Subj : The US as a manufacturing country?
To   : All
From : Joseph Pereira
Date : Tue Apr 08 2025 15:08:05


Trump seems to have the idea that the US can create a fully-fledged manufacturing industry again.

With such a policy, you completely abandon globalization.

Now, globalization has some disadvantages, including the creation of ridiculously large and powerful companies, but the big advantage is that you can produce worldwide in the most efficient way and mutual dependence is created, which also means that you can prevent wars.

But anyway, with globalization you can make a choice. You can produce where the raw materials are, or produce where cheap energy is, or produce where labor is cheapest. If energy becomes more expensive, you can shift production to another part of the world. The same goes for all other changes.

If you decide, as the US now seems to be doing, to produce in your own country no matter what, then you distance yourself from 'most efficient'.

In short, the US is content with the fact that it will produce more expensively. If the rest of the world continues to cooperate, the US will become a very expensive economic island that will only produce for itself and that will make the cheaper foreign products in the US expensive by means of enormous tariffs.

Australia did that until the 1970s. There you could buy an Australian TV for much more money than a Japanese TV that also had much better picture and sound. That is why Japanese TVs had an enormous import tariff that allowed the Australian manufacturer to survive.

The US no longer wants to be economically and indirectly militarily dependent on other countries. In doing so, it also makes itself an enemy of all other countries. The US will no longer buy foreign goods en masse. American goods will soon be too expensive and probably also too bad to be interesting elsewhere.

America's economy will therefore shrink enormously. The dollar will become a currency of the past for the rest of the world. We no longer have any reason to hold dollars. After all, we will do much less business with the US.

The dollar as a world currency is therefore becoming a thing of the past and with it the power of the US is also shifting towards the past. For the time being, the US will remain powerful, but the power of the US is waning and with each new quarrel that Trump enters into, the influence of the US will decrease.

It is not good news for peace, because there will always be countries that want more power and if that is multiple countries at the same time, then the world will not become any safer.

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