This is why I think it's funny when people say "sanction China!".
What if China sanctions us? poof there goes pretty much everything.
If it happened today, we couldn't recover from it. It would be practically impossible to shift and move quickly enough to fill the gaps. One has to admit, China is pretty smart for becoming the world's backbone of base-level manufacturing. They hold more power just because of the exploitation of their people's labor than any other country does.
These "chip shortages" aren't as new as they'd like us to think either. It started well before covid did. Anyone trying to build a PC in 2018/19 would have experienced it. The lack of hardware wasn't due to a lack of manufacturing and scalpers, but a lack of chips required to build the hardware. Whether it's artificial or not is the only real question here.
The supply chain issues started under Trump. These issues started way back when with policies that enriched multinational companies. That's the biggest issue with running everything through game theory, it's very short term in nature
Before Trump. They were starting to manifest heavily during his term. Probably a big reason why he tried to bring manufacturing back home. That and economic activity for service sector jobs is less than $2 per dollar spent and manufacturing is over $7 per dollar spent. The stage was set for this scenario long before he took office
This is why I think it's funny when people say "sanction China!".
What if China sanctions us? poof there goes pretty much everything.
If it happened today, we couldn't recover from it. It would be practically impossible to shift and move quickly enough to fill the gaps. One has to admit, China is pretty smart for becoming the world's backbone of base-level manufacturing. They hold more power just because of the exploitation of their people's labor than any other country does.
These "chip shortages" aren't as new as they'd like us to think either. It started well before covid did. Anyone trying to build a PC in 2018/19 would have experienced it. The lack of hardware wasn't due to a lack of manufacturing and scalpers, but a lack of chips required to build the hardware. Whether it's artificial or not is the only real question here.
The supply chain issues started under Trump. These issues started way back when with policies that enriched multinational companies. That's the biggest issue with running everything through game theory, it's very short term in nature
[uncontrollable laughter]
So… not under Trump, then.
Before Trump. They were starting to manifest heavily during his term. Probably a big reason why he tried to bring manufacturing back home. That and economic activity for service sector jobs is less than $2 per dollar spent and manufacturing is over $7 per dollar spent. The stage was set for this scenario long before he took office
Uh, yeah.