5 Comments
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Frank Lee's avatar

While I agree with the main point here that the Trump Admin actions are too limited with too much reliance on tarrifs, there is a missing acknowledgment of the US leading in the space part of aerospace. However, no big capital investment in innovation will help while China steals US IP and ignores patent rights. As Palmer Lucky points out, we need to cut off China from patent information access, and prevent all the industrial espionage.

Richard's avatar

Europe WAS an ally. Now they are a rival if not something worse. The future is with the non-Chinese Asian powers.

SubstaqueJacque's avatar

Great post! Please keep elevating the question of WHERE that tariff revenue has gone to. I think if it were already being very publicly deployed to address urgent public needs (including revitalizing necessary industries), the Supreme Court reversals would have gone differently and Congress would be getting onboard. We've blown a vital opportunity - as you so incisively said, building a wall around an empty lot.

Roger Platt's avatar

Mr. Lynn does not talk about the flip side of ramping up capital investment in key industries. The funds will likely have to come from reducing consumption. And with increased automation the investments will produce fewer new jobs than in the past. We will not have to worry about these trade-offs during the current administration. It will just pile on the debt until the USA loses its reserve currency status. The current administration will also not invest in key technology that our President does not like (e.g. wind, solar and electric vehicles).

David Jordan's avatar

but… muh socialism…