Reply #5: I'm mixed about tariffs

[drmeow]

higher tariffs prevented the American car manufacturers from revising their business plan and what types of cars they made - they prevented inefficient businesses from becoming more efficient. On the other hand, keeping American workers employed is also important. Perhaps tariffs should be tied not to the product but the means of production. Treat your workers right and pay them a good wage and we'll lower your tariffs. Use slave labor and we'll tariff you to no end.

As for the parable, I do think American business is middle management heavy.

But the other problem is that American business is short sighted. I don't think it has always been this way. But over a number of decades the notion of instant returns on investments has taken hold in the American mind. Business leaders don't seem to recognize that higher costs now will yield greater increases in revenue in the long run. All they see is that that quarter's bottom line will look bad and people will sell their stock. So they do nothing to damage their short term bottom line.

Then there is greed. When CEOs are paid huge bonuses by sending manufacturing overseas to increase dividends, you know greed is the defining factor. It is also short sighted in the sense that you can't sell products here if you don't employ people. Ford (not the company, the man who started the company) had it right - pay your employees enough money to buy your product. Its a surefire way to stay in business.

The argument that we can't stay competitive if we pay people a living wage is bullshit. Companies can't expect to may disgustingly high CEO salaries and bonuses and stupidly high rates of return on investments if they pay people a living wage but cut that CEOs salary and redistribute it to the workers and, viola, a living wage with no loss of revenue!