make the Chinese product cost $11 forces consumers in the US to pay higher prices. This protect inefficient companies or workers, but hurt all consumers and Chinese producers. The only true winner in this scenario is the US government, which collects additional revenue from the tariffs, while everyone else loses out.
Sorry, mr chinaman. The way your leaders pursue this with stealing and government support in order to drive out competitors to rule the market is NOT a natural evolution or competition.
Not necessarily. If all else is held equal, then yes. But China HEAVILY subsidizes certain industry. It’s not “fair” at that point.
But I agree, increased tariffs isn’t the solution because yes, we citizens pay a higher price.
A good example to your point is US ship building industry.
Everyone does not lose if a country like the USA imposes tariff walls against China. The workers who are employed in the corresponding US company will gain along with the companies that supplied to this company, marketing company, distribution company etc etc. They all gains. Consumers are also workers. If the consumers lose their jobs, how can they pay for their consumptions. The country also gains as its trade deficits will be lower.
This is the MBA nonsense. It doesn't factor geopolitics
This explains the waning of American middle class. Traditionally, manufacturing jobs were the great entries for young people to kickstart their careers. With these jobs gone, everyone scrambled to get a higher-ed degree - meaning we need to borrow student loans and enter the workforce later. Then, companies put up experience requirements that are unfair to newly grads. See the vicious cycle here fellas?
1:57 as someone who lived in Cedar Rapids from 2008-2014, I'm surprised to hear about this huge loss of manufacturing that apparently happened just before I got there.
The US teaches everyone in the world about "free trade without restrictions" and "democracy", yet the US itself does neither on its own territory) Beneficial for the US, yes!
Back then a few developed capitalist countries forced 'free trade' idea into the world so they can gain new export market in poor countries with zero opposing competition in manufacturing, and buy poor countries resources at dirt cheap rate to fuel their own economy. It's pretty much neocolonialism. Now they are reverting to protectionism and tariff when other countries had catched up and they cant compete.
I would much rather have a 20k byd that goes 400mi than an 80k ford that does 250mi…
BYD will be putting Tesla out of business soon
They’re in denial. And fighting hard. But they know deep down that time’s up for western “domination” of these sectors.
Trump to the rescue
@@AlexMAGA2024 100% tariffs on BYD cars are still cheaper than Tesla comparable models. It's over.
how does stock market (index) going up, companies profit going up, tariffs going up, incoming staying down, and job going down at the same time?
would/was there be other "foreign shock", like german shock, japan shock, asea shock, india shock, africa shock, or global shock as well?
It's the consumers who benefitted from cheaper goods. With the new tarriffs, we're all paying the price.
It's a deeper problem. When Executives decided to move those manufacturing jobs to China, the whole supply chain was destroyed with it. Good luck building those back...
Two things to consider in the past:
1. Unemployment wave hit Chinese workers at state-own companies just as hard when they first joined WTO;
2. Large US corporations that made massive amount of money from moving their manufacturing bases to China decided to park their profit in off-shore accounts rather than reinvest back into American people.
One thing to consider going into the future:
Implementing tariffs is only a temporary solution that will not improve US competitiveness in the long run
Every American and household who have invested in the stock market AND bought houses have benefited from China entry to WTO. Why? European central bankers acknowledged it was mainly China that had caused Global Inflation to be so low for past 2 decades b4 the pandemic, which means interest rates could never be this low and stock and house prices would not be this high had china never joined WTO.
As an American, I rely on stealing foods, and food banks to survive😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢
Manufacturing has experienced a prolonged decline, burdening Americans with increased workloads. Corporate greed has undermined support for the working class, leading to a struggle that has significantly impacted the middle class.
The key beneficiary of high-value goods at low prices, such as EVs, drones and renewable energy systems is the US consumer. That some cheer on tariffs on these products entering the US marketplace is broadly reflective of the low levels of economic education in the USA. This is quite possibly the last nail in the coffin for America to stay the dominant economic power in the world. Once it shuts itself off, it will wither as it will no longer be able to compete globally.
Yes, why does the WSJ Talking Class hate cheap auto transport for American workers who they've starved and abused?
California isn't losing jobs to China, it's losing jobs because companies are leaving California over policy, taxation and cost of doing business.
The landfills are huge now due to all the cheap products, fridge used to last decades, now you are lucky to get 5, the EU imposes required warranties on products, the US just doesnt care
Sometimes WSJ falls short on reporting. 1. the grocery store used was Whole Foods-not a great example of inflation hilling the masses maybe Safeway was a better option.. 2. Toyota builds cars where it sells them - so it's not specific to the US.
3. The 5.7M jobs went out of the US to improve companies bottom lines and it was detrimental to the US worker. The US Gov. helped this happen but didn't keep its word about retraining the work force.
lol people already jobless and now you jack up the prices. American logic.
Obviously, it is China’s fault that Americans can’t have both egg and cake at the same time.
The "tip" economy in the US is getting out of hand causing higher sticker prices.
It’s a reason why it’s cheaper to be made in China. No unions. Insurance. Entitled people.
China uses slaves. Are you saying people are entitled because they don't want to be a slave?
Even though I plan to stick with it, inflation is wasting my money and my portfolio is losing gains every day, so I need a cure right away. My main concern is how to raise the value of my cash reserve because it has been lying there for a very long time with little to no increases and inflation is currently about 10%.
I know what I want to do now that the market is in decline, but I'm not sure which stocks to buy, which investments would generate the best returns, etc. Due to the risk, the possible benefit is larger, and experts are better at drafting such precise contracts.
In fact, despite having no experience or prior knowledge when I began investing in 2018, by the end of 2019 I had made a profit of over $750k. I had merely been adhering to the advice that my financial counselor had given me. This demonstrates that all you really need is an expert to assist you; you don't even need to be a great investor or put in a lot of work.
That's amazing! Given my failing portfolio, I could really use this manager's abilities. Who exactly has authority over you?
Her name is “TERRI ANNETTE MOORE” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
Without China, an iPhone would cost you 9,000 dollars.
Could someone please care to explain why this is so significant? US population is of 333 million but only 6 million jobs lost, roughly 2%.
China (and Asian in general) AI and Robotics btw is far superior. At least from the commercially available customer facing aspect. Not sure about the behind doors stuff.
Can you name 1 product in that sector that's superior to its US counterpart?
US is the leader in both AI & robotics and by a huge margin...
@@realharo Runway
@@djpuplex That's a US company (if you're talking about the video-generating AI)
@@realharo 美国 AI 主要在服务业，中国 AI 主要在制造业。你不知道，不意味着他们不存在。中国工业机器人密度，不但是数量是世界前三的。自己去查
toyota is making a huge new factory in shanghai that is solo owned. why? toyota is smart. they will build ev in china, for the world.
American companies gained $10,000, while American workers borne $50 billion in losses from industrial transfer, and they only received $4 billion in compensation. This is the problem facing the United States, the contradiction between the rich and the poor.
today manufactorying is highly automatic, ev battery and semiconductor doesn't need cheap labour, so manufactorying should come back to US
After "overcapacity" now "China Shock" ?
It's my right as an American to buy a 10K car from China.
If the America automakers cannot compete, let them go out of business
American Govt and People are to blame, why did they let this happen, a well educated and oriented nation let this happened to themselves. Unbelievable
How many times did the US government bail out the auto industry because of their lackluster product and management
What about quality? You get what you pay for!
The quality of made in China recently is quite decent given the price per quality due to automation takes over, economies of scale, skilled labour and the underlying infrastructure.
That applies in China too. Pay more, get a good product.
You do realize alot of high quality brands products are still made in china, or use parts made in china right?
China 🇨🇳 has an industrial overcapacity issue. This is a structural economic model issue that can only be fixed by a regime change.
Get out taiwan bot
Chinese gov relies too heavily on certain industries like manufacturing and real estate. They artifically prop up industries they like (even if it doesnt make strategic economic sense like overinvestment in manufacturing) and disrupt industries that displease them (even if they will strengthen their economy like tech / gaming aka tencent and retail aka alibaba). Alibaba was the amazon of china until founder Jack Ma angered the chinese gov. Now companies like Temu have taken charge and made things a race to the bottom in China where people barely make money from selling dirt cheap products.
@@AJ-jx5gmThe industries chosen by the Chinese government are fron their predatory behavior.
self shock 1.0= american corporations outsourcing to china; self shock 2.0= move manufacturing jobs to vietnam, india, mexico..... for higher corporate profits, outsourcing manufacturing pollution, and get real cheap products to control inflation. LOL
WSJ should ask why western countries outsource their production to low cost labour countries eg china. Secondly is the USA presently a friendly investable countries? Forcing Chinese companies to sell their companies in USA, using legislation ? Outsourcing to other countries , then using transfer pricing techniques. The list will be long.