"In any event, whether goods are made by man or machine, it will be better to have them made on shore. But to get them back over here, might be like "pulling the needle out of the arm" for some industries. Trump knows that. That is why he is incentivizing companies by offering them zero tariffs to make stuff here."
Donald Trump's ship of state is starting to make its big turn. And it will be painful for some. Why? Our stock market is built on two things - instant gratification and globalism. Why is that? That is just the way we are. Trump has told us the Chinese are in for the long haul, and they have a long view on many things. We don't. A friend of mine, every time there is a market correction or significant downturn, will say things like, "Trump cost me a fortune the other day." Not he didn't. It did not cost you a penny, unless you sold.
An instructor I had in business school would always say this about the market - "It is like a roller coaster. Sometimes up, sometimes down. The only people who get hurt on a roller coaster are those who jump off while it is down." In other words, hold tight and don't get your undies in a wad. For reasons of national security and in order to have many more domestic jobs, it is good to onshore what has been offshore. BTW - we are getting socked with tariffs and other taxes (like VAT) when we buy or manufacture overseas. And if China and India ever stop producing many of our meds, we would be screwed, blued and tattooed (as we said in the Navy).
How long will it take to switch our economy to almost 100% onshore manufacturing? Long after Trump's term is done. But much can be done while he is still president. Will the stock market come back? Even to where it is over-valued. Maybe. However, if this correction means that the ERS will help offset the IRS, we will all develop more wealth by keeping more of what we earn. All of a sudden, we are talking about help for main street and not as much for wall street.
There is however, one fly in the ointment with manufacturing here or abroad. AI and robotics. Jobs that were to go to the American worker, might go to an American bot instead. A technologist I follow (Julia McCoy), often talks and writes about the coming work revolution. How many of our jobs in the next five years will NOT be done by humans. Millions of jobs, performed flawlessly by this army of bots, which will be made before 2030. Elon Musk alone wants to make millions of Optimus bots. Some to run his factories, others to sell to the public.
In any event, whether goods are made by man or machine, it will be better to have them made on shore. But to get them back over here, might be like "pulling the needle out of the arm" for some industries. Trump knows that. That is why he is incentivizing companies by offering them zero tariffs to make stuff here.
When will the market get better? Are we all going to be poorer? My advice - start looking at the calendar and not the clock. As was said in the TV show Kung Fu, "Patience grasshopper". Plus, as our president would say, "Things will be fine. We have the cards." And we do.
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